Document:

intlstar_10k-ex1024.htm

    EXHIBIT
10.24

    INTERNATIONAL
STAR, INC.

    

    SUBSCRIPTION
AND INDEMNIFICATION

    AND
STOCK PURCHASE WARRANT AGREEMENT

    

    2008
COMMON STOCK AND WARRANTS OFFERING

    

    International
Star, Inc.

    P.O. Box
7202

    Shreveport,
Louisiana  71137

    

    RE:           International
Star, Inc. 2008 Common Stock and Warrants Offering

    

    Ladies
and Gentlemen:

    

    1.  Subscription.  This
Subscription and Indemnification and Stock Purchase Warrant Agreement
(“Subscription Agreement”) is executed by the undersigned subscriber (the
“Subscriber”) who desires to purchase units (“Units”) consisting of shares of
common stock, par value $0.001 (“Common Stock”), of International Star, Inc., a
Nevada corporation (the “Company”), and warrants to purchase shares of Common
Stock, pursuant to the terms and conditions as stated herein (the
“Offering”).

    

    The
Subscriber hereby subscribes to purchase 500,000 Units of shares of the
Company’s Common Stock (the “Shares”) and Common Stock purchase warrants (the
“Warrants”) at a price of $0.01 per Unit, for a total subscription price of Five
Thousand and no/100 Dollars ($5,000.00) (the “Total Subscription
Price”).

    

    By
executing this Subscription Agreement, Subscriber agrees to pay the full amount
of the Total Subscription Price and receive the Shares and Warrants subscribed
for, subject to the following terms:

    

    Payment
for the Total Subscription Price shall be made in cash upon the delivery of this
Subscription Agreement to the Company by the Subscriber delivering a check for
the Total Subscription Price, payable to the order of International Star, Inc.,
or by wire transfer to the account of the Company for the Total Subscription
Price.

    

    Each Unit
shall consist of one Share of Common Stock and one Warrant issued pursuant to
the terms and conditions provided herein.

    

    2.  Acceptance of
Subscription.  This subscription is made subject to acceptance
by the Company on the following terms and conditions, and Subscriber represents
and warrants to the Company that the Subscriber understands and agrees to such
terms and conditions:

    

    (a) The
Offering is being made on a first-come, first-served basis for the purpose of
raising approximately $650,000 for general working capital of the
Company.  The minimum investment that will be accepted by the Company
from any Subscriber is $2,000.00.

    

    (b) The
Units offered by the Company will be subject to the Company’s right to reject
subscriptions in whole or part (whether or not the Subscriber’s check or wired
payment is deposited into the Company’s account), withdrawal, cancellation,
modification of the Offering without notice and the Company’s receipt and
acceptance of a validly completed and executed Subscription
Agreement.

    

    (c)(1)
When the Company receives the Subscriber’s check for the Total Subscription
Price and executed Subscription Agreement, the Subscriber’s check will be
deposited into the Company’s account.  Only when the check is paid or
the funds transfer is completed and the subscription is accepted by the Company
will the Company instruct its transfer agent to issue to the Subscriber a
certificate representing the number of Shares of Common Stock subscribed and a
certificate representing the number of Warrants subscribed.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (2) If
management of the Company decides to terminate the Offering, which it may do
without notice to Subscriber, or if the subscription is rejected, Subscriber
will be refunded all funds forwarded by him or her together with any interest
thereon.  Unless earlier terminated or extended by the Company, the
Offering will terminate at 5:00 Central Time on Tuesday, September 30,
2008.

    

    (d) If
you are an existing shareholder of the Company beneficially owning, directly or
indirectly, 10% or more of the Company’s outstanding common stock, the Company
may reduce your subscription as necessary to comply with applicable laws to an
amount equal to the number of Units required to maintain your current pro rata
percentage of beneficial ownership in the Company.  The Company will
refund payment for any Units so reduced, with interest thereon.

    

    (e) This
Offering is being made pursuant to an exemption from registration under Section
4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule
506 of Regulation D promulgated thereunder, and pursuant to exemptions or
exceptions from registration under the securities laws of Louisiana and any
other state(s) where the offeree(s) principally reside(s).

    

    (f) This
Offering is being made to the offeree(s) based solely on each offeree’s status
as an accredited investor, as that term is defined in Rule 501(a) of Regulation
D.

    

    (g) The
certificate(s) issued to Subscriber representing the Shares, the certificate(s)
issued to Subscriber representing the Warrants, and the certificate(s) to be
issued to Subscriber representing shares of Common Stock acquired upon exercise
of the Warrants or any portion thereof, shall bear the following legend
restricting transfer thereof and containing substantially the following
language.

    

    “The
securities represented by this certificate have not been registered under the
Securities Act of 1933, as amended, and may not be sold or otherwise transferred
unless compliance with the registration provisions of such act has been made or
unless the availability of an exemption from such registration provisions has
been established, or unless sold pursuant to Rule 144 under the Securities Act
of 1933.”

    

    and;

    

    (h) The
Company will place a notation in its stock records and instruct the Company’s
transfer agent to restrict the resale, pledge, hypothecation or other transfer
thereof in accordance with the provisions of the legend set forth in Section
2(g) hereof.

    

    3.  Terms and Conditions of
Warrants.

    

    (a)
Shares Issuable Per Warrant.  Each Warrant shall entitle the
Subscriber to purchase one-half (1/2) share of Common Stock under the terms and
conditions of this Section 3.

    

    (b)
Exercise Price.  The exercise price per share of the shares of Common
Stock issuable upon exercise of the Warrants (the “Warrant Shares”) shall be an
amount equal to 50% of the closing price of the Common Stock for the trading day
immediately preceding the date of the notice of exercise of the Warrant (the
“Exercise Price”).

    

    (c)
Exercisability of Warrant; Termination of Warrant.  Subject to the
provisions of this paragraph (c), each Warrant shall be exercisable by the
Subscriber for a period of three (3) years commencing on the date of issuance
and expiring on the third anniversary of the date of issuance, as provided on
the warrant certificate evidencing the Warrants (the “Expiration Date”), subject
to the following provisions:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (1)  All issued but unexercised
Warrants shall continue to be fully exercisable in accordance with the
provisions herein, subject to the Company’s right to cancel provided in
subparagraph (2), if:

    

    (i)  there occurs any corporate
transaction (which shall include a series of corporate transactions occurring
within 60 days or occurring pursuant to a plan), that has the result that
shareholders of the Company immediately before such transaction cease to own at
least a majority of the voting stock of the Company in a (a) reorganization, (b)
consolidation, (c) merger, (d) liquidation or (e) a similar corporate
transaction;

    

    (ii)  the shareholders of the
Company approve a plan of merger, consolidation, reorganization, liquidation or
dissolution in which the Company does not survive (unless the approved merger,
consolidation, reorganization, liquidation or dissolution is subsequently
abandoned); or

    

    (iii)  the shareholders of the
Company approve a plan for the sale, lease, exchange or other disposition of all
or substantially all the property and assets of the Company (unless such plan is
subsequently abandoned).

    

    (2)  Right to
Cancel.  The Company reserves the right to cancel the Warrants prior
to the Expiration Date, after a period of one year has elapsed from the date of
issuance of the Warrants and upon 15 days written notice to the Warrant holders,
if the closing price of the Company’s Common Stock is an amount equal to or
exceeding $0.20 per share for a period of 20 consecutive trading
days.

    

    (d)
Non-Transferability.  The Warrants shall not be given, granted, sold,
exchanged, transferred, pledged, encumbered, assigned or otherwise disposed of
by the Subscriber, other than by will or the laws of descent and distribution
upon the death of Subscriber.  The Warrants shall not be exercisable
by any person other than Subscriber, except that in the event of Subscriber's
death, the exercisable but unexercised portion of the Warrants may be exercised
by the estate of the Subscriber or by the person who acquired the right to
exercise the Warrants in accordance with this paragraph, subject to such
transferree’s execution of a Subscription and Indemnification and Stock Purchase
Warrant Agreement with the Company.

    

    (e)
Method of Exercise.  Subscriber shall notify the Company by written
notice, in the form of the Notice of Exercise attached hereto (Attachment A),
delivered to the Company’s principal office,
attention:  Secretary.

    

    (1)  Payment for the Warrant
Shares must accompany the Notice of Exercise and shall be made by Subscriber's
check payable to International Star, Inc. or by wire transfer in full payment of
the Exercise Price times the number of Warrant Shares purchased (the “Total
Exercise Price”).

    

    (2)  As soon as practicable after
the receipt of the Notice of Exercise and accompanying payment of the Total
Exercise Price and Subscriber’s check or wire transfer has been paid, the
Company shall instruct its transfer agent to issue to Subscriber a certificate
or certificates evidencing the Warrant Shares purchased by Subscriber
hereunder.

    

    (f)
Restriction on Exercise.  As a condition to the exercise of any
Warrant, the Company may require the person exercising the Warrant to make any
representation and warranty to the Company as may be required by any applicable
law or regulation.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
(g) No
Fractional Shares.  No fractional shares of Common Stock will be
issued upon exercise of the Warrants, but the Company shall pay to Subscriber
the cash value of any fraction of a Warrant Share to which Subscriber is
entitled upon the exercise of one or more Warrants.

    

    (h)
Adjustment of Warrant Shares.  If at any time prior to the expiration
or exercise in full of the Warrants, there shall be any increase or decrease in
the number of issued and outstanding shares of the Common Stock through the
declaration of a stock dividend or through any recapitalization resulting in a
stock split, combination or exchange of the Common Stock, then the number of
Warrant Shares subject to the Warrants shall be proportionately adjusted for any
such change in the stock structure of the Company.

