Document:

Exhibit 10.44

 

THE
OFFER AND SALE OF THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE
UNDERLYING SHARES OF STOCK HAVE NOT BEEN REGISTERED PURSUANT TO THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW.  NEITHER THIS WARRANT NOR THE UNDERLYING
STOCK, NOR ANY PORTION THEREOF OR INTEREST THEREIN, MAY BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THE SAME IS REGISTERED AND
QUALIFIED IN ACCORDANCE WITH SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW,
OR, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, SUCH
REGISTRATION AND QUALIFICATION ARE NOT REQUIRED.

 

	
  Warrant No. W-2

  	
   

  	
  October 21,
  2005

  

 

WARRANT

to Purchase the Common Stock of 

Hawaiian Holdings, Inc.

 

THIS
CERTIFIES THAT, for value received, RC Aviation, LLC, having
an address at 12730 High Bluff Drive, Suite 180, San Diego, California
92130, or registered assigns, is entitled to purchase from Hawaiian Holdings, Inc.,
a Delaware corporation, or any successor (the “Company”), in whole or in
part, at a purchase price of $7.20 per share (subject to adjustment as provided
herein), at any time, from and after the date hereof to and including June 1,
2010, 6,283,705 shares of the fully paid and nonassessable Common Stock (as
herein defined) (as such number may be adjusted as provided herein).

 

The shares of Common
Stock which may be purchased pursuant to this Warrant are referred to herein as
the “Aggregate Number”.  Certain
terms used in this Warrant are defined in Section 6.

 

This Warrant replaces
Warrant No. W-1, which was issued in connection with the Equity Commitment
Letter.

 

The number of shares of
Common Stock purchasable hereunder (“Warrant Shares”) is subject to
adjustment as hereinafter set forth. 
This Warrant is subject to the following provisions, terms and conditions:

 

1.                                       (a)                                  Exercise of Warrant.  The
rights represented by this Warrant may be exercised by the Holder hereof, in
whole or in part (but not as to a fractional share of Common Stock), by (A) the
delivery of this Warrant, together with a properly completed Subscription Form in
the form attached hereto, to the principal office of the Company at 3375
Koapaka Street, Suite G-350, Honolulu, HI 96819 (or to such other address
as it may designate by notice in writing to the Holder) and (B) payment to
the Company of the Warrant Purchase Price for the Warrant Shares being
purchased (i) by cash or by certified check or bank draft, (ii) as
provided in Section 1(b) or (iii) any combination thereof.  In the case of payment of all or a portion of
the Warrant Purchase Price pursuant to Section 1(b), the direction of the
Holder to made a “cashless exercise” shall serve as accompanying payment for
that potion of the Warrant Purchase Price. 
The Company agrees that the shares so purchased shall be deemed to be
issued to the Holder as the record 

 

 

owner of such shares as of the
close of business on the date on which this Warrant shall have been delivered
to the Company and payment made for such shares as aforesaid.  Certificates for the shares so purchased shall
be delivered to the Holder within ten (10) Business Days after the rights
represented by this Warrant shall have been so exercised, and, unless this
Warrant has expired, a new Warrant representing, and with an Aggregate Number
equal to, the number of Warrant Shares, if any, with respect to which this
Warrant shall not then have been exercised, in all other respects identical
with this Warrant, shall also be issued and delivered to the Holder within such
time, or, at the request of such Holder, appropriate notation may be made on
this Warrant and signed by the Company and the same returned to such Holder.

 

(b)                           Cashless Exercise.  If
the sale of the Warrant Shares is not covered by a registration statement under
the Securities Act, the Holder shall have the right to pay all or a portion of
the Warrant Purchase Price by making a “Cashless Exercise” pursuant to this Section 1(b),
in which case (i) shares of the Company’s Common Stock other than the
Warrant Shares or (ii) at any time after June 1, 2006, the Warrant
Shares to be acquired upon the exercise of this Warrant may be applied to pay
the exercise price in connection with the exercise of this Warrant in whole or
in part.  Any shares of Common Stock or Warrant
Shares transferred to the Company as payment of the exercise price under this
Warrant shall be valued at the Fair Market Value of such shares of Common Stock
or Warrant Shares.

 

(c)                            Transfer Restriction Legend. 
Each certificate for Warrant Shares issued upon exercise of this
Warrant, unless at the time of exercise the offer and sale of such Warrant
Shares are registered under the Securities Act, shall bear the following legend
(and any additional legend required by applicable law or rule) on the face
thereof:

 

The offer and sale of the shares of stock represented
hereby have not been registered pursuant to the Securities Act of 1933, as
amended, or any state securities law. 
Neither these shares, nor any portion thereof or interest therein, may
be sold, transferred or otherwise disposed of unless the same are registered and
qualified in accordance with said Act and any applicable state securities law,
or, in the opinion of counsel reasonably satisfactory to the Company, such
registration and qualification are not required.

 

The provisions of Section 2 shall be binding upon
all holders of certificates for Warrant Shares bearing the above legend and
shall also be applicable to all holders of this Warrant.

 

(d)                           Expenses and Taxes on Exercise. 
The Company shall pay all expenses, taxes and other charges payable in
connection with the preparation, execution and delivery of any stock
certificates and substitute Warrants pursuant to this Section 1, except
that, in case such stock certificates or Warrants shall be registered in a name
or names other than the name of the holder of this Warrant, funds sufficient to
pay all stock transfer taxes which shall be payable upon the execution and
delivery of such stock certificates or Warrants shall be paid by the Holder to
the Company at the time the Company delivers such stock certificates or
Warrants to the Company for exercise.

 

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(e)                            Limitation on Exercise. 
Notwithstanding any provision of this Warrant to the contrary, the
number of shares of Common Stock that may be acquired by the Holder upon any
exercise of this Warrant shall be limited to the extent necessary to ensure
that, following such exercise, the total number of shares of Common Stock then
beneficially owned by Holder, its affiliates, any investment manager having discretionary
investment authority over the accounts or assets of the Holder, or any other
Persons whose beneficial ownership of Common Stock would be aggregated with the
Holder’s for purposes of Section 13(d) and Section 16 of the
Securities Exchange Act of 1934 (the “Exchange Act”) does not exceed 9.999% of
the total number of issued and outstanding shares of Common Stock (including
for such purpose the shares of Common Stock issuable upon exercise of this
Warrant).  For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder.  The Company’s obligation to issue shares of
Common Stock in excess of the limitation referred to in this Section 1(e) shall
be suspended (and shall not terminate or expire notwithstanding any contrary
provisions hereof) until such time, if any, as such shares of Common Stock may
be issued in compliance with such limitation. 
By written notice to the Company at any time on or after the date
hereof, the Holder may waive the provisions of this Section 1(e), or
increase or decrease such limitation percentage to any other percentage
specified in such notice, not to exceed 9.999%. 
Any such waiver, or increase or decrease, will not be effective until
the sixty-fifth day after such notice is delivered to the Company

 

2.                                       (a)                                  Warrants and Warrant Shares Not Registered;
Transferee Restrictions.  Each Holder, by acceptance thereof,
represents and acknowledges that the offer and sale of this Warrant and the
Warrant Shares which may be purchased upon exercise of this Warrant are not
being registered under the Securities Act, that the issuance of this
Warrant and the offering and sale of such Warrant Shares are being made in
reliance on the exemption from registration under Section 4(2) of the
Securities Act as not involving any public offering and that the Company’s
reliance on such exemption is predicated in part on the representations made by
the initial Holder of this Warrant to the Company that such Holder (i) is
acquiring this Warrant for investment purposes for its own account, with no
present intention of reselling or otherwise distributing the same in violation
of the Securities Act, subject, nevertheless, to any requirement of law that
the disposition of its property shall at all times be within its control, (ii) is
an “accredited investor” as defined in Regulation D under the Securities Act
and (iii) has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of the
investments made or to be made in connection with the acquisition and exercise
of this Warrant.  Neither this Warrant
nor the related Warrant Shares may be transferred except pursuant to an
effective registration statement under the Securities Act or upon the
conditions specified in Section 2(b).

 

(b)                           Notice of Transfer, Opinion of Counsel. 
Each Holder, by acceptance hereof, agrees that prior to the disposition
of this Warrant or of any Warrant Shares, other than pursuant to an effective
registration under the Securities Act, such Holder will give written notice to
the Company expressing such Holder’s intention to effect such disposition and
describing briefly such Holder’s intention as to the manner in which this Warrant
or the Warrant Shares theretofore issued or thereafter issuable upon exercise
hereof, are to be disposed together with an opinion of counsel as may be
designated by such Holder and reasonably satisfactory to the Company as to the
necessity or non-necessity of registration under the Securities Act.  If in the opinion of such 

 

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counsel, the proposed disposition does not require registration under
the Securities Act of the disposition of this Warrant and/or the Warrant Shares
issuable or issued upon the exercise of this Warrant, such Holder shall be
entitled to dispose of this Warrant and/or the Warrant Shares theretofore
issued upon the exercise hereof, all in accordance with the terms of the notice
delivered by such Holder to the Company. 
The Company is entitled to rely on the most recent written notice from
the Holder with respect to the ownership of the Warrant.

 

3.                                       Representations, Warranties and Covenants of the
Company.

 

(a)                            The Company hereby represents and
warrants that:

 

(A)                              The
Company has full corporate power and authority to execute and deliver this
Warrant.

 

(B)                                The
execution and delivery of this Warrant and the consummation by the Company of
the transactions contemplated hereby have been duly and validly approved by all
necessary corporate action on the part of the Company.

 

(C)                                This
Warrant has been duly executed and delivered by the Company and constitutes the
legal, valid and binding obligation of the Company, enforceable in accordance
with its terms.

 

(D)                               The
Holder of this Warrant, when such Warrant is issued by the Company to such
Holder, shall have good title thereto free from all taxes, liens and charges
with respect to the issuance thereof.

