Document:

2011 Long Term Incentive Plan

 Exhibit 10.3 
 SANCHEZ ENERGY CORPORATION 
 2011 LONG TERM INCENTIVE PLAN 

SECTION 1. Purpose of the Plan. 
 The Sanchez Energy Corporation 2011 Long Term Incentive Plan (the “Plan”) has been adopted by Sanchez Energy Corporation, a Delaware corporation (the
“Company”). The Plan is intended to promote the interests of the Company by providing to Employees, consultants and Directors incentive compensation awards based on Common Shares to encourage superior performance. The Plan is
also contemplated to enhance the ability of the Company and its Affiliates and Subsidiaries to attract and retain the services of individuals who are essential for the growth and profitability of the Company and to encourage them to devote their
best efforts to advancing the business of the Company. 
 SECTION 2. Definitions. 

As used in the Plan, the following terms shall have the meanings set forth below: 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Award” means an Option, Stock Appreciation Right, share of Restricted Stock, share of Phantom Stock, Other
Stock-Based Award, or a Stock Award granted under the Plan. 
 “Award Agreement” means the written or
electronic agreement by which an Award shall be evidenced. 
 “Board” means the Board of Directors of
the Company. 
 “Change of Control” means, and shall be deemed to have occurred upon one or more of the
following events: 
 (i) any “person” or “group” within the meaning of those terms as used in
Sections 13(d) and 14(d)(2) of the Exchange Act, other than a Sanchez Group Member, shall become the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the combined voting power of the
equity interests in the Company; 
 (ii) the shareholders of the Company approve and implement, in one or a
series of transactions, a plan of complete liquidation of the Company; or 
 (iii) the sale or other disposition
by the Company of all or substantially all of its assets in one or more transactions to any Person other than a Sanchez Group Member. 

 Notwithstanding the foregoing, with respect to an Award that is subject to Section 409A
of the Internal Revenue Code of 1986, as amended, “Change of Control” shall mean a “change of control event” as defined in the regulations and guidance issued under Section 409A. 

“Committee” means the Board, the Compensation Committee of the Board or such other committee as may be appointed
by the Board to administer the Plan. 
 “Common Shares” means the Company’s common
stock, par value $0.01. 
 “Company IPO” means an initial public offering of the Company’s equity
securities that is registered under the Securities Act of 1933, as amended. 
 “Director” means a member
of the board of directors of the Company. 
 “Disability” means, unless provided otherwise in the Award
Agreement, an illness or injury that lasts at least six continuous months, is expected to be permanent and renders the Participant unable to carry out his or her duties to the Board, the Company or a Sanchez Group Member, as the case may be.

 “Employee” means an employee of the Company, a Subsidiary of the Company or a Sanchez Group Member.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Fair Market Value” means the closing sales price of a Common Share on the principal national securities exchange
or other market in which trading in Common Shares occurs on the applicable date (or, if there is no trading in the Common Shares on such date, on the next preceding date on which there was trading) as reported in The Wall Street Journal (or
other reporting service approved by the Committee). If Common Shares are not traded on a national securities exchange or other market at the time a determination of fair market value is required to be made hereunder, the determination of fair market
value shall be made in good faith by the Committee. 
 “Option” means an option to purchase Common
Shares granted under the Plan. 
 “Other Stock-Based Award” means an Award granted pursuant to
Section 6(d). 
 “Participant” means an Employee, consultant or Director granted an Award under the
Plan. 
 “Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, governmental agency or political subdivision thereof or other entity. 

“Phantom Stock” means notional shares granted under the Plan that upon vesting entitle the Participant to receive
Common Shares or an amount of cash equal to the Fair Market Value of such Common Shares, as determined by the Committee in its discretion. 

  
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 “Restricted Period” means the period established by the Committee
with respect to an Award during which the Award remains subject to forfeiture and is either not exercisable by or payable to the Participant, as the case may be. 
 “Restricted Stock” means Common Shares granted under the Plan that are subject to a Restricted Period. 
 “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act or any successor rule or regulation thereto as in effect from time to time. 

“Sanchez Group Member” means Sanchez Oil & Gas Corporation, a Delaware corporation, Sanchez Energy
Partners I, LP, a Delaware limited partnership, and their Affiliates (other than the Company). 
 “SDR”
means a dividend paid by the Company with respect to a share of Restricted Stock. 
 “SEC” means the
Securities and Exchange Commission, or any successor thereto. 
 “Stock Appreciation Right” or
“SAR” means a contingent right that entitles the holder to receive all or part of the excess of the Fair Market Value of a Common Share on the exercise date of the SAR over the exercise price of the SAR. Such excess shall be
paid in Common Shares, cash or any combination thereof, in the discretion of the Committee. 
 “Stock
Award” means a grant of a Common Share that is not subject to a Restricted Period. 

“Subsidiary” means any entity (i) in which, at the relevant time, the Company owns or controls, directly or
indirectly, not less than 50% of the total combined voting power represented by all classes of equity interests issued by such entity, (ii) as to which, at the relevant time, the Company has the right, directly or indirectly, to appoint or
designate, either independently or jointly with another Person, 50% or more of the members of the board of directors or (iii) as to which at the relevant time, the Company, directly or indirectly, (A) owns or controls, directly or
indirectly, not less than 50% of the total combined voting power represented by classes of equity interests issued by the general partner or managing member of such entity or (B) has the right, directly or indirectly, to appoint or designate,
either independently or jointly with another Person, 50% or more of the members of the board of directors of the general partner or managing member thereof. 
 SECTION 3. Administration. 
 The Plan shall be administered by the
Committee. A majority of the Committee shall constitute a quorum, and the acts of the members of the Committee who are present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in
writing, shall be the acts of the Committee. Subject to the following and applicable law, the Committee, in its sole discretion, may delegate any or all of its powers and duties under the Plan, including the power to grant Awards under the Plan, to
the Chief Executive Officer of the Company, subject to such limitations on such delegated powers and duties as the 

  
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Committee may impose, if any. Upon any such delegation, all references in the Plan to the “Committee,” other than in Section 7, shall be deemed to include the Chief Executive
Officer; provided, however, that such delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan. Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards to, or take any action with
respect to any Award previously granted to, a Person who is an officer subject to Rule 16b-3 or a member of the Board. Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the
Committee by the Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Common Shares to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and administer the
Plan and any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan;
and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in
the Plan or an Award Agreement in such manner and to such extent as the Committee deems necessary or appropriate. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, any Affiliate of the Company, any Participant, and
any beneficiary of any Award. 
 SECTION 4. Common Shares. 

