Document:

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EXHIBIT 4.1

REGISTRATION RIGHTS AGREEMENT

by and among

CROSSTEX ENERGY, INC.

and

THE PURCHASERS PARTY HERETO

 

Table of Contents

	 	 	 	 	 
	 	 	 	Page	 

ARTICLE I

DEFINITIONS

	 	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	Section 1.2 Registrable Securities
	 	 	3	 

ARTICLE II

REGISTRATION RIGHTS

	 	 	 	 	 
	Section 2.1 Shelf Registration
	 	 	3	 
	Section 2.2 Piggyback Registration
	 	 	5	 
	Section 2.3 Underwritten Offering
	 	 	6	 
	Section 2.4 Sale Procedures
	 	 	7	 
	Section 2.5 Cooperation by Holders
	 	 	9	 
	Section 2.6 Restrictions on Public Sale by Holders of Registrable Securities
	 	 	10	 
	Section 2.7 Expenses
	 	 	10	 
	Section 2.8 Indemnification
	 	 	10	 
	Section 2.9 Rule 144 Reporting
	 	 	13	 
	Section 2.10 Transfer or Assignment of Registration Rights
	 	 	13	 
	Section 2.11 Limitation on Subsequent Registration Rights
	 	 	13	 
	Section 2.12 Aggregation of Registrable Securities
	 	 	13	 

ARTICLE III

MISCELLANEOUS

	 	 	 	 	 
	Section 3.1 Communications
	 	 	14	 
	Section 3.2 Successor and Assigns
	 	 	16	 
	Section 3.3 Assignment of Rights
	 	 	16	 
	Section 3.4 Recapitalization, Exchanges, etc. Affecting the Common Stock
	 	 	16	 
	Section 3.5 Specific Performance
	 	 	17	 
	Section 3.6 Counterparts
	 	 	17	 
	Section 3.7 Headings
	 	 	17	 
	Section 3.8 Governing Law
	 	 	17	 
	Section 3.9 Severability of Provisions
	 	 	17	 
	Section 3.10 Entire Agreement
	 	 	17	 
	Section 3.11 Amendment
	 	 	17	 
	Section 3.12 No Presumption
	 	 	17	 

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
June 29, 2006 by and among CROSSTEX ENERGY, INC., a Delaware corporation (“Crosstex”), and
each of the parties set forth on Schedule A hereto (the “Purchasers”).

     WHEREAS, this Agreement is made in connection with the Closing of the issuance and sale of the
Purchased Shares pursuant to the Stock Purchase Agreement, dated as of May 16, 2006, by and between
Crosstex and the Purchasers (the “Purchase Agreement”);

     WHEREAS, Crosstex has agreed to provide the registration and other rights set forth in this
Agreement for the benefit of the Purchasers pursuant to the Purchase Agreement; and

     WHEREAS, it is a condition to the obligations of the Purchasers and Crosstex under the
Purchase Agreement that this Agreement be executed and delivered.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by
each party hereto, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. The terms set forth below are used herein as so defined:

          “Affiliate” means, with respect to a specified Person, any other Person, directly or
indirectly controlling, controlled by or under direct or indirect common control with such
specified Person and, for the purposes of this definition, any registered investment advisor,
together with its clients for whom it exercises investment discretion and acts as agent and
attorney-in-fact shall be considered Affiliates. For purposes of this definition, “control”
(including, with correlative meanings, “controlling,” “controlled by,” and “under common control
with”) means the power to direct or cause the direction of the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise.

          “Anniversary Date” shall have the meaning set forth in the Purchase Agreement.

          “Business Day” means any day other than a Saturday, Sunday, any federal legal holiday
or day on which banking institutions in the State of New York or State of Texas are authorized or
required by law or other governmental action to close.

          “Closing” shall have the meaning set forth in the Purchase Agreement.

          “Closing Date” shall have the meaning set forth in the Purchase Agreement.

          “Commission” means the United States Securities and Exchange Commission.

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          “Common Stock” shall have the meaning set forth in the Purchase Agreement.

          “Crosstex” has the meaning specified therefor in the introductory paragraph of this
Agreement.

          “Effectiveness Period” has the meaning specified therefor in Section 2.1(a) of
this Agreement.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder.

          “Holder” means the record holder of any Registrable Securities.

          “Included Registrable Securities” has the meaning specified therefor in Section
2.2(a) of this Agreement.

          “Losses” has the meaning specified therefor in Section 2.8(a) of this
Agreement.