    

    Except as
otherwise expressly provided herein, the issuance by the Company of shares of
its capital stock of any class, or securities convertible into shares of capital
stock of any class, either in connection with a direct sale or upon the exercise
of rights or warrants to subscribe therefor, or upon conversions of shares or
obligations of the Company convertible into such shares or other securities,
shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number or exercise price of the Warrant Shares that remain unexercised
under the Warrants.

    

    Without
limiting the generality of the foregoing, the existence of unexercised Warrant
Shares under the Warrants shall not affect in any manner the right or power of
the Company to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business; (ii) any merger or consolidation of the Company;
(iii) any issue by the Company of debt securities, or preferred or preference
stock that would rank above the Warrant Shares issuable upon exercise of the
Warrant; (iv) the dissolution or liquidation of the Company; (v) any sale,
transfer or assignment of all or any part of the assets or business of the
Company; or (vi) any other corporate act or proceeding, whether of a similar
character or otherwise.

    

    (i) No
Rights as Stockholder.  The Subscriber shall have no rights as a
stockholder of the Company with respect to any Warrant Shares as to which
Warrants have not been exercised and payment of the Total Exercise Price has not
been made therefor as herein provided.

    

    4.  Representations, Warranties, and
Acknowledgments by the Subscriber.  The Subscriber further
represents, warrants, and acknowledges to the Company that the
Subscriber:

    

    (a) has
been informed of and understands the terms of the Offering and the terms and
conditions of the Warrants; and

    

    (b)
understands that he or she is being offered the Units solely because of his or
her status as an accredited investor; and

    

    (c) is
aware that all Company information has been filed with the Securities and
Exchange Commission on Forms 10-KSB and 10-QSB (or 10-Q) and such current and
other reports as required by the Securities Exchange Act of 1934, as amend, and
represents that Subscriber has reviewed the Company’s financial statements
contained in the Company’s most recent Form 10-QSB (or 10-Q) and Form 10-KSB, as
available on the SEC’s EDGAR filing system, and has relied on the information
contained in such filings in connection with his or her investment decision with
respect to the Shares; and

    

    (d) has
had access to information concerning the Company, including, without limitation,
the opportunity to ask questions of and receive answers from the Company
concerning any and all aspects of the Offering and any other information about
the Company that Subscriber requested to review; and

    

    (e)
acknowledges that he or she is knowledgeable about the Company, its business,
its financial condition and its competitors and has had the opportunity to
obtain such additional information about the Company as Subscriber deems
necessary in order to make an informed investment decision, including but not
limited to: (i) documents, agreements, financial statements, and information
regarding the Company, its results of operation and plans and prospects for the
future, (ii) the corporate structure of the Company and its capitalization
including information about its board of directors and officers, the rights
which a shareholder of the Company has under its Articles of Incorporation and
Bylaws; (iii) the dividend policy of the Company; (iv) the uses of the proceeds
from the Offering; and (v) any other information about the Company that
Subscriber requested to review; and

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
(f)
understands that proceeds of the Offering will be used for general working
capital of the Company; and

    

    (g)
understands that the sale of the Shares and Warrants, and the Warrant Shares
issuable pursuant to the Warrants, is not being registered under federal and
state securities laws, and that the Shares and Warrants, and the Warrant Shares
issuable pursuant to the Warrants, are being offered and sold under the
exemptions from registration provided in Section 4(2) of the Securities Act, and
Rule 506 of Regulation D promulgated thereunder, and pursuant to exemptions from
registration under the securities laws of the state(s) in which the offeree(s)
reside(s), and that THIS TRANSACTION HAS NOT BEEN REVIEWED OR PASSED UPON BY ANY
FEDERAL OR STATE AGENCY; and

    

    (h) has
the required degree of knowledge and experience in financial and business
matters, including making investment decisions of this type, that enables
Subscriber to utilize the information made available to Subscriber in connection
with the offer of the Units, to evaluate the risks of the prospective investment
and to make an informed investment decision; and

    

    (i) meets
one of the criteria for an accredited investor in subparagraph (1) or (2) below
(indicated by the
initials
of Subscriber
in the appropriate blank(s)):

    

    (1) 
if Subscriber is a
natural person:

    

    
      	
               
      

            	
                      

            	
              (i)

            	
              such
      Subscriber has net worth as an individual or joint net worth with
      Subscriber’s spouse, as of the date hereof, which exceeds $1,000,000;
      or

            

    

    

    
      	
               
      

            	
                      

            	
              (ii)

            	
              such
      Subscriber had individual income in excess of $200,000 in each of the two
      most recent years or joint income with Subscriber’s spouse in excess of
      $300,000 in each of those years and has a reasonable expectation of
      reaching the same income level in the current year;
  or

            

    

    

    
      	
               
      

            	
                      

            	
              (iii)

            	
              such
      Subscriber is a director or executive officer of the Company;
      or

            

    

    

    (2) 
if Subscriber is not a
natural person:

    

    
      	
               
      

            	
                      

            	
              (i)

            	
              such
      Subscriber is a bank, insurance company, investment company (as defined in
      the Investment Company Act of 1940), business development company or small
      business investment company; or

            

    

    

    
      	
               
      

            	
                      

            	
              (ii)

            	
              such
      Subscriber is an employee benefit plan within the meaning of Title I of
      the Employee Retirement Income Security Act of 1974 administered by a
      bank, savings and loan association, insurance company or registered
      investment advisor; or

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
                      

            	
              (iii)

            	
              such
      Subscriber is an employee benefit plan within the meaning of Title I of
      the Employee Retirement Income Security Act of 1974 with total assets in
      excess of $5,000,000 with investment decisions made solely by persons who
      are accredited investors; or

            

    

    

    
      	
               
      

            	
                      

            	
              (iv)

            	
              such
      Subscriber is a self-directed retirement plan with investment decisions
      made solely by persons who are accredited investors;
  or

            

    

    

    
      	
               
      

            	
                      

            	
              (v)

            	
              such
      Subscriber is a savings and loan association or other institution as
      defined in Section 3(a)(5)(A) of the Securities
  Act;

            

    

    

    
      	
               
      

            	
                      

            	
              (vi)

            	
              such
      Subscriber is a broker or dealer registered pursuant to the Securities
      Exchange Act of 1934;

            

    

    

    
      	
               
      

            	
                      

            	
              (vii)

            	
              such
      Subscriber is a plan with assets in excess of $5,000,000 established and
      maintained by a state, its political subdivisions or any agency or
      instrumentality of a state or its political subdivisions for the benefit
      of its employees;

            

    

    

    
      	
               
      

            	
                      

            	
              (viii)

            	
              such
      Subscriber is a private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940;
      or

            

    

    

    
      	
               
      

            	
                      

            	
              (ix)

            	
              such
      Subscriber is a non-profit organization described in Internal Revenue Code
      Section 501(c)(3) with total assets in excess of $5,000,000;
      or

            

    

    

    
      	
               
      

            	
                      

            	
              (x)

            	
              such
      Subscriber is a corporation, partnership or similar business trust, not
      formed for the specific purpose of acquiring the securities offered, with
      total assets in excess of $5,000,000;
or

            

    

    

    
      	
               
      

            	
                      

            	
              (xi)

            	
              such
      Subscriber is a trust with total assets in excess of $5,000,000 not formed
      for the specific purpose of acquiring the securities offered whose
      purchase is directed by a sophisticated person as described in Securities
      and Exchange Commission
Rule 506(b)(2)(ii);

            

    

    

    
      	
               
      

            	
                      

            	
              (xii)

            	
              such
      Subscriber is an entity in which all of the equity owners are accredited
      investors as otherwise defined in subparagraphs (1) and (2) of
      this paragraph (i);

            

    

    

    
      	
               
      

            	
              and

            

    

    

    (j) as
an accredited investor, is aware that no offering memorandum or other disclosure
document is being provided to the Subscriber based upon his or her
representations set forth herein; and

    

    (k)
understands that dividends are paid if and when authorized by the board of
directors of the Company and are payable only if and to the extent earnings are
available, and further understands that there can be no assurance that the board
of directors of the Company will authorize the issuance of dividends;
and

    

    (l) has
no reason to anticipate any change in personal circumstances, financial or
otherwise, which may cause or require any sale or distribution of the Shares or
the Warrant Shares; and

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
(m) is
familiar with the nature of and risks attending an investment of this type, and
thus has determined that the purchase of the Units and the purchase of any
Warrant Shares pursuant to the Warrants are consistent with Subscriber’s
investment objectives and income prospects; and

    

    (n) is
acquiring the Shares and the Warrants for purposes of long-term investment, for
the personal account of Subscriber, and with no present intention of reselling,
distributing or otherwise transferring the Shares or the Warrant Shares to be
acquired by Subscriber upon exercise of the Warrants, or any portion of the
Shares or the Warrant Shares, and Subscriber has no contract, undertaking or
oral or written arrangement with any person or entity to sell or transfer all or
any portion of the Shares or the Warrant Shares to that person or entity, or to
have that person or entity sell for him all or any portion of the Shares or the
Warrant Shares, or to afford or allow any participation in the Shares or the
Warrant Shares by any other person or entity; and

    

    (o) is
not purchasing the Units in reliance on any verbal representation or warranty of
the Company or its directors, officers, employees, agents, independent
contractors or any other person, and acknowledges that all documents, records
and books pertaining to this subscription which Subscriber has requested have
been made available to such Subscriber, and/or his or her attorney, accountant
or other representative; and

    

    (p)
understands that the Warrants are not transferable, except as provided in
Section 3 herein, and further understands that the Subscriber’s ability to
transfer the Shares and the Warrant Shares will be restricted and that transfers
of the Shares and the Warrant Shares may not be made unless the transfer is not
in violation of the Securities Act and applicable state securities laws
(including investment suitability standards), and that the Company reserves its
right to withhold consent to a transfer if, among other things, the transferee
does not meet and does not represent that he or she meets the financial
suitability standards required of an initial subscriber; and

    

