Document:

exv10w3

Exhibit 10.3

EMPLOYMENT, NON-COMPETITION AND

NON-SOLICITATION AGREEMENT

     THIS AGREEMENT (“Agreement”) is made this ___ day of November, 2010 by and between FRANCIS
DRILLING FLUIDS, LTD., a Louisiana corporation with a principal place of business at 240 Jasmine
Rd., Crowley, LA 70526 (the “Company” and/or “Francis Drilling”), and MICHAEL G. FRANCIS, an
individual residing at 314 Judge Canan Drive, Crowley, LA 70526 (the “Employee”).

     WHEREAS, the Employee is a shareholder/officer/director of the Company and has been employed
at the Company as a shareholder, officer and manager since inception;

     WHEREAS, on the date hereof, holders of all of the membership of Francis Oaks, LLC, which own
100% of the Company, have sold such membership interests to NYTEX FDF Acquisition, Inc., a Delaware
corporation (“Acquisition Co”) wholly owned by NYTEX Energy Holdings, Inc., a Delaware corporation
(“NYTEX”), pursuant to a certain Membership Interests Purchase Agreement (the “Purchase Agreement”)
dated November ___, 2010 (the “Transaction”);

     WHEREAS, this Agreement sets the terms and conditions of employment with the Company, which
will begin on November _____, 2010 (the “Commencement Date”) should the offer be accepted;

     WHEREAS, the Company desires to secure the employment services of the Employee in the position
as its President and Chief Executive Officer reporting to the Company’s Chairman (Michael Galvis)
at Francis Drilling located at 240 Jasmine Rd Crowley, LA 70526 or so designated by the Company
which will start on the Commencement Date;

     WHEREAS, in consultation with the Employee, the Company will set certain performance goals for
the Employee and Francis Drilling at the start of each of the following years; 2011, 2012, 2013,
2014 and 2015;

     WHEREAS, the Employee possesses substantial knowledge and has substantial experience with
respect to the oilfield services business;

     WHEREAS, the Company recognizes the role the Employee can play in (a) the Company’s retention
of Key Employees (as hereafter defined) during the Key Employees’ transition to the new ownership
by the Company as part of the Transaction; (b) maintaining the

 

 

revenues of Francis Drilling prior to and subsequent to the closing (the “Closing”) of the
Transaction and (c) increasing the overall value of the Company post Closing of Transaction.

     WHEREAS, the Employee has agreed to enter into certain non-competition and other restrictive
covenants upon the terms and conditions set forth herein; and

     WHEREAS, the Company would not have entered into and closed the Transaction but for the
execution and delivery of this Agreement by the Employee.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereby agree as follows:

	1.	 	Compensation. If Employee decides to accept this position the initial
annual salary will be $200,000, less applicable tax and other
withholdings, paid in accordance with the Company’s normal payroll
practices. Future increases in compensation, if any, may be made by
the Company in its sole and absolute discretion, however the annual
salary may be adjusted for an annual consumer price index (“CPI”)
adjustment. The Position is full-time, exempt position, which is a
salaried not hourly position. Accordingly, the Employee will not
receive overtime pay if the Employee works more than 40 hours during a
work week. The obligations of the Company to pay such salaried
compensation in accordance with the terms outlined in this Agreement
shall terminate six (6) months after the death of Employee, or upon
the close of the Term, whichever is earliest to occur. In addition,
during the period commencing on the Commencement Date and ending five
years thereafter, the Employee shall use reasonable efforts to assist
the Company with respect to: (a) retaining, promoting and continuing
the employment by the Company of each of the employees listed on
Exhibit A attached hereto (the “Key Employees”), (b) promoting sales
and other business activities of the Company, (c) establishing
marketing strategies and establishing advertising strategies for the
Company and (d) contributing to increasing the overall value of the
Company through an increase in revenues and earnings on an annual
basis.
	 
	2.	 	Term. The term of this Agreement shall begin on
the Commencement Date and continue for a
period of five (5) years (the “Term”),
subject to earlier termination as herein
provided. Employee’s employment hereunder shall terminate as a result of any of the
following events:

2

 

	 	a.	 	the final non-appealable conviction of Employee of a felony; or
	 
	 	b.	 	Employee’s full and complete abandonment of his duties hereunder
for a continuous period of ninety (90) days.

	3.	 	Non-Competition. The Employee agrees that during the Term and continuing for two (2)
years thereafter (the “Restriction Period”), Employee shall not do any one or more of the
following, directly or indirectly: (a) engage in the “Business” anywhere in the territory
consisting of the counties and parishes more fully set forth in Exhibit “E” hereto (the
“Territory”) as of the Commencement Date, which Business is defined as: the sale, manufacture,
distribution or transportation of fluids, chemicals or frac sands used in the drilling sector
of the oil and gas industry and cleaning services associated with the oil and gas industry;
(b) solicit or attempt to solicit any Person (as hereinafter defined) who is or has been a
customer, supplier, distributor, licensor, licensee or any other business relation within the
past five (5) calendar years, the Company to cease doing business with, or to alter or limit
its business relationship with the Company ; or (c) take any actions which are calculated to
persuade any former employees, representatives or agents of the Company who have become
employees, representatives or agents of the Company to terminate their association with the
Company or hire or otherwise retain the services of any such employees, representatives or
agents of the Company (whether on a full-time basis, part-time basis or otherwise and whether
as an employee, independent contractor, advisor or in another capacity) who has been acting in
such capacity or has acted in such capacity at any time within the six-month period
immediately preceding such proposed date of hire or retention. To “engage” in a business
means (x) to render services, as an independent contractor, employee, agent, advisor or
otherwise, in (or with respect to) the Territory for that business, or (y) to own, manage,
operate or control, as an owner, partner, member, shareholder or otherwise (or participate in
the ownership, management, operation or control of) an enterprise engaged in that business in
the Territory. Employee hereby acknowledges and agrees that the foregoing covenants are
commercially reasonable and reasonably necessary to protect the Company and its affiliates or
subsidiaries. Nothing contained herein shall restrict the Employee from: (i) owning, as a passive investment, 5% or less of the
equity securities of any Person in competition with the Company or any of its subsidiaries, which securities are listed on any
national

3

 

	 	 	securities exchange or authorized for quotation on the Automated Quotations System of the National Association of
Securities Dealers, Inc. (a “National Exchange”), as long as Employee has no other business relationship, direct or indirect, with
the issuer of such securities. The term “Person” shall mean any individual, corporation, company, firm, business, voluntary or
other association, partnership, limited liability company, trust, estate, an unincorporated organization or a government or any
agency, instrumentality or political subdivision thereof or any other entity of any kind.
	 