 

(b)                           The Company covenants and agrees that:

 

(A)                              Reservation
of Shares.  During the period within
which the rights represented by this Warrant may be exercised, the Company will
have at all times authorized, and reserved for the purpose of issue or transfer
upon exercise of the rights evidenced by this Warrant, a sufficient number of
shares of the Common Stock to provide therefore

 

(B)                                Issuance
of Shares.  The Warrant Shares issued
pursuant to the exercise of this Warrant will, upon issuance, be duly and
validly issued, fully paid and nonassessable and the holder of such Warrant
Shares shall have good title to such Warrant Shares free from all taxes, liens
and charges with respect to the issuance thereof.

 

(C)                                Listing
on Securities Exchanges.  The Company
promptly will procure at its sole expense the listing of all Warrant Shares
then registered for public sale (subject to issuance or notice of issuance) on
all stock exchanges on which the shares of Common Stock are then listed.

 

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4.                                       Participation in Distributions of Common Stock and
Certain Adjustments.

 

Under certain conditions,
the Aggregate Number is subject to adjustment as set forth in this Section 4.  No adjustments shall be made under this Section 4
as a result of the issuance by the Company of the Warrant Shares upon exercise
of this Warrant.

 

(a)                            Adjustments. 
The Aggregate Number, after taking into consideration any prior
adjustments pursuant to this Section 4, shall be subject to adjustment
from time to time as follows and, thereafter, as adjusted, shall be deemed to
be the Aggregate Number hereunder.  No
adjustment shall be made under this Section 4(a) upon the issuance of
Convertible Securities or Common Stock issuable upon exercise or conversion of
such Convertible Securities if an adjustment shall previously have been made
upon the issuance of such Convertible Securities pursuant to Section 4(c).

 

(i)                                                       Stock Dividends; Subdivisions and
Combinations.  In case at any time or from time to time the
Company shall:

 

(A)                              issue
to the holders of the Common Stock a dividend payable in, or other distribution
of, Common Stock (a “Stock Dividend”),

 

(B)                                subdivide
its outstanding shares of Common Stock into a larger number of shares of Common
Stock, including without limitation by means of a stock split (a “Stock
Subdivision”), or

 

(C)                                combine
its outstanding shares of Common Stock into a smaller number of shares of
Common Stock (a “Stock Combination”),

 

then the Aggregate Number
in effect immediately prior thereto shall be (1) proportionately increased
in the case of a Stock Dividend or a Stock Subdivision and (2) proportionately
decreased in the case of a Stock Combination. 
In the event the Company shall declare or pay, without consideration,
any dividend on the Common Stock payable in any right to acquire Common Stock
for no consideration, then the Company shall be deemed to have made a Stock
Dividend in an amount of shares equal to the maximum number of shares issuable
upon exercise of such rights to acquire Common Stock.

 

(ii)                                                    Other Distributions. 
In case at any time or from time to time the Company shall take a record
of the holders of the Common Stock for the purpose of entitling them to receive
any dividend or other distribution, other than a distribution of Common Stock,
Convertible Securities or options, warrants or other rights to subscribe for or
purchase any Convertible Securities (collectively, a “Distribution”),
of:

 

(A)                              Cash
(other than regular quarterly dividends payable out of current consolidated
earnings);

 

(B)                                any
evidences of its indebtedness, any shares of its Capital Stock (other than
Common Stock) or any other securities or property of any nature whatsoever
(other than cash); or

 

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(C)                                any
options, warrants or other rights to subscribe for or purchase any of the
following: any evidences of its indebtedness, any shares of its Capital Stock
(other than Common Stock) or any other securities or property of any nature
whatsoever (other than cash),

 

then the Holder shall be
entitled to receive such Distribution as if the Holder had fully exercised this
Warrant upon the exercise of this Warrant at any time on or after the taking of
such record, the number of Warrant Shares to be received upon exercise of this
Warrant determined as stated herein and, in addition and without further
payment, the cash, evidences of indebtedness, stock, securities, other
property, options, warrants and/or other rights (or any portion thereof) to
which the Holder would have been entitled by way of such Distribution and subsequent
dividends and distributions through the date of exercise as if such Holder (x)
had fully exercised this Warrant immediately prior to such Distribution and (y)
had retained the Distribution in respect of the Common Stock and all subsequent
dividends and distributions of any nature whatsoever in respect of any stock or
securities paid as dividends and distributions and originating directly or
indirectly from such Common Stock.

 

A reclassification of the
Common Stock into shares of Common Stock and shares of any other class of stock
shall be deemed a Distribution by the Company to the holders of the Common
Stock of such shares of such other class of stock and, if the outstanding
shares of Common Stock shall be changed into a larger or smaller number of
shares of Common Stock as a part of such reclassification, such event shall be
deemed a Stock Subdivision or Stock Combination, as the case may be, of the
outstanding shares of Common Stock within the meaning of Section 4(a)(i) hereof.

 

(iii)                                                 Issuance of Common Stock. 
If at any time or from time to time the Company shall (except as hereinafter
provided in this Section 4(a)(iii)) issue or sell any additional shares of
Common Stock for a consideration per share less than the Fair Market Value,
then, effective on the date specified below, the Aggregate Number shall be
adjusted by multiplying (A) the Aggregate Number immediately prior thereto
by (B) a fraction, the numerator of which shall be the sum of the number
of shares of Common Stock outstanding immediately prior to the issuance of such
additional shares of Common Stock (calculated on a Fully Diluted basis) and the
number of such additional shares of Common Stock so issued and the denominator
of which shall be the sum of the number of shares of Common Stock outstanding
immediately prior to the issuance of such additional shares of Common Stock
(calculated on a Fully Diluted basis) and the number of shares of Common Stock
which the aggregate consideration for the total number of such additional
shares of Common Stock so issued would purchase at the Fair Market Value.  The date as of which the Fair Market Value
shall be computed shall be the earlier of the date on which the Company shall
enter into a firm contract or commitment for the issuance of

 

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such additional shares of Common Stock or the date of actual issuance
of such additional shares of Common Stock.

 

The provisions of
this Section 4(a)(iii) shall not apply to any issuance of additional
shares of Common Stock for which an adjustment is otherwise provided under Section 4(a)(i) hereof.  No adjustment of the Aggregate Number shall
be made under this Section 4(a)(iii) upon:

 

(A)                              the
issuance of any additional shares of Common Stock which are issued pursuant to
(x) the exercise of other subscription or purchase rights or (y) the exercise
of any conversion or exchange rights in any Convertible Securities, provided
that for purposes of clauses (x) or (y) an adjustment shall previously have
been made upon the issuance of such other rights or upon the issuance of such
Convertible Securities pursuant to Section 4(a)(iv) or (v) hereof
or no such adjustment shall have been required upon the issuance of such other
rights or Convertible Securities;

 

(B)                                the
issuance of Common Stock in any merger or other acquisition of a business or
Person approved by the Board of Directors of the Company;

 

(C)                                the
issuance of Common Stock in a Qualified Public Offering;

 

(D)                               the
issuance of Common Stock upon the exercise of rights issued in connection with
the contemplated rights offering by the Company for the purpose of the
redemption of the Series A Subordinated Convertible Notes and Series B
Subordinated Convertible Notes issued by the Corporation (collectively, the “Subordinated
Convertible Notes”), prior to the first anniversary of the issuance of the
Subordinated Convertible Notes;

 

(E)                                 the
issuance of up to 1,500,000 shares of Common Stock issuable to unions of
Hawaiian Airlines, Inc., in transactions approved by the Board of Directors
of the Company;

 

(F)                                 the
issuance of shares of Common Stock upon the exercise of stock options or other
awards made or denominated in shares of Common Stock under the Company’s 2005
Stock Incentive Plan or any of the Company’s other stock plans including any
stock option, stock purchase, restricted stock or similar plan hereafter
adopted by the Board of Directors of the Company and, if required by applicable
law or stock exchange requirement, approved by the stockholders of the Company;

 

(G)                                the
issuance of Common Stock on exercise or conversion of Convertible Securities
outstanding on the Closing Date; or

 

(H)                               the
issuance of Common Stock pursuant to Convertible Securities to financial
institutions or similar entities in transactions approved by 

 

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the Board of Directors of the Company, the principal purpose of which
is not raising capital through the sale of equity securities.

 

(iv)                                                Warrants and Options. 
If at any time or from time to time the Company shall take a record of
the holders of the Common Stock for the purpose of entitling them to receive a
distribution of, or shall in any manner (whether directly, by assumption in a
merger in which the Company is the surviving corporation and in which the
shareholders of the Company immediately prior to the merger continue to own
more than fifty percent (50%) of the outstanding Common Stock immediately after
the merger and for a period of one hundred eighty (180) days thereafter, or
otherwise) issue or sell any warrants, options or other rights to subscribe for
or purchase, directly or indirectly, any Convertible Securities, whether or not
the rights to subscribe, purchase, exchange or convert thereunder are
immediately exercisable, and the consideration per share for which additional
shares of Common Stock may at any time thereafter be issuable pursuant to such
warrants, options or other rights or pursuant to the terms of such Convertible
Securities shall be less than the Fair Market Value, then the Aggregate Number
shall be adjusted as provided in Section 4(a)(iii) hereof on the
basis that (A) the maximum number of additional shares of Common Stock
issuable pursuant to all such warrants, options or other rights or necessary to
effect the conversion or exchange of all such Convertible Securities shall be
deemed to have been issued as of the date of the determination of the Fair
Market Value as hereinafter provided and (B) the aggregate consideration
for such maximum number of additional shares of Common Stock shall be deemed to
be the minimum consideration received and receivable by the Company for the
issuance of such additional shares of Common Stock pursuant to the terms of
such warrants, options or other rights or such Convertible Securities.  For purposes of this Section 4(a)(iv),
the effective date of such adjustment and the date as of which the Fair Market
Value shall be computed shall be the earliest of (x) the date on which the
Company shall take a record of the holders of the Common Stock for the purpose
of entitling them to receive any such warrants, options or other rights, (y)
the date on which the Company shall enter into a firm contract or commitment
for the issuance of such warrants, options or other rights and (z) the date of
actual issuance of such warrants, options or other rights.