    (q)
understands that, because the Warrants may not be transferred and because
transfer of the Shares and the Warrant Shares is restricted, Subscriber may not
readily liquidate this investment; and further understands that the Units should
not be purchased unless the Subscriber has liquid assets sufficient to assure
that such purchase will cause no undue financial difficulties and the Subscriber
can otherwise provide for current needs and possible personal contingencies; and
further affirms that Subscriber has sufficient liquid assets so that the
purchase of the Units will not interfere with Subscriber’s personal needs or
contingencies; and

    

    (r)
understands the fundamental aspects of and risks involved in an investment in
the Company, including (1) the nature of the investment, (2) the financial
hazards involved, including the risk of losing the entire investment, (3) the
lack of liquidity and the restrictions on transferability of the Shares, and (4)
the business of the Company; and

    

    (s) has
subscribed for the number of Units as set forth in Section 1 of this
Subscription Agreement and has tendered the Total Subscription Price; and
acknowledges that such tender is irrevocable and binding until either accepted
or rejected by the Company; that the Company will accept validly executed and
completed subscriptions subject to prior sale; that the Company may reject any
subscription, in whole or in part, and for any reason, without liability to it;
and, further, that the Company will reject any subscription that is not
accompanied by a fully executed and completed Subscription
Agreement; and

    

    (t)
represents that no person other than the Subscriber will have a direct or
indirect interest in the Shares and Warrants subscribed for hereby;
and

    

    (u)
represents that the address set forth on the signature page of this Subscription
Agreement is the Subscriber’s true and correct residence address, and the
Subscriber has no present intention of becoming a resident of any other state or
jurisdiction; and

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (v)
agrees that the Company may present this document to whatever persons it deems
appropriate if the Company is called upon to establish the availability of an
exemption to the registration requirements of the Securities Act and applicable
state securities laws for this Offering and sale of the Units; and

    

    (w)
affirms that the representations made herein by the Subscriber are true, correct
and complete as of the date hereof, and, if there should be any material change
in these representations prior to the issuance of the Shares and Warrants, the
Subscriber will immediately inform the Company and furnish such revised or
corrected information to the Company.

    

    5.  Indemnification.  The
Subscriber does hereby agree to indemnify and hold harmless the Company and its
directors, officers, employees, agents, attorneys and independent contractors
from and against any and all liabilities, damages, losses, costs, claims and
expenses (including attorneys’ fees) arising under or resulting from
Subscriber’s breach of any representation or warranty made herein or from any
other misrepresentation made by Subscriber in connection with the Offering,
Subscriber’s subscription for the Units, and Subscriber’s exercise of the
Warrants and acquisition of the Warrant Shares.

    

    6.  Miscellaneous.

    

    (a) This
Subscription Agreement, or any interest herein, shall not be transferable or
assignable by Subscriber.

    

    (b) The
Company reserves the right in its sole discretion to determine the validity of
all subscriptions for Units and to reject subscriptions that it deems
invalid.

    

    (c) All
notices or other communications hereunder shall be in writing and shall be hand
delivered or mailed, postage prepaid, to the undersigned at the address set
forth below and to the Company at the address set forth above.

    

    (e) This
Subscription Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Nevada.

    

    (f) Any
individual executing this Subscription Agreement for himself or herself
represents and warrants to the Company that he or she is at least eighteen (18)
years of age.  Any corporate Subscriber or Subscriber acting in a
fiduciary capacity hereof represents and warrants to the Company that its
actions in executing, delivering and carrying out the transactions contemplated
by this Agreement have been duly and validly authorized.

    

    (g) This
Subscription Agreement shall inure to the benefit of and be binding upon the
parties hereto and their heirs, successors, personal representatives, trustees
and assigns.  If the Subscriber is more than one person or entity, the
obligations of the undersigned shall be joint and several, and the
representation and the indemnification obligations herein contained shall be
deemed to be made by and binding upon each such person and his or her heirs,
successors, personal representatives, trustees and assigns.

    

    IN WITNESS WHEREOF, this
Subscription Agreement has been executed by the Subscriber as of the date
indicated next to such authorized signature.

    

    

    

    (Signature
on page following.)

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      
        INTERNATIONAL
STAR, INC.

        

        Subscription Agreement Signature
Page

         

        
          	/s/
      Tim Harts            	September
      30, 2008        
	Authorized Signature of
      Subscriber	Date

        

         

        PLEASE
PRINT: Tim Harts

        

        
          
            
              
                
                  
                    
                      	
                              Exact
      Legal Name of
      Subscriber:

                            	Tim
      Harts
	
                              Title
      (if signing as an officer or in a representative capacity)

                            	 
	
                              Physical
      Street Address of Residence (if an
      Individual)

                            	30775
      Kingsway Drive
	
                              or

                              Principal
      Place of Business (if an Entity)

                            	
                              Line
      1 of Street Address (not a P. O. Box)

                               

                               

                            
	 
      	
                              Line
      2 of Address

                               

                              Farmington
      Hills         MI          48331

                            
	 
      	
                              City                                              State                         Zip

                               

                            
	
                              Mailing
      Address for Notice

                              (if
      different from above)

                            	 
      
	 
      	
                              Line
      1 of Street Address or P. O. Box

                               

                               

                            
	 
      	
                              Line
      2 of Address

                               

                               

                            
	 
      	
                              City                                              State                         Zip

                               

                            
	
                              Social
      Security Number

                              or
      Tax Identification Number

                            	xxx-xx-xxxx

                    

                  

                

              

            

          

        

         

         

        ACCEPTED
by the Company this 30th day
of   September
, 2008.

         

        INTERNATIONAL
STAR, INC.

         

        By: /s/Jacqulyn
B. Wine        

         

        Name: Jacqulyn
B. Wine        

         

        Title: Chief
Financial Officer      

        

        

         

         

         

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  Exhibit 4.1    
    

 FORM OF

REGISTRATION RIGHTS AGREEMENT  

        THIS REGISTRATION RIGHTS AGREEMENT (this
"Agreement") is made and entered into as of February 27, 2009, by and between Ellora Energy Inc., a Delaware corporation (the
"Company"), and the participating stockholders who have executed this Agreement on the signature pages hereto or who are listed on  Schedule I
("Participating Stockholders"). 

 W I T N E S S E T H :  

        WHEREAS, the Company and the Participating Stockholders are participating in a private
placement (the "Private Placement") of shares of the Series A 6% Convertible Preferred Stock (the "Preferred
Stock"), which are convertible into the Company's common stock, par value $0.001 per share (the "Common Stock"). 

        NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties hereto, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

        1.    Definitions.    Unless otherwise defined herein, as used in this Agreement, the following terms shall have the
following meanings: 

        "Affiliate" means, as to any specified Person, (i) any Person that directly, or indirectly through one or more intermediaries,
controls or is controlled by, or is under common control with, the specified Person, (ii) any executive officer, director, trustee or general partner of the specified Person and
(iii) any legal entity for which the specified Person acts as an executive officer, director, trustee or general partner. For purposes of this definition, "control" (including the correlative
meanings of the terms "controlled by" and "under common control with"), as used with respect to any Person, means the possession, directly, or indirectly through one or more intermediaries, of the
power to direct or cause the direction of the management and policies of such Person, whether by contract, through the ownership of voting securities, partnership interests or other equity interests
or otherwise. 

        "Agreement" is defined in the introductory paragraph of this Agreement. 

        "Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York, New
York are authorized or obligated by applicable law, regulation or executive order to close. 

        "Commission" means the Securities and Exchange Commission. 

        "Common Stock" is defined in the recitals of this Agreement. 

        "Company" is defined in the introductory paragraph of this Agreement, and includes any successor thereto. 

        "Controlling Person" is defined in Section 6(a). 

        "Demand Date" is the date that the required number of Holders demand mandatory shelf registration rights pursuant to  Section 2(a). 

        "End of Suspension Notice" is defined in Section 5(b). 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission pursuant
thereto. 

        "FINRA" means the Financial Industry Regulatory Authority. 

1

 

        "Free Writing Prospectus" means a free writing prospectus, as defined in Rule 405 under the Securities Act. 

        "Holder" means any owner of the Preferred Stock or Registrable Shares as defined under this Agreement. 

        "Indemnified Party" is defined in Section 6(c). 

        "Indemnifying Party" is defined in Section 6(c). 

        "IPO Registration Statement" is defined in Section 7. 

        "Issuer Free Writing Prospectus" means an issuer free writing prospectus, as defined in Rule 433 under the Securities Act. 

        "Liabilities" is defined in Section 6(a). 

        "Lock-Up Period" is defined in Section 7

        "Mandatory Shelf Registration Statement" is defined in Section 2(a). 

        "No Objections Letter" is defined in Section 4(t). 

        "Participating Stockholders" is defined in the introductory paragraph of this Agreement. 

        "Permitted Free Writing Prospectus" is defined in Section 4. 

        "Person" means an individual, limited liability company, partnership, corporation, trust, unincorporated organization, government or
agency or political subdivision thereof, or any other legal entity. 

        "Piggyback Registration Statement" is defined in Section 2(b). 

        "Private Placement" is defined in the recitals to this Agreement. 

        "Prospectus" means the prospectus included in any Registration Statement, including any preliminary prospectus, and all other amendments
and supplements to any such prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference, if any, in such
prospectus. 

        "Purchaser Indemnitee" is defined in Section 6(a). 

        "Registrable Shares" means the shares of Common Stock issued upon conversion of the Preferred Stock, and any shares or other securities
issued in respect of such Registrable Shares because of or in connection with any stock dividend, stock distribution, stock split, purchase in any rights offering or in connection with any exchange
for or replacement of such Registrable Shares or any combination of shares, recapitalization, merger or consolidation, or any other equity securities issued pursuant to any other pro rata distribution
with respect to the Common Stock, until, with respect to a Registrable Share, the earliest to occur of: 

          (i)  the
date on which it has been sold pursuant to a Registration Statement or sold pursuant to Rule 144; 

         (ii)  the
date on which it is saleable, in the opinion of counsel to the Company, without registration under the Securities Act, pursuant to Rule 144(k); 

        (iii)  the
date on which it is saleable, without restriction, pursuant to an available exemption from registration under the Securities Act; or 

        (iv)  the
date on which it is sold to the Company or its subsidiaries. 