	4.	 	Disclosure of Confidential Information. The Employee agrees that for the longest period permitted by
Louisiana State law following the Commencement Date, he shall
maintain all Confidential Information in confidence and shall
not disclose any Confidential Information to anyone outside
of the Company, and he shall not use any Confidential
Information for his own benefit or the benefit of any third
party. Nothing in this Agreement, however, shall prohibit
the Employee from using or disclosing Confidential
Information to the extent (a) required by the Employee to
enforce the terms of this Agreement or any other agreement or
instruments executed and deferred in connection herewith, (b)
required to defend any action, proceeding, or governmental
inquiry against the Employee, or (c) required by law,
provided, that if the Employee is required by applicable law
to disclose any Confidential Information, the Employee shall
(1) provide the Company with prompt notice before such
disclosure in order that the Company may attempt to obtain a
protective order or other assurance that confidential
treatment will be accorded such information and (2) cooperate
with the Company in attempting to obtain such order or
assurance. “Confidential Information” means information
(except as it relates to the tax treatment or the tax
structure of the transaction) regarding the Company to the
extent it is Confidential, including the following: (1)
information regarding operations, assets, liabilities or
financial condition; (2) information regarding pricing,
sales, marketing, capital expenditures, costs, joint
ventures, business alliances, or purchasing; (3) information
regarding employees or sales representatives,
including their identities, responsibilities, competence and compensation; (4)
customer lists or other information regarding current or prospective customers,
including information regarding their identities, contact persons and
purchasing patterns; (5) information regarding current or prospective vendors,
suppliers, distributors or other

4

 

	 	 	business partners; (6) forecasts, projections,
budgets and business plans; (7) information regarding planned or pending
acquisitions, divestitures or other business combinations; (8) trade secrets
and proprietary information; (9) copyright applications, know-how, discoveries,
inventions, improvements, techniques, processes, business methods, algorithms,
software programs, software source documents and formulae, in each case
regarding current, future or proposed products or services; and (10) website
designs, website content, proposed domain names, and data bases. For purposes
of this Section, information regarding the Company shall include without
limitation information of the business as conducted by the Company.
“Confidential” means not generally available to the public. Information shall
not be considered to be generally available to the public if it is made public
by the Employee in violation of this Agreement or, to the knowledge of the
Employee, by a third party who has no lawful right to disclose the information
or who does so in violation of any contractual, legal or fiduciary obligation
to the Company.
	 
	5.	 	Non-Solicitation. During the Restriction Period, the
Employee shall not directly or indirectly, as owner,
proprietor, Employee, employer, employee, shareholder
(other than as the holder of less than five percent
(5%) of the shares of a corporation or other entity,
the securities of which are traded on a National
Exchange), agent, partner, member, manager, director,
officer, Employee or otherwise: (a) employ or
solicit, receive or attempt to receive the
performance of any services by any employee of the
Company; (b) contact or solicit any Customer (as
hereinafter defined) or otherwise induce or solicit
any Customer to enter into any business relationship
with any person, firm or entity other than the
Company relating to the business; or (c) take any
actions that might interfere with the Company’s
relationships with its Customers or otherwise reduce
the business of a Customer with the Company. For all
purposes of this Agreement, the term “Customer” shall
mean all persons or entities that are or were
customers of the Company or the Employee at the date
of this Agreement or at any time during the
Restriction Period.
	 
	6.	 	Minimum Consideration. In consideration of the
Employee’s covenants under Sections 3, 4 and 5, the
Company shall pay to the Employee a minimum aggregate
amount equal to one million U.S. Dollars
($1,000,000.00), payable in sixty (60) equal monthly
installments in the amount of sixteen thousand six
hundred sixty six and sixty seven cents U.S. Dollars
($16,666.67) each. The first such monthly payment
shall be due

5

 

	 	 	and payable on the month following
Closing and each payment thereafter shall be due and
payable on the first (1st) day of each of
the fifty nine (59) months thereafter. The
obligations set out in this Section 6 are in addition
to those set out in Section 1 of this Agreement and
the Company’s obligations to make the payments set
forth in this Section 6 shall not terminate for any
reason unless Employee is in breach of this
Agreement.
	 
	7.	 	Bonus. In addition to the minimum consideration
set forth in Section 1 and Section 6, for the
services to be provided under this Agreement in
connection with the retention, promotion and
continuation of the employment of Key Employees with
the Company and in connection with promoting sales of
the Company at the branch locations, the Employee
shall be eligible to receive the performance and
incentive based bonuses set forth on Exhibit “B” and
Exhibit “C” to this Agreement (collectively the
“Bonuses”). The Bonuses shall be calculated and paid
to Employee as set forth on the respective exhibits.
The Employee will also be entitled to certain stock
awards as outlined in Exhibit “D” based upon
achievement of certain financial targets outlined by
management, these stock awards will be granted to
Employee on the dates set out on Exhibit “D”. The
exhibits referenced in this Section 7 are
incorporated herein by reference thereto.
	 
	8.	 	Default The obligations of Employee
under Sections 3, 4, and 5
are contingent upon the
Company’s compliance with
Sections 1, 6 and 7. In
the event Company receives
notice of a default of any
of its payment obligations
under Sections 1, 6 or 7,
and such default remains
uncured for a period of
twenty (20) days, then
Employee’s obligations
under Sections 3, 4 and 5
shall terminate.
	 
	9.	 	Benefits. Employee will also be
eligible to participate in
various existing employee
benefit plans offered by
the Company to its
full-time employees as of
the date of this letter
(for example group health
insurance, 401(k), and
vacation programs), in
accordance
with Company’s then-current benefit plan requirements. The Company may change
its benefit plans from time to time in accordance with applicable laws.
	 
	10.	 	Other. Employee will expend his best efforts on
behalf of the Company, and will abide by
all policies and decisions made by
Company, as well as all applicable
federal, state and local laws,
regulations or ordinances. Employee
agrees to act in the best interests of
the Company at all times and devote his
full business time and efforts to the

6

 

	 	 	performance of his assigned duties for
the Company, unless Employee notifies the
Chairman in advance of his intent to
engage in other paid work and receive the
Chairman’s express written consent to do
so.
	 
	11.	 	Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Louisiana.
	 
	12.	 	Waiver. A party’s failure to insist on compliance or enforcement of any term of this
Agreement shall not affect the validity or enforceability, or constitute a waiver, of future
enforcement of said term, or any other term of this Agreement by said party or the other party
(as provided in this Agreement).
	 
	13.	 	Severability. If any provision of this Agreement is determined by an arbitrator or a
court of competent jurisdiction to be illegal or unenforceable, such provision shall be
automatically reformed and construed so as to be valid, operative and enforceable to the
maximum extent permitted by law or equity while preserving its original intent. The
invalidity of any part of this Agreement shall not render invalid the remainder of this
Agreement.
	 
	14.	 	Assignment. Neither party shall have the right to assign its rights or obligations
hereunder without the prior written consent of the other party. Any proposed assignment shall
be deemed null and void.
	 
	15.	 	Entire Agreement. This Agreement constitutes the entire agreement between the
parties regarding the subject matter contained herein and supersedes all prior and
contemporaneous undertakings and agreements of the parties, whether written or oral, with
respect to the subject matter herein.
	 
	16.	 	Amendment. This Agreement shall not be amended except by a writing executed by both
parties.
	 
	17.	 	Headings. The headings herein are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.
	 
	18.	 	Parties Bound. The terms and conditions of this Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective heirs, legal representatives,
successors and assigns.
	 
	19.	 	Counterparts. This Agreement may be executed in two or more counterparts, sent by
facsimile or transmitted electronically in either tagged image format (.tif) or portable

7

 

	 	 	document format (.pdf), any of which shall be deemed an original, and all of which together
shall constitute one and the same instrument.
	 