(a) Limits on Common Shares Deliverable. Subject to adjustment as provided in Section 4(c), the maximum number of Common
Shares that may be delivered with respect to Awards under the Plan shall be (i) until and up to a Company IPO, 10% of the aggregate number of issued and outstanding Common Shares as of the date of the adoption of the Plan and (ii) from and
after a Company IPO, that greater number of Common Shares (which will subsume and include all Common Shares described in Section 4(a)(i), as adjusted to give effect to any split in the Common Shares effected in connection with a Company IPO) as
is equal to 10% of the aggregate number of shares of stock of the Company that will be issued and outstanding immediately following the closing of a Company IPO, plus, upon the issuance of additional Common Shares from time to time, an automatic
increase equal to the lesser of (A) 10% of the aggregate number of shares of stock of the Company issued and outstanding immediately following such issuance of additional Common Shares and (B) such lesser number of Common Shares as
determined by the Committee; provided, however, that Common Shares withheld from an Award to either satisfy the Company’s or any Affiliate of the Company’s tax withholding obligations with respect to the Award or pay the exercise price of
an Award shall not be considered to be Common Shares delivered under the Plan for this purpose. If any Award is forfeited, cancelled, exercised, paid, or otherwise terminates or expires without the actual delivery of Common Shares pursuant to such
Award (the grant of Restricted Stock is not a delivery of Common Shares for this purpose), the Common Shares subject to such Award shall again be available for Awards under the Plan. There shall not be any limitation on the number of Awards that may
be paid in cash. 

  
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 (b) Sources of Common Shares Deliverable Under Awards. Any Common Shares delivered
pursuant to an Award shall consist, in whole or in part, of Common Shares newly issued by the Company, Common Shares acquired in the open market, from any Affiliate of the Company or from any other Person, or any combination of the foregoing, as
determined by the Committee in its discretion. 
 (c) Anti-dilution Adjustments. With respect to any “equity
restructuring” event that could result in an additional compensation expense to the Company pursuant to the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 718 – Stock Compensation
(“FASB ASC Topic 718”), if adjustments to Awards with respect to such event were discretionary, the Committee shall equitably adjust the number and type of Common Shares covered by each outstanding Award and the terms and
conditions, including the exercise price and performance criteria (if any), of such Award to equitably reflect such restructuring event and shall adjust the number and type of Common Shares (or other securities or property) with respect to which
Awards may be granted after such event. With respect to any other similar event that would not result in a FASB ASC Topic 718 accounting charge if the adjustment to Awards with respect to such event were subject to discretionary action, the
Committee shall have complete discretion to adjust Awards in such manner as it deems appropriate with respect to such other event. 
 SECTION
5. Eligibility. 
 Any Employee, consultant or Director shall be eligible to be designated a Participant by the
Committee and receive an Award under the Plan. 
 SECTION 6. Awards. 

(a) Options and SARs. The Committee shall have the authority to determine the Employees, consultants and Directors to whom Options
and/or SARs shall be granted, the number of Common Shares to be covered by each Option or SAR, the exercise price therefor, the Restricted Period and other conditions and limitations applicable to the exercise of the Option or SAR, including the
following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan. 
 (i) Exercise Price. The exercise price per Common Share purchasable under an Option or subject to a SAR shall be determined by the Committee at the time the Option or SAR is granted but may not be
less than the Fair Market Value of a Common Share as of the date of grant of the Option or SAR. 
 (ii) Time and Method of
Exercise. The Committee shall determine the exercise terms and the Restricted Period with respect to an Option or SAR grant, which may include, without limitation, (A) a provision for accelerated vesting upon the death or Disability of a
Participant, the achievement of specified performance goals or such other events as the Committee may provide, and (B) the method or methods by which payment of the exercise price with respect to an Option may be made or deemed to have been
made, which may include, without limitation, cash, check acceptable to the Committee, withholding Common Shares from the Award, a “cashless-broker” exercise through procedures approved by the Committee, or any combination of the above
methods, having a Fair Market Value on the exercise date equal to the relevant exercise price. 

  
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 (iii) Forfeitures. Except as otherwise provided in the terms of the Option or SAR
Award Agreement, upon termination of a Participant’s employment with or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all
outstanding unvested Options and SARs awarded to the Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options or
SARs. 
 (b) Restricted Stock and Phantom Stock. The Committee shall have the authority to determine the Employees,
consultants and Directors to whom Restricted Stock and Phantom Stock shall be granted, the number of shares of Restricted Stock or Phantom Stock to be granted to each such Participant, the Restricted Period, the conditions under which the Restricted
Stock or Phantom Stock may become vested or forfeited and such other terms and conditions as the Committee may establish with respect to such Awards which may include, without limitation, a provision for accelerated vesting upon the death or
Disability of a Participant, the achievement of specified performance goals or such other events as the Committee may provide. 

(i) SDRs. To the extent provided by the Committee, in its discretion, a grant of Restricted Stock may provide that the dividends
paid by the Company with respect to the Restricted Stock shall be subject to the same forfeiture and other restrictions as the Restricted Stock and, if restricted, such dividends shall be held, without interest, until the Restricted Stock vests or
is forfeited with the SDR being paid or forfeited at the same time, as the case may be. In addition, the Committee may provide that such dividends be used to acquire additional Restricted Stock for the Participant. Such additional Restricted Stock
may be subject to such vesting and other terms as the Committee may proscribe. Absent such a restriction on the SDRs in the Award Agreement, upon a dividend with respect to Restricted Stock, such dividend shall be paid promptly to the holder of the
Restricted Stock without vesting restrictions. 
 (ii) Forfeitures. Except as otherwise provided in the terms of the
Restricted Stock or Phantom Stock Award Agreement, upon termination of a Participant’s employment with or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the
applicable Restricted Period, all outstanding, unvested Restricted Stock and Phantom Stock awarded to the Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Restricted Stock and/or Phantom Stock. 

  
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 (iii) Lapse of Restrictions. 

(A) Phantom Stock. Upon or as soon as reasonably practical following the vesting of each share of Phantom Stock, subject to
satisfying the tax withholding obligations of Section 8(b), the Participant shall be entitled to receive from the Company one Common Share or cash equal to the Fair Market Value of a Common Share, as determined by the Committee in its
discretion. 
 (B) Restricted Stock. Upon or as soon as reasonably practical following the vesting of each share of
Restricted Stock, subject to satisfying the tax withholding obligations of Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her share certificate so that the Participant then holds an unrestricted
Common Share. 
 (c) Stock Awards. Stock Awards may be granted under the Plan to such Employees, consultants and/or
Directors and in such amounts as the Committee, in its discretion, may select. 
 (d) Other Stock-Based Awards. Other
Stock-Based Awards may be granted under the Plan to such Employees, consultants and/or Directors and in such amounts as the Committee, in its discretion, may select. An Other Stock-Based Award shall be an award denominated or payable in, valued in
or otherwise based on or related to Common Shares, in whole or in part. The Committee shall determine the terms and conditions of any such Other Stock-Based Award. Upon vesting, an Other Stock-Based Award may be paid in cash, Common Shares
(including Restricted Stock) or any combination thereof as provided in the Award Agreement. 
 (e) General. 

(i) Awards May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any of its Affiliates. Awards granted in addition to or in tandem with other Awards or awards
granted under any other plan of the Company or any of its Affiliates may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

(ii) Limits on Transfer of Awards. 
 (A) Except as provided in Section 6(e)(ii)(C), each Option and SAR shall be exercisable only by the Participant during the Participant’s lifetime, or by the Person to whom the Participant’s
rights shall pass by will or the laws of descent and distribution. 
 (B) Except as provided in Section 6(e)(ii)(C), no
Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance
shall be void and unenforceable against the Company or any of its Affiliates. 