          “Managing Underwriter” means, with respect to any Underwritten Offering, the book
running lead manager of such Underwritten Offering.

          “Non-Disclosure Agreements” means collectively (i) the Letter Agreement, dated April
27, 2006, by and between Kayne Anderson MLP Investment Company and Crosstex Partners, (ii) the
Letter Agreement, dated May 3, 2006, by and between Tortoise Capital Advisors LLC, and Crosstex
Partners, (iii) the Letter Agreement, dated April 27, 2006, by and between LB I Group Inc. and
Crosstex Partners, and (iv) the Letter Agreement, dated May 4, 2006, by and between Fiduciary Asset
Management, LLC and Crosstex Partners.

          “Other Holder” has the meaning specified in Section 2.2(b).

          “Person” means any individual, corporation, company, voluntary association,
partnership, joint venture, trust, limited liability company, unincorporated organization,
government or any agency, instrumentality or political subdivision thereof, or any other form of
entity.

          “Piggyback Registration” has the meaning specified therefor in Section 2.2(a)
of this Agreement.

          “Purchase Agreement” has the meaning specified therefor in the Recitals of this
Agreement.

          “Purchased Shares” shall have the meaning set forth in the Purchase Agreement.

          “Purchasers” has the meaning specified therefor in the introductory paragraph of this
Agreement.

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          “Registrable Securities” means the Purchased Shares, all of which are subject to the
rights provided herein until such rights terminate pursuant to the provisions of this Agreement.

          “Registration Expenses” has the meaning specified therefor in Section 2.7(a)
of this Agreement.

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

          “Selling Expenses” has the meaning specified therefor in Section 2.7(a) of
this Agreement.

          “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

          “Shelf Registration Statement” means a registration statement under the Securities Act
to permit the resale of the Registrable Securities from time to time as permitted by Rule 415 of
the Securities Act (or any similar provision then in force under the Securities Act).

          “Underwritten Offering” means an offering (including an offering pursuant to a Shelf
Registration Statement) in which Common Stock is sold to an underwriter on a firm commitment basis
for reoffering to the public or an offering that is a “bought deal” with one or more investment
banks.

     Section 1.2 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security when (a) a registration statement covering such Registrable Security has been
declared effective by the Commission and such Registrable Security has been sold or disposed of
pursuant to such effective registration statement; (b) such Registrable Security has been disposed
of pursuant to any Section of Rule 144 (or any similar provision then in force under the Securities
Act); (c) such Registrable Security is held by Crosstex or one of its subsidiaries; (d) such
Registrable Security has been sold in a private transaction in which the transferor’s rights under
this Agreement are not assigned to the transferee of such securities or (e) two years from the date
hereof; provided, however, no Registrable Security shall cease to be a Registrable
Security pursuant to this Section 1.2(e) for the purposes of a Piggyback Registration or a
registration pursuant to Section 2.3 hereof prior to five years from the date hereof with
respect to any Purchaser who holds 8% or more of the shares of Common Stock outstanding at such
time.

ARTICLE II

REGISTRATION RIGHTS

     Section 2.1 Shelf Registration.

          (a) Shelf Registration. As soon as practicable following the Closing of the
acquisition of the Purchased Shares pursuant to the terms of the Purchase Agreement, but in any
event within 30 days of the Closing, Crosstex shall prepare and file a Shelf Registration Statement
covering the Registrable Securities. Crosstex shall use its commercially reasonable