	20.	 	Arbitration. Upon any dispute arising out of or pursuant to this Agreement, the
parties shall first engage in good faith negotiations to resolve such dispute. In the event
that the parties are unable to resolve such dispute within ten (10) business days after
written notice of same is received, such dispute shall be submitted to binding arbitration in
accordance with the rules of the American Arbitration Association. The site of such
arbitration proceedings shall be in Lafayette, Louisiana. Judgment upon any award may be
entered in any court having jurisdiction thereof. This Section shall not limit any party’s
right to obtain any provisional or equitable remedy, including, without limitation, injunctive
relief from any court of competent jurisdiction, as may be necessary in the sole judgment of
such party to protect its rights. The party who does not substantially prevail in the
arbitration shall be liable for the costs of the arbitration and any and all of the reasonable
costs (including, without limitation, reasonable attorney’s fees) incurred by the party who
substantially prevails in the arbitration.
	 
	21.	 	Set Off. Subject to limitations of IRC Section 409A, this Agreement and any payment
obligations of the Company to the Employee hereunder, including without limitation any
payments to be made by the Company to the Employee under Section(s) 5 and 6 are, and shall
remain, unconditionally subject to the set-off rights of the Company against the Employee
which are contained and set forth in Section 9.02 of the Purchase Agreement.

This offer is contingent upon you: 1) providing the Company with appropriate documents
establishing your identity and right to work in the United States on a timely basis; 2)
verification of the information contained in your employment application, including satisfactory
references,
background checks and any standard drug screens; and 3) Proper execution and delivery of the
Purchase Agreement by all requisite parties.

8

 

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

	 	 	 	 	 
	 	FRANCIS DRILLING FLUIDS, LTD. (“Company”)

a Louisiana corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Michael Galvis 	 
	 	 	Title:  	Chairman 	 
	 
	 	NYTEX ENERGY HOLDINGS, INC. (“NYTEX”)

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Michael Galvis 	 
	 	 	Title:  	Chairman 	 
	 
	 	MICHAEL G. FRANCIS (“EMPLOYEE”)
 	 
	 	
 	 
	 	
MICHAEL G. FRANCIS, Employee

 	 

9

 

EXHIBIT “A”

KEY EMPLOYEES

	 	 	 	 	 
	Individual	 	Position	 	Area
	1. Ronald Ray Brown

	 	VP & Pneumatics Manager
	 	Pneumatic Transportation
	2. Jude N. Gregory

	 	VP & Chief Financial Officer
	 	Finance and Human Resources
	3. Bryan K. Francis

	 	Operations Manager
	 	Mud Operations
	4. Barry Charpentier

	 	Sales Manager
	 	Sales and Marketing
	5. Freddie Richard

	 	Pneumatics Manager
	 	Pneumatic Transportation
	6. Steve Schaaf

	 	Chief Technology Officer
	 	Technology and Communication
	7. John Francis

	 	Account Manager
	 	Customer Relations
	8. Les Babineaux

	 	Central Dispatch Developer
	 	Mud Operations
	9. Susan Boudreaux

	 	Controller
	 	Accounting
	10. Lorraine Boulet

	 	Accounts Receivable Clerk
	 	Accounts Receivable
	11. Brenda Brown

	 	Office Manager
	 	Pneumatic Transportation Billing
	12. Kurt Daigle

	 	Account Manager
	 	Customer Relations
	13. Keith Domingue

	 	Cleaning Services Coordinator
	 	Cleaning Services
	14. Earl Fontenot

	 	Field Sales
	 	Customer Relations
	15. Mackey Francis

	 	Field Sales
	 	Customer Relations
	16. William “Bill” Hargrave

	 	Field Sales
	 	Customer Relations
	17. Rickie Menard

	 	Field Sales
	 	Customer Relations
	18. Porter Renfrow

	 	Plant Manager
	 	Pneumatic Transportation
	19. Andy Schwartzenburg

	 	HSE Director
	 	Safety and Environmental
	20. Dwight Toland

	 	Maintenance Manager
	 	Maintenance and Construction

10

 

EXHIBIT “B”

KEY EMPLOYEE RENTENTION INCENTIVE (“KERI”) FOR THE EMPLOYEE

DESCRIPTION: In an effort to assist the Company to maintain the Key Employee’s after the
Commencement Date, the Company will pay to the Employee KERI payments as follows:

KEY LOCATION PERSONNEL (“KLP”):

The Company and the Employee will identify prior to Closing certain employees not exceeding 20 in
total with KOSP (as Key Employees, as defined in this Agreement) of the Company as a KLP. The
Company will pay to the Employee an amount to be determined by the Company for each KLP that remain
in the continuous employment of the Company for the Term of the Agreement.

KEY OUTSIDE SALES PERSONNEL (“KOSP”):

The Company and the Employee will identify prior to Closing certain not exceeding 20 in total with
KLP employees (as Key Employees, as defined in this Agreement) of the Company as KOSP. The Company
will pay to the Employee an amount to be determined by the Company for each KOSP that remain in the
continuous employment of the Company for the Term of the Agreement.

KOSP employees and KLP employees are collectively referred to as “Key Employees” or individually as
“Key Employee”.

All KERI earned by the Employee will be paid within 30 days of the each respective anniversary of
the Commencement Date as follows:

	 	•	 	1st anniversary of Commencement Date — $2,500 per Key Employee
	 
	 	•	 	2nd anniversary of Commencement Date — $2,250 per Key Employee
	 
	 	•	 	3rd anniversary of Commencement Date — $2,000 per Key Employee
	 
	 	•	 	4th anniversary of Commencement Date — $1,750 per Key Employee
	 
	 	•	 	5th anniversary of Commencement Date — $1,500 per Key Employee

11

 

EXHIBIT “C”

REVENUE RETENTION INCENTIVE (“RRI”) FOR THE EMPLOYEE

	DESCRIPTION:	 	In an effort to maintain and increase revenue volumes, the Company will pay to
Employee an RRI based on the Company’s gross sales less any discounts or allowances hereafter
referred to a (“Net Sales”) after the Closing, as determined in the normal course by the
Company.

FIRST FULL 3 MONTHS FOLLOWING THE COMMENCEMENT DATE:

	 	•	 	The Company shall pay the Employee a cash payment equal to two (2%) percent of
the increase in the Company’s Net Sales for the first three months following the
Commencement Date as compared to the Company’s average quarterly Net Sales for each
of the four quarters which preceded the Commencement Date. This amount shall be
calculated and paid to the Employee within thirty days of the end of the three
month period following the Commencement Date.

TWELVE MONTHS THRU AUGUST 31, 2011:

	 	•	 	The Company shall pay the Employee a cash payment equal to two (2%) percent of
the increase in the Company’s Net Sales for the twelve months ending (“TME”) August
31, 2011 as compared to the Company’s Net Sales for the TME on August 31, 2010.
This amount shall be calculated and paid to the Employee on or before November 15,
2011.