  
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 (C) To the extent specifically provided by the Committee with respect to an Option or SAR,
an Option or SAR may be transferred by a Participant without consideration to immediate family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time
establish. 
 (iii) Term of Awards. The term of each Award shall be for such period as may be determined by the Committee.

 (iv) Stock Certificates. All certificates for Common Shares or other securities of the Company delivered under the Plan
pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange
upon which such Common Shares or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be inscribed on any such certificates to make appropriate reference to such restrictions.

 (v) Consideration for Grants. Awards may be granted for such consideration, including services, as the Committee shall
determine. 
 (vi) Delivery of Common Shares or other Securities and Payment by Participant of Consideration.
Notwithstanding anything in the Plan or any Award Agreement to the contrary, delivery of Common Shares pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the
Company is not reasonably able to obtain Common Shares to deliver pursuant to such Award without violating applicable law or the applicable rules or regulations of any governmental agency or authority or securities exchange. No Common Shares or
other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including, without limitation, any exercise price or tax withholding) is
received by the Company. 
 SECTION 7. Amendment and Termination. 

Except to the extent prohibited by applicable law: 
 (a) Amendments to the Plan. Except as required by the rules of the principal securities exchange on which the Common Shares are traded and subject to Section 7(b), the Committee may amend,
alter, suspend, discontinue, or terminate the Plan in any manner, including increasing the number of Common Shares available for Awards under the Plan, without the consent of any Participant, other holder or beneficiary of an Award, or any other
Person. 
 (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any conditions or rights
under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to Section 7(c), in any Award shall materially reduce the rights or benefits of a Participant with respect to an Award without the
consent of such Participant. 
 (c) Actions Upon the Occurrence of Certain Events. Upon the occurrence of a Change of
Control, any change in applicable law or regulation affecting the Plan or Awards thereunder, or any change in accounting principles affecting the financial statements of the Company, the Committee, in its sole discretion, without the consent of any
Participant or holder 

  
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of the Award, and on such terms and conditions as it deems appropriate, may take any one or more of the following actions in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan or an outstanding Award: 
 (i) provide for either (A) the termination
of any Award in exchange for an amount of cash, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights at such time (and, for the avoidance of doubt, if as of the
date of the occurrence of such transaction or event the Committee determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by
the Committee without payment) or (B) the replacement of such Award with other rights or property selected by the Committee in its sole discretion; 
 (ii) provide that such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or be exchanged for similar options, rights or awards covering the equity of the successor
or survivor, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices; 
 (iii) make adjustments in the number and type of Common Shares (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Awards or in the terms and
conditions of (including the exercise price), and the vesting and performance criteria included in, outstanding Awards, or both; 

(iv) provide that such Award shall be exercisable or payable, notwithstanding anything to the contrary in the Plan or the applicable Award
Agreement; and 
 (v) provide that the Award cannot be exercised or become payable after such event, i.e., shall terminate upon
such event. 
 Notwithstanding the foregoing, with respect to an above event that is an “equity restructuring” event
that would be subject to a compensation expense pursuant FASB ASC Topic 718, the provisions in Section 4(c) shall control to the extent they are in conflict with the discretionary provisions of this Section 7. 

SECTION 8. General Provisions. 
 (a) No Rights to Award. No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of
Awards need not be the same with respect to each recipient. 
 (b) Tax Withholding. Unless other arrangements have been
made that are acceptable to the Committee, the Company or any of its Affiliates is authorized to withhold from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a Participant the
amount (in cash, Common Shares, Common Shares that would otherwise be issued pursuant to such Award or other property) of any applicable taxes payable in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any
payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Committee to satisfy the withholding obligations for the payment of such taxes. 

  
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 (c) No Right to Employment or Services. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company or any of its Affiliates, to continue consulting services or to remain on the Board, as applicable. Furthermore, the Company or any of its Affiliates may at any time
dismiss a Participant from employment free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award Agreement or other agreement. 

(d) Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be
determined in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles. 
 (e)
Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the
Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 

(f) Other Laws. The Committee may refuse to issue or transfer any Common Shares or other consideration under an Award if, in its
sole discretion, it determines that the issuance or transfer of such Common Shares or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Common Shares are then traded,
or entitle the Company or any of its Affiliates to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award
shall be promptly refunded to such Participant, holder or beneficiary. 
 (g) No Trust or Fund Created. Neither the Plan
nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any participating Affiliate of the Company and a Participant or any other Person. To the extent that any
Person acquires a right to receive payments from the Company or any participating Affiliate of the Company pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or any participating
Affiliate of the Company. 
 (h) No Fractional Common Shares. No fractional Common Shares shall be issued or delivered
pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Common Shares or whether such fractional Common Shares or any rights
thereto shall be canceled, terminated, or otherwise eliminated. 

  
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 (i) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

(j) Facility Payment. Any amounts payable hereunder to any Person under legal disability or who, in the judgment of the Committee,
is unable to manage properly his or her financial affairs, may be paid to the legal representative of such Person, or may be applied for the benefit of such Person in any manner that the Committee may select, and the Company shall be relieved of any
further liability for payment of such amounts. 
 (k) Gender and Number. Words in the masculine gender shall include the
feminine gender, the plural shall include the singular and the singular shall include the plural. 
 SECTION 9. Term of the Plan.

 The Plan shall be effective on the date it is approved by the shareholders of the Company, if such approval is required by the
rules of the principal securities exchange on which the Common Shares are traded or, if such approval is not required, then on the date the Plan is adopted by the Company and shall continue until the earliest of (i) the date it is terminated by
the Board, (ii) all Common Shares available under the Plan have been paid to Participants, or (iii) the 10th anniversary of the date the Plan is approved as provided above. However, any Award granted prior to such termination, and the
authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date. 

  
 11Form of Registration Rights Agreement

 Exhibit 10.4 

 
  
  

REGISTRATION RIGHTS AGREEMENT 
 BETWEEN 
 SANCHEZ ENERGY CORPORATION 

AND 

SANCHEZ ENERGY PARTNERS I, LP 
 DATED AS OF [•], 2011 
  

 

 TABLE OF CONTENTS 

 