2

 

        "Registration Expenses" means any and all expenses incident to the performance of or compliance with this Agreement, including:
(i) all Commission, securities exchange, FINRA registration, listing, inclusion and filing fees, (ii) all fees and expenses incurred in connection with compliance with international,
federal or state securities or blue sky laws (including any registration, listing and filing fees and reasonable fees and disbursements of counsel in connection with blue sky qualification of any of
the Registrable Shares and the preparation of a blue sky memorandum and compliance with the rules of FINRA), (iii) all expenses of any Persons in preparing or assisting in preparing, word
processing, duplicating, printing, delivering and distributing any Registration Statement, any Prospectus, any amendments or supplements thereto, any underwriting agreements, securities sales
agreements, certificates and any other documents relating to the performance under and compliance with this Agreement, (iv) all fees and expenses incurred in connection with the listing or
inclusion of any of the Registrable Shares on the New York Stock Exchange, NYSE Alternext U.S., or NASDAQ Stock Market pursuant to Section 4(n),
(v) the fees and disbursements of counsel for the Company and of the independent public accountants of the Company (including the expenses of any special audit and "cold comfort" letters
required by or incident to such performance) and (vi) any fees and disbursements customarily paid in issues and sales of securities (including the fees and expenses of any experts retained by
the Company in connection with any Registration Statement), provided, however, that Registration Expenses shall exclude brokers' or underwriters'
discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Shares by a Holder and the fees and disbursements of any counsel to the Holders other than as
provided for in clause (v) above. 

        "Registration Statement" means any Mandatory Shelf Registration Statement or Piggyback Registration Statement. 

        "Rule 144", "Rule 158",
"Rule 415", or "Rule 424", respectively, means such specified rule promulgated by the
Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission as a replacement thereto having
substantially the same effect as such rule. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder. 

        "Suspension Event" is defined in Section 5(b). 

        "Suspension Notice" is defined in Section 5(b). 

        "Underwritten Offering" means a sale of securities of the Company to an underwriter or underwriters for reoffering to the public. 

        2.    Registration Rights.    

        (a)    Mandatory Shelf Registration Rights.    At any time after the date hereof, Holders owning at least 50% of the
Preferred Stock (or shares of Common Stock issued upon conversion of the Preferred Stock) may demand that the Company file with the Commission a shelf registration statement on
Form S-1 or such other form under the Securities Act then available to the Company providing for the resale of the Registrable Shares pursuant to Rule 415 of the from time to
time by the Holders (including the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if any, in such registration statement, the "Mandatory Shelf Registration
Statement"). If the Company has an effective Mandatory Shelf Registration Statement on Form S-1 under the Securities Act and becomes eligible to use
Form S-3 or such other short-form registration statement form under the Securities Act, the Company shall promptly give notice of such eligibility to the Holders and
may, or at the request of the Holders, shall promptly convert such Mandatory Shelf Registration Statement on Form S-1 to a registration statement on Form S-3 or
such other short-form 

3

 

registration
statement by means of a post-effective amendment or otherwise, unless the Holders notify the Company within 10 Business Days of receipt of the Company notice that such
conversion would interfere with its distribution of Registrable Shares already in progress and provides a reasonable explanation therefor, in which case the Company will delay the conversion of the
Mandatory
Shelf Registration Statement for a reasonable time after receipt of the first such notice, not to exceed 30 days in the aggregate. 

          (i)  Effectiveness and Scope.    The Company shall use its commercially reasonable efforts to cause the Mandatory
Registration Statement to be declared effective by the Commission within 270 days following the Demand Date and to remain effective until the date on which all Shares in respect thereof cease
to be Registrable Shares. The Mandatory Shelf Registration Statement shall provide for the resale from time to time, and pursuant to any method or combination of methods legally available (including
an Underwritten Offering, a direct sale to purchasers, a sale through brokers or agents, or a sale over the internet), by the Holders. 

         (ii)  Underwriting.    If any of the Holders propose to conduct an Underwritten Offering under the Mandatory Shelf
Registration Statement, such Holders shall advise the Company and all other Persons whose securities are included in the Mandatory Shelf Registration Statement (if applicable), of the managing
underwriters for such proposed Underwritten Offering; such managing underwriters to be subject to the approval of the Company, not to be unreasonably withheld. In such event, the Company shall enter
into an underwriting agreement in customary form with the managing underwriters, which shall include, among other provisions, indemnities to the effect and to the extent provided in  Section 6 and
shall take all such other reasonable actions as are requested by the managing underwriter in order to expedite or facilitate the
registration and disposition of the Registrable Shares included in such Underwritten Offering; provided, however, that the Company shall be required to
cause appropriate officers of the Company or its Affiliates to participate in a "road show" or similar marketing effort being conducted by such underwriter with respect to such Underwritten Offering
only if the participating Holders and any other Persons who are participating in the Underwritten Offering reasonably anticipate gross proceeds from such Underwritten Offering of at least
$20 million. All Persons proposing to distribute their Registrable Shares through such Underwritten Offering shall enter into an underwriting agreement in customary form with the managing
underwriters selected for such underwriting and complete and execute any questionnaires, powers of attorney, indemnities, securities escrow agreements and other documents reasonably required under the
terms of such underwriting, and furnish to the Company such information in writing as the Company may reasonably request for inclusion in the Registration Statement; provided,
however, that the Holders shall not be required to make any representations or warranties to or agreements with the Company or the underwriters other than representations,
warranties or agreements as are customary and reasonably requested by the underwriters. Notwithstanding any other provision of this Agreement, with respect to an Underwritten Offering in connection
with the Mandatory Shelf Registration Statement, if the managing underwriters determine in good faith that marketing factors require a limitation on the number of shares to be included in such
Underwritten Offering, then the managing underwriters may exclude shares (including Registrable Shares) from the Underwritten Offering, and any shares included in the Underwritten Offering shall be
allocated to each of the Holders requesting inclusion of their Registrable Shares in which Underwritten Offering on a pro rata basis based on the total number of Registrable Shares requested to be
included. 

        (iii)  Selling Stockholder Questionnaires.    Each Holder agrees, by its acquisition of Preferred Stock, that if
such Holder wishes to sell Registrable Shares pursuant to the Mandatory Shelf Registration Statement and related Prospectus, it will do so only in 

4

 

accordance
with this Section 2(a)(iii). Each Holder wishing to sell Registrable Shares pursuant to the Mandatory Shelf Registration Statement and related Prospectus agrees to deliver to the
Company a written notice and questionnaire in a form reasonably acceptable to the Company (a "Notice and Questionnaire"). The Company shall mail the
Notice and Questionnaire to the Holders no later than the date of initial filing of the Mandatory Shelf Registration Statement with the Commission. No Holder shall be entitled to be named as a selling
securityholder in the Mandatory Shelf Registration Statement as of the initial effective date of the Mandatory Shelf Registration Statement, and no Holder may use the Prospectus forming a part thereof
for resales of Registrable Shares at any time, unless such Holder has returned a completed and signed Notice and Questionnaire to the Company by the deadline for response set forth therein;  provided, however, Holders shall have at least twenty (20) days from the date on which the Notice and Questionnaire is first mailed to such
Holders to return a completed and signed Notice and Questionnaire to the Company. Notwithstanding the foregoing, (x) upon the request of any Holder that did not return a Notice and
Questionnaire on a timely basis or did not receive a Notice and Questionnaire because it was a subsequent transferee of Registrable Shares after the Company mailed the Notice and Questionnaire, the
Company shall distribute a Notice and Questionnaire to such Holders at the address set forth in the request and (y) upon receipt of a properly completed Notice and Questionnaire from such
Holder, the Company shall use its commercially reasonable efforts to name such Holder as a selling securityholder in the Mandatory Shelf Registration Statement by means of a pre-effective
amendment, by means of a post-effective amendment or, if permitted by the Commission, by means of a Prospectus supplement to the Mandatory Shelf Registration Statement; provided, however,
that the Company will have no obligation to add Holders to the Shelf Mandatory Registration Statement as selling securityholders more frequently than one time per every thirty (30) calendar
days. 

        (b)    Piggyback Registration Rights.    

          (i)  Piggyback Registration.    If, after the date hereof, the Company proposes to file a registration
statement under the Securities Act providing for a public offering of the Company's equity securities, other than a Mandatory Shelf Registration Statement covering Registrable Shares registered for
resale by Persons receiving shares of Preferred Stock in the Private Placement, or a registration statement on Form S-8 or Form S-4 or any similar form hereafter
adopted by the Commission as a replacement therefor (including the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if any, in such registration statement, the
"Piggyback Registration Statement"), the Company will notify each Holder of the proposed filing if clause (i) or (ii) of the following
sentence applies, or to the affected Holder(s) if clause (iii) of the following sentence applies. If (i) the Piggyback Registration Statement relates to an Underwritten Offering,
(ii) the Mandatory Shelf Registration Statement is not then effective or (iii) Registrable Shares eligible for inclusion on the Mandatory Shelf Registration Statement when initially
declared effective were not included in the Mandatory Shelf Registration Statement (unless such shares can and will be added to the Mandatory Registration Statement at such time), then each Holder in
the case of clause (i) and (ii) and each such affected Holder in the case of clause (iii), shall be given an opportunity to include in such Piggyback Registration Statement all or
any part of such Holder's Registrable Shares. Each such Holder desiring to include in any such Piggyback Registration Statement all or part of such Holder's Registrable Shares shall, within
10 days after delivery of the above-described notice by the Company, so notify the Company in writing, and in such notice shall inform the Company of the number of Registrable Shares such
Holder wishes to include in such Piggyback Registration Statement and provide, as a condition to such inclusion, such 

5

 

information
regarding itself, its Registrable Shares and the intended method of disposition of such securities as is required pursuant to Regulation S-K promulgated under the
Securities Act to effect the registration of the Registrable Shares. Any Holder's election to include any Registrable Shares in such Piggyback Registration Statement will not affect the inclusion of
such Registrable Shares in the Mandatory Shelf Registration Statement until such Registrable Shares have been sold under the Piggyback Registration Statement, at which time the Company may remove from
the Mandatory Shelf Registration Statement such Registrable Shares. 