TME AUGUST 31 FOR THE TERM OF THE CONTRACT:

	 	•	 	For the remainder of this Agreement, the Company shall pay the Employee a cash
payment equal to two (2%) percent of the increase in Company’s Net Sales from TME
August 31 of one year to the next. This increase shall be determined on August 31
of each respective year, beginning on August 31, 2012, at which time the Company’s
Net Sales for the period September 1, 2011 thru August 31, 2012 shall be compared
to the Company’s Net Sales for the period September 1, 2010 thru August 31, 2011 to
determine the bonus payable. This calculation shall be made each year for the
duration of this Agreement. The bonus amount shall be calculated and paid to the
Employee on or before November 15 of each respective year.

12

 

EXHIBIT “D”

STOCK AWARDS FOR THE EMPLOYEE

NYTEX Energy Holdings, Inc. (“NYTEX”) shall establish, and the Employee will be eligible to
participate in, a stock compensation plan for key employees. Under such stock compensation
plan, shares of restricted NYTEX common stock shall be granted to the Employee on the
following dates in the following amounts, but only if the performance and employment
benchmarks provided for in such plan have been attained by such date. Shares of NYTEX
common stock granted to the Employee under such plan shall be subject to such conditions
regarding nontransferability and forfeitability as shall be determined under such plan at
the time of granting of such shares:

	 	•	 	December 31, 2011, 469,140 shares of NYTEX Common Stock
	 
	 	•	 	December 31, 2012, 476,178 shares of NYTEX Common Stock
	 
	 	•	 	December 31, 2013, 483,320 shares of NYTEX Common Stock
	 
	 	•	 	December 31, 2014, 490,570 shares of NYTEX Common Stock
	 
	 	•	 	December 31, 2015, 497,929 shares of NYTEX Common Stock

13

 

EXHIBIT “E”

TERRITORY OF NON-COMPETITION PROVISIONS OF EMPLOYMENT AGREEMENT

“Territory” as defined in Paragraph 3(a) of the Agreement shall include the following counties and
parishes where the Company is doing business and providing services and products;

	 	 	 	 	 	 	 	 	 	 	 

	 	A. 
	Louisiana 	 	 	 	 	 	 	 	 
	1.

	 	Acadia
	 	 	 	 	39.	 	 	St. Martin
	2.

	 	Allen
	 	 	 	 	40.	 	 	St. Mary
	3.

	 	Ascension
	 	 	 	 	41.	 	 	St. Tammany
	4.

	 	Assumption
	 	 	 	 	42.	 	 	Tangipahoa
	5.

	 	Avoyelles
	 	 	 	 	43.	 	 	Terrebonne
	6.

	 	Beauregard
	 	 	 	 	44.	 	 	Vermilion
	7.

	 	Bienville
	 	 	 	 	45.	 	 	Vernon
	8.

	 	Bossier
	 	 	 	 	46.	 	 	Washington
	9.

	 	Caddo
	 	 	 	 	47.	 	 	Webster
	10.

	 	Calcasieu
	 	 	 	 	48.	 	 	West Baton Rouge
	11.

	 	Caldwell
	 	 	 	 	49.	 	 	West Feliciana
	12.

	 	Cameron	 	 	 	 	 	 	 	 
	13.

	 	DeSoto	 	 	 	 	 	 	 	 
	14.

	 	East Baton Rouge	 	 	 	 	 	 	 	 
	15.

	 	East Feliciana	 	 	 	 	 	 	 	 
	16.

	 	Evangeline	 	 	 	 	 	 	 	 
	17.

	 	Iberia	 	 	 	 	 	 	 	 
	18.

	 	Iberville	 	 	 	 	 	 	 	 
	19.

	 	Jefferson	 	 	 	 	 	 	 	 
	20.

	 	Jefferson Davis	 	 	 	 	 	 	 	 
	21.

	 	Lafayette	 	 	 	 	 	 	 	 
	22.

	 	Lafourche	 	 	 	 	 	 	 	 
	23.

	 	LaSalle	 	 	 	 	 	 	 	 
	24.

	 	Livingston	 	 	 	 	 	 	 	 
	25.

	 	Natchitoches	 	 	 	 	 	 	 	 
	26.

	 	Orleans	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	B. 

	Oklahoma	 	 	 	 	 	 	 	 
	1.

	 	Pontotoc County	 	 	 	 	 	 	 	 
	2.

	 	Sequoyah County	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	C. 

	Texas	 	 	 	 	 	 	 	 
	1.

	 	Ector County	 	 	 	 	 	 	 	 
	2.

	 	Jim Wells County	 	 	 	 	 	 	 	 
	3.

	 	Liberty County	 	 	 	 	 	 	 	 
	4.

	 	Marion County	 	 	 	 	 	 	 	 
	5.

	 	Victoria County	 	 	 	 	 	 	 	 
	6.

	 	Winkler County	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	D. 

	Wyoming	 	 	 	 	 	 	 	 
	1.

	 	Sweetwater County	 	 	 	 	 	 	 	 

14exv10w4

Exhibit 10.4

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of November
___, 2010 by and among NYTEX Energy Holdings, Inc., a Delaware corporation (the “Company”), and
Diana Istre Francis, a resident of the state of Louisiana (the “Investor”).

Recitals

     The Company and the Investor are parties, among others, to the Membership Interests Purchase
Agreement, dated as of the date of this Agreement (by and among Investor and others as the sellers
and the Company as the buyer, the “Purchase Agreement”), pursuant to which the Company has agreed
to issue the Diana Francis Stock as partial payment of the purchase price for Investor’s sale of
certain Membership Interests; and

     The Investor’s obligations under the Purchase Agreement are conditioned upon the execution and
delivery of this Agreement.

Agreement

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises set forth
in this Agreement, the parties to this Agreement agree as follows:

     Section 1. REGISTRATION RIGHTS.

          1.1 Definitions. Terms defined in the Purchase Agreement and not otherwise defined in this
Agreement are used in this Agreement with the same meaning as defined in the Purchase Agreement.
As used in this Agreement, the following terms shall have the meanings set forth below:

          “Commission Comments” means written comments pertaining solely to Rule 415
(or which challenge the right of the Investor to have its Registrable Securities included in a
Registration Statement filed hereunder without being deemed an underwriter) which are received by
the Company from the Commission to a filed Registration Statement, a copy of which shall have been
provided by the Company to the Investor, which either (i) requires the Company to limit the number
of Registrable Securities which may be included therein to a number which is less than the number
sought to be included thereon as filed with the Commission or (ii) requires the Company to either
exclude Registrable Securities held by the Investor or deem the Investor to be an underwriter with
respect to Registrable Securities they seek to include in such Registration Statement.

          “Common Stock” means shares of the Company’s common stock, par value $0.001 per share.

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

          “Fair Market Value” means the average closing price of the Common Stock, or the average of the
closing bid and ask price of the Common Stock, as applicable, as reported on a national stock
exchange or the OTC Bulletin Board.

          “Fully-Diluted Common Stock” shall mean, at any time, the then outstanding shares of Common
Stock plus (without duplication) all shares of Common Stock issuable (at the time or upon
passage of time or the occurrence of future events) upon the exercise, conversion or exchange of
all then-

 

outstanding rights, warrants, options, convertible securities, or other rights or
securities convertible into, directly or indirectly, Common Stock.