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efforts to
cause the Shelf Registration Statement to become effective no later than 90 days after the date of
the Closing. A Shelf Registration Statement filed pursuant to this Section 2.1(a) shall be
on such appropriate registration form of the Commission as shall be selected by Crosstex; provided,
however, that if a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from the Shelf Registration Statement and the Managing Underwriter at any
time shall notify Crosstex in writing that, in the sole judgment of such Managing Underwriter,
inclusion of detailed information to be used in such prospectus supplement is of material
importance to the success of the Underwritten Offering of such Registrable Securities, Crosstex
shall include such information in the prospectus unless it has determined, upon advice of counsel,
that such information would violate the rules and regulations of the Commission or would cause such
prospectus supplement to contain an untrue statement of a material fact or to omit to state a
material fact required to be stated therein or necessary in order to make the statements therein
not misleading. Crosstex will use its commercially reasonable efforts to cause the Shelf
Registration Statement filed pursuant to this Section 2.1(a) to be continuously effective
under the Securities Act until the earlier of (i) all Registrable Securities covered by the Shelf
Registration Statement have been distributed in the manner set forth and as contemplated in the
Shelf Registration Statement, (ii) there are no longer any Registrable Securities outstanding or
(iii) two years from the Closing (the “Effectiveness Period”). The Shelf Registration
Statement when declared effective (including the documents incorporated therein by reference) will
comply as to form in all material respects with all applicable requirements of the Securities Act
and the Exchange Act and will not contain 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. If the Shelf Registration Statement is not declared effective within 120 days after
Closing, then the Purchasers shall be entitled to a payment (with respect to each of such
Purchaser’s Purchased Shares), as liquidated damages and not as a penalty, of 0.25% of the Purchase
Price per 30-day period for the first sixty (60) days following the 120th day after Closing, with
such payment amount increasing by an additional 0.25% of the Purchase Price per 30-day period for
each subsequent 60 days, up to a maximum of 1.00% of the Purchase Price per 30-day period (the
“Liquidated Damages”), until such time as the Shelf Registration Statement is declared
effective or there are no longer any Registrable Securities outstanding. The Liquidated Damages
shall accrue on a daily basis and be paid to each Purchaser in cash within ten (10) Business Days
of the end of such 30-day period. The Purchasers’ rights (and any transferee’s rights pursuant to
Section 2.10) under this Section 2.1 shall terminate when such Registrable Securities become
eligible for resale under Rule 144(k) (or any similar provision then in force under the Securities
Act).

          (b) Delay Rights. Notwithstanding anything to the contrary contained herein, Crosstex
may, upon written notice to any Selling Holder whose Registrable Securities are included in the
Shelf Registration Statement, suspend such Selling Holder’s use of any prospectus which is a part
of the Shelf Registration Statement (in which event the Selling Holder shall discontinue sales of
the Registrable Securities pursuant to the Shelf Registration Statement) if (i) Crosstex is
pursuing an acquisition, merger, reorganization, disposition or other similar transaction and
Crosstex determines in good faith that Crosstex’s ability to pursue or consummate such a
transaction would be materially and adversely affected by any required disclosure of such
transaction in the Shelf Registration Statement or (ii) Crosstex has experienced some other
material non-public event the disclosure of which at such time, in the good faith judgment of
Crosstex, would materially and adversely affect Crosstex; however, in no

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event shall any delay
pursuant hereto exceed sixty (60) days in any one hundred-eighty (180) day period or ninety (90)
days in any twelve-month period. Upon disclosure of such information or the termination of the
condition described above, Crosstex shall provide prompt notice to the Selling Holders whose
Registrable Securities are included in the Shelf Registration Statement, and shall promptly
terminate any suspension of sales it has put into effect and shall take such other actions to
permit registered sales of Registrable Securities as contemplated in this Agreement.

     Section 2.2 Piggyback Registration.

          (a) Participation. Commencing on the later of the Anniversary Date or the Effective
Date of the Registration Statement, if Crosstex at any time proposes to file a prospectus
supplement to an effective Shelf Registration Statement with respect to an Underwritten Offering of
Common Stock for its own account or to register any Common Stock for its own account for sale to
the public in an Underwritten Offering or otherwise file any registration statement with the
Commission relating to any Underwritten Offering of Common Stock other than (x) a registration
statement on Form S-8 (or any successor form) relating solely to employee benefit plans or (y) a
registration statement on Form S-4 (or any successor form) relating solely to a Rule 145
transaction, then, as soon as practicable following the engagement of counsel to Crosstex to
prepare the documents to be used in connection with an Underwritten Offering, Crosstex shall give
notice of such proposed Underwritten Offering to the Holders, and such notice shall offer the
Holders the opportunity to include in such Underwritten Offering such number of Registrable
Securities (the “Included Registrable Securities”) as each such Holder may request in
writing (a “Piggyback Registration”); provided, however, that Crosstex
shall not be required to offer such opportunity to Holders if the Holders do not offer a minimum of
$5,000,000 of Registrable Securities (determined by multiplying the number of Registrable
Securities owned by the average of the closing price on NASDAQ for Common Stock for the ten (10)
trading days preceding the date of such notice). The notice required to be provided in this
Section 2.2(a) to Holders shall be provided on a Business Day pursuant to Section
3.1 hereof and receipt of such notice shall be confirmed by Holder. Holder shall then have two
(2) Business Days to request inclusion of Registrable Securities in the Underwritten Offering. If
no request for inclusion from a Holder is received within the specified time, such Holder shall
have no further right to participate in such Piggyback Registration. If, at any time after giving
written notice of its intention to undertake an Underwritten Offering and prior to the closing of
such Underwritten Offering, Crosstex shall determine for any reason not to undertake or to delay
such Underwritten Offering, Crosstex may, at its election, give written notice of such
determination to the Selling Holders and, (x) in the case of a determination not to undertake such
Underwritten Offering, shall be relieved of its obligation to sell any Included Registrable
Securities in connection with such terminated Underwritten Offering, and (y) in the case of a
determination to delay such Underwritten Offering, shall be permitted to delay offering any
Included Registrable Securities for the same period as the delay in the Underwritten Offering. Any
Selling Holder shall have the right to withdraw such Selling Holder’s request for inclusion of such
Selling Holder’s Registrable Securities in such offering by giving written notice to Crosstex of
such withdrawal up to and including the time of pricing of such offering. No Holders shall be
entitled to participate in any such Underwritten Offering under this Section 2.2(a) unless such
Holder (together with any Affiliates that are Selling Holders) participating therein holds at least
fifteen million ($15,000,000) of Registrable Securities (determined by multiplying the number of