 

No adjustment of
the Aggregate Number shall be made under this Section 4(a)(iv) upon:

 

(A)                              the
issuance of any warrants, options or other rights which are issued pursuant to
the exercise of any warrants, options or other rights if an adjustment shall
have been made or is contemporaneously made or if no such adjustment shall have
been required upon the issuance of such warrants, options or other rights,
pursuant to this Section 4(a)(iv);

 

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(B)                                the
issuance of warrants, options or other rights to subscribe for or purchase
Convertible Securities in any merger or other acquisition of a business or
Person approved by the Board of Directors of the Company;

 

(C)                                the
issuance of warrants, options or other rights to subscribe for or purchase
shares of Common Stock or other awards made or denominated in shares of Common
Stock under the Company’s 2005 Stock Incentive Plan or any of the Company’s
other stock plans including any stock option, stock purchase, restricted stock
or similar plan hereafter adopted by the Board of Directors of the Company and,
if required by applicable law or stock exchange requirement, approved by the
stockholders of the Company;

 

(D)                               the
issuance of rights to purchase Common Stock issued in connection with the
contemplated rights offering by the Company for the purpose of the redemption
of the Subordinated Convertible Notes, prior to the first anniversary of the issuance
of the Subordinated Convertible Notes; or

 

(E)                                 the
issuance of options, warrants or other rights to subscribe for or purchase
Convertible Securities to financial institutions or similar entities in
transactions approved by the Board of Directors of the Company, the principal
purpose of which is not raising capital through the sale of equity securities.

 

(v)                                                   Convertible Securities. 
If at any time or from time to time the Company shall take a record of
the holders of the Common Stock for the purpose of entitling them to receive a
distribution of or shall in any manner (whether directly, by assumption in a
merger in which the Company is the surviving corporation and in which the
shareholders of the Company immediately prior to the merger continue to own
more than fifty percent (50%) of the outstanding Common Stock immediately after
the merger and for a period of one hundred eighty (180) days thereafter, or
otherwise) issue or sell Convertible Securities, whether or not the rights to
exchange or convert thereunder are immediately exercisable, and the
consideration per share for the additional shares of Common Stock which may at
any time thereafter be issuable pursuant to the terms of such Convertible
Securities shall be less than the Fair Market Value, then the Aggregate Number
shall be adjusted as provided in Section 4(a)(iii) hereof on the
basis that (A) the maximum number of additional shares of Common Stock
necessary to effect the conversion or exchange of all such Convertible
Securities shall be deemed to have been issued as of the date of the
determination of the Fair Market Value as herein provided and (B) the
aggregate consideration for such maximum number of additional shares of Common
Stock shall be deemed to be the minimum consideration received and receivable
by the Company for the issuance of such additional shares of Common Stock
pursuant to the terms of such Convertible Securities.  For purposes of this Section 4(a)(v),
the effective date of such adjustment and the

 

9

 

date as of which the Fair Market Value shall be computed shall be the
earliest of (x) the date on which the Company shall take a record of the
holders of the Common Stock for the purpose of entitling them to receive any
such Convertible Securities, (y) the date on which the Company shall enter into
a firm contract or commitment for the issuance of such Convertible Securities
and (z) the date of actual issuance of such Convertible Securities.

 

No adjustment of
the Aggregate Number shall be made under this Section 4(a)(v) upon:

 

(A)                              the
issuance of any Convertible Securities which are issued pursuant to the
exercise of any warrants, options or other subscription or purchase rights if
an adjustment shall previously have been made or is contemporaneously made or
if no such adjustment shall have been required upon the issuance of such
warrants, options or other rights pursuant to Section 4(a)(iv) hereof;

 

(B)                                the
issuance of Convertible Securities in any merger or other acquisition of a
business or Person approved by the Board of Directors of the Company;

 

(C)                                the
issuance of Convertible Securities upon the exercise, conversion or the
extension of the term of Convertible Securities outstanding on the Closing Date
or the cancellation and reissuance with identical terms and conditions except
for a longer term of any such Convertible Securities outstanding on the Closing
Date; or

 

(D)                               the
issuance of Convertible Securities to financial institutions or similar
entities in transactions approved by the Board of Directors of the Company, the
principal purpose of which is not raising capital through the sale of equity
securities.

 

(vi)                                                Subsequent Adjustments. 
If at any time after any adjustment of the Aggregate Number shall have
been made pursuant to Section 4(a) (iv) or (v) hereof on
the basis of the issuance of warrants, options or other rights or the issuance
of Convertible Securities, or after any new adjustments of the Aggregate Number
shall have been made pursuant to this Section 4(a)(vi), then:

 

(A)                              such
warrants, options or rights or the right of conversion or exchange in such
Convertible Securities shall expire, and all or a portion of such warrants,
options or rights, or the right of conversion or exchange in respect of all or
a portion of such Convertible Securities, as the case may be, shall not have
been exercised prior to such expiration, then

 

(B)                                such
previous adjustment shall be rescinded and annulled and the additional shares
of Common Stock which were deemed to have been issued by virtue of the
computation made in connection with such adjustment shall no longer be deemed
to have been issued by virtue of such computation;

 

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(C)                                simultaneously
therewith, a recomputation shall be made of the effect of such warrants,
options or rights or Convertible Securities on the determination of the
Aggregate Number, which shall be made on the basis of treating the number of
additional shares of Common Stock, if any, theretofore actually issued pursuant
to any previous exercise of such warrants, options or rights or such right of
conversion or exchange as having been issued on the date or dates of such
exercise and, in the case of a recomputation of a calculation originally made
pursuant to Section 4(a)(iv) or (v), for the consideration actually
received and receivable therefor;

 

and, if and to the
extent called for by the foregoing provisions of Section 4(a)(vi) on
the basis aforesaid, a new adjustment of the Aggregate Number shall be made,
such new adjustment shall supersede the previous adjustment so rescinded and
annulled.

 

(vii)                                             Miscellaneous. 
The following provisions shall be applicable to the making of
adjustments of the Aggregate Number provided above in this Section 4(a):

 

(A)                              Whenever
the Aggregate Number is adjusted pursuant to this Section 4(a), the
Warrant Purchase Price per Warrant Share payable upon exercise of this Warrant
shall be adjusted by multiplying the Warrant Purchase Price immediately prior
to such adjustment by a fraction, the numerator of which shall be the Aggregate
Number prior to such adjustment, and the denominator of which shall be the Aggregate
Number following such adjustment.

 

(B)                                The
sale or other disposition of any issued shares of Common Stock owned or held by
or for the account of the Company or any of its Subsidiaries shall be deemed an
issuance thereof for the purposes of this Section 4(a).

 

(C)                                To
the extent that any additional shares of Common Stock or any Convertible
Securities or any warrants, options or other rights to subscribe for or
purchase any Convertible Securities (1) are issued solely for cash
consideration, the consideration received by the Company therefor shall be
deemed to be the amount of the cash received by the Company therefor or (2) are
offered by the Company for subscription, the consideration received by the
Company shall be deemed to be the subscription price, in any such case
excluding any amounts paid or receivable for accrued interest or accrued or
accumulated dividends.  To the extent
that such issuance shall be for a consideration other than cash, or partially
for cash and partially for other consideration, then the amount of such
consideration shall be deemed to be the fair market value of such other
consideration plus, if applicable, the amount of such cash at the time of such
issuance, determined in the manner set forth in Section 4(d)(ii).  In case any additional shares of Common Stock
or any Convertible Securities or any warrants, options or other rights to
subscribe for or purchase any Convertible Securities shall be issued in connection
with any merger in which the Company is the

 

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survivor and issues any securities, the amount of consideration
therefor shall be deemed to be the fair market value of such additional shares
of Common Stock, Convertible Securities, warrants, options or other rights, as
the case may be, determined in the manner set forth in Section 4(d)(ii).

 

The consideration
for any shares of Common Stock issuable pursuant to the terms of any
Convertible Securities shall be equal to (x) the consideration received by the
Company for issuing any warrants, options or other rights to subscribe for or
purchase such Convertible Securities, plus (y) the consideration paid or
payable to the Company in respect of the subscription for or purchase of such
Convertible Securities, plus (z) the consideration, if any, payable to the
Company upon the exercise of the right of conversion or exchange of such
Convertible Securities.

 

In case of the
issuance at any time of any additional shares of Common Stock or Convertible
Securities in payment or satisfaction of any dividends upon any class of stock
other than Common Stock, the Company shall be deemed to have received for such
additional shares of Common Stock or Convertible Securities a consideration
equal to the amount of such dividend so paid or satisfied.

 

(D)                               The
adjustments required by the preceding paragraphs of this Section 4(a) shall
be made whenever and as often as any specified event requiring an adjustment
shall occur, except that no adjustment of the Aggregate Number that would
otherwise be required shall be made if the amount of such adjustment shall be
less than one percent (1%) of the number of Warrant Shares issuable upon
exercise of the Warrants immediately prior to such adjustment.  Any adjustment representing a change of less
than such minimum amount (except as aforesaid) shall be carried forward and
made as soon as such adjustment, together with other adjustments required by
this Section 4(a) and not previously made, would result in a minimum
adjustment.  For the purpose of any
adjustment, any specified event shall be deemed to have occurred at the close
of business on the date of its occurrence.

 

(E)                                 In
computing adjustments under this Section 4(a), fractional interests in
Common Stock shall be taken into account to the nearest one-thousandth of a
share.

 

(F)                                 If
the Company shall take a record of the holders of the Common Stock for the
purpose of entitling them to receive a dividend or distribution or subscription
or purchase rights and shall, thereafter and before the distribution to
shareholders thereof, legally abandon its plan to pay or deliver such dividend,
distribution, subscription or purchase rights, then no adjustment shall be
required by reason of the taking of such record and any such adjustment
previously made in respect thereof shall be rescinded and annulled.