          “Initial Registration Statement” shall mean that registration statement the Company is
required to file regarding Common Stock issuable in connection with its Summer 2010 Convertible
Debenture Offering and its Series A Preferred Stock Private Placement.

          “Registrable Securities” means (1) the Diana Francis Stock and (2) any shares of Common Stock
of the Company issued as (or issuable upon the conversion or exercise of any warrant, right, or
other security which is issued as) a dividend or other distribution with respect to, or in exchange
for or in replacement of, the Diana Francis Stock described in clause (1) above.

          The terms “register,” “registration,” and “registered” refer to a registration effected by
preparing and filing a registration statement in compliance with the Securities Act and the
declaration or ordering of effectiveness of such registration statement.

          “Registration Expenses” means all expenses incurred in effecting any registration pursuant to
this Agreement, including, without limitation, all registration, qualification, and filing fees,
printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees
and expenses, and expenses of any regular or special audits incident to or required by any such
registration, but excluding underwriting discounts, selling commissions, and stock transfer taxes
applicable to the sale of Registrable Securities.

          The number of shares of “Registrable Securities then outstanding” shall mean the number of
shares of Common Stock that are Registrable Securities and (1) are then issued and outstanding or
(2) are then issuable pursuant to the exercise or conversion of then outstanding and then
exercisable options, warrants, or convertible securities.

          “SEC” means the Securities and Exchange Commission.

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

          “Subsidiary” means any corporation more than fifty percent (50%) of the outstanding voting
securities of which are owned by the Company or any Subsidiary, directly or indirectly, or a
partnership or limited liability company in which the Company or any Subsidiary is a general
partner or manager or holds interests entitling it to receive more than fifty percent (50%) of the
profits or losses of the partnership or limited liability company.

          “Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market, or (ii)
if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted
in the over-the-counter market as reported by the Pink Sheets LLC (or any similar organization or
agency succeeding to its functions of reporting prices); provided, that in the event that the
Common Stock is not listed or quoted as set forth in (i) and (ii) hereof, then Trading Day shall
mean a Business Day.

          1.2 Requested Registration.

               (a) Requested Registration. If the Company shall receive at any time after thirty
(30) days after the effective date of the Initial Registration Statement, a written request from
the Investor, the Company shall as soon as practicable (and in any event within sixty (60) calendar
days of
the receipt of such request), use its commercially reasonable efforts to effect the
registration of all Registrable Securities that are specified in such request, including for an
underwritten offering or for an

2

 

offering to be made on a continuous basis pursuant to Rule 415, and
in accordance with Section 1.5(e). If for any reason other than due solely to SEC Restrictions, a
Registration Statement is declared effective but not all outstanding Registrable Securities are
registered for resale pursuant thereto, then the Company shall prepare and file as soon as
practicable an additional Registration Statement (except those excluded from the Registration
Statement due solely to the SEC Restrictions) to register the resale of all such unregistered
Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415.

               (b) The Company shall not be obligated to effect, or to take any action to effect, any
such registration pursuant to this Section 1.2:

                    (i) After the Company has initiated two such registrations pursuant to Section
1.2(a) and such registrations have been declared or ordered effective and the Investor are able
to register and sell a majority of the Registrable Securities requested to be included in such
registration; and

                    (ii) Within twelve (12) months after the effective date of the first registration made
pursuant to this Section 1.2(a).

               (c) Underwriting. If the Investor intends to distribute the Registrable
Securities by means of an underwriting, she shall so advise the Company as part of her request made
pursuant to Section 1.2(a). The underwriter will be selected by the Company and shall be
reasonably acceptable to the Investor. Unless otherwise agreed by such underwriters and the
Investor, no person may participate in any registration under this Agreement that is underwritten
unless such person (i) agrees to sell such person’s securities on the basis provided in the
proposed underwriting arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements, and other documents required under the terms of
such underwriting arrangements; provided that the Investor shall not be required to make
any representations or warranties to the Company or the underwriters other than representations and
warranties regarding Investor and her intended method of distribution. Notwithstanding any other
provision of this Section 1.2, if the representative of the underwriters advises in writing
that marketing factors require a limitation on the number of shares to be underwritten, the Company
shall so advise the Investor and the number of shares of Registrable Securities that may be
included in the underwriting shall reduced.

               (d) Notwithstanding anything to the contrary contained in this Section 1.2, if the Company
receives Commission Comments, and following discussions with and responses to the Commission in
which the Company uses its reasonable best efforts and time to cause as many Registrable Securities
as possible to be included in the Registration Statement filed pursuant to Section 2(a) without
characterizing the Investor as an underwriter (and in such regard uses its reasonable best efforts
to cause the Commission to permit the Investor or their respective counsel to participate in
Commission conversations on such issue together with counsel to the Company, and timely conveys
relevant information concerning such issue with the Investor or her counsel), the Company is unable
to cause the inclusion of all Registrable Securities, then the Company may, following not less than
three (3) Trading Days prior written notice to the Investor (i) remove from the Registration
Statement such Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such
restrictions and limitations on the registration and resale of the Registrable Securities, in each
case as the Commission may require in order for the Commission to allow such Registration Statement
to become effective; provided, that in no event may the Company name the Investor as an underwriter
without Investor’s prior written consent (collectively, the “SEC Restrictions”). Unless the SEC
Restrictions otherwise require, any cut-back imposed pursuant to this Section 1.2 shall be
allocated among the Registrable Securities of the Investor as determined by the Investor. No
liquidated damages under Section 1.2 shall accrue on or as to any Cut Back Shares, and the
required effective date for such Registration Statement as set forth in Section 1.5(e) will be
tolled, until such time as the Company is able to effect the registration of the Cut Back Shares in
accordance with any

3

 

SEC Restrictions (such date, the “Restriction Termination Date”). From and
after the Restriction Termination Date, all provisions of this Section 1.2 (including, without
limitation, the liquidated damages provisions, subject to tolling as provided above) shall again be
applicable to the Cut Back Shares (which, for avoidance of doubt, retain their character as
“Registrable Securities”) so that the Company will be required to file with and cause to be
declared effective by the Commission such additional Registration Statements in the time frames set
forth herein as necessary to ultimately cause to be covered by effective Registration Statements
all Registrable Securities (if such Registrable Securities cannot at such time be resold by the
Investor thereof without volume limitations pursuant to Rule 144).

               (e) If: (i) a Registration Statement is not filed on or prior to the date set forth in
Section 1.2(a), or (ii) a Registration Statement is not declared effective by the Commission on or
prior to the one hundred twenty (120) days after filing, or (iii) except for Allowable Blackout
Periods, after its Effective Date, without regard for the reason thereunder or efforts therefor,
such Registration Statement ceases for any reason to be effective and available to the Investor as
to all Registrable Securities to which it is required to cover at any time prior to the expiration
of its Effectiveness Period for more than an aggregate of 30 Trading Days (which need not be
consecutive) (any such failure or breach being referred to as an “Event,” and for purposes of
clauses (i) or (ii) the date on which such Event occurs, or for purposes of clause (iii) the date
which such 30 Trading Day-period is exceeded, being referred to as “Event Date”), then in addition
to any other rights the Investor may have hereunder or under applicable law, on each such Event
Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not
have been cured by such date) until the applicable Event is cured, the Company shall pay to the
Investor an amount in cash, as partial liquidated damages and not as a penalty regarding those
shares of the Diana Francis Stock not so registered, equal to 1.0% of the average Fair Market Value
for fifteen (15) business days prior to the first date of such Event Date; provided that the
maximum aggregate liquidated damages payable to the Investor under this Agreement shall be five
percent (5%) of the aggregate value as of the Event Date. The partial liquidated damages pursuant
to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the
cure of an Event (except in the case of the first Event Date), and shall cease to accrue (unless
earlier cured) upon the expiration of the Effectiveness Period.