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Registrable Securities owned by the average of the closing price for Common Stock for the ten (10)
trading days preceding the date of such notice).

          (b) Priority of Piggyback Registration. If the Managing Underwriter or Underwriters
of any proposed Underwritten Offering of Common Stock included in a Piggyback Registration advises
Crosstex that the total amount of Common Stock which the Selling Holders and any other Persons
intend to include in such offering exceeds the number which can be sold in such offering without
being likely to have an adverse effect on the price, timing or distribution of the Common Stock
offered or the market for the Common Stock, then the Common Stock to be included in such
Underwritten Offering shall include the number of Registrable Securities that such Managing
Underwriter or Underwriters advises Crosstex can be sold without having such adverse effect, with
such number to be allocated pro rata among the Selling Holders and any other
Persons who have been or are granted registration rights on or after the date of this Agreement
(“Other Holders”) who have requested participation in the Piggyback Registration (based,
for each such Selling Holder or Other Holder, on the percentage derived by dividing (A) the number
of Registrable Securities proposed to be sold by such Selling Holder or such Other Holder in such
offering; by (B) the aggregate number of Common Stock proposed to be sold by all Selling Holders
and all Other Holders in the Piggyback Registration).

     Section 2.3 Underwritten Offering.

          (a) S-3 Registration. In the event that a Selling Holder (together with any
Affiliates that are Selling Holders) elects to dispose of Registrable Securities under the Shelf
Registration Statement pursuant to an Underwritten Offering of at least fifteen million
($15,000,000) of Registrable Securities, Crosstex shall, at the request of such Selling Holder,
enter into an underwriting agreement in customary form with the Managing Underwriter or
Underwriters, which shall include, among other provisions, indemnities to the effect and to the
extent provided in Section 2.8, and shall take all such other reasonable actions as are
requested by the Managing Underwriter in order to expedite or facilitate the disposition of the
Registrable Securities; provided, however, that Crosstex management will not be required to
participate in a roadshow or similar marketing effort.

          (b) General Procedures. In connection with any Underwritten Offering (i) under
Section 2.2 of this Agreement, Crosstex shall be entitled to select the Managing
Underwriter or Underwriters, and (ii) under Section 2.3 of this Agreement, the Selling
Holders shall be entitled to select the Managing Underwriter or Underwriters. In connection with
an Underwritten Offering under Section 2.2 or Section 2.3 hereof, each Selling
Holder and Crosstex shall enter into an underwriting agreement with the Managing Underwriter or
Underwriters which contains such representations, covenants, indemnities and other rights and
obligations as are customary in underwriting agreements for firm commitment offerings of equity
securities. No Selling Holder may participate in such Underwritten Offering unless such Selling
Holder agrees to sell its Registrable Securities on the basis provided in such underwriting
agreement and completes and executes all questionnaires, powers of attorney, indemnities and other
documents reasonably required under the terms of such underwriting agreement. Each Selling Holder
may, at its option, require that any or all of the representations and warranties by, and the other
agreements on the part of, Crosstex to and for the benefit of such underwriters also be made to and
for such Selling Holder’s benefit and that any or all of the conditions precedent to the

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obligations of such underwriters under such underwriting agreement also be conditions precedent to
its obligations. No Selling Holder shall be required to make any representations or warranties to
or agreements with Crosstex or the underwriters other than representations, warranties or
agreements regarding such Selling Holder and its ownership of the securities being registered on
its behalf and its intended method of distribution and any other representation required by law.
If any Selling Holder disapproves of the terms of an underwriting, such Selling Holder may elect to
withdraw therefrom by notice to Crosstex and the Managing Underwriter; provided,
however, that such withdrawal must be made prior to the pricing of such Underwritten
Offering hereof to be effective. No such withdrawal or abandonment shall affect Crosstex’s
obligation to pay Registration Expenses.