							
		  		  	 	Page	  
			
	1.	  	Definitions	  	 	1	  
			
	2.	  	Demand Registration	  	 	3	  
			
	3.	  	Piggyback Registration	  	 	5	  
			
	4.	  	S-3 Registrations	  	 	6	  
			
	5.	  	Expenses	  	 	6	  
			
	6.	  	Preparation and Filing	  	 	7	  
			
	7.	  	Indemnification	  	 	9	  
			
	8.	  	Underwriting Agreement	  	 	12	  
			
	9.	  	Agreements of the Selling Investors	  	 	12	  
			
	10.	  	Exchange Act Compliance	  	 	13	  
			
	11.	  	No Conflicting Registration Rights	  	 	13	  
			
	12.	  	Enforcement	  	 	13	  
			
	13.	  	Miscellaneous	  	 	14	  

  
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 REGISTRATION RIGHTS AGREEMENT dated as of [•], 2011 (this
“Agreement”), between SANCHEZ ENERGY CORPORATION, a Delaware corporation (the “Company”), and SANCHEZ ENERGY PARTNERS I, LP, a Delaware limited partnership (“SEP
I”). 
 WHEREAS, this Agreement is made in connection with that certain Contribution, Conveyance and
Assumption Agreement, dated the date hereof (the “Contribution Agreement”), between the Company and SEP I. 
 WHEREAS, it is a condition to the closing of the transactions contemplated by the Contribution Agreement that the parties hereto desire to enter into this Agreement to grant registration
rights to SEP I and its transferees as set forth below. 
 NOW, THEREFORE, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as set forth below. 
 1. Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 
 “Agreement” shall have the meaning assigned to it in the introductory paragraph of this Agreement. 
 “Business Day” or “business day” means any day other than (a) a Saturday or Sunday or (b) a day on which banks are authorized or required to be closed in New
York, New York; provided, however, that any determination of a Business Day relating to a securities exchange or other securities market means a Business Day on which such exchange or market is open for trading. 

“Common Stock” means the common stock of the Company, par value $0.01 per share, and any class or classes of
stock resulting from any reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any liquidation, dissolution or winding up of the Company. 

“Company” shall have the meaning assigned to it in the introductory paragraph of this Agreement, and includes any
successor thereto. 
 “Contribution Agreement” shall have the meaning assigned to it in the recitals of
this Agreement. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Holder” means, subject to Section 13.5, SEP I or any other Person that is the beneficial owner of
Common Stock as a result of the sale, assignment or other transfer of Common Stock originally issued by the Company to SEP I or issuable or issued upon the conversion or exercise of any securities originally issued by the Company to SEP I which are
convertible or exercisable into Common Stock. 
 “Inclusive Registration Statement” has the meaning
assigned to it in Section 2.1(a). 

 “Information” shall have the meaning assigned to it in
Section 6.9 of this Agreement. 
 “Inspectors” shall have the meaning assigned to it in
Section 6.9 of this Agreement. 
 “Other Shares” means at any time those shares of Common
Stock which do not constitute Primary Shares or Registrable Shares. 
 “Person” shall include all
natural persons, corporations, business trusts, associations, companies, partnerships, joint ventures and other entities and governments and agencies and political subdivisions thereof. 

“Primary Shares” means at any time the authorized but unissued shares of Common Stock or shares of Common Stock
held by the Company in its treasury. 
 “Records” shall have the meaning assigned to it in
Section 6.9 of this Agreement. 
 “Registrable Shares” means at any time, with respect to
any Holder, the shares of Common Stock beneficially owned by, or issuable to, such Holder, upon original issuance thereof, and at all times subsequent thereto, including upon the transfer thereof by the original holder or any subsequent holder,
subject to Section 13.5, 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. As to any particular Registrable Shares, once issued, such Registrable Shares shall cease to be Registrable Shares when (a) a registration statement with respect to the sale by a Holder of such securities shall have become
effective under the Securities Act and such securities shall have been disposed of in accordance with such registration statement, (b) such securities shall have been distributed to the public pursuant to Rule 144 (or any successor provision)
under the Securities Act, (c) such securities may be sold to the public in accordance with Rule 144 (or any successor provision) under the Securities Act where no conditions of Rule 144 (or any successor provision) are then applicable (other
than the holding period requirement in paragraph (d)(1)(ii) of Rule 144 (or any successor provision) so long as such holding period requirement is then satisfied at such time) and the Holder of such securities does not then beneficially own more
than 2% of such class of securities, (d) such securities shall have been otherwise transferred, new certificates for such securities not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent
disposition of such securities shall not require registration or qualification of such securities under the Securities Act or any state securities or “blue sky” law then in force, or (e) such securities shall have ceased to be
outstanding. 
 “SEC” means the Securities and Exchange Commission. 

“Securities Act” or “Act” means the Securities Act of 1933, as amended. 

“Selling Investor” means any Holder that sells or proposes to sell Registrable Shares pursuant to a registration
statement hereunder. 

  
 2 

 “Selling Investors’ Counsel” means counsel
selected by the holders of a majority of the Registrable Shares to be sold by any Holder pursuant to a particular registration statement. 
 “SEP I” shall have the meaning assigned to it in the introductory paragraph of this Agreement. 
 “Subsidiary” means any corporation, association or other business entity (a) at least 50% of the outstanding voting securities of which are at the time owned or controlled
directly or indirectly by the Company; or (b) with respect to which the Company possesses, directly or indirectly, the power to direct or cause the direction of the affairs or management of such Person. 

2. Demand Registration. 
 2.1 At any time or from time to time after [•], 2012, if the Company shall be requested in writing by SEP I or by Holders who beneficially own at least [•] Registrable Shares, to effect a
registration under the Securities Act of Registrable Shares in accordance with this Section 2, then the Company shall promptly give written notice of such proposed registration to each Holder and shall offer to include (subject to the
terms of this Agreement) in such proposed registration any Registrable Shares requested to be included in such proposed registration by such Holders who respond in writing to the Company’s notice within 15 days after delivery of such notice
(which response shall specify the number of Registrable Shares proposed to be included in such registration and the intended method of distribution, which may be pursuant to a shelf registration). Such written registration request shall specify the
approximate number of Registrable Shares requested to be registered and the anticipated per share price range for such offering, if applicable. The Company shall promptly use its best efforts to effect such registration on an appropriate form under
the Securities Act of the Registrable Shares which the Company has been so requested to register; provided, however, that the Company shall not be obligated to effect any registration under the Securities Act except in accordance with the following
provisions: 
 (a) the Company shall not be obligated to file more than (i) three registration statements in
total pursuant to this Section 2 plus (ii) one additional registration statement registering all Registrable Shares then owned by SEP I and SEP I’s current or former limited partners that received Registrable Shares in a
distribution from SEP I, subject to Section 2.3 (the “Inclusive Registration Statement”); 
 (b) the Company shall not be obligated to file or cause to be declared effective any registration statement during any period in which (i) any other registration statement (other than on Form S-4 or
Form S-8 promulgated under the Securities Act or any successor forms thereto) pursuant to which Primary Shares are to be or were sold has been filed and not withdrawn or has been declared effective, or a “shelf take-down” under a
then-effective shelf registration statement for Primary Shares has occurred, in each case within the prior 180 days pursuant to which any “lock-up” restrictions have been imposed on the Company prohibiting such registration (provided, that
the Company shall use its best efforts to achieve a shorter period or to have such restrictions released in less than 180 

  
 3 

 
days) or (ii) the Company has determined in good faith that the filing of a registration statement would require the disclosure of material information that the Company has a bona fide
business purpose for preserving as confidential, such filing to be delayed until the date which is 90 days after such request for registration pursuant to this Section 2; provided, that the Company may only so delay the filing or
effectiveness of a registration statement pursuant to this Section 2.1(b)(ii) on one occasion during any twelve month period; and 
 (c) with respect to the registration pursuant to this Section 2, the Company may include in such registration any Primary Shares or Other Shares; provided, however, that if the managing
underwriter advises the Company in writing that the inclusion of all Registrable Shares, Primary Shares and Other Shares proposed to be included in such registration would adversely affect the successful marketing (including pricing) of all such
securities, then the number of Registrable Shares, Primary Shares and Other Shares proposed to be included in such registration shall be included in the following order: 