 

(b)                           Changes in Common Stock. 
In case at any time the Company shall initiate any

 

12

 

transaction or be a party to any transaction (including, without
limitation, a merger, consolidation, share exchange, sale, lease or other
disposition of all or substantially all of the Company’s assets, liquidation,
recapitalization or reclassification of the Common Stock) in connection with
which the previous outstanding Common Stock shall be changed into or exchanged
for different securities of the Company or Capital Stock or other securities of
another corporation or interests in a non-corporate entity or other property
(including cash) or any combination of the foregoing (each such transaction
being herein called a “Transaction”), then, as a condition of the
consummation of the Transaction and without duplication of any adjustment made
pursuant to Section 4(a)(i), lawful, enforceable and adequate provision
shall be made so that the Holder shall be entitled to receive upon exercise of
this Warrant at any time on or after the consummation of the Transaction, in
lieu of the Warrant Shares issuable upon such exercise prior to such
consummation, the securities or other property (including cash) to which such
Holder would have been entitled upon consummation of the Transaction if such
Holder had exercised this Warrant immediately prior thereto (subject to
adjustments from and after the consummation date as nearly equivalent as
possible to the adjustments provided for in this Section 4).  The foregoing provisions of this Section 4(b) shall
similarly apply to successive Transactions.

 

(c)                            Other Action Affecting Capital Stock.  In
case at any time or from time to time the Company shall take any action of the
type contemplated in Section 4(a) or (b) hereof but not
expressly provided for by such provisions (other than the granting of stock
appreciation rights, phantom stock rights or other rights with equity features)
other than cash bonuses, then, unless in the opinion of the Company’s Board of
Directors such action will not have a material adverse effect upon the rights
of the Holder (taking into consideration, if necessary, any prior actions which
the Company’s Board of Directors deemed not to materially adversely affect the
rights of the Holder), the Aggregate Number shall be adjusted in such manner
and at such time as the Company’s Board of Directors may in good faith
determine to be equitable in the circumstances.

 

(d)                           Notices.

 

(i)                                                       Notice of Proposed Actions. 
In case the Company shall propose (A) to pay any dividend payable
in stock of any class to the holders of the Common Stock or to make any other
distribution to the holders of the Common Stock, (B) to offer to the
holders of the Common Stock rights to subscribe for or to purchase any
Convertible Securities or additional shares of Common Stock or shares of stock
of any class or any other securities, warrants, rights or options, (other than
the exercise of pre-emptive rights by such a holder) (C) to effect any
reclassification of the Common Stock, (D) to effect any recapitalization,
stock subdivision, stock combination or other capital reorganization, (E) to
effect any consolidation or merger, share exchange, or sale, lease or other
disposition of all or substantially all of its property, assets or business, (F) to
effect the liquidation, dissolution or winding up of the Company, or (G) to
effect any other action which would require an adjustment under this Section 4,
then in each such case the Company shall give to the Holder written notice of
such proposed action, which shall specify the date on which a record is to be
taken for the purposes of such stock dividend, stock subdivision, stock
combination, distribution or rights, or the date on which such
reclassification,

 

13

 

recapitalization, reorganization, consolidation, merger, share
exchange, sale, lease, transfer, disposition, liquidation, dissolution, winding
up or other transaction is to take place and the date of participation therein
by the holders of Common Stock, if any such date is to be fixed, or the date on
which the transfer of Common Stock is to occur, and shall also set forth such
facts with respect thereto as shall be reasonably necessary to indicate the
effect of such action on the Common Stock and on the Aggregate Number after
giving effect to any adjustment which will be required as a result of such
action.  Such notice shall be so given in
the case of any action covered by clause (A) or (B) above at least ten
(10) days prior to the record date for determining holders of the Common
Stock for purposes of such action and, in the case of any other such action, at
least ten (10) days prior to the earlier of the date of the taking of such
proposed action or the date of participation therein by the holders of Common
Stock.

 

(ii)                                                    Adjustment Notice. 
Whenever the Aggregate Number is to be adjusted pursuant to this Section 4,
unless otherwise agreed by the Holder, the Company shall promptly (and in any
event within twenty (20) Business Days after the event requiring the
adjustment) prepare a certificate signed by the Chief Financial Officer of the
Company, setting forth, in reasonable detail, the event requiring the
adjustment and the method by which such adjustment is to be calculated.  The Company shall keep at its principal
office copies of all such certificates and cause the same to be available for
inspection at said office during normal business hours by the Holder or any
prospective purchaser of the Warrant (in whole or in part) if so designated by
the Holder.

 

5.                                       No Dilution or Impairment.  The
Company will not, by amendment of its Certificate of Incorporation or through
any reorganization, recapitalization, transfer of assets, consolidation,
merger, share exchange, dissolution or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this
Warrant, including, without limitation, the adjustments required under Section 4
hereof, and will at all times in good faith assist in the carrying out of all
such terms and in taking of all such action as may be necessary or appropriate
to protect the rights of the Holder against dilution or other impairment.  Without limiting the generality of the
foregoing and notwithstanding any other provision of this Warrant to the
contrary (including by way of implication), the Company (a) will not
increase the par value of any shares of Common Stock receivable on the exercise
of this Warrant above the amount payable therefor on such exercise or (b) will
take all such action as may be necessary or appropriate so that the Company may
validly and legally issue fully paid and nonassessable shares of Common Stock
on the exercise of this Warrant.

 

6.                                       Definitions.  The terms defined in this Section 6,
whenever used in this Warrant, shall, unless the context otherwise requires,
have the respective meanings hereinafter specified:

 

(a)                            “Aggregate Number” shall have the
meaning set forth in the recitals hereto.

 

(b)                           “Business Day” shall mean any day
other than a Saturday, Sunday or other day

 

14

 

on which commercial banks in The City of New York are authorized or
required by law or executive order to close.

 

(c)                            “Capital Stock” shall mean (a) with
respect to any Person that is a corporation, any and all shares, interests or
equivalents in capital stock (whether voting or nonvoting, and whether common
or preferred) of such corporation, and (b) with respect to any Person that
is not a corporation, any and all partnership, membership, limited liability
company or other equity interests of such Person that confer on a Person the
right to receive a share of the profits and losses of, or the distribution of
assets of, the issuing Person; and in each case, any and all warrants, rights
or options to purchase, and all conversion or exchange rights, voting rights,
calls or rights of any character with respect to, any of the foregoing,
including, without limitation, any rights in respect of any change in the value
of any of the foregoing, including stock appreciation rights and similar
interests.

 

(d)                           “Cashless Exercise” shall have the
meaning set forth in Section 1(b).

 

(e)                            “Closing Date” shall mean June 1,
2005.

 

(f)                              “Common Stock” shall mean the
Common Stock, par value $.01 per share, of the Company or any other Capital
Stock of the Company into which such stock is reclassified or reconstituted.

 

(g)                           “Company” shall have the meaning
set forth in the introductory paragraph hereto.

 

(h)                           “Convertible Securities” shall
mean evidences of indebtedness, shares of stock or other securities (including,
without limitation, options and warrants) which are directly or indirectly
convertible, exercisable or exchangeable, with or without payment of additional
consideration in cash or property, for shares of Common Stock, either
immediately or upon the onset of a specified date or the happening of a
specified event.

 

(i)                               “Distribution” shall have the
meaning set forth in Section 4(a)(ii).

 

(j)                               “Equity Commitment Letter” shall
mean that certain agreement between RC Aviation, LLC and the Company dated August 24,
2004 for the provision of, among other things, equity financing to the Company
in an amount up to $60 million.

 

(k)                            “Fair Market Value” shall mean,
with respect to a share of Common Stock on any date: (i) the fair market
value of the outstanding Common Stock over then ten (10) trading days
prior to the date of calculation based upon (a) if the Common Stock is
listed on a national securities exchange, the closing price per share of Common
Stock on each such day published in The Wall Street Journal (National Edition)
or, if no such closing price on each such day is published in The Wall Street
Journal (National Edition), the average of the closing bid and asked prices on
each such day, as officially reported on the principal national securities
exchange on which the Common Stock is then listed or admitted to trading; (b) if
the Common Stock is not then listed or admitted to trading on any national
securities exchange, but is designated as a national market system security,
the last trading price of the Common Stock on each such day; and (c) if
there shall have been no trading on any such day or if the Common Stock is not
so 

 

15

 

designated, the average of the reported closing bid and asked price of
the Common Stock, on each such day as shown by NASDAQ and reported by any
member firm of the NYSE selected by the Company; or (ii) if none of (i)(a),
(b) or (c) is applicable, a market price per share determined in good
faith by the Board of Directors of the Company, which shall be deemed to be “Fair
Market Value”.

 

(l)                               “Fully Diluted” shall mean, with respect
to the Common Stock as of a particular time, the total number of outstanding
shares of Common Stock as of such time as determined by treating (i) the
shares issuable under the Warrants as having been issued and (ii) all
outstanding and “in-the-money” and then exercisable Convertible Securities, as
having been converted, exercised or exchanged and the shares issuable
thereunder as having been issued.

 

(m)                         “Holder” shall mean any holder of
an interest in the Warrant or the outstanding Warrant Shares who becomes a
holder in compliance with Section 2 hereof.

 

(n)                           “Person” shall mean any
individual, firm, corporation, limited liability company, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company,
Governmental Authority or other entity of any kind, and shall include any
successor (by merger or otherwise) of such entity.

 

(o)                           “Qualified Public Offering” shall
mean the consummation of a firm commitment public offering of the Common Stock
of the Company by a nationally recognized investment banking firm pursuant to
an effective registration statement under the Securities Act covering the offer
and sale of such securities for cash for the account of the Company.

 

(p)                           “Required Holders” shall mean the
holders of a majority of the Total Warrant Shares.

 

(q)                           Securities Act” shall mean the Securities Act of 1933,
as amended, or any similar federal statute, and the rules and regulations
thereunder as the same shall be in effect at the time.