        (A)  Right to Terminate Piggyback Registration.    At any time, the Company may terminate or withdraw any Piggyback
Registration Statement referred to in this Section 2(b)(i), and without any obligation to any such Holder whether or not any Holder has elected
to include Registrable Shares in such registration. The Company may suspend the effectiveness and use of any Piggyback Registration Statement at any time for an unlimited amount of time whether or not
any Holder has elected to include Registrable Shares in such registration. 

        (B)  Underwriting.    The Company shall advise the Holders of the managing underwriters for any Underwritten
Offering proposed under the Piggyback Registration Statement. The right of any such Holder's Registrable Shares to be included in any Piggyback Registration Statement pursuant to this  Section 2(b)(i) shall be conditioned upon such Holder's participation in such Underwritten Offering and the inclusion of such Holder's
Registrable Shares in the Underwritten Offering to the extent provided herein. All Holders proposing to distribute their Registrable Shares through such Underwritten Offering shall enter into an
underwriting agreement in customary form with the managing underwriters
selected for such underwriting and complete and execute any questionnaires, powers of attorney, indemnities, securities escrow agreements and other documents reasonably required under the terms of
such underwriting, and furnish to the Company such information in writing as the Company may reasonably request for inclusion in the Registration Statement; provided,
however, that no Holder shall be required to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties
or agreements as are customary and reasonably requested by the underwriters. Notwithstanding any other provision of this Agreement, if the managing underwriters determine in good faith that marketing
factors require a limitation on the number of shares to be included, then the managing underwriters may exclude shares (including Registrable Shares) from the Piggyback Registration Statement and the
Underwritten Offering, and any Shares included in the Piggyback Registration Statement and the Underwritten Offering shall be allocated, first, to the
Company, and second, to any Person exercising demand registration rights that are the basis for such registration, and  third, to each of the Holders
requesting inclusion of their Registrable Shares in such Piggyback Registration Statement on a pro
rata basis based on the total number of such shares requested to be included; provided, however, that, notwithstanding anything in this Agreement to the contrary, if the
Registration Statement is the IPO Registration Statement, Company securities shall be allocated first, to the Company, and  second to the Holders requesting
inclusion of their Registrable Shares in the IPO Registration Statement on a pro rata basis based on the total number
of Registrable Shares requested to be included. If any Holder disapproves of the terms of any Underwritten Offering, such Holder may elect to withdraw therefrom by written notice to the Company and
the underwriter, delivered at least 10 Business Days before the effective date of the Piggyback Registration Statement. Any Registrable Shares excluded or withdrawn from such Underwritten Offering
shall be excluded and withdrawn from the Piggyback Registration Statement. 

6

 

        (C)  Hold-Back Agreement.    By electing to include Registrable Shares in the Piggyback Registration
Statement, if any, the Holder shall be deemed to have agreed not to effect any sale or distribution of securities of the Company of the same or similar class or classes of the securities included in
the Registration Statement or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during such
periods as reasonably requested (but in no event longer than 30 days before or 60 days following the effective date of the Piggyback Registration Statement (subject to extension for
earnings announcements or material events as provided in Section 7), provided each of the executive officers and directors of the Company who
holds shares of Common Stock of the Company or securities convertible into or exchangeable or exercisable for shares of Common Stock of the Company is subject to the same restriction for the entire
time period required of the Holders hereunder) by the representatives of the underwriters, if an Underwritten Offering. 

        (D)  Mandatory Shelf Registration not Impacted by Piggyback Registration Statement.    The Company's obligation to
file any Mandatory Shelf Registration Statement shall not be affected by the filing or effectiveness of the Piggyback Registration Statement. 

        (c)    Expenses.    The Company shall pay all Registration Expenses in connection with the registration of the
Registrable Shares pursuant to this Agreement. Each Holder participating in a registration pursuant to this Section 2 shall bear such Holder's
proportionate share (based on the total number of Registrable Shares sold in such registration) of all discounts and commissions payable to underwriters or brokers and all transfer taxes in connection
with a registration of Registrable Shares pursuant to this Agreement and any other expense of the Holders not specifically allocated to the Company pursuant to this Agreement relating to the sale or
disposition of such Holder's Registrable Shares pursuant to any Registration Statement. Nothing herein shall require the Company to pay any expenses, fees, or costs relating to counsel for any Holder
unless required pursuant to Section 6(c).  

        3.    Liquidated Damages.    If the Company does not cause the Mandatory Shelf Registration
Statement to be declared effective within the time specified in Section 2(a)(i), the Company shall make to each holder of record, as liquidated
damages, one payment equal to their pro-rata share of an amount equal to one percent (1%) of the aggregate dollar amount raised by the Company in the Private Placement. 

        4.    Registration Procedures.    In connection with the obligations of the Company with respect to any registration
pursuant to this Agreement, the Company shall: 

        (a)   prepare
and file with the Commission, as specified in this Agreement, each Registration Statement, which Registration Statement shall comply as to form in all material
respects with the requirements of the applicable form and include all financial statements required by the Commission to be filed therewith, and use its commercially reasonable efforts to cause such
Registration Statement to become effective as soon as practicable after filing and to remain effective as appropriate; 

        (b)   subject
to Section 4(i), (i) prepare and file with the Commission such amendments and
post-effective amendments to each such Registration Statement as may be necessary to keep such Registration Statement effective as appropriate, (ii) cause each Prospectus contained
therein to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 or any similar rule that may be adopted under the Securities Act,
(iii) promptly amend or supplement each such Registration Statement to include the Company's quarterly and annual financial information and other material developments (until the Company is
eligible to 

7

 

incorporate
such information by reference into the Registration Statement), during which time sales of the Registrable Shares under the Registration Statement will be suspended until such amendment or
supplement is filed and effective, and (iv) comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities covered by each
Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the selling Holders thereof; 

        (c)   furnish
to the Holders, without charge, as many copies of each Prospectus, including each preliminary Prospectus, any Permitted Issuer Free Writing Prospectus, and any
amendment or supplement thereto and such other documents as such Holder may reasonably request, in order to facilitate the public sale or other disposition of the Registrable Shares; the Company
hereby consents to the use of such Prospectus, including each preliminary Prospectus, and any Permitted Issuer Free Writing Prospectus by the Holders, if any, in connection with the offering and sale
of the Registrable Shares covered by any such Prospectus; 

        (d)   use
its commercially reasonable efforts to register or qualify, or obtain exemption from registration or qualification for, all Registrable Shares by the time the
applicable Registration Statement is declared effective by the Commission under all applicable state securities or "blue sky" laws of such domestic jurisdictions as any Holder covered by a
Registration Statement shall reasonably request in writing, keep each such registration or qualification or exemption effective during the period such Registration Statement is required to be kept
effective pursuant to this Agreement and do any and all other acts and things that may be reasonably necessary or advisable to enable such Holder to consummate the disposition in each such
jurisdiction of such Registrable Shares owned by such Holder; provided, however, that the Company shall not be required to (i) qualify generally
to do business in any jurisdiction or to register as a broker or dealer in such jurisdiction where it would not otherwise be required to qualify but for this  Section 4(d), (ii) subject itself
to taxation in any such jurisdiction, or (iii) submit to the general service of process in any
such jurisdiction; 

        (e)   use
its commercially reasonable efforts to cause all Registrable Shares covered by such Registration Statement to be registered and approved by such other domestic
governmental agencies or authorities, if any, as may be necessary to enable the Holders thereof to consummate the disposition of such Registrable Shares; 

        (f)    notify
each Holder with Registrable Shares covered by a Registration Statement promptly (i) when such Registration Statement has become effective and when any
post-effective amendments and supplements thereto become effective, (ii) of the issuance by the Commission or any state securities authority of any stop order suspending the
effectiveness of such Registration Statement or the initiation of any proceedings for that purpose, (iii) of any request by the Commission or any other federal or state governmental authority
for amendments or supplements to such Registration Statement or related Prospectus or any Issuer Free Writing Prospectus or for additional information, and (iv) of the happening of any event
during the period such Registration Statement is effective as a result of which such Registration Statement or the related Prospectus or any Permitted Issuer Free Writing Prospectus or any document
incorporated by reference therein contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not
misleading (which information shall be accompanied by an instruction to suspend the use of the Registration Statement and the Prospectus and such Permitted Issuer Free Writing Prospectus until the
requisite changes have been made); 

        (g)   use
its commercially reasonable efforts to avoid the issuance of, or if issued, to obtain the withdrawal of, any order enjoining or suspending the use or effectiveness
of a Registration 

8

 

Statement
or suspending the qualification (or exemption from qualification) of any of the Registrable Shares for sale in any jurisdiction, as promptly as practicable; 

        (h)   upon
written request, furnish to each requesting Holder with Registrable Shares covered by a Registration Statement, without charge, at least one conformed copy of such
Registration Statement and any post-effective amendment or supplement thereto (without documents incorporated therein by reference or exhibits thereto, unless requested); 