(i) First, the Registrable Shares held by all Selling Investors, pro rata based upon the number of Registrable Shares
owned by each such Selling Investor at the time of such registration; 
 (ii) Second, the Primary Shares; and

 (iii) Third, the Other Shares. 
 2.2 The Holder or Holders requesting a registration pursuant to this Section may, in the notice delivered pursuant to Section 2.1 or in connection with any “shelf take-down” under
such registration statement, elect that such registration or offering, as the case may be, cover an underwritten offering. Upon such election, such Holder shall elect one or more nationally recognized firms of investment banks to act as the managing
underwriters and shall select any additional investment banks to be used in connection with such offering, provided that such investment banks must be reasonably satisfactory to the Company. The Company shall, together with Selling Investors, enter
into a customary underwriting agreement with such underwriters. 
 2.3 A requested registration under this Section 2
may be rescinded by written notice to the Company by the Selling Investors holding a majority of the Registrable Shares to be included in such registration under the following circumstances: 

(i) If such registration statement is rescinded prior to the filing date, such rescinded registration shall not count as
a registration statement initiated pursuant to this Section 2 for purposes of Section 2.1; 
 (ii) If such registration statement is rescinded after the filing date but prior to its effective date, such rescinded registration shall not count as a registration statement initiated pursuant to this
Section 2 for purposes of Section 2.1 if the Selling Investors (x) have reimbursed the Company for all out-of-pocket expenses incurred by the Company in 

  
 4 

 
connection with such rescinded registration or (y) (1) reasonably believed that the registration statement contained an untrue statement of material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements made therein not misleading, (2) notified the Company of such fact and requested that the Company correct such alleged misstatement or omission and (3) the Company has
refused to correct such alleged misstatement or omission; and 
 (iii) A registration shall not count as a
registration statement initiated pursuant to this Section 2 for purposes of Section 2.1 unless it becomes effective and either (1) the Selling Investors are able to sell at least 80% of the Registrable Shares sought to
be included in such registration statement or (2) such registration statement is kept effective for at least 180 days prior to such rescission notice. 
 3. Piggyback Registration. If at any time the Company proposes for any reason to register Primary Shares or Other Shares under the Securities Act (other than on Form S-4 or Form S-8 promulgated
under the Securities Act or any successor forms thereto) including, without limitation, any registration pursuant to the exercise of the demand registration rights of any Person other than a Holder, on any form that would also permit the
registration of Registrable Shares, or (to the extent inclusion of Registrable Shares is permitted by applicable laws, rules and regulations) to offer Primary Shares or Other Shares pursuant to a “shelf take-down,” the Company shall
promptly give written notice to each Holder of its intention to so register or offer the Primary Shares or Other Shares and, upon the written request, given within 15 days after delivery of any such notice by the Company, of any Holder to include in
such registration Registrable Shares held by such Holder (which request shall specify the number of Registrable Shares proposed to be included in such registration or offering), the Company shall use its best efforts to cause all such Registrable
Shares to be included in such registration or offering on the same terms and conditions as the securities otherwise being sold in such registration or offering; provided, however, that if at any time after giving written notice of its intention to
register or offer any securities, and prior to the effective date of the registration statement or filing of the preliminary prospectus supplement filed in connection with such registration or offering, as the case may be, the Company shall
determine for any reason not to proceed with the proposed registration or offering of the securities to be sold by it, the Company may, at its election, give written notice of such determination to each Holder of Registrable Shares and, thereupon,
shall be relieved of its obligation to register or offer any Registrable Shares in connection with such registration or offering; provided further, however, that if the managing underwriter advises the Company that the inclusion of all Registrable
Shares or Other Shares proposed to be included in such registration or offering would interfere with the successful marketing (including pricing) of the Primary Shares or Other Shares proposed to be registered or offered by the Company, then the
number of Primary Shares, Registrable Shares and Other Shares proposed to be included in such registration or offering shall be included in the following order: 
 3.1 First, the Primary Shares or Other Shares, as applicable; and 

  
 5 

 3.2 Second, the Registrable Shares held by all Selling Investors, pro rata based upon the
number of Registrable Shares owned by each such Selling Investor at the time of such registration or offering, as the case may be. 
 In connection with any underwritten offering under this Section 3, the Company shall not be required to include Registrable Shares in such underwritten offering unless the Holders of such
Registrable Shares accept the terms of the underwriting of such offering that have been agreed upon between the Company and the underwriters selected by the Company, including without limitation, the underwriting agreement and the fees and expenses
in connection therewith. 
 4. S-3 Registrations. If (i) at any time following [•], 2012 SEP I or Holders who
beneficially own at least [•] Registrable Shares request that the Company file a registration statement on Form S-3 or any successor thereto for a public offering of all or any portion of the Registrable Shares held by such Holder, and
(ii) the Company is entitled to use Form S-3 or any successor thereto to register such shares, then the Company shall use its best efforts to register under the Securities Act on Form S-3 or any successor thereto, for public sale in accordance
with the method of disposition specified in such notice, the number of shares of Registrable Shares specified in such notice. Whenever the Company is required by this Section 4 to use its best efforts to effect the registration of
Registrable Shares, each of the procedures and requirements of Section 2 (including but not limited to the requirement that the Company notify all holders of Registrable Shares from whom notice has not been received and provide them with
the opportunity to participate in the offering) shall apply to such registration or offering in connection therewith. Notwithstanding anything to the contrary contained herein, no request may be made under this Section 4 within six
months after the effective date of a registration statement filed by the Company or the occurrence of a “shelf take-down” under a then-effective registration statement covering a firm commitment underwritten public offering in which the
holders of Registrable Shares shall have been entitled to join pursuant to Section 2 or 3 in which there shall have been effectively registered or sold, as the case may be, all Registrable Shares as to which registration shall
have been requested pursuant to which any “lock-up” restrictions have been imposed on the Company prohibiting such registration (provided, that the Company shall use its best efforts to achieve a shorter period or have such restrictions
released in less than six months). There is no limitation on the number of registrations pursuant to this Section 4 that the Company is obligated to effect. 
 5. Expenses. The Company shall bear the expense of any registrations effected pursuant to Sections 2, 3 and 4 of this Agreement including, without limitation, all registration
and filing fees, fees and expenses of complying with securities and blue sky laws, printing expenses, and fees and expenses of the Company’s counsel and accountants, including without limitation expenses of any audits incident to or required by
any such registrations, and the reasonable fees and expenses of the Selling Investors’ Counsel, but excluding any underwriters’ or brokers’ discounts or commissions, transfer taxes (to the extent that such taxes are required by law to
be paid by the Selling Investors) and the fees of any counsel to any Selling Investor, other than the Selling Investors’ Counsel (it being understood that the fees and expenses of any underwriter and such underwriter’s counsel shall be the
responsibility of such underwriter and the Selling Investors). 