 

(r)                              “Stock Combination” shall have the
meaning set forth in Section 4(a)(i).

 

(s)                            “Stock Dividend” shall have the
meaning set forth in Section 4(a)(i).

 

(t)                              “Stock Subdivision” shall have the
meaning set forth in Section 4(a)(i).

 

(u)                           “Total Warrants” shall mean this
Warrant, together with any portions thereof assigned or transferred.

 

(v)                           “Total Warrant Shares” shall mean
the shares of Common Stock issuable upon exercise of the Total Warrants and
which have not been so exercised.

 

(w)                         “Transaction” shall have the
meaning set forth in Section 4(b).

 

(x)                             “Warrant Purchase Price” shall
mean the purchase price of $7.20 per share of Common Stock payable upon
exercise of this Warrant, as adjusted as provided herein.

 

16

 

(y)                           “Warrants” shall mean this Warrant
and all Warrants issued in exchange, transfer or replacement thereof.

 

(z)                             “Warrant Shares” shall have the
meaning set forth in the fourth paragraph hereto.

 

(aa)                      As used herein, any reference to a
specified percentage of Warrants or Warrant Shares shall exclude any Warrants
or Warrant Shares held by the Company or a subsidiary thereof.

 

7.                                       Exchange, Replacement and Assignability .  This
Warrant is exchangeable, upon the surrender hereof by the Holder at the office
or agency of the Company described in Section 1, for new Warrants of like
tenor and date representing in the aggregate the right to purchase the number
of shares which may be purchased hereunder, each of such new Warrants to
represent the right to purchase such number of shares as shall be designated by
such Holder at the time of such surrender. 
Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of Warrants and, in the case of any such loss, theft
or destruction, of an indemnity letter (reasonably satisfactory to the Company)
of an institutional holder of such Warrants, or in other cases, of a bond of
indemnity or other security satisfactory to the Company, or, in the case of any
such mutilation, upon surrender or cancellation of Warrants, the Company will
issue to the Holder a new Warrant of like tenor and date, in lieu of this
Warrant or such new Warrants, representing the right to purchase the number of
shares which may be purchased hereunder. 
Subject to compliance with Section 2, this Warrant and all rights
hereunder are transferable in whole or in part upon the books of the Company by
the registered holder hereof in person or by duly authorized attorney, and new
Warrants shall be made and delivered by the Company, of the same tenor and date
as this Warrant but registered in the name of the transferees, upon surrender
of this Warrant, duly endorsed, to the appropriate office or agency of the
Company.  All expenses, taxes (other than
stock transfer taxes) and other charges payable in connection with the
preparation, execution and delivery of Warrants pursuant to this Section 7
shall be paid by the Company.

 

8.                                       Transfer Books, No Rights as Stockholder, Survival
of Rights.  The Company will at no time close its
transfer books against the transfer of this Warrant or any Warrant Shares in
any manner which interferes with the timely exercise of this Warrant.  This Warrant shall not entitle the Holder to
any voting rights or any rights as a stockholder of the Company.  The rights and obligations of the Company, of
the Holder of this Warrant and of any Holder of Warrant Shares issued upon
exercise of this Warrant pursuant to the terms of this Warrant shall survive
the exercise of this Warrant.

 

9.                                       Omissions and Indulgences; Amendment and Waiver.

 

(a)                                  It is agreed that any waiver, permit,
consent or approval of any kind or character on the Holder’s part of any breach
or default under this Warrant, or any waiver on the Holder’s part of any
provisions or conditions of this Warrant must be in writing.

 

(b)                                 Any amendment, supplement or modification
of or to any provision of this Warrant, any waiver of any provision of this
Warrant and any consent to any departure by any

 

17

 

party from the terms of any provision of this Warrant shall be
effective only if it is made or given in writing and signed by the Company and
the Required Holders; provided, however, that no such amendment,
supplement or modification may be made without the written consent of the Holder
if such amendment, supplement or modification changes the Aggregate Number, the
Warrant Purchase Price or the expiration date of this Warrant.

 

(c)                                  Any amendment or waiver consented to as
provided in this Section 9 is binding upon each future holder of this
Warrant and upon the Company without regard to whether this Warrant has been
marked to indicate such amendment or waiver.

 

10.                                 Rights of Transferees.  Subject
to compliance with Section 2, the rights granted to the Holder hereunder
of this Warrant shall pass to and inure to the benefit of all subsequent
transferees of all or any portion of the Warrant (provided that the Holder and
any transferee shall hold such rights in proportion to their respective
ownership of the Warrant and Warrant Shares) until extinguished pursuant to the
terms hereof.

 

11.                                 Captions.  The titles and captions of the
Sections and other provisions of this Warrant are for convenience of reference
only and are not to be considered in construing this Warrant.

 

12.                                 Notices.  All notices, demands and other
communications provided for or permitted hereunder shall be made in writing and
shall be by registered or certified first-class mail, return receipt requested,
telecopy, overnight courier service or personal delivery:

 

(a)                                  if to the Company:

 

Hawaiian Holdings, Inc.

3375 Koapaka Street

Suite G-350

Honolulu, Hawaii  96819

 

Attention:
Chief Executive Officer

Facsimile: (808)
835-3690

 

with copies to:

 

Dechert
LLP

30 Rockefeller Plaza

New York, New York 10112

Attention: Charles I. Weissman, Esq.

Facsimile: (212) 698-3599

 

(b)                                 if
to the Holder:

 

RC Aviation, LLC

12730 High Bluff Drive

Suite 180

San Diego, California
92130

 

18

 

Facsimile: (858)
523-1899

 

with copies to:

 

Foley &
Lardner LLP

402 West Broadway

Suite 2300

San Diego, California 92101

Attention:
Kenneth Polin, Esq.

Facsimile: (619) 234-3510

 

All such notices and
communications shall be deemed to have been duly given: when delivered by hand,
if personally delivered; when delivered by courier, if delivered by commercial
overnight courier service; five (5) Business Days after being deposited in
the mail, postage prepaid, if mailed; and when receipt is acknowledged, if
telecopied.

 

13.                                 Successors and Assigns.  This
Warrant shall be binding upon and inure to the benefit of the parties hereto
and their respective successors or heirs and personal representatives and
permitted assigns; provided, that the Company shall have no right to
assign its rights, or to delegate its obligations, hereunder without the prior
written consent of the Holder.

 

14.                                 Governing Law.  THIS WARRANT IS TO BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE
AND WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF SUCH STATE.

 

15.                                 Severability.  If any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way
impaired, unless the provisions held invalid, illegal or unenforceable shall
substantially impair the benefits of the remaining provisions hereof.  The parties hereto further agree to replace
such invalid, illegal or unenforceable provision of this Warrant with a valid,
legal and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of such invalid, illegal or unenforceable
provision.

 

16.                                 Entire Agreement.  This Warrant contains the entire
agreement among the parties with respect to the subject matter hereof and
thereby supercedes all prior and contemporaneous agreements or understandings
with respect thereto.

 

17.                                 No Strict Construction.  The
Company and the Holder each acknowledge that they have been represented by
counsel in connection with this Warrant. 
The Company and the Holder have participated jointly in the negotiation
and drafting of this Warrant.  In the event
an ambiguity or question of intent or interpretation arises under any provision
of this Warrant, this Warrant shall be construed as if drafted jointly by the
parties thereto, and no presumption or

 

19

 

burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Warrant.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

20

 

IN WITNESS WHEREOF, Hawaiian
Holdings, Inc. has caused this Warrant to be signed by its duly authorized
officer under its corporate seal, duly attested by its authorized officer, and
dated as of October 21, 2005.

 

 

	
   

  	
   

  	
  HAWAIIAN
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  Randall L. Jenson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Randall
  L. Jenson

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer and Treasurer

  
					

 

21

 

SUBSCRIPTION FORM

 

To:                              Hawaiian
Holdings, Inc.

3375 Koapaka Street

Suite G-350

Honolulu, HI 96819

Attention:
Chief Executive Officer

Facsimile: (808) 835-3690

 

1.                                       The
undersigned, pursuant to the provisions of the attached Warrant, hereby elects
to exercise this Warrant with respect to                         
shares of Common Stock (the “Exercise Amount”).  Capitalized terms used but not otherwise
defined herein have the meanings ascribed thereto in the attached Warrant.

 

2.                                       The
undersigned herewith tenders payment for such shares in the following manner
(please check type, or types, of payment and indicate the portion of the Exercise
Price to be paid by each type of payment):

 

o            Exercise for Cash

 

o            Cashless Exercise  

 

3.                                       Please
issue a certificate or certificates representing the shares issuable in respect
hereof under the terms of the attached Warrant, as follows:

 

	
   

  	
   

  
	
   

  	
  (Name of Record
  Holder/Transferee)

  

 

and deliver such
certificate or certificates to the following address:

 

	
   

  	
   

  
	
   

  	
  (Address of
  Record Holder/Transferee)

  

 

4.                                       The
undersigned represents that the aforesaid shares are being acquired for the

 

account
of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no
present intention of distributing or reselling such shares.

 

5.                                       If
the Exercise Amount is less than all of the shares of Common Stock purchasable
hereunder, please issue a new warrant representing the remaining balance of
such shares, as follows:

 

	
   

  	
   

  
	
   

  	
  (Name of Record
  Holder/Transferee)

  

 

 

and deliver such warrant
to the following address:

 

	
   

  	
   

  
	
   

  	
  (Address of
  Record Holder/Transferee)

  

 

 

	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  
			

 

2Exhibit 4.1

 

SECOND AMENDED AND
RESTATED

REGISTRATION RIGHTS AGREEMENT

 

This Second Amended and Restated Registration Rights Agreement (this “Agreement”)
is made and entered into as of September 21, 2005, by and among STROUD
ENERGY, INC., a Delaware corporation (the “Company”), and the parties listed on
the signature pages hereto (each, an “Owner” and collectively, the “Owners”);

 

RECITALS

 

The Company, the Owners and certain other parties are parties to the
Combination Agreement, dated as of August 1, 2005 (the “Combination
Agreement”), pursuant to which the Owners have agreed to exchange their
ownership interests in various entities for common stock of the Company (the “Combination”).