               (f) The Investor agrees to furnish to the Company a completed Questionnaire in the form
attached to this Agreement as Annex C (a “Selling Holder Questionnaire”). The Company shall not be
required to include the Registrable Securities of the Investor in a Registration Statement and
shall not be required to pay any liquidated or other damages under Section 1.2(e) to the Investor
if she fails to furnish to the Company a fully completed Selling Holder Questionnaire at least two
Trading Days prior to the filing date set forth in Section 1.2(a).

          1.3 Piggyback Registrations. If the Company proposes to register any of its securities under
the Securities Act (other than pursuant to a registration of a Rule 145 transaction or solely in
connection with an employee benefit or stock ownership plan) and the registration form to be used
may be used for the registration of the sale by the Investor of the Registrable Securities (a
"Piggyback Registration”), the Company shall give prompt written notice to the Investor of its
intention to effect such a registration (each, a “Piggyback Notice”). Subject to Sections
1.4(a) and 1.4(b) below, the Company shall include in such registration all shares of
Registrable Securities that Investor requests the Company to include in such registration by
written notice given to the Company within thirty (30) days after the date of sending of the
Piggyback Notice. If the managing underwriters advise the Company in writing that in their opinion
marketing factors require a limitation of the number of securities to be included in such
registration, the Company shall include in such registration (a) first, the securities proposed to
be sold by the Company, (b) second, any securities as to which the holders thereof have prior
registration rights granted in connection with the Summer 2010
Convertible Debenture Offering or the Series A Preferred Stock Private Placement, (c) third, the
Registrable Securities requested to be included in such registration, pro rata among the Investor,
and (c) forth, any other securities requested to be included in such registration.

4

 

          1.4 Registration Procedures. Whenever required to effect the registration of any Registrable
Securities under this Agreement, the Company shall, as expeditiously as possible:

               (a) Prepare and file with the SEC a registration statement with respect to such
Registrable Securities and use its commercially reasonable efforts to cause such registration
statement to become effective; provided, that before filing a registration statement or
prospectus or any amendments or supplements to a registration statement or prospectus, the Company
shall furnish to counsel selected by the Investor of a majority of the Registrable Securities
covered by such registration statement copies of all such documents proposed to be filed, which
documents shall be subject to the review of such counsel.

               (b) Prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such registration statement and, upon the request of the Investor of a
majority of the Registrable Securities registered under such registration statement, to keep such
registration statement effective for a period of up to ninety (90) days or any lesser period of
time in the event the distribution described in the registration statement has been completed;
provided, however, that in the case of any registration statement on Form S-3 which relates
to Registrable Securities that are intended to be offered on a continuous or delayed basis, such
ninety (90) day period shall be extended, if necessary, to keep the registration statement
effective until such Registrable Securities are sold, provided, that Rule 415, or any
successor rule under the Securities Act, permits an offering on a continuous or delayed basis, and
provided further, that applicable rules under the Securities Act governing the obligation
to file a post-effective amendment permit, in lieu of filing a post-effective amendment which (i)
includes any prospectus required by Section 10(a)(3) of the Securities Act or (ii) reflects
facts or events representing a material or fundamental change in the information included in the
registration statement, the incorporation by reference into the registration statement of the
information required to be included in (i) or (ii) above to be contained in periodic reports filed
pursuant to Section 13 or 15(d) of the Exchange Act.

               (c) Furnish to the Investor such number of copies of a prospectus, including a preliminary
prospectus, and each amendment and supplement to any such prospectus, in conformity with the
requirements of the Securities Act, and such other documents as they may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by them that are included
in such registration.

               (d) Register and qualify the securities covered by such registration statement under such
other securities or blue sky laws of such jurisdictions as shall be reasonably requested by the
Investor; provided, that the Company shall not be required in connection with such
registration and qualification or as a condition to such registration and qualification (i) to
qualify to do business or to file a general consent to service of process in any such states or
jurisdictions or (ii) to subject itself to taxation in any jurisdiction.

               (e) In the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form, with the managing
underwriter(s) of such offering.

               (f) Notify the Investor, at any time when a prospectus relating to such registration
statement is required to be delivered under the Securities Act, of the happening of any event as a
result of which the prospectus included in such registration statement, as then in effect, includes
an

5

 

untrue statement of a material fact or omits to state a material fact required to be stated in
such prospectus or necessary to make the statements in such prospectus not misleading in the light
of the circumstances then existing.

               (g) Furnish, at the request of the Investor, on the date that such Registrable Securities
are delivered to the underwriters for sale, if such securities are being sold through underwriters,
or, if such securities are not being sold through underwriters, on the date that the registration
statement with respect to such securities becomes effective, (1) a copy of the opinion, if any, of
the counsel representing the Company for the purposes of such registration that has been delivered
to the underwriters in an underwritten public offering; provided, that such counsel shall
permit the Investor to rely on such opinion, and (2) the “comfort” letter, if any, dated as of such
date, from the independent certified public accountants of the Company, which must also be
addressed to the Investor.

               (h) Cause all such Registrable Securities registered pursuant to such registration
statement to be listed on each securities exchange on which similar securities issued by the
Company are then listed.

               (i) Provide a transfer agent and registrar for all Registrable Securities registered
pursuant to such registration statement and a CUSIP number for all such Registrable Securities, in
each case not later than the effective date of such registration.

               (j) Make available for inspection by any underwriter participating in any disposition
pursuant to such registration statement and any attorney, accountant, or other agent retained by
any such underwriter, all financial and other records, pertinent corporate documents, and
properties of the Company, and cause the Company’s officers, directors, employees, and independent
accountants to supply all information reasonably requested by any such underwriter, attorney,
accountant, or agent in connection with such registration statement.

               (k) Permit the Investor of Registrable Securities that might be deemed, in the sole and
exclusive judgment of the Investor, to be an underwriter or a controlling person of the Company, to
participate in the preparation of such registration or comparable statement and to require the
insertion in such registration or comparable statement of material, furnished to the Company in
writing, that in the reasonable judgment of the Investor and his, her, or its counsel should be
included.

               (l) In the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any related prospectus
or suspending the qualification of any Registrable Securities included in such registration
statement for sale in any jurisdiction, the Company shall use its best efforts promptly to obtain
the withdrawal of such order.