  
 6 

 6. Preparation and Filing. If and whenever the Company is under an obligation
pursuant to the provisions of this Agreement to use its best efforts to effect the registration of any Registrable Shares under the Securities Act, the Company shall, as expeditiously as practicable: 

6.1 with respect to a registration under Sections 2, 3 and 4 of this Agreement, use its best efforts to cause a
registration statement that registers such Registrable Shares to become and remain effective for a period of 180 days or until all of such Registrable Shares have been disposed of (if earlier); provided, however, that the Company may discontinue any
registration of its securities that is being effected pursuant to Section 3 hereof at any time prior to the effective date of the registration statement relating thereto; provided further, that if the Inclusive Registration Statement is
a “shelf” registration statement pursuant to Rule 415 under the Securities Act or successor rule, then the Company shall be required to use its best efforts to cause such registration statement to remain effective for a period of two
years, exclusive of any periods when such registration statement is not so effective; 
 6.2 furnish, at least ten business days
before filing a registration statement that registers such Registrable Shares, a prospectus relating thereto or any amendments or supplements relating to such a registration statement or prospectus, to each holder of Registrable Shares, to any
Selling Investors and to the Selling Investors’ Counsel, copies of all such documents proposed to be filed with the SEC (it being understood that such ten-business-day period need not apply to successive drafts of the same document proposed to
be filed so long as such successive drafts are supplied to such counsel in advance of the proposed filing by a period of time that is customary and reasonable under the circumstances); 

6.3 prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective for at least the periods set forth in this Agreement or until all of such Registrable Shares have been disposed of (if earlier) and to comply with the provisions of the
Securities Act with respect to the registration of the sale or other disposition of such Registrable Shares; 
 6.4 notify in
writing the Selling Investors promptly (i) of the receipt by the Company of any notification with respect to any comments by the SEC with respect to such registration statement or prospectus or any amendment or supplement thereto or any request
by the SEC for the amending or supplementing thereof or for additional information with respect thereto, (ii) of the receipt by the Company of any notification with respect to the issuance by the SEC of any stop order suspending the
effectiveness of such registration statement or prospectus or any amendment or supplement thereto or the initiation or threatening of any proceeding for that purpose and (iii) of the receipt by the Company of any notification with respect to
the suspension of the qualification of such Registrable Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purposes; 
 6.5 use its best efforts to register or qualify such Registrable Shares covered by such registration statement under such other securities or blue sky laws of such jurisdictions as any Selling Investor
reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such Selling Investor to consummate the disposition in such jurisdictions of the Registrable Shares owned by such Selling Investor;
provided, however, that the Company will not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required so to do but for
this Section 6.5; 

  
 7 

 6.6 furnish to each Selling Investor on a timely basis, such number of copies of a summary
prospectus or other prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as such Selling Investor may reasonably request in order to facilitate the public sale or other
disposition of such Registrable Shares; provided, however, that the Company shall have no such obligation to furnish copies of a final prospectus if the conditions of Rule 172(c) under the Securities Act are satisfied by the Company; provided
further, that if a final prospectus is not timely filed by the Company with the SEC in accordance with Rule 172(c) (without regard to any cure period provided by such rule) then, upon the written request of the Selling Investor, the Company shall
furnish such number of copies of a final prospectus as such Selling Investor shall reasonably request; 
 6.7 use its best
efforts to cause such Registrable Shares to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the seller or sellers thereof to
consummate the disposition of such Registrable Shares; 
 6.8 notify on a timely basis each Selling Investor at any time when a
prospectus relating to such Registrable Shares is required to be delivered under the Securities Act within the appropriate period mentioned in Section 6.1, of the happening of any event as a result of which the prospectus included in
such registration statement, as then in effect, included an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances
then existing and, at the request of such seller, prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the offerees of such
shares, such prospectus shall not include an 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 not misleading in light of the circumstances then existing;

 6.9 make available for inspection by any counsel to any Selling Investor and the Selling Investors’ Counsel or any
underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other agent retained by any such underwriter (collectively, the “Inspectors”), all pertinent financial and
other records, pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the
Company’s officers, directors and employees to supply all information (together with the Records, the “Information”) reasonably requested by any such Inspector in connection with such registration statement. Any of the
Information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, shall not be disclosed by the Inspectors unless (i) the disclosure of such Information is necessary to avoid
or correct a misstatement or omission of a material fact in the registration statement, (ii) the release of such Information is ordered pursuant to a subpoena or other order from a court of competent

  
 8 

 
jurisdiction or (iii) such Information has otherwise been made generally available to the public. The Selling Investor agrees that it will, upon learning that disclosure of such Information
is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate action to prevent disclosure of the Information deemed confidential; 

6.10 use its best efforts to obtain from its independent certified public accountants and reserve engineers “comfort” letters
in customary form and at customary times and covering matters of the type customarily covered by comfort letters; 
 6.11 use
its best efforts to obtain from its counsel an opinion or opinions in customary form; 
 6.12 provide a transfer agent and
registrar (which may be the same entity and which may not be the Company) for such Registrable Shares; 
 6.13 issue to any
underwriter to which any Selling Investor may sell shares in such offering certificates evidencing such Registrable Shares; provided, however, that the Company shall have the right to approve any such underwriter in connection with an underwritten
offering pursuant to Section 2 hereof, with such approval not to be unreasonably withheld, and the Company shall have the right to select such underwriter in connection with an underwritten offering pursuant to Section 3
hereof; 
 6.14 list such Registrable Shares on any national securities exchange on which any shares of the Common Stock are
listed, or if the Common Stock is not then listed on a national securities exchange, use its best efforts to qualify such Registrable Shares for inclusion on such national securities exchange as the holders of a majority of such Registrable Shares
shall request; 
 6.15 otherwise use its best efforts to comply with all applicable rules and regulations of the SEC and, if
required under such rules and regulations, make available to its security holders, as soon as reasonably practicable, earnings statements (which need not be audited) covering a period of 12 months beginning within three months after the effective
date of the registration statement, which earnings statements shall satisfy the provisions of Section 11(a) of the Securities Act; 
 6.16 use its best efforts to take all other steps necessary to effect the registration of such Registrable Shares contemplated hereby; and 

6.17 use its best efforts to make available its senior executive and financial officers to participate at the reasonable request of any
underwriter in marketing presentations to potential investors. 
 7. Indemnification. 