     Section 2.4 Sale Procedures. In connection with its obligations contained in Sections
2.1, 2.2 and 2.3, Crosstex will, as expeditiously as possible:

          (a) prepare and file with the Commission such amendments and supplements to the Shelf
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
the Shelf Registration Statement effective for the Effectiveness Period and as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition of all securities
covered by the Shelf Registration Statement;

          (b) furnish to each Selling Holder (i) as far in advance as reasonably practicable before
filing the Shelf Registration Statement or any other registration statement contemplated by this
Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete
drafts of all such documents proposed to be filed (including exhibits and each document
incorporated by reference therein to the extent then required by the rules and regulations of the
Commission), and provide each such Selling Holder the opportunity to object to any information
pertaining to such Selling Holder and its plan of distribution that is contained therein and make
the corrections reasonably requested by such Selling Holder with respect to such information prior
to filing the Shelf Registration Statement or such other registration statement and the prospectus
included therein or any supplement or amendment thereto, and (ii) such number of copies of the
Shelf Registration Statement or such other registration statement and the prospectus included
therein and any supplements and amendments thereto as such Persons may reasonably request in order
to facilitate the public sale or other disposition of the Registrable Securities covered by such
Shelf Registration Statement or other registration statement;

          (c) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Shelf Registration Statement or any other registration
statement contemplated by this Agreement under the securities or blue sky laws of such
jurisdictions as the Selling Holders or, in the case of an Underwritten Offering, the Managing
Underwriter, shall reasonably request, provided that Crosstex will not be required to qualify
generally to transact business in any jurisdiction where it is not then required to so qualify or
to take any action which would subject it to general service of process in any such jurisdiction
where it is not then so subject;

          (d) promptly notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i) the

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filing of the
Shelf Registration Statement or any other registration statement contemplated by this Agreement or
any prospectus included therein or any amendment or supplement thereto, and, with respect to such
Shelf Registration Statement or any other registration statement or any post-effective amendment
thereto, when the same has become effective; and (ii) any written comments from the Commission with
respect to any filing referred to in clause (i) and any written request by the Commission for
amendments or supplements to the Shelf Registration Statement or any other registration statement
or any prospectus or prospectus supplement thereto;

          (e) immediately notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i) the happening of any
event as a result of which the prospectus contained in the Shelf Registration Statement or any
other registration statement contemplated by this Agreement or any supplemental amendment thereto,
includes an untrue statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing; (ii) the issuance or threat of issuance by the Commission of any stop
order suspending the effectiveness of the Shelf Registration Statement or any other registration
statement contemplated by this Agreement, or the initiation of any proceedings for that purpose; or
(iii) the receipt by Crosstex of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the applicable securities or blue sky
laws of any jurisdiction. Following the provision of such notice, Crosstex agrees to as promptly
as practicable amend or supplement the prospectus or prospectus supplement or take other
appropriate action so that the prospectus or prospectus supplement does 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 the light of the circumstances then
existing and to take such other action as is necessary to remove a stop order, suspension, threat
thereof or proceedings related thereto;

          (f) upon request and subject to appropriate confidentiality obligations, furnish to each
Selling Holder copies of any and all transmittal letters or other correspondence with the
Commission or any other governmental agency or self-regulatory body or other body having
jurisdiction (including any domestic or foreign securities exchange) relating to such offering of
Registrable Securities;

          (g) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel
for Crosstex, dated the effective date of the applicable registration statement or the date of any
amendment or supplement thereto, preliminary or prospectus supplement, and a letter of like kind
dated the date of the closing under the underwriting agreement, and (ii) a “cold comfort” letter,
dated the effective date of the applicable registration statement or the date of any amendment or
supplement thereto, preliminary or prospectus supplement and a letter of like kind dated the date
of the closing under the underwriting agreement, in each case, signed by the independent public
accountants who have certified Crosstex’s financial statements included or incorporated by
reference into the applicable registration statement, and each of the opinion and the “cold
comfort” letter shall be in customary form and covering substantially the same matters with respect
to such registration statement (and the prospectus included therein any supplement thereto) and as
are customarily covered in opinions of issuer’s counsel and in