        (i)    except
as provided in Section 5, upon the occurrence of any event contemplated by  Section 4(f)(iv), use its commercially reasonable efforts to promptly
prepare a supplement or post-effective amendment to a
Registration Statement or the related Prospectus or any Permitted Issuer Free Writing Prospectus or any document incorporated therein by reference or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Shares, such Prospectus or Permitted Issuer Free Writing Prospectus will not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and, upon request, promptly
furnish to each requesting Holder covered by such Registration Statement a reasonable number of copies of each such supplement or post-effective amendment; 

        (j)    if
requested by the representative of the underwriters, if any, or any Holders of Registrable Shares being sold in connection with an Underwritten Offering,
(i) promptly incorporate in a Prospectus supplement or post-effective amendment such material information as the representative of the underwriters, if any, or such Holders indicate
relates to them or otherwise reasonably request be included therein and (ii) make all required filings of such Prospectus supplement or such post-effective amendment as soon as
practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment; 

        (k)   in
the case of an Underwritten Offering, use its commercially reasonable efforts to furnish or caused to be furnished to each Holder of Registrable Shares covered by
such Registration Statement and the underwriters a signed counterpart, addressed to each such Holder and the underwriters, of: (i) an opinion of counsel for the Company, dated the date of each
closing under the underwriting agreement, reasonably satisfactory to the underwriters; (ii) a "comfort" letter, dated the effective date of such Registration Statement and the date of each
closing under the underwriting agreement, signed by the independent public accountants who have certified the Company's financial statements included in such Registration Statement, covering
substantially the same matters with respect to such Registration Statement (and the Prospectus included therein) and with respect to events subsequent to the date of such financial statements, as are
customarily covered in accountants' letters delivered to underwriters in underwritten public offerings of securities, and such other financial matters as the underwriters may
reasonably request and customarily obtained by underwriters in underwritten offerings, provided that, to be an addressee of the comfort letter, each Holder may be required to confirm that it is in the
category of persons to whom a comfort letter may be delivered in accordance with applicable accounting literature; and (iii) a "comfort" letter, dated the effective date of such Registration
Statement and the date of each closing under the underwriting agreement, signed by the independent petroleum engineering consultants who have evaluated the Company's oil and gas reserves included in
such Registration Statement, covering substantially the same matters with respect to such Registration Statement (and the Prospectus included therein) and with respect to events subsequent to the date
of its evaluation of such oil and gas reserves, as are customarily covered in engineers' letters delivered to underwriters in underwritten public offerings of securities, and such other related
matters as the underwriters may reasonably request and customarily obtained by underwriters in underwritten offerings; 

9

 

        (l)    enter
into customary agreements (including in the case of an Underwritten Offering, an underwriting agreement in customary form) and take all other action in connection
therewith to expedite or facilitate the distribution of the Registrable Shares included in such Registration Statement and, in the case of an Underwritten Offering, make representations and warranties
to the underwriters in such form and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same to the extent customary if and when requested; 

        (m)  in
connection with an Underwritten Offering, use its commercially reasonable efforts to make available for inspection by the representative of any underwriters
participating in any disposition pursuant to a Registration Statement, all financial and other records, pertinent corporate documents and properties of the Company and cause the respective officers,
directors and employees of the Company to supply all information reasonably requested by any such representatives, the representative of the underwriters, counsel thereto or accountants in connection
with a Registration Statement; provided, however, that such records, documents or information that the Company determines, in good faith, to be
confidential and notifies such representatives, representative of the underwriters, counsel thereto or accountants are confidential shall not be disclosed by the representatives, representative of the
underwriters, counsel thereto or accountants unless (i) the disclosure of such records, documents or information is necessary to avoid or correct a misstatement or omission in a Registration
Statement or Prospectus, (ii) the release of such records, documents or information is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, or (iii) such
records, documents or information have been generally made available to the public; provided further, that to the extent practicable, the foregoing
inspection and information gathering shall be coordinated on behalf of the Holders and the other parties entitled thereto by one counsel designated by and on behalf of the Holders and the other
parties, which counsel the Company determines in good faith is reasonably acceptable; 

        (n)   use
its commercially reasonable efforts (including seeking to cure in the Company's listing or inclusion application any deficiencies cited by the exchange or market) to
list or include all Registrable
Shares on the New York Stock Exchange, NYSE Alternext U.S. or Nasdaq Stock Market and thereafter maintain the listing on such exchange or market when such Registrable Shares are included in a
Registration Statement; 

        (o)   use
its commercially reasonable efforts to prepare and file in a timely manner all documents and reports required by the Exchange Act and, to the extent the Company's
obligation to file such reports pursuant to Section 15(d) of the Exchange Act expires before the expiration of the effectiveness period of the Registration Statement as required by  Section 2(a)(i), the Company shall register the Registrable Shares under the Exchange Act and shall maintain such registration through the
effectiveness period required by Section 2(a)(i); 

        (p)   provide
a CUSIP number for all Registrable Shares not later than the effective date of the Registration Statement; 

        (q)   (i)
otherwise use its commercially reasonable efforts to comply in all material respects with all applicable rules and regulations of the Commission, (ii) make
generally available to its stockholders, as soon as reasonably practicable, earnings statements covering at least 12 months that satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 thereunder, and (iii) delay filing any Registration Statement or Prospectus or amendment or supplement to such Registration Statement or Prospectus to which any Holder
of Registrable Shares covered by any such Registration Statement shall have reasonably objected on the grounds that such Registration Statement or Prospectus or amendment or supplement does not comply
in all material respects with the requirements of the Securities Act, such Holder having been furnished with a copy thereof at least 3 Business Days before the filing thereof, provided that the
Company may file such Registration Statement or Prospectus or amendment or supplement following such time as the 

10

 

Company
shall have made a good faith effort to resolve any such issue with the objecting Holder and shall have advised the Holder in writing of its reasonable belief that such filing complies in all
material respects with the requirements of the Securities Act; 

        (r)   cause
to be maintained a registrar and transfer agent for all Registrable Shares covered by any Registration Statement from and after a date not later than the effective
date of such Registration Statement; 

        (s)   in
connection with any sale or transfer of the Registrable Shares (whether or not pursuant to a Registration Statement) that will result in the securities being
delivered no longer constituting Registrable Shares, cooperate with the Holders and the representative of the underwriters, if any, to facilitate the timely preparation and delivery of certificates
representing the Registrable Shares to be sold, which certificates shall not bear any transfer restrictive legends (other than as required by the Company's charter), and to enable such Registrable
Shares to be in such denominations and registered
in such names as the representative of the underwriters, if any, or the Holders may request at least 3 Business Days before any sale of the Registrable Shares; 

        (t)    if
required under the rules of FINRA, in connection with the initial filing of a Shelf Registration Statement and each amendment thereto with the Commission pursuant to  Section 2(a), cooperate with
underwriter's or other FINRA member's counsel as reasonably necessary to prepare and, within one Business Day of
such filing with the Commission, to file with FINRA all forms and information required or requested by FINRA in order to obtain written confirmation from FINRA that FINRA does not object to the
fairness and reasonableness of the underwriting terms and arrangements (or any deemed underwriting terms and arrangements) (each such written confirmation, a "No Objections
Letter") relating to the resale of Registrable Shares pursuant to the Shelf Registration Statement, including, without limitation, information provided to FINRA through its
COBRADesk system, and shall pay all costs, fees and expenses incident to FINRA's review of the Shelf Registration Statement and the related underwriting terms and arrangements, including, without
limitation, all filing fees associated with any filings or submissions to FINRA and the legal expenses, filing fees and other disbursements of any other FINRA member that is the holder of, or is
affiliated or associated with an owner of, Registrable Shares included in the Shelf Registration Statement (including in connection with any initial or subsequent member filing); and 

        (u)   upon
effectiveness of the first Registration Statement filed under this Agreement, if necessary, the Company will take such actions and make such filings as are
necessary to effect the registration of the Common Stock under the Exchange Act simultaneously with or immediately following the effectiveness of the Registration Statement. 

        The
Company may require the Holders to furnish to the Company such information regarding the proposed distribution by such Holder as the Company may from time to time reasonably request
in writing or as shall be required to effect the registration of the Registrable Shares, and no Holder shall be entitled to be named as a selling stockholder in any Registration Statement and no
Holder shall be entitled to use the Prospectus forming a part thereof if such Holder does not provide such information to the Company. Each Holder further agrees to furnish promptly to the Company in
writing all information required from time to time to make the information previously furnished by such Holder not misleading. 

        Each
Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in  Section 4(f)(ii), 4(f)(iii) or
4(f)(iv), such
Holder will immediately discontinue disposition of Registrable Shares pursuant to a Registration Statement until (i) any such stop order is vacated or (ii) if an event described in  Section 4(f)(iii)
 or 4(f)(iv) occurs, such Holder's receipt of the copies of the supplemented or
amended Prospectus. If so directed by the Company, such Holder will deliver to the Company (at the reasonable expense of the Company) all copies in its 

11

 

possession,
other than permanent file copies then in such Holder's possession, of the Prospectus covering such Registrable Shares current at the time of receipt of such notice. 

        Each
Holder represents that it has not prepared or had prepared on its behalf or used or referred to, and agrees that it will not prepare or have prepared on its behalf or use or refer
to, any Free Writing Prospectus, and has not distributed and will not distribute any written materials in connection with the offer or sale of the Registrable Shares without the prior express written
consent of the Company and, in connection with any Underwritten Offering, the underwriters. Any such Free Writing Prospectus consented to by the Company and the underwriters, as the case may be, is
hereinafter referred to as a "Permitted Free Writing Prospectus." The Company represents and agrees that it has treated and will treat, as the case may
be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record keeping. 