 

In connection with the Combination, the Owners will receive shares of common
stock of the Company.

 

In connection with the Combination Agreement, the parties hereto
entered into an Amended and Restated Registration Rights Agreement, dated as of
September 19, 2005 (the “Original Agreement”), which set forth the terms
on which the Company agreed to register the common stock received by the Owners
in the Combination.

 

The parties desire to amend and restate the Original Agreement to
clarify certain issues.

 

Capitalized terms not defined herein have the meaning given to them in
the Combination Agreement.

 

NOW, THEREFORE, in consideration of the premises and the mutual terms,
covenants and conditions herein contained, and intending to be legally bound
hereby, the parties hereto hereby agree that this Agreement supersedes and
replaces the Original Agreement in its entirety, and further agree as follows:

 

The Company and the Owners covenant and agree as follows:

 

1.             Definitions.  For purposes of this Agreement:

 

(a)           The term “Best Efforts” means a Person’s reasonable best
efforts in accordance with reasonable commercial practice and without the incurrence
of unreasonable expense.

 

(b)           The term “Commission” means the Securities and Exchange
Commission.

 

(c)           The term “Expenses” means all expenses incident to the
Company’s performance of or compliance with Section 2.1, including,
without limitation, all registration, filing and National Association of
Securities Dealers fees, all fees and expenses of complying with securities or
blue sky laws, all word processing, duplicating and printing expenses,
messenger and delivery expenses, the fees and disbursements of counsel for the
Company and of

 

1

 

its independent
public accountants, including the expenses of any special audits or “cold
comfort” letters required by or incident to such performance and compliance,
premiums and other costs of policies of insurance against liabilities arising
out of the public offering of the Registrable Securities being registered and
any fees and disbursements of underwriters customarily paid by issuers or
sellers of securities.

 

(d)           The term “Person” means an individual, partnership,
corporation, limited liability company, trust or unincorporated organization,
or government or agency or political subdivision thereof.

 

(e)           The terms “register,” “registered” and “registration” refer
to a registration of securities effected by preparing and filing a registration
statement or similar document in compliance with the Securities Act (as defined
below), and the declaration or ordering of effectiveness of such registration
statement or document.

 

(f)            The term “Registrable Securities”
means the shares of common stock of the Company received by the Owners pursuant
to the Combination Agreement.  As to any
Registrable Security, once issued such security shall cease to be a Registrable
Security (i) when such Registrable Security shall have been disposed in
the private offering which the Company has engaged Raymond James &
Associates, Inc. to conduct (the “Private Offering”) or shall have been
effectively registered under the Securities Act and disposed of in a public market
transaction pursuant to a registration statement, (ii) when such
Registrable Security shall have been sold pursuant to Rule 144 (or any
successor provision) under the Securities Act, (iii) when such Registrable
Security shall have been otherwise transferred and a new certificate for such
Registrable Security not bearing a legend restricting further transfer shall
have been delivered by the Company, (iv) with respect to a particular
Owner, at any time when all of such Owner’s remaining Registrable Securities
can be sold in a single transaction in compliance with Rule 144 under the
Securities Act, (v) on the second anniversary of the original issuance
date of such Registrable Security, provided that the Owner of such Registrable
Security is not an affiliate of the Company as of such date, and has not been
an affiliate of the Company for a period of three months preceding such date,
or (vi) when such Registrable Security shall have ceased to be
outstanding.

 

(g)           The term “Requisite Threshold” means any owner or owners of
an aggregate of at least 15% of all Registrable Securities outstanding
immediately following the closing pursuant to the Combination Agreement and
prior to the closing of the Private Offering.

 

(h)           The term “Securities Act” means the Securities Act of 1933,
as amended, and the term “Exchange Act” means the Securities Exchange Act of
1934, as amended.

 

2.             Registration.

 

2.1           Registration
on Request.  

 

(a)           From time to time after six (6) months from the date of
effectiveness of the registration statement filed to register the shares of
common stock of the Company purchased in the Company’s Private Offering, upon
the written request of the Requisite Threshold that the Company effect the
registration under the Securities Act of the Registrable Securities held by the

 

2

 

requesting party or
parties that such party or parties desire to register and specifying the intended
method of disposition thereof and whether or not such requested registration is
to be an underwritten offering, the parties hereto agree as follows:

 

(i)            the Company must
effect such a registration only if such Requisite Threshold requests
registration for collectively at least 300,000 Registrable Shares;

 

(ii)           the Company will
promptly give written notice of such requested registration to all other owners
of Registrable Securities, if any; and

 

(iii)          promptly after the
performance of any obligations imposed under clause (i) of this Section 2.1(a),
and subject to the limitations set forth in Section 2.1(c) and Section 3,
the Company will use its Best Efforts to effect the registration under the
Securities Act of the Registrable Securities that the Company has been
requested to register by the Requisite Threshold and the other owners of
Registrable Securities by written request given to the Company within 30 days
after the receipt of such written notice by the Company and to qualify the
securities subject to such registration under the securities laws of such
states as the Requisite Threshold shall reasonably request, all to the extent
required to permit the disposition (in accordance with the intended methods
thereof as specified in such written notice) of the Registrable Securities to
be registered and cause such registration to remain effective for a period of
not less than 180 days following its effective date or such shorter period as
shall terminate when all Registrable Securities covered by such registration
statement have been sold.  The Company
shall not be required to qualify the securities subject to such registration in
any jurisdiction where, as a result thereof, the Company would become subject
to general service of process or to taxation or to qualification to do business
as a foreign corporation doing business in such jurisdiction solely as a result
of such qualification.

 

(b)           Registration Statement Form.  Subject to Section 2.1(c), registrations
under this Section 2.1 shall be on such appropriate registration form of
the Commission as shall be reasonably selected by the Company and reasonably
acceptable to the Requisite Threshold and as shall permit the disposition of
such Registrable Securities in accordance with the intended method or methods
of disposition specified in the request for such registration.

 

(c)           Limitations with respect to Requested Registrations.

 

(i)            Until such time as the
Company becomes eligible to use Form S-3 for a registration under the
Securities Act of any of its securities, the Company shall have no obligation
to take or continue any action to effect a requested registration under this Section 2.1
after the Company has effected two registrations that are requested pursuant to
this Section 2.1.  After such time
as the Company becomes eligible to use Form S-3 for a registration under
the Securities Act of any of its securities, the Company shall have no
obligation to take or continue any action to effect a requested registration
under this Section 2.1 after the Company has effected five registrations
that are requested pursuant to this Section 2.1, less the number of
registrations that were effected prior to such date.  A registration requested pursuant to this Section 2.1
shall not be deemed to have been effected (1) unless a registration
statement with respect thereto has been declared effective, (2) if after a
registration statement has become effective, such registration is terminated by
any stop order, injunction or other order or requirement of the Commission or
other governmental agency or court, or (3) if the registration is in
connection

 

3

 

with an underwritten offering and if the
conditions to closing specified in the purchase agreement or underwriting
agreement entered into in connection with such registration are not satisfied,
other than as a result of the voluntary termination of such offering by the
Requisite Threshold.

 

(ii)           The Company shall have
no obligation to take or continue any action to effect more than one
registration requested under this Section 2.1 in any period of six
consecutive months.

 

(iii)          Notwithstanding the
foregoing, if the Company shall furnish, to the Owners requesting a
registration pursuant to this Section 2.1, a certificate signed by the Chief
Executive Officer of the Company stating that, in the good faith judgment of
the Board of Directors of the Company, a postponement would be in the best
interests of the Company and its shareholders due to a pending transaction,
investigation or other event, then the Company shall have the right to defer
such filing for a period of not more than 90 days following receipt of the
request (made pursuant to Section 2.1(a) hereof) of the Requisite
Threshold; provided, however, that the Company may not utilize this right more
than once in any twelve month period.

 

(d)           Selection of Underwriters.  If a requested registration pursuant to this Section 2.1
involves an underwritten offering, the underwriter or underwriters thereof
shall be selected by the Company and reasonably acceptable to the Requisite
Threshold.

 

(e)           Priority in Requested
Registrations.  If a requested registration pursuant to this Section 2.1
involves an underwritten offering, and the managing underwriter(s) shall advise
the Company that, in its opinion, the number of securities requested to be
included in such registration exceeds the number that can be sold in such
offering within a price range acceptable to the Requisite Threshold, the
Company will include in such registration the number of Registrable Securities
that the Company is so advised can be sold in such offering, pro-rata among the
Registrable Securities requested to be included in such registration.

 

2.2           Incidental
Registration.

 

(a)           Right to Include Registrable
Securities.  If the Company at any time proposes to
register any of its securities under the Securities Act in an offering of its
securities for cash (other than (i) in connection with a registration of
any employee benefit, retirement or similar plan, or (ii) with respect to
a Rule 145 transaction), it will each such time give prompt written notice
to all owners of Registrable Securities of its intention to do so and of such owners’
rights under this Section 2.2.  Upon
the written request of any such owner made within 30 days after the receipt of
any such notice (which request shall specify the Registrable Securities
intended to be disposed of by such owner and the intended method of disposition
thereof), the Company will use its best efforts to effect the registration
under the Securities Act of all Registrable Securities which the Company has
been so requested to register by the owners thereof, to the extent required to
permit the disposition (in accordance with the intended methods thereof as
aforesaid) of the Registrable Securities so to be registered, provided that if,
at any time after giving written notice of its intention to register any
securities and prior to the effective date of the registration statement filed
in connection with such registration, the Company shall determine for any
reason not to register or to delay registration of such securities, the Company
may, at its election, give written notice of such determination to each owner
of Registrable Securities and, thereupon, (i) in the case of a
determination not to register, shall be relieved of its

 

4

 

obligation to
register any Registrable Securities in connection with such registration (but
not from its obligation to pay the Expenses in connection therewith), without
prejudice, however, to the rights of any owners of Registrable Securities
entitled to do so to request that such registration be effected as a
registration under Section 2.1, and (ii) in the case of a
determination to delay registering, shall be permitted to delay registering any
Registrable Securities, for the same period as the delay in registering such
other securities.  No registration
effected under this Section 2.2 shall be deemed to have been effected
pursuant to Section 2.1 or shall relieve the Company of its obligation to
effect any registration upon request under Section 2.1.  The Company will pay all Expenses in
connection with each registration of Registrable Securities requested pursuant
to this Section 2.2 except that underwriting discounts and commissions and
stock transfer taxes shall be allocated among all Persons on whose behalf
securities of the Company are included in such registration, on the basis of
the respective amounts of the securities then being registered on their behalf.