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accountants’ letters delivered to
the underwriters in Underwritten Offerings of securities, such other matters as such underwriters
may reasonably request;

          (h) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least 12 months, but not more than 18
months, beginning with the first full calendar month after the effective date of such registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 promulgated thereunder;

          (i) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Crosstex personnel as is reasonable and customary to enable
such parties to establish a due diligence defense under the Securities Act; provided that Crosstex
need not disclose any information to any such representative unless and until such representative
has entered into a confidentiality agreement with Crosstex;

          (j) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by Crosstex are then listed;

          (k) use its commercially reasonable efforts to cause the Registrable Securities 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 Crosstex to enable the Selling Holders to consummate
the disposition of such Registrable Securities;

          (l) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement; and

          (m) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities.

     Each Selling Holder, upon receipt of notice from Crosstex of the happening of any event of the
kind described in subsection (e) of this Section 2.4, shall forthwith discontinue
disposition of the Registrable Securities until such Selling Holder’s receipt of the copies of the
supplemented or amended prospectus contemplated by subsection (e) of this Section 2.4 or
until it is advised in writing by Crosstex that the use of the prospectus may be resumed, and has
received copies of any additional or supplemental filings incorporated by reference in the
prospectus, and, if so directed by Crosstex, such Selling Holder will, or will request the Managing
Underwriter or underwriters, if any, to deliver to Crosstex (at Crosstex’s expense) all copies in
their possession or control, other than permanent file copies then in such Selling Holder’s
possession, of the prospectus and any prospectus supplement covering such Registrable Securities
current at the time of receipt of such notice.

     Section 2.5 Cooperation by Holders. Crosstex shall have no obligation to include in the
Shelf Registration Statement Common Stock of a Holder or in a Piggyback Registration Common Stock
of a Selling Holder who has failed to timely furnish such information which, in

9

 

the opinion of
counsel to Crosstex, is reasonably required in order for the registration statement or prospectus
supplement, as applicable, to comply with the Securities Act.

     Section 2.6 Restrictions on Public Sale by Holders of Registrable Securities. Each Holder
of Registrable Securities who is included in the Shelf Registration Statement agrees not to effect
any public sale or distribution of the Registrable Securities during the 30 calendar day period
beginning on the date of a prospectus supplement filed with the Commission with respect to the
pricing of an Underwritten Offering, or other prospectus (including any free writing prospectus)
containing the terms of the pricing of such Underwritten Offering; provided that the duration of
the foregoing restrictions shall be no longer than the duration of the shortest restriction
generally imposed by the underwriters on the officers or directors or any other stockholder of
Crosstex on whom a restriction is imposed and provided further that such Selling Holder (together
with any Affiliates that are Selling Holders) owns at least fifteen million ($15,000,000) of
Registrable Securities (determined by multiplying the number of Registrable Securities owned by the
average of the closing price for Common Stock for the ten (10) trading days preceding the date of
such filing).

     Section 2.7 Expenses.

          (a) Certain Definitions. “Registration Expenses” means all expenses incident
to Crosstex’s performance under or compliance with this Agreement to effect the registration of
Registrable Securities in a Shelf Registration pursuant to Section 2.1, a Piggyback
Registration pursuant to Section 2.2, or an Underwritten Offering pursuant to Section
2.3, and the disposition of such securities, including, without limitation, all registration,
filing, securities exchange listing and NASDAQ fees, all registration, filing, qualification and
other fees and expenses of complying with securities or blue sky laws, fees of the National
Association of Securities Dealers, Inc., transfer taxes and fees of transfer agents and registrars,
all word processing, duplicating and printing expenses, the fees and disbursements of counsel and
independent public accountants for Crosstex, including the expenses of any special audits or “cold
comfort” letters required by or incident to such performance and compliance. Except as otherwise
provided in Section 2.8 hereof, Crosstex shall not be responsible for legal fees incurred
by Holders in connection with the exercise of such Holders’ rights hereunder. In addition,
Crosstex shall not be responsible for any “Selling Expenses,” which means all underwriting
fees, discounts and selling commissions and transfer taxes allocable to the sale of the Registrable
Securities.