        5.    Suspension Period.    

        (a)   Subject
to the provisions of this Section 5, following the effectiveness of a Registration Statement (and the
filings with any international, federal or state securities commissions), the Company may direct the Holders, in accordance with Section 5(b), to
suspend sales of the Registrable Shares pursuant to a Registration Statement for such times as the Company reasonably may determine is necessary and advisable (but in no event, (A) in the case
of clause (i) below, for more than 45 consecutive days (or 60 consecutive days in the case of the IPO Registration Statement) and (B) in the case of clauses (i), (ii) and
(iii) below, for more than an aggregate of 90 days in any consecutive 12-month period commencing on the Closing Time or more than 60 days in any consecutive
90-day period, except (in the case of clause (B)) as a result of a review of any post-effective amendment by the Commission before declaring any
post-effective amendment to the Registration Statement effective, provided that the Company has used its commercially reasonable efforts to
cause such post-effective amendment to be declared effective), if any of the following events shall occur: (i) the representative of the underwriters of an Underwritten Offering of
primary shares by the Company has advised the Company that the sale of Registrable Shares pursuant to the Registration Statement would have a material adverse effect on such Underwritten Offering;
(ii) the majority of the members of the Board of Directors of the Company shall have determined in good faith that (1) the offer or sale of any Registrable Shares would materially
impede, delay or interfere with any proposed financing, offer or sale of securities, acquisition, merger, tender offer, business combination, corporate reorganization, consolidation or other
significant transaction involving the Company, (2) upon the advice of counsel, the sale of Registrable Shares pursuant to the Registration Statement would require disclosure of
non-public material information not otherwise required to be disclosed under applicable law, and (3) either (x) the Company has a bona fide business purpose for preserving
the confidentiality of such transaction, (y) disclosure would have a material adverse effect on the Company or the Company's ability to consummate such transaction, or (z) the proposed
transaction renders the Company unable to comply with Commission requirements, in each case under circumstances that would make it impractical or inadvisable to cause the Registration Statement (or
such filings) to become effective or to promptly amend or supplement the Registration Statement on a post-effective basis, as applicable; or (iii) the majority of the members of the
Board of Directors of the Company shall have determined in good faith, upon the advice of counsel, that it is required by law, rule or regulation to supplement the Registration Statement or
file a post-effective amendment to the Registration Statement in order to incorporate information into the Registration Statement for the purpose of (1) including in the
Registration Statement any prospectus required under Section 10(a)(3) of the Securities Act; (2) reflecting in the prospectus included in the Registration Statement any facts or events
arising after the effective date of the Registration Statement (or of the most-recent post-effective amendment) that, individually or in the aggregate, represents a 

12

 

fundamental
change in the information set forth therein; or (3) including in the prospectus included in the Registration Statement any material information with respect to the plan of
distribution not disclosed in the Registration Statement or any material change to such information. Upon the occurrence of any such suspension, the Company shall use its commercially reasonable
efforts to cause the Registration Statement to become effective or to promptly amend or supplement the Registration Statement on a post-effective basis or to take such action as is
necessary to make resumed use of the Registration Statement compatible with the Company's best interests, as applicable, so as to permit the Holders to resume sales of the Registrable Shares as soon
as possible. 

        (b)   In
the case of an event that causes the Company to suspend the use of a Registration Statement (a "Suspension Event"),
the Company shall give written notice (a "Suspension Notice") to the Holders to
suspend sales of the Registrable Shares and such notice shall state generally the basis for the notice and that such suspension shall continue only for so long as the Suspension Event or its effect is
continuing and the Company is using its best efforts and taking all reasonable steps to terminate suspension of the use of the Registration Statement as promptly as possible. No Holder shall effect
any sales of the Registrable Shares pursuant to such Registration Statement (or such filings) at any time after it has received a Suspension Notice from the Company and before receipt of an End of
Suspension Notice (as defined below). If so directed by the Company, each Holder will deliver to the Company (at the expense of the Company) all copies other than permanent file copies then in such
Holder's possession of the Prospectus and any Issuer Free Writing Prospectus covering the Registrable Shares at the time of receipt of the Suspension Notice. The Holders may recommence effecting sales
of the Registrable Shares pursuant to the Registration Statement (or such filings) following further notice to such effect (an "End of Suspension
Notice") from the Company, which End of Suspension Notice shall be given by the Company to the Holders in the manner described above promptly following the conclusion of any
Suspension Event and its effect. 

        (c)   Notwithstanding
any provision herein to the contrary, subject to any Suspension Events or as contemplated by  Section 4(f)(iv), each Registration Statement shall be maintained effective pursuant to this Agreement
until the Registrable Shares are not
Registrable Shares. 

        6.    Indemnification and Contribution.    

        (a)   The
Company agrees to indemnify and hold harmless (i) each Holder and any underwriter (as determined in the Securities Act) for such Holder, (ii) each
Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) any of the foregoing (a "Controlling
Person"), and (iii) the respective officers, directors, partners, members, employees, representatives and agents of any such Person or any Controlling Person (any Person
referred to in clause (i), (ii) or (iii) may hereinafter be referred to as an "Purchaser Indemnitee") from and against any and all
losses, claims, damages, judgments, actions, reasonable out-of-pocket expenses, and other liabilities, including, as incurred, reimbursement of all reasonable costs of
investigating, preparing, pursuing or defending any claim or action, or any investigation or proceeding by any governmental agency or body, commenced or threatened, including the reasonable fees and
expenses of outside counsel to any Purchaser Indemnitee, joint or several (the "Liabilities"), directly or indirectly related to, based upon, arising
out of or in connection with any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus or Issuer Free Writing Prospectus (as amended or
supplemented), or any preliminary Prospectus or any other document prepared by the Company used to sell the Registrable Shares, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, in light of the circumstances under which they were made), not misleading, except insofar as
such Liabilities arise out of or are based upon (i) any untrue statement or omission or 

13

 

alleged
untrue statement or omission made in reliance upon and in conformity with information relating to any Purchaser Indemnitee furnished to the Company or any underwriter in writing by such
Purchaser Indemnitee expressly for use therein, (ii) any untrue statement contained in or omitted from
a preliminary Prospectus if such untrue statement is cured by delivery to the Holders of an amended preliminary Prospectus or a Free Writing Prospectus prior to pricing of the sale of securities, if
an Underwritten Offering, or the effectiveness of the Mandatory Shelf Registration Statement to which the preliminary Prospectus relates, or (iii) any sales by any Holder after the delivery by
the Company to such Holder of a Suspension Notice and before the delivery by the Company of an End of Suspension Notice. The Company shall notify the Holders promptly of the institution, threat or
assertion of any claim, proceeding (including any governmental investigation), or litigation which it shall have become aware in connection with the matters addressed by this Agreement which involves
the Company or a Purchaser Indemnitee. The indemnity provided for herein shall remain in full force and effect regardless of any investigation made by or on behalf of any Purchaser Indemnitee. 

        (b)   In
connection with any Registration Statement in which a Holder is participating, such Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, each Person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, and the respective officers, directors,
partners, members, representatives, employees and agents of such Person or Controlling Person to the same extent as the foregoing indemnity from the Company to each Purchaser Indemnitee, but only with
reference to (i) untrue statements or omissions or alleged untrue statements or omissions made in reliance upon and in strict conformity with information relating to such Holder furnished to
the Company in writing by such Holder expressly for use in any Registration Statement or Prospectus, any amendment or supplement thereto, or any preliminary Prospectus and (ii) any sales by any
Holder after the delivery by the Company to such Holder of a Suspension Notice and before the delivery by the Company of an End of Suspension Notice. The liability of any Holder pursuant to
clause (i) of the immediately preceding sentence shall in no event exceed the net proceeds received by such Holder from sales of Registrable Shares giving rise to such obligations. If a Holder
elects to include Registrable Shares in an Underwritten Offering, the Holder shall be required to agree to such customary indemnification provisions as may reasonably be required by the underwriter in
connection with such Underwritten Offering. 

        (c)   If
any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person in respect of
which indemnity may be sought pursuant to Section 6(a) or 6(b), such Person (the
"Indemnified Party"), shall promptly notify the Person against whom such indemnity may be sought (the "Indemnifying
Party"), in writing (to the extent legally advisable) of the commencement thereof (but the failure to so notify an Indemnifying Party shall not relieve it from any Liability
which it may have under this Section 6, except to the extent the Indemnifying Party is materially prejudiced by the failure to give notice), and
the Indemnifying Party, upon request of the Indemnified Party, shall retain counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party and any others the Indemnifying
Party may reasonably designate in such proceeding and shall assume the defense of such proceeding and pay the fees and expenses actually incurred by such counsel related to such proceeding.
Notwithstanding the foregoing, in any such proceeding, any Indemnified Party may retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party,
unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed in writing to the contrary, (ii) the Indemnifying Party failed within a reasonable time after
notice of commencement of the action to assume the defense and employ counsel reasonably satisfactory to the Indemnified Party, (iii) the Indemnifying Party and its counsel do not pursue in a
reasonable manner the defense of such action or (iv) the named parties to any such action (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, 

14

 

or
any Affiliate of the Indemnifying Party, and such Indemnified Party shall have been reasonably advised by counsel that, either (x) there may be one or more legal defenses available to it
which are different from or additional to those available to the Indemnifying Party or such Affiliate of the Indemnifying Party or (y) a conflict may exist between such Indemnified Party and
the Indemnifying Party or such Affiliate of the Indemnifying Party, in which event the Indemnifying Party may not assume or direct the defense of such action on behalf of such Indemnified Party, it
being understood, however, that the Indemnifying Party shall not, in connection with any one such action or separate but substantially similar or related actions arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all such Indemnified Parties, which firm shall be
designated in writing by those Indemnified Parties who sold a majority of the Registrable Shares sold by all such Indemnified Parties under the particular Registration Statement and any such separate
firm for the Company, the directors, the officers and such control Persons of the Company as shall be designated in writing by the Company. The Indemnifying Party shall not be liable for any
settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed, but if settled with such consent or if there be a final judgment for the
plaintiff, the Indemnifying Party agrees to indemnify any Indemnified Party from and against any Liability by reason of such settlement or judgment to the extent provided in this  Section 6 without
reference to this sentence. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party,
unless such settlement includes an unconditional release of such Indemnified Party from all Liability on claims that are the subject matter of such proceeding. 