          1.5 Expenses of Registration. All Registration Expenses incurred in connection with any
registration, qualification, or compliance pursuant to Sections 1.2, 1.3, and
1.4 of this Agreement and the reasonable fees and disbursements of one counsel for the
selling Investor shall be borne by the Company; provided, however, that the Company shall
not be required to pay for any expenses of any registration proceeding begun pursuant to
Section 1.2 if the registration request is subsequently withdrawn at the request of the
Investor of at least a majority of the Registrable Securities to be registered (in which case all
participating Investor shall bear their pro rata portion of such expenses), unless the Investor of
at least a majority of the Registrable Securities agree to forfeit their right to one registration
pursuant to Section 1.2 herein; provided further, however, that if at
the time of such withdrawal, the Investor have learned of material adverse information regarding
the condition, business, or prospects of the Company from that known to the Investor at the time of
their request, then the Investor shall not be required to pay any of such expenses and shall not
forfeit their right to one registration

6

 

pursuant to Section 1.2. All underwriting
discounts, selling commissions, and stock transfer taxes relating to securities so registered shall
be borne by the Investor of such securities pro rata on the basis of the number of shares of
securities so registered on their behalf, as shall any other expenses in connection with the
registration required to be borne by the Investor of such securities.

          1.6 Furnish Information. It shall be a condition precedent to the obligations of the Company
to take any action (other than the giving of notice) pursuant to Sections 1.2, 1.3,
or 1.4 that the selling Investor shall furnish to the Company such information regarding
themselves, the Registrable Securities held by them, and the intended method of disposition of such
securities as shall be required to effect the timely registration of their Registrable Securities.

          1.7 Delay of Registration. The Investor shall not have any right to obtain or seek an
injunction restraining or otherwise delaying any such registration as the result of any controversy
that might arise with respect to the interpretation or implementation of this Section 1.

          1.8 Indemnification. If any Registrable Securities are included in a registration statement
under Sections 1.2, 1.3, or 1.4:

               (a) By the Company. To the extent permitted by law, the Company shall indemnify
and hold harmless the Investor, the partners, officers, and directors of the Investor, any
underwriter (as defined in the Securities Act) for the Investor, and each person, if any, who
controls the Investor or underwriter within the meaning of the Securities Act or the Exchange Act,
against any losses, claims, damages, or liabilities (joint or several) to which they may become
subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such
losses, claims, damages, or liabilities (or actions in respect of such losses, claims, damages, or
liabilities) arise out of or are based upon any of the following statements, omissions, or
violations (collectively, “Violations” and, individually, a “Violation”):

                    (i) any untrue statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary prospectus or final prospectus contained in such
registration statement or any amendments or supplements to such registration statement;

                    (ii) the omission or alleged omission to state in any such registration statement a
material fact required to be stated in such registration statement or necessary to make the
statements in such registration statement not misleading; or

                    (iii) any violation or alleged violation by the Company of the Securities Act, the
Exchange Act, any federal or state securities law, or any rule or regulation promulgated under the
Securities Act, the Exchange Act, or any federal or state securities law in connection with the
offering covered by such registration statement;

                    (iv) and the Company shall reimburse each the Investor, partner, officer, director,
underwriter, or controlling person for any legal or other expenses reasonably incurred by them, as
incurred, in connection with investigating or defending any such loss, claim, damage, liability, or
action; provided, that the indemnity agreement contained in this Section 1.8(a)
shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action
if such settlement is effected
without the consent of the Company (which consent shall not be unreasonably withheld), nor
shall the Company be liable in any such case for any such loss, claim, damage, liability, or action
to the extent (and only to the extent) that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished expressly for use in
connection with such registration by the Investor, partner, officer, director, underwriter, or
controlling person of the Investor.

7

 

               (b) By Selling Investor. To the extent permitted by law, the Investor shall
indemnify and hold harmless the Company, each of its directors, each of its officers who have
signed the registration statement, each person, if any, who controls the Company within the meaning
of the Securities Act, and any underwriter, against any losses, claims, damages, or liabilities
(joint or several) to which the Company or any such director, officer, controlling person, or
underwriter, who may become subject under the Securities Act, the Exchange Act, or other federal or
state law, insofar as such losses, claims, damages, or liabilities (or actions in respect to such
losses, claims, damages, or liabilities) arise out of or are based upon any Violation, in each case
to the extent (and only to the extent) that such Violation occurs in reliance upon and in
conformity with written information furnished by the Investor expressly for use in connection with
such registration; and each the Investor shall reimburse any legal or other expenses reasonably
incurred, as incurred, by the Company or any such director, officer, controlling person, or
underwriter, in connection with investigating or defending any such loss, claim, damage, liability,
or action; provided, that the indemnity agreement contained in this Section 1.8(b)
shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action
if such settlement is effected without the consent of the Investor, which consent shall not be
unreasonably withheld, nor shall the total amounts payable in indemnity by the Investor under this
Section 1.8(b) in respect of any Violation exceed the net proceeds received by the Investor
in the registered offering out of which such Violation arises.

               (c) Notice. Promptly after receipt by an indemnified party under this Section
1.8 of notice of the commencement of any action (including any governmental action), such
indemnified party shall, if a claim in respect of such action is to be made against any
indemnifying party under this Section 1.8, deliver to the indemnifying party a written
notice of the commencement of such action and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense of such action with counsel mutually
satisfactory to the parties; provided, that an indemnified party shall have the right to
retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential conflict of interests between such indemnified party and
any other party represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of any such action,
if prejudicial to the indemnifying party’s ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section 1.8, but
the omission so to deliver written notice to the indemnifying party shall not relieve the
indemnifying party of any liability that it may have to any indemnified party otherwise than under
this Section 1.8.

               (d) Contribution. In order to provide for just and equitable contribution to
joint liability under the Securities Act in any case in which either (1) the Investor exercising
rights under this Agreement, or any controlling person of any the Investor, makes a claim for
indemnification pursuant to this Section 1.8 but it is judicially determined (by the entry
of a final judgment or decree by a court of competent jurisdiction and the expiration of time to
appeal or the denial of the last right of appeal) that such indemnification may not be enforced in
such case notwithstanding the fact that this Section 1.8 provides for indemnification in
such case or (2) contribution under the Securities Act may be required on the part of the Investor
or any such controlling person in circumstances for which indemnification is provided under this
Section 1.8, then, and in each such case, the Company and the Investor shall contribute to
the aggregate losses, claims, damages, or liabilities to which they may be subject (after
contribution from others) in such proportion so that the Investor is responsible for the
portion represented by the percentage that the public offering price of its Registrable Securities
offered by and sold under the registration statement bears to the public offering price of all
securities offered by and sold under such registration statement, and the Company and other selling
Investor are responsible for the remaining portion; provided, that, in any such case, no
person or entity guilty of fraudulent misrepresentation

8

 

(within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person or entity who was not guilty of
such fraudulent misrepresentation.

               (e) Conflicts. Notwithstanding the foregoing, to the extent that the provisions
on indemnification and contribution contained in an underwriting agreement entered into by the
Company and the Investor in connection with underwritten public offering are in conflict with the
foregoing provisions, the provisions of the underwriting agreement shall control.

               (f) Survival. The obligations of the Company and Investor under this Section
1.9 shall survive the completion of any offering of Registrable Securities in a registration
statement and shall survive the termination of this Agreement.