7.1 In connection with any registration of any Registrable Shares under the Securities Act pursuant to this Agreement, the Company shall
indemnify and hold harmless each Selling Investor, its officers and directors, each underwriter, broker or any other person acting on 

  
 9 

 
behalf of such Selling Investor and each other person, if any, who controls any of the foregoing persons within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act against any losses, claims, damages or liabilities, joint or several (or actions in respect thereof), to which any of the foregoing persons may become subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the registration statement under which such Registrable Shares were registered
under the Securities Act, any preliminary prospectus or final prospectus contained therein or otherwise filed with the SEC, any amendment or supplement thereto or any document incident to registration or qualification of any Registrable Shares, or
arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse such Selling Investor, such officer or
director, such underwriter, such broker or such other person acting on behalf of such Selling Investor and each such controlling person for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of or is based upon (i) an untrue
statement or alleged untrue statement or omission or alleged omission made in said registration statement, preliminary prospectus, final prospectus, amendment, supplement or document incident to registration or qualification of any Registrable
Shares in reliance upon and in conformity with written information furnished to the Company through an instrument duly executed by Selling Investor or underwriter specifically for use in the preparation thereof or (ii) offers or sales by such
Selling Investor “by means of” (as defined in Securities Act Rule 159A) a “free writing prospectus” (as defined in Securities Act Rule 405) that was not authorized in writing by the Company; provided, further, that with respect
to any prospectus, the foregoing indemnity shall not inure to the benefit of (a) any underwriter or, in the case of a registration statement filed with respect to an offering which is not an underwritten offering, any Selling Investor, from
whom the person asserting any losses, claims, damages and liabilities and judgments purchased Registrable Shares or (b) any person controlling such underwriter or Selling Investor, if (i) a copy of the prospectus (as then amended or
supplemented if the Company shall have furnished any amendments or supplements thereto) was required by law to have been delivered by such underwriter or Selling Investor (as applicable), (ii) the prospectus had not been sent or given by or on
behalf of such underwriter or Selling Investor (as applicable), (iii) the prospectus had not been sent or given by or on behalf of such underwriter or Selling Investor (as applicable) to such person with or prior to entry into the contract of
sale of the Registrable Shares with such person, (iv) the prospectus (as so amended and supplemented) would have cured the defect giving rise to such loss, claim, damage, liability or judgment and (v) such failure to deliver the prospectus
(as so amended and supplemented) was not the result of noncompliance by the Company with Section 6.6 hereof. 
 7.2
In connection with any registration of Registrable Shares under the Securities Act pursuant to this Agreement, each Selling Investor shall indemnify and hold harmless (in the same manner and to the same extent as set forth in the preceding paragraph
of this Section) the Company, each director of the Company, each officer of the Company who shall sign such registration statement, each underwriter, broker or other person acting on behalf of the Company, each person who controls any of the
foregoing persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and each other Selling 

  
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Investor under such registration statement (i) with respect to any statement or omission from such registration statement, any preliminary prospectus or final prospectus contained therein or
otherwise filed with the SEC, any amendment or supplement thereto or any document incident to registration or qualification of any Registrable Shares, if such statement or omission was made in reliance upon and in conformity with written information
furnished to the Company or such underwriter through an instrument duly executed by Selling Investor specifically for use in connection with the preparation of such registration statement, preliminary prospectus, final prospectus, amendment,
supplement or document, (ii) arises out of or is based upon offers or sales by such Selling Investor “by means of” (as defined in Securities Act Rule 159A) a “free writing prospectus” (as defined in Securities Act Rule 405)
that was not authorized in writing by the Company and (iii) in the event that a copy of the prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was required by law to have been
delivered by such Selling Investor and (A) the prospectus had not been sent or given by or on behalf of such Selling Investor, (B) the prospectus had not been sent or given by or on behalf of such Selling Investor to such person with or
prior to entry into the contract of sale of the Registrable Shares with such person, (C) the prospectus (as so amended and supplemented) would have cured the defect giving rise to a loss, claim, damage, liability or judgment and (D) such
failure to deliver the prospectus (as so amended and supplemented) was not the result of noncompliance by the Company with Section 6.6 hereof; provided, however, that the obligation to indemnify will be several, not joint and several,
among such Selling Investors, and the maximum amount of liability in respect of such indemnification shall be in proportion to and limited to, in the case of each Selling Investor, an amount equal to the net proceeds (after underwriting fees,
commissions or discounts) actually received by such Selling Investor from the sale of Registrable Shares effected pursuant to such registration. 
 7.3 The indemnification required by this Section 7 will be made by periodic payments during the course of the investigation or defense, as and when bills are received or expenses incurred,
subject to prompt refund in the event any such payments are determined not to have been due and owing hereunder. 
 7.4 Promptly
after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in the preceding paragraphs of this Section 7, such indemnified party will, if a claim in respect thereof is made against an
indemnifying party, give written notice to the latter of the commencement of such action (it being understood that no delay in delivering or failure to deliver such notice shall relieve the indemnifying persons from any liability or obligation
hereunder unless (and then solely to the extent that) the indemnifying person is prejudiced by such delay and/or failure). In case any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and
to assume the defense thereof, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof; provided, however, that
if any indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict with those available to the indemnifying party, or that such
claim or litigation involves or could have an effect upon matters beyond the scope of the indemnity 

  
 11 

 
agreement provided in this Section 7, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party and such indemnifying
party shall reimburse such indemnified party and any person controlling such indemnified party for that portion of the fees and expenses of any counsel retained by the indemnified party which is reasonably related to the matters covered by the
indemnification provided in this Section 7. 
 7.5 The indemnification provided for under this Agreement will remain
in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling person of such indemnified party and will survive the transfer of securities. 

7.6 If the indemnification provided for in this Section 7 is held by a court of competent jurisdiction to be unavailable to
an indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such
indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with
the statements or omissions which resulted in such loss, claim, damage or liability as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party 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 indemnifying party or by the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Selling Investors agree that it would not be just and equitable if contributions pursuant to this
paragraph were determined by pro rata allocation or by any other method of allocation which did not take into account the equitable considerations referred to herein. The amount paid or payable to an indemnified party as a result of the losses,
claims, damages, liabilities or expenses referred to above shall be deemed to include, subject to the limitations set forth in Sections 7.2 and 7.1, any legal or other expenses reasonably incurred in connection with investigating or
defending the same. Notwithstanding the foregoing, in no event shall the amount contributed by a Selling Investor exceed the aggregate net offering proceeds received by such Selling Investor from the sale of its Registrable Shares. 

8. Underwriting Agreement. Notwithstanding the provisions of Section 6 and 7, to the extent that the Company
and the Selling Investors shall enter into an underwriting or similar agreement, which agreement contains provisions covering one or more issues addressed in such Sections 6 or 7, the provisions contained in Sections 6 and
7 which address such issue or issues shall be superseded with respect to such registration by such other underwriting or similar agreement. 
 9. Agreements of the Selling Investors. 
 9.1 The Selling Investors shall
furnish to the Company such written information regarding such Selling Investors and the distribution proposed by such Selling Investors as the Company may reasonably request in writing and as shall be reasonably required in connection with any
registration, qualification or compliance referred to in this Agreement. 