        (d)   If
the indemnification provided for in Section 6(a) or 6(b) is for
any reason held to be unavailable to an Indemnified Party in respect of any Liabilities referred to therein (other than by reason of the exceptions provided therein) or is insufficient to hold
harmless a party indemnified thereunder, then each Indemnifying Party under such sections, in lieu of indemnifying such Indemnified Party
thereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Liabilities (i) in such proportion as is appropriate to reflect the relative benefits of
the Indemnified Party on the one hand and the Indemnifying Parties on the other in connection with the statements or omissions that resulted in such Liabilities, or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the Indemnifying Parties and the Indemnified Party, as well as any other relevant equitable considerations. The relative fault of the Company, on the one hand, and any Purchaser
Indemnitees, on the other, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or by such Purchaser Indemnitees and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. 

        (e)   The
parties agree that it would not be just and equitable if contribution pursuant to this Section 6 were
determined by pro rata allocation (even if such Indemnified Parties were treated as one entity for such purpose), or by any other method of allocation
that does not take account of the equitable considerations referred to in Section 6(d). The amount paid or payable by an Indemnified Party as a
result of any Liabilities referred to in Section 6(d) shall be deemed to include, subject to the limitations set forth above, any reasonable
legal or other expenses actually incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this  Section 6, in no
event shall a Purchaser Indemnitee be required to contribute any amount in excess of the amount by which proceeds received by
such 

15

 

Purchaser
Indemnitee from sales of Registrable Shares exceeds the amount of any damages that such Purchaser Indemnitee has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. For purposes of this Section 6, each Person, if any, who controls (within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange Act) a Holder shall have the same rights to contribution as such Holder, as the case may be, and each Person, if any,
who controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) the Company, and each officer, director, partner, member, employee,
representative, agent or manager of the Company shall have the same rights to contribution as the Company. Any party entitled to contribution will, promptly after receipt of notice of commencement of
any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties, notify each party or parties from whom contribution may be
sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this  Section 6
or otherwise, except to the extent that any party is materially prejudiced by the failure to give notice. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act), shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. 

        (f)    The
indemnity and contribution agreements contained in this Section 6 will be in addition to any Liability which
any Indemnifying Party may otherwise have to any Indemnified Party referred to above. Each Purchaser Indemnitee's obligations to contribute pursuant to this  Section 6 are not joint but are several
in the proportion that the number of Shares sold by such Purchaser Indemnitee bears to the number of
Shares sold by all Purchaser Indemnities. 

        7.    Market Stand-off Agreement.    Each Holder hereby agrees that it shall not directly or indirectly
sell, offer to sell, grant any option or otherwise transfer or dispose of any Registrable Shares or other shares of Common Stock of the Company or any securities convertible into or exchangeable or
exercisable for shares of Common Stock of the Company owned by such Holder (other than to donees or partners of the Holder who agree to be similarly bound), or enter into any other transaction
designed to directly or indirectly transfer any of the economic consequences of ownership of the Common Stock, including by shorting the Common Stock or securities convertible into or exchangeable or
exercisable for shares of the Common Stock, for a period of 60 days (the "Lock-Up Period") following the effective date of a
registration statement for an initial public offering of securities by the Company filed under the Securities Act (an "IPO Registration Statement");  provided, however, that: 

        (a)   the
restrictions above shall not apply to (i) the sale of Registrable Shares as a selling stockholder under the IPO Registration Statement or (ii) the sale
of shares of Common Stock (x) acquired by a Holder in such initial public offering or (y) acquired by a Holder on a national securities exchange or NASDAQ Stock Market after such initial
public offering, so long as in each case such sales are made over such exchange or market, as the case may be; 

        (b)   all
executive officers and directors of the Company then holding shares of Common Stock of the Company or securities convertible into or exchangeable or exercisable for
shares of Common Stock of the Company are subject to the same restrictions for the entire time period required of the Holders hereunder; 

        (c)   the
Holders shall be allowed any concession or proportionate release allowed to any officer or director that entered into similar agreements (with such proportion being
determined by dividing the number of shares being released with respect to such officer or director by the total number of issued and outstanding shares held by such officer or director);  provided, that
nothing in this Section 7(c) shall be construed as a right to proportionate
release for the executive officers and directors of the Company upon the expiration of the 60 day period applicable to all Holders other than the executive officers and directors of the
Company. 

16

 

        Notwithstanding
the foregoing, if (i) during the last 17 days of the Lock-Up Period, the Company releases earnings results or announces material news or a
material event or (ii) prior to the expiration of the Lock-Up Period, the Company announces that it will release earnings results during the 15-day period following the
last day of the Lock-Up Period, then in each case the Lock-Up Period will be automatically extended until the expiration of the 18-day period beginning on the date
of release of the earnings results
or the announcement of the material news or material event, as applicable, unless the Company or the underwriters, as the case may be,. waives, in writing, such extension. 

        In
order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the securities subject to this  Section 7 and to impose stop
transfer instructions with respect to the Registrable Shares and such other securities of each Holder (and the
securities of every other Person subject to the foregoing restriction) until the end of such period. 

        8.    Termination of the Company's Obligations.    The Company shall have no further obligations pursuant to this
Agreement at such time as no Registrable Shares are outstanding after their original issuance, provided, however, that the Company's obligations under  Sections 3, 6 and 9 (and any related definitions)
shall remain in full force and effect following such time. 

        9.    Miscellaneous.    

        (a)    Amendments and Waivers.    This Agreement may not be amended, modified or supplemented, and waivers or consents
to or departures from the provisions hereof may not be given, without the written consent of the Company and Holders beneficially owning a majority of the Registrable Shares;  provided, however, that for
purposes of this Agreement, Registrable Shares owned, directly or indirectly, by an entity that is an Affiliate of the
Company due to the Company's owning an interest in such entity shall not be deemed to be outstanding. Notwithstanding the foregoing, a waiver or consent to or departure from the provisions hereof with
respect to a matter that relates exclusively to (i) the Mandatory Shelf Registration Statement may be given only with the consent of a majority of Registrable Shares covered thereby and
(ii) the rights of a Holder whose securities are being sold pursuant to a Registration Statement and that does not directly or indirectly affect, impair, limit or compromise the rights of other
Holders may be given by such Holder; provided that the provisions of this sentence may not be amended, modified or supplemented except in accordance
with the provisions of the immediately preceding sentence. 

        (b)    Notices.    All notices and other communications, provided for or permitted hereunder shall be made by press
release publicly disseminated or in writing and delivered by electronic transmission, facsimile (with receipt confirmed), overnight courier or registered or certified mail, return receipt requested,
or by telegram, addressed as follows: 

          (i)  if
to a Holder, at the most current address given by the transfer agent and registrar of the Shares to the Company (including by email); and 

         (ii)  if
to the Company, at the offices of the Company at 5480 Valmont, Suite 350, Boulder, CO 80301 Attention: Steven R. Enger, Executive Vice President and Chief
Financial Officer (facsimile
(303) 417-1000); with a copy (which shall not constitute notice) to Thompson & Knight LLP, 333 Clay Street, Suite 3300, Houston, Texas 77002, Attention: Kirk
Tucker, Esq. (facsimile (832) 397-8038). 

        (c)    Successors and Assigns; Third Party Beneficiaries.    This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties hereto and shall inure to the benefit of each Holder. The Company agrees that each Participating Stockholder who has not executed a
signature page hereof shall be third party beneficiaries to this Agreement, and each such Participating Stockholder shall have the right to enforce such agreements directly to the 

17

 

extent
it deems such enforcement necessary or advisable to protect its rights hereunder; provided, however, that such Participating Stockholder fulfills
all of its obligations hereunder. 

        (d)    Counterparts.    This Agreement may be executed in any number of counterparts and by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

        (e)    Governing Law.    THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAW.

        (f)    Severability.    If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties hereto that they would have
executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

        (g)    Entire Agreement.    This Agreement is intended by the parties hereto as a final expression of their agreement,
and is intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. 

        (h)    Registrable Shares Held by the Company or its Affiliates.    Whenever the consent or approval of Holders of a
specified percentage of Registrable Shares is required hereunder, Registrable Shares (or securities
convertible into Registrable Shares) held by the Company or entities that are Affiliates of the Company due to the Company's owning an interest in such entities shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage. 

        (i)    Survival.    The indemnification and contribution obligations under Section 6  shall survive the termination of the
Company's obligations under Section 2.  

        (j)    Headings.    The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the provisions of this Agreement. All references made in this Agreement to "Section" refer to such Section of this Agreement, unless expressly stated otherwise. 

        (k)    Adjustment for Stock Splits, etc.    Wherever in this Agreement there is a reference to a specific number of
shares with respect to any securities, then upon the occurrence of any subdivision, combination, or stock dividend of such shares, the specific number of shares with respect to any securities so
referenced in this Agreement shall automatically be proportionally adjusted to reflect the effect on the outstanding shares of such class or series of stock by such subdivision, combination, or stock
dividend. 

[Remainder
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18

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

					
	 	 	 ELLORA ENERGY INC.
	

 	
 	
By:	
 	
/s/ T. SCOTT MARTIN

  T. Scott Martin, President

Registration Rights Agreement    Signature Page 

			
	 	 	 PARTICIPATING STOCKHOLDERS:
	

 	
 	
/s/ W. HOWARD KEENAN, JR.

  W. Howard Keenan, Jr., attorney-in-fact executing on

behalf of Participating Stockholder by Power of Attorney

dated February 27, 2009 and for the benefit of Participating

Stockholders set forth on Schedule I

Registration Rights Agreement    Signature Page 

QuickLinks

Exhibit 4.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]