          (b) Expenses. Crosstex will pay all reasonable Registration Expenses in connection
with a Piggyback Registration or Underwritten Offering, whether or not any sale is made pursuant to
the Piggyback Registration or Underwritten Offering. Each Selling Holder shall pay all Selling
Expenses in connection with any sale of its Registrable Securities hereunder.

     Section 2.8 Indemnification.

          (a) By Crosstex. In the event of a registration of any Registrable Securities under
the Securities Act pursuant to this Agreement, Crosstex will indemnify and hold harmless each
Selling Holder thereunder, its directors, officers and managers, and each underwriter, pursuant to
the applicable underwriting agreement with such underwriter, of Registrable Securities thereunder
and each Person, if any, who controls such Selling Holder or underwriter

10

 

within the meaning of the
Securities Act and the Exchange Act, against any losses, claims, damages, expenses or liabilities
(including reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or
several, to which such Selling Holder or underwriter or controlling Person may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact contained in the Shelf
Registration Statement or any other registration statement contemplated by this Agreement, any
preliminary prospectus or final prospectus contained therein, or any free writing prospectus
related thereto, or any amendment or supplement thereof, 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 (in the case of a prospectus, in light of the
circumstances under which they were made) not misleading, and will reimburse each such Selling
Holder, its directors and officers, each such underwriter and each such controlling Person for any
legal or other expenses reasonably incurred by them in connection with investigating or defending
any such Loss or actions or proceedings; provided, however, that Crosstex will not
be liable in any such case if and to the extent that any such Loss arises out of or is based upon
an untrue statement or alleged untrue statement or omission or alleged omission so made in strict
conformity with information furnished by such Selling Holder, such underwriter or such controlling
Person in writing specifically for use in the Shelf Registration Statement or such other
registration statement, or prospectus supplement, as applicable. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of such Selling Holder
or any such director, officer or controlling Person, and shall survive the transfer of such
securities by such Selling Holder.

          (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless Crosstex, its directors and officers, and each Person, if any, who
controls Crosstex within the meaning of the Securities Act or of the Exchange Act to the same
extent as the foregoing indemnity from Crosstex to the Selling Holders, but only with respect to
information regarding such Selling Holder furnished in writing by or on behalf of such Selling
Holder expressly for inclusion in the Shelf Registration Statement or prospectus supplement
relating to the Registrable Securities, or any amendment or supplement thereto; provided,
however, that the liability of each Selling Holder shall not be greater in amount than the
dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from
the sale of the Registrable Securities giving rise to such indemnification.

          (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party other than under this Section 2.8. In any action
brought against any indemnified party, it shall notify the indemnifying party of the commencement
thereof. The indemnifying party shall be entitled to participate in and, to the extent it shall
wish, to assume and undertake the defense thereof 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 and undertake the defense thereof, the indemnifying party shall not be liable
to such indemnified party under this Section 2.8 for any legal expenses subsequently
incurred by such indemnified party in connection with the defense

11

 

thereof other than reasonable
costs of investigation and of liaison with counsel so selected; provided, however,
that, (i) if the indemnifying party has failed to assume the defense and employ counsel or (ii) if
the defendants in any such action include both the indemnified party and the indemnifying party and
counsel to the indemnified party shall have concluded that there may be reasonable defenses
available to the indemnified party that are different from or additional to those available to the
indemnifying party, or if the interests of the indemnified party reasonably may be deemed to
conflict with the interests of the indemnifying party, then the indemnified party shall have the
right to select a separate counsel and to assume such legal defense and otherwise to participate in
the defense of such action, with the reasonable expenses and fees of such separate counsel and
other reasonable expenses related to such participation to be reimbursed by the indemnifying party
as incurred. Notwithstanding any other provision of this Agreement, the indemnifying party shall
not settle any indemnified claim without the consent of the indemnified party, unless the
settlement thereof imposes no liability or obligation on, includes a complete release from
liability of, and does not contain any admission of wrong doing by, the indemnified party.