  
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 9.2 No Selling Investor shall, nor shall any Selling Investor permit any officer, director,
underwriter, broker or any other person acting on behalf of such Selling Investor to, use any free writing prospectus (as defined in Rule 405 under the Securities Act) in connection with any registration statement covering Registrable Shares,
without the prior written consent of the Company. 
 10. Exchange Act Compliance. The Company covenants that it shall
(i) file the reports required to be filed by it (if so required) under the Securities Act and the Exchange Act in a timely manner and, if at any time the Company is not required to file such reports, it will, upon the written request of any
Holder of Registrable Shares, make publicly available other information necessary to permit sales pursuant to Rule 144 under the Securities Act and (ii) take such further action as any Holder may reasonably request in writing, all to the extent
required from time to time to enable such Holder to sell Registrable Shares without registration under the Securities Act pursuant to the exemptions provided by Rule 144 thereunder. Upon the request of any Holder, the Company shall deliver to such
Holder a written statement as to whether it has complied with such information and requirements. 
 11. No Conflicting
Registration Rights. The Company represents and warrants to SEP I that there are no registration rights with respect to any equity interest in the Company other than the registration rights granted hereby. The Company shall not (i) grant
any registration rights to third parties which are more favorable than or inconsistent with the rights granted hereunder, or (ii) enter into any agreement, take any action, or permit any change to occur, with respect to its securities that
violates or subordinates the rights expressly granted to the holders of Registrable Securities in this Agreement. 
 12.
Enforcement. 
 12.1 Remedies at Law or in Equity. Each Holder, on the one hand, and the Company, on the other
hand, may proceed to protect and enforce its rights by suit in equity or action at law, whether for the specific performance of any term contained in this Agreement or for an injunction against the breach of any such term or in aid of the exercise
of any term contained in this Agreement, or to enforce any other legal or equitable right of such Holder, on the one hand, or the Company on the other hand, or to take any one or more of such actions. 

In the event a Holder brings such an action against the Company or the Company brings an action against a Holder arising under this
Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including without limitation
such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 
 12.2 Cumulative Remedies. None of the rights, powers or remedies conferred upon a Holder, on the one hand, or the Company, on the other hand, shall be mutually exclusive, and each such right, power
or remedy shall be cumulative and in addition to every other right, power or remedy, now or hereafter available at law, in equity, by statute or otherwise. 

  
 13 

 12.3 No Implied Waiver. Except as expressly provided in this Agreement, no course of
dealing between the Company and a Holder and no delay in exercising any such right, power or remedy conferred hereby now or hereafter existing at law in equity, by statute or otherwise, shall operate as a waiver of, or otherwise prejudice, any such
right, power or remedy. 
 13. Miscellaneous. 
 13.1 Waivers and Amendments. 
 (a) Upon the approval of the
Company and the written consent of the holders of a majority of the Registrable Securities the obligations of the Company and the rights of each Holder under this Agreement may be waived (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or indefinitely). 
 (b) Upon the
effectuation of each such waiver, the Company shall promptly give written notice thereof to each Holder who have not previously consented thereto in writing. 
 (c) Neither this Agreement, nor any provision hereof, may be changed, waived, discharged or terminated orally or by course of dealing, but only by a statement in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought, except to the extent provided in this Section 13.1. 
 13.2 Notices. All notices, requests, consents and other communications required or permitted hereunder shall be in writing and shall be sent by electronic mail or facsimile or hand delivered or
mailed postage prepaid by registered or certified mail, 
 (a) If to SEP I, to: 

SEP Management I, LLC 
 1111 Bagby, Suite 1600 
 Houston, Texas 77002 

Attention: Michael G. Long 
 Telephone: (713) 783-8000 
 Fax: (713) 783-0915 

Email: mlong@sanchezog.com 
 (b) If to a Holder, to such address as is provided by the Holder to the Company, or 
 (c) If to the Company, to: 
 Sanchez Energy Corporation

 1111 Bagby Street, Suite 1600 

Houston, Texas 77002 

  
 14 

 Attention: Antonio R. Sanchez, III 

Telephone: (713) 783-8000 
 Fax: (713) 783-0915 
 Email: tony@sanchezog.com 

or to such other address as the Company or a Holder each may specify by written notice to the other, and each such notice, request, consent and other
communication shall for all purposes of the Agreement be treated as being effective or having been given (i) when delivered if delivered personally, (ii) when sent, if sent by electronic mail or facsimile on a Business Day (or, if not sent
on a Business Day, on the next Business Day after the date sent by electronic mail or facsimile), (iii) on the next Business Day after dispatch, if sent by a nationally recognized overnight courier guaranteeing next Business Day delivery, or,
(iv) if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of United States mail, addressed and postage prepaid as aforesaid. 

13.3 Termination of Agreement. This Agreement shall remain in effect until the later of (i) the date upon which no
Registrable Shares shall remain outstanding or (ii) the date upon which all Registrable Shares eligible to be sold pursuant to a registration statement shall have been sold or, if earlier than (i) or (ii), the tenth anniversary of this
Agreement; provided, however, that Sections 5 and 7 shall survive the termination of this Agreement. 
 13.4
Severability. Should any one or more of the provisions of this Agreement or of any agreement entered into pursuant to this Agreement be determined to be illegal or unenforceable, all other provisions of this Agreement and of each other
agreement entered into pursuant to this Agreement shall be given effect separately from the provision or provisions determined to be illegal or unenforceable and shall not be affected thereby. 

13.5 Parties in Interest. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective parties hereto, the successors and assigns of SEP I and the Company and any Holder that is not SEP I (each such Holder is expressly deemed to be a third party beneficiary hereunder); provided, however, that,
notwithstanding anything in this Agreement to the contrary, in the event of any transfer or assignment of any Registrable Shares by a Holder, (i) the Holder has elected to assign such Holder’s rights under this Agreement with respect to
such securities to such transferee or assignee and (ii) the Company is given: (a) written notice by such Holder at or within a reasonable time after said transfer or assignment, stating the name and address of such transferee or assignee
and identifying the securities with respect to which such registration rights are being transferred or assigned; and (b) a joinder agreement, in a form reasonably satisfactory to the Company, executed by such transferee or assignee pursuant to
which such Person agrees to be bound by the terms of this Agreement. This Agreement shall not run to the benefit of or be enforceable by any other Person. 
 13.6 Headings. The headings of the Sections and paragraphs of this Agreement have been inserted for convenience of reference only and do not constitute a part of this Agreement. 

  
 15 

 13.7 Choice of Law. It is the intention of the parties that the internal laws, and
not the laws of conflicts, of Texas should govern the enforceability and validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties. 

13.8 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, with the same effect as if all parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument. 

13.9 Entire Agreement. This Agreement contains the entire agreement among the parties hereto with respect to the subject matter
hereof and such Agreement supersedes and replaces all prior agreements, written or oral, among the parties hereto with respect to the subject matter hereof. 
 13.10 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. 
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blank] 

  
 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights Agreement
to be duly executed as of the day and year first above written. 
  

			
	SANCHEZ ENERGY CORPORATION
		
	By:	 	
		 	  

		 	Name:
		 	Title:
	
	SANCHEZ ENERGY PARTNERS I, LP
		
	By:	 	 SEP Management I, LLC,
 its
general partner

  

					
			
		 	By:	 	
		 		 	  

		 		 	Name:
		 		 	Title:

 [Signature Page to Registration Rights Agreement]

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