          1.9 Rule 144 Reporting. With a view to making available the benefits of certain rules and
regulations of the SEC that may at any time permit the sale of the Registrable Securities to the
public without registration, after such time as the Company shall have consummated an initial
underwritten public offering of Common Stock, the Company agrees to:

               (a) Make and keep public information available, as those terms are understood and defined
in Rule 144 under the Securities Act, at all times after the effective date of the first
registration under the Securities Act filed by the Company for an offering of its securities to the
general public; and

               (b) Use reasonable, diligent efforts to file with the SEC in a timely manner all reports
and other documents required of the Company under the Securities Act and the Exchange Act (at any
time after it has become subject to such reporting requirements).

     Section 2. ASSIGNMENT AND AMENDMENT.

          2.1 Lack of Transferability of Registration Rights . Notwithstanding anything in this
Agreement to the contrary, the registration rights of the Investor under Section 1 of this
Agreement may not be assigned or transferred, except by will or pursuant to the laws of descent and
distribution.

          2.2 Amendment of Rights. Any provision of this Agreement may be amended and the observance of
such provision may be waived (either generally or in a particular instance and either retroactively
or prospectively) only with the written consent of the Company and the Investor (and/or any of
their permitted successors or assigns). Any amendment or waiver effected in accordance with this
Section 2.2 shall be binding upon the Investor, each permitted successor or assignee of the
Investor and the Company.

     Section 3. GENERAL PROVISIONS.

          3.1 Successors and Assigns. Except as otherwise provided in this Agreement, the provisions of this Agreement shall inure to
the benefit of and be binding upon the respective successors and permitted assigns of the parties
to this Agreement.

          3.2 Third Parties. Nothing in this Agreement, express or implied, is intended to confer upon
any person, other than the parties to this Agreement and their respective successors and assigns,
any rights, remedies, obligations, or liabilities under or by reason of this Agreement except as
expressly provided in this Agreement.

          3.3 Governing Law. This Agreement shall be governed by and construed exclusively in accordance
with the internal laws of the State of Texas as applied to agreements among Texas residents entered
into and to be performed entirely within Texas, excluding that body of law relating to conflict of
laws.

9

 

          3.4 Venue. Each party hereby irrevocably submits to the exclusive jurisdiction of the state
and federal courts serving Dallas County, Texas, for the purposes of any action arising out of this
Agreement, or the subject matter hereof. To the extent permitted by applicable law, each party
hereby waives and agrees not to assert, by way of motion, as a defense or otherwise, in any such
action (a) that such party is not personally subject to the jurisdiction of the above-named courts,
(b) that the action is brought in an inconvenient forum, (c) that it is immune from any legal
process with respect to itself or its property, (d) that the venue of the suit, action or
proceeding is improper, or (e) that this Agreement, or the subject matter hereof, may not be
enforced in or by such courts.

          3.5 Counterparts. This Agreement may be executed in two or more counterparts (including,
without limitation, facsimile counterparts), each of which shall be deemed an original, but all of
which together shall constitute one and the same agreement.

          3.6 Headings. The headings and captions used in this Agreement are used for convenience only
and are not to be considered in construing or interpreting this Agreement. All references in this
Agreement to sections, paragraphs, exhibits, and schedules shall, unless otherwise provided, refer
to sections and paragraphs of this Agreement and exhibits and schedules attached to this Agreement,
all of which exhibits and schedules are incorporated in this Agreement by this reference.

          3.7 Notices. All notices, requests, consents, and other communications under this Agreement
shall be in writing and shall be delivered personally or by facsimile transmission or by nationally
recognized overnight delivery service or by first class certified or registered mail, return
receipt requested, postage prepaid:

     If to the Company, at 12222 Merit Drive, Suite 1850, Dallas, Texas 75251, 972-770-4701 (fax),
Attention: Kenneth Kase Conte, or at such other address or addresses as may have been furnished by
giving three (3) days advance written notice to all other parties, with a copy (which shall not
constitute notice) to Strasburger & Price, LLP, 901 Main Street, Suite 4400, Dallas, Texas 75202,
214-659-4025 (fax), Attention: Kevin Woltjen.

     If to an Investor, at its address set forth on Exhibit A, or at such other address or
addresses as may have been furnished to the Company by giving three (3) days advance written
notice, with a copy (which shall not constitute notice) to Hunter, Hunter & Sonnier LLC, 1807 Lake
Street, Lake Charles, La 70601, 337-439-2505 (fax), Attention: Shayna L. Sonnier.

     Notices provided in accordance with this Section 3.7 shall be deemed delivered upon
personal delivery or three (3) business days after deposit in the mail.

          3.8 Costs And Attorney Fees. If any action, suit, or other proceeding is instituted concerning
or arising out of this Agreement or any transaction contemplated under this Agreement, the
prevailing party shall recover all of such party’s costs and attorney fees incurred in each such
action, suit, or other proceeding, including any and all appeals or petitions from any such action,
suit, or other proceeding.

          3.9 Severability. If one or more provisions of this Agreement are held to be unenforceable
under applicable law, then such provision(s) shall be excluded from this Agreement and the balance
of this Agreement shall be interpreted as if such provision(s) were so excluded and shall be
enforceable in accordance with its terms.

10

 

          3.10 Entire Agreement. This Agreement, together with all exhibits and schedules to this
Agreement, constitutes the entire agreement and understanding of the parties with respect to the
subject matter of this Agreement and supersedes any and all prior negotiations, correspondence,
agreements, understandings, duties, or obligations between the parties with respect to the subject
matter of this Agreement.

          3.11 Further Assurances. From and after the date of this Agreement, upon the request of the
Investor or the Company, the Company and the Investor shall execute and deliver such instruments,
documents, or other writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.

          3.12 Adjustments for Stock Splits, Etc. Wherever in this Agreement there is a reference to a
specific number of shares of Common Stock, or a price per share of such stock, then, upon the
occurrence of any subdivision, combination, or stock dividend of such class or series of stock, the
specific number of shares or the price so referenced in this Agreement shall automatically be
proportionally adjusted to reflect the affect on the outstanding shares of such class or series of
stock by such subdivision, combination, or stock dividend.

          3.13 Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing
to the Investor, upon any breach or default of the Company under this Agreement shall impair any
such right, power, or remedy of the Investor nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence in any such breach or default, or of or in any similar breach
or default occurring after such breach or default; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default occurring before or after such breach or
default. Any waiver, permit, consent, or approval of any kind or character on the part of the
Investor of any breach or default under this Agreement or any waiver on the part of the Investor of
any provisions or conditions of this Agreement must be made in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under this Agreement or
by law or otherwise afforded to the Investor, shall be cumulative and not alternative.

[Signature Pages Follow]

11

 

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

	 	 	 	 	 
	 	COMPANY:

NYTEX Energy Holdings, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INVESTOR:

Diana Istre Francis

 	 
	 	 	 

Signature Page to Registration Rights Agreement

 

 

EXHIBIT A

List of Investors

	 	 	 	 	 
	Name and Address	 	Number of Shares of 

Common Stock Held
	Diana Istre Francis

	 	 	2,058,125	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]