 

(b)           Priority in Incidental
Registrations.  If a requested registration pursuant to this Section 2.2
involves an underwritten offering, and the managing underwriter(s) shall advise
the Company that, in its opinion, the number of securities requested to be included
in such registration exceeds the number that can be sold in such offering
within a price range acceptable to the Company, the Company will include in
such registration first all securities proposed by the Company to be sold for
its own account, and second, the number of Registrable Securities that the
Company is so advised can be sold in such offering, pro-rata among the
Registrable Securities requested to be included in such registration; provided
that, until the termination of the obligation described in Section 5(a) hereof,
the securities of the purchasers in the Private Offering that are requested to
be included in the first underwritten offering will be included prior to any
Registrable Securities; and, provided further, that after termination of the
obligation described in Section 5(a) hereof, the Registrable
Securities and the securities of the purchasers in the Private Offering that
are requested to be included in such first registration shall be included,
after securities proposed by the Company to be sold for its own account, on an
equal basis pro rata among all such securities requested to be included
(whether Registrable Securities or securities of purchasers in the Private
Offering).

 

2.3           Termination
of Registration Rights.  The Owners
will have no rights to request registration under this Section 2 after ten
years from the date of the closing of the Combination.

 

3.             Registration
Procedures.

 

(a)           The Company will use its Best Efforts to furnish to each Owner
requesting registration pursuant to this Agreement a copy of the requisite
registration statement, each amendment and supplement to such registration
statement and a reasonable number of copies of the prospectus included in such
registration statement (including each preliminary prospectus), as each such Owner
may reasonably request in order to facilitate such Owner’s disposition of its
securities covered by such registration statement.

 

(b)           The Company will use its Best Efforts to notify the Owners
requesting registration pursuant to this Agreement, at any time when a
prospectus relating to the requisite registration statement is required to be
delivered under the Securities Act (within the period that the Company is
required to keep such registration statement effective), of the happening of
any event as a result of which the prospectus included in the requisite
registration statement (as then

 

5

 

in effect) contains
an untrue statement of a material fact or omits to state any material fact required
to be stated in the prospectus or that is necessary to make the statements in
the prospectus, in light of the circumstances then existing, not
misleading.  The Company will prepare
(and, as soon as reasonably practicable, file) a supplement or amendment to
that prospectus so that, as thereafter delivered to the purchasers of those
securities covered by such registration statement, that prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact required to be stated in the prospectus or that is necessary to make the
statements in the prospectus, in light of the circumstances then existing, not
misleading.  However, if the Board of Directors
of the Company determines in its good faith judgment that filing any supplement
or amendment to such registration statement to keep such registration statement
available for use by such Owners for resales of the securities covered by such
registration statement would require the Company to disclose material
information that the Company has a bona fide business purpose for preserving as
confidential, then, upon the Company’s notice to each Owner (the “Suspension
Notice”), the Company’s obligation to supplement or amend such registration
statement will be suspended.  That suspension
will remain in effect until the Company notifies such Owners in writing that
the reasons for suspending those obligations no longer exist and the Company
amends or supplements such registration statement as may be required.  The Company does not have the right to delay
filing any supplement or amendment for more than 90 consecutive days from
giving the Suspension Notice, and in no event may such right be exercised by
the Company for an aggregate of more than 180 days during a period of 12
consecutive months.  As soon as an Owner
receives a Suspension Notice from the Company under this Section 3(a),
that Owner will immediately discontinue disposing of securities covered by such
registration statement until that Owner receives copies of the supplemented or
amended prospectus referred to in this Section 3(a).  At the Company’s request, each Owner will
deliver to the Company all copies of the prospectus covering such securities
current at the time of that request.

 

(c)           After receiving notice of any stop order issued or
threatened by the Commission with respect to the requisite registration
statement, the Company will use its Best Efforts to (i) advise the Owners
and (ii) take all actions required to prevent the Commission from entering
that stop order or and to remove it if it has been entered.

 

(d)           The Company will use its Best Efforts to cause all
securities included in the requisite registration statement to be listed, by
the date of the first sale of such securities pursuant to such registration
statement, on the principal securities exchange that the Company’s common stock
is then listed on.

 

(e)           Each Owner will sell its Registrable Securities registered
in accordance with Section 2 in compliance the prospectus delivery requirements
under the Securities Act.

 

(f)            The Company may require the Owners
to furnish to the Company information regarding the Owners and the distribution
of the securities covered by the requisite registration statement as the
Company may from time to time request in writing.  Each Owner will (i) notify the Company
as promptly as practicable of any inaccuracy or change in information that Owner
previously furnished to the Company or of the occurrence of any event that
would cause any prospectus relating to such securities to (A) contain an
untrue statement of a material fact regarding that Owner or its resale of such
securities or (B) omit to state any material fact regarding that Owner or
its resale of such securities required to be stated in that

 

6

 

prospectus or
necessary to make the statements in that prospectus not misleading in light of
the circumstances then existing and (ii) promptly furnish to the Company
any additional information so that the prospectus will not contain, with respect
to that Owner or its distribution of such securities, an untrue statement of a
material fact or omit to state a material fact required to be stated in it or
necessary to make the statements in that prospectus, in light of the
circumstances then existing, not misleading.

 

4.             Expenses.  The Company will bear all the Expenses in
connection with any registration statement under this Agreement, other than
transfer taxes payable on the sale of shares, the fees and expenses of counsel
to the Owners and fees, underwriter discounts and commissions of brokers,
dealers and underwriters.

 

5.             Market-Standoff
Agreement.

 

(a)           Initial Market-Standoff Period;
Agreement.  For a period continuing until 180 days after
the effective date of the registration statement filed to register the shares
of common stock of the Company purchased in the Private Offering, each Owner
agrees not to, without the prior written consent of the Company and Raymond
James & Associates, Inc. (“Raymond James”),

 

(i)            offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant for the sale of, lend
or otherwise dispose of or transfer, directly or indirectly, any equity
securities of the Company or any securities convertible into or exercisable or
exchangeable for equity securities of the Company; or

 

(ii)           enter into any swap or
other arrangement that transfers, in whole or in part, directly or indirectly,
any of the economic consequences of ownership of any equity securities of the
Company,

 

whether any such
transaction above is to be settled by delivery of shares of the Company’s
common stock or such other securities, in cash or otherwise.  Notwithstanding the prior sentence, subject
to applicable securities laws and the restrictions contained in the Company’s
charter, parties to the agreements may transfer the Company’s securities:  (A) pursuant to the exercise and
issuance of options; (B) as a bona fide gift or gifts, provided that the
donees agree to be bound by the same restrictions; (C) to any trust for
the direct or indirect benefit of the stockholder or the immediate family of
the stockholder, provided that the trustee agrees to be bound by the same
restrictions; and (D) as a distribution to its stockholders, partners or
members, provided that such stockholders, partners or members agree to be bound
by the same restrictions.  Each Owner
agrees to execute an agreement reflecting the foregoing as may be requested by Raymond
James at the time of the Company’s follow-on offering. Raymond James is an
intended third party beneficiary of this Section 5 and shall have the
right, power and authority to enforce the provisions of this Section 5 as
though it were a party hereto.

 

(b)           Market-Standoff Following First
Company Registration Statement.  Following the
market stand-off period noted above and in connection with the Company’s first
underwritten offering (in which Registrable Securities could be included in
accordance with Section 2.2), for a period of 60 days following the
effective date of the registration statement for

 

7

 

such offering, each
Owner agrees to be subject to the restrictions, obligations and third-party
beneficiary rights described in Section 5(a) above as to securities of
such Owner not covered by such registration statement, unless he, she or it
receives the prior written consent of Raymond James.

 

(c)           Limitations.  The obligations described in Section 5(a) shall
not apply to a registration relating solely to employee benefit plans, or to a
registration relating solely to a transaction pursuant to Rule 145 under
the Securities Act.

 

(d)           Stop-Transfer Instructions.  In order to enforce the foregoing covenants,
the Company may impose stop-transfer instructions with respect to the
Registrable Securities of each Owner.

 

(e)           Transferees Bound.  Each Owner agrees that it will not transfer
securities of the Company unless each transferee agrees in writing to be bound
by all of the provisions of this Section 5.

 

6.             Indemnification.  In the event any Registrable Securities are
included in a registration statement under this Agreement:

 

(a)           To the extent permitted by law, the Company will indemnify
and hold harmless the Owner, the officers and directors of the Owner and each
other Person, if any, who controls the Owner within the meaning of Section 15
of the Securities Act, against any losses, claims, damages, liabilities or
expenses, joint or several, to which any such Person may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions in respect thereof) arise out of or are
based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in any registration statement under which such
Registrable Securities were registered under the Securities Act pursuant
hereto, or any post-effective amendment thereof, or the omission or alleged
omission therefrom of a material fact required to be stated therein or
necessary to make the statements therein not misleading, or (ii) any
untrue statement or alleged untrue statement of a material fact contained in
any preliminary prospectus, if used prior to the effective date of the
registration statement and not corrected in the final prospectus, or contained
in the final prospectus (as amended or supplemented, if the Company shall have
filed with the Commission any amendment thereof or supplement thereto), or the
omission or alleged omission therefrom of a material fact required to be stated
therein or necessary to make the statements therein not misleading; and will
reimburse any such Person for any legal or other expenses reasonably incurred
by such Person in connection with investigating or defending any such loss,
claim, damage, liability or expense; provided, however, that the indemnity
agreement contained in this Section 6(a) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or expense if
such settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld); and provided further that the Company
shall not be liable in any such case to the extent that any such loss, claim,
damage, liability or expense arises out of or is based upon any such untrue statement
or omission or alleged untrue statement or omission which has been made in said
registration statement, preliminary prospectus, prospectus or amendment or
supplement or omitted therefrom in reliance upon and in conformity with
information furnished in writing to the Company by the Owner specifically for
use in the preparation thereof.

 

8

 

(b)           To the extent permitted by law, the Owner will indemnify and
hold harmless the (i) Company, (ii) each of the directors of the
Company, (iii) each of the Company’s officers who has signed the
registration statement and (iv) each Person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act against any
losses, claims, damages, liabilities or expenses, joint or several, to which
the Company or any such Person, may become subject under the Securities Act or
otherwise, and will reimburse the Company or any such Person for any legal or
other expenses reasonably incurred by the Company or such Person in connection
with investigating or defending any such loss, claim, damage, liability or
expense, but only insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) arise out of or are based upon any untrue
statement or omission or alleged untrue statement or omission of a material
fact referred to in clause (i) or (ii) of Section 6(a), in each
case to the extent (and only to the extent) that such untrue statement or
omission or alleged untrue statement or omission was made in reliance upon and
in conformity with information furnished in writing by or on behalf of the Owner
specifically for use in connection with such registration.

 

(c)           Promptly after receipt by an indemnified party under this Section 6
of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party under this Section 6, notify the
indemnifying party in writing of the commencement thereof and the indemnifying
party shall have the right to participate in, and, to the extent the
indemnifying party so desires, to assume the defense thereof with counsel
mutually satisfactory to the parties; provided, however, that an indemnified
party shall have the right to retain its own counsel, with the fees and
expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such
proceeding. The failure to so notify an indemnifying party within a reasonable
time of the commencement of any such action, if prejudicial to its ability to
defend such action, shall relieve such indemnifying party of any liability to
the indemnified party under this Section 6, but the omission so to notify
the indemnifying party will not relieve it of any liability that it may have to
any indemnified party otherwise than under this Section 6.

 

(d)           If the indemnification provided for in this Section 6
is unavailable to an indemnified party hereunder in respect of any losses,
claims, damages, liabilities or expenses referred to herein, then the indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or expenses in such proportion as is appropriate
to reflect the relative fault of the indemnifying party and indemnified party
in connection with the actions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable
considerations.  The relative fault of
such indemnifying party and indemnified party shall be determined by reference
to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such indemnifying party or indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action.  The amount paid or payable by a
party as a result of the losses, claims, damages, liabilities and expenses
referred to above shall be deemed to include, subject to the other limitations
set forth in this Section 6, any legal or other fees or expenses
reasonably incurred by such party in connection with any investigation or

 

9

 

proceeding.  The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 6(c) were
determined by pro rata allocation or by any other method of allocation which
does not take into account the equitable considerations described above.  No Person who commits a fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who has not committed
such fraudulent misrepresentation.

 

7.             Reports Under
Exchange Act.  With a view to making
available to the Owner the benefits of Rule 144 and Rule 145 under
the Securities Act and any other rule or regulation of the Commission that
may at any time permit the Owner to sell securities of the Company to the
public without registration, the Company agrees to:

 

(a)           file with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act, and the rules and regulations adopted by the Commission
thereunder; and

 

(b)           furnish to the Owner such information as may be reasonably
requested in availing the Owner of any rule or regulation of the
Commission that permits the sale of any securities without registration.

 

8.             Assignment of
Registration Rights.  This Agreement
shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns.  In addition, and whether or not any express
assignment shall have been made, the provisions of this Agreement which are for
the benefit of the parties hereto other than the Company shall also be for the
benefit of and enforceable by any subsequent holder of any Registrable
Securities, subject to the provisions respecting the minimum percentages of
shares of Registrable Securities required in order to be entitled to certain
rights, or take certain actions, contained herein.

 

9.             Condition to the
Obligation of the Parties.  The
effectiveness of this Agreement and the respective obligations of each party to
effect the transactions contemplated by this Agreement shall be subject to the
fulfillment of the condition that the Combination shall have been consummated
in accordance with the terms of the Combination Agreement.

 

10.           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing and shall be deemed to have
been duly given or made if delivered by (i) personal delivery, (b) expedited
delivery service or (c) certified or registered mail, postage
prepaid.  Any such notice shall be deemed
given upon its receipt at the following address:

 

(a)           If to an Owner, initially at such Owner’s address as set
forth in the books of the Company, and thereafter at such other address, notice
of which is given to the Company in accordance with this Section 10; and

 

10

 

(b)           If to the Company, initially at

 

Stroud Energy, Inc.

210 West Sixth Street

Suite 500

Fort Worth, Texas 76102

Attention: Chief Executive Officer

 

and thereafter at such
other address, notice of which is given in accordance with this Section 10.

 

11.           Counterparts.  This Agreement may be executed in two or more
counterparts, all of which will be considered one and the same agreement and
will become effective when one or more counterparts have been signed by each of
the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart.

 

12.           Entire Agreement.  This Agreement constitutes the entire
agreement and supersedes all prior agreements and understandings, both written
and oral, among the parties with respect to the subject matter of this
Agreement.  No provision of this
Agreement will be construed as the basis for any liability of the Company in
connection with the Combination Agreement or any of the transactions
contemplated thereby (other than the registration of the Registrable Securities
pursuant to this Agreement).

 

13.           Governing Law;
Jurisdiction.  THIS AGREEMENT WILL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF TEXAS,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW REQUIRING THE APPLICATION OF
THE LAW OF ANOTHER STATE.  EACH OF THE
COMPANY AND THE OWNERS HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO
SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS AND OF
THE UNITED STATES OF AMERICA LOCATED IN TEXAS, FOR ANY LITIGATION ARISING OUT
OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND
AGREES NOT TO COMMENCE ANY LITIGATION RELATING THERETO EXCEPT IN SUCH COURTS),
WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH LITIGATION IN THE TEXAS
COURTS AND AGREES NOT TO PLEAD OR CLAIM THAT SUCH LITIGATION BROUGHT THEREIN
HAS BEEN BROUGHT IN ANY INCONVENIENT FORUM.

 

14.           Amendments and
Waivers.  The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof (which may be generally or in a
particular instance and either retroactively or prospectively) may not be
given, except pursuant to a writing signed by the Company and the owners of at
least a majority of the Registrable Securities.

 

[Signature page follows]

 

11

 

IN WITNESS WHEREOF, the parties hereto have executed
and delivered this Agreement as of the date first above written.

 

	
  Company:

  	
  STROUD ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick J. Noyes

  
	
   

  	
   

  	
        Patrick J. Noyes, President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Owners:

  	
  /s/ Bruce F. Braden

  
	
   

  	
  Bruce F. Braden

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Christopher A. Wright

  
	
   

  	
  Christopher A. Wright

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Elizabeth S. Wright

  
	
   

  	
  Elizabeth S. Wright

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert S. Colman

  
	
   

  	
  Robert S. Colman, Trustee, Edwin W. Colman

  Children’s Trust FBO Robert S. Colman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Daniel I. Kemper

  
	
   

  	
  Daniel I. Kemper, Trustee, Daniel I. Kemper Living

  Trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Rockwell A. Schnabel

  
	
   

  	
  Rockwell A. Schnabel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Patrick J. Noyes

  
	
   

  	
  Patrick J. Noyes

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOYES FAMILY PARTNERSHIP,

  
	
   

  	
  a Texas partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick J. Noyes

  
	
   

  	
   

  	
  Patrick J. Noyes, Partner

  
				

 

12

 

	
   

  	
  /s/ Edward H. Schweitzer

  
	
   

  	
  Edward H. Schweitzer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Gregory P. Smith

  
	
   

  	
  Gregory P. Smith

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Christopher L. Hammack

  
	
   

  	
  Christopher L. Hammack

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Gregory D. Frazier

  
	
   

  	
  Gregory D. Frazier

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Stephen M. Clark

  
	
   

  	
  Stephen M. Clark

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ G. Christopher Veeder

  
	
   

  	
  G. Christopher Veeder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert S. Colman

  
	
   

  	
  Robert S. Colman, Trustee of the Robert S. Colman

  Trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENCAP ENERGY CAPITAL FUND IV,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  EnCap Equity Fund IV GP, L.P., General

  Partner of EnCap Energy Capital Fund IV,

  L.P.

  
	
   

  	
  By:

  	
  EnCap Investments L.P., General Partner of

  EnCap Equity Fund IV GP, L.P.

  
	
   

  	
  By:

  	
  EnCap Investments GP, L.L.C., General

  Partner of EnCap Investments L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Miller

  
	
   

  	
   

  	
  David B. Miller, Senior Managing Director

  

 

13

 

	
   

  	
  ENCAP IV-B ACQUISITIONS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  EnCap IV-B Acquisitions GP, LLC, General Partner of EnCap IV-B
  Acquisitions, L.P.

  
	
   

  	
  By:

  	
  EnCap Energy Capital Fund IV-B, L.P., Sole Member of EnCap IV-B
  Acquisitions GP, LLC

  
	
   

  	
  By:

  	
  EnCap Equity Fund IV GP, L.P., General Partner of EnCap Energy
  Capital Fund IV-B, L.P.

  
	
   

  	
  By:

  	
  EnCap Investments L.P., General Partner of EnCap Equity Fund IV GP,
  L.P.

  
	
   

  	
  By:

  	
  EnCap Investments GP, L.L.C., General Partner of EnCap Investments
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Miller

  
	
   

  	
   

  	
  David B. Miller, Senior Managing Director

  

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]