          (d) Contribution. If the indemnification provided for in this Section 2.8 is
held by a court or government agency of competent jurisdiction to be unavailable to Crosstex or any
Selling Holder or is insufficient to hold them harmless in respect of any Losses, then each such
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such Losses in such proportion as is
appropriate to reflect the relative fault of Crosstex on the one hand and of such Selling Holder on
the other in connection with the statements or omissions which resulted in such Losses, as well as
any other relevant equitable considerations; provided, however, that in no event
shall such Selling Holder be required to contribute an aggregate amount in excess of the dollar
amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of
Registrable Securities giving rise to such indemnification. The relative fault of Crosstex on the
one hand and each Selling Holder on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact has been made by, or relates to, information supplied by
such party, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The parties hereto agree that it would not be just
and equitable if contributions pursuant to this paragraph were to be determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable
considerations referred to in the first sentence of this paragraph. The amount paid by an
indemnified party as a result of the Losses referred to in the first sentence of this paragraph
shall be deemed to include any legal and other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any Loss which is the subject of this
paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who is not guilty of such
fraudulent misrepresentation.

          (e) Other Indemnification. The provisions of this Section 2.8 shall be in
addition to any other rights to indemnification or contribution which an indemnified party may have
pursuant to law, equity, contract or otherwise.

12

 

     Section 2.9 Rule 144 Reporting. With a view to making available the benefits of certain
rules and regulations of the Commission that may permit the sale of the Registrable Securities to
the public without registration, Crosstex agrees to use its commercially reasonable efforts to:

          (a) Make and keep public information regarding Crosstex available, as those terms are
understood and defined in Rule 144 of the Securities Act, at all times from and after the date
hereof;

          (b) File with the Commission in a timely manner all reports and other documents required of
Crosstex under the Securities Act and the Exchange Act at all times from and after the date hereof;
and

          (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon
request a copy of the most recent annual or quarterly report of Crosstex, and such other reports
and documents so filed as such Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing such Holder to sell any such securities without registration.

     Section 2.10 Transfer or Assignment of Registration Rights. The rights to cause Crosstex
to register Registrable Securities granted to the Purchasers by Crosstex under this Article II may
be transferred or assigned by the Purchasers to one or more transferee(s) or assignee(s) of such
Registrable Securities, who (a) are Affiliates of such Purchaser, or (b) hold, collectively with
its or their Affiliates, after giving effect to such transfer or assignment, at least fifteen
million ($15,000,000) of Registrable Securities. Crosstex shall be given written notice prior to
any said transfer or assignment, stating the name and address of each such transferee and
identifying the securities with respect to which such registration rights are being transferred or
assigned, and each such transferee shall assume in writing responsibility for its obligations of
the Purchasers under this Agreement.

     Section 2.11 Limitation on Subsequent Registration Rights. From and after the date hereof,
Crosstex shall not, without the prior written consent of the Holders of a majority of the
outstanding Registrable Securities, enter into any agreement with any current or future holder of
any securities of Crosstex that would allow such current or future holder to require Crosstex to
include securities in any registration statement filed by Crosstex on a basis that is superior in
any way to the piggyback rights granted to the Purchasers hereunder.

     Section 2.12 Aggregation of Registrable Securities. All Registrable Securities held or
acquired by Persons who are Affiliates of one another shall be aggregated together for the purpose
of determining the availability of any rights under this Agreement. In addition, all Registrable
Securities held or acquired by Fiduciary / Claymore MLP Opportunity Fund and its Affiliates, on the
one hand, and Energy Income and Growth Fund and its Affiliates, on the other hand, shall be
aggregated together for the purpose of determining the availability of any rights under this
Agreement.

13

 

ARTICLE III

MISCELLANEOUS

     Section 3.1 Communications. All notices and other communications provided for or permitted
hereunder shall be made in writing by facsimile, courier service or personal delivery:

	 	 	 	 	 
	 

	 	(a)
	 	If to Chieftain Capital Management, Inc., as agent and
attorney-in-fact for the Purchasers who are its clients under separate
investment advisor agreements:
	 
	 	 	 	 
	 

	 	 	 	Chieftain Capital Management, Inc.
	 

	 	 	 	12 East 49th Street
	 

	 	 	 	New York, New York 10017
	 

	 	 	 	Attn: Thomas D. Stern
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Seward & Kissel LLP
	 

	 	 	 	One Battery Park Plaza
	 

	 	 	 	New York, New York 10004
	 

	 	 	 	Attention: Patricia A. Poglinco, Esq.
	 

	 	 	 	Fax: (212) 480-8421
	 
	 	 	 	 
	 

	 	(b)
	 	If to Energy Income and Growth Fund:
	 
	 	 	 	 
	 

	 	 	 	c/o Fiduciary Asset Management
	 

	 	 	 	8112 Maryland Avenue, Suite 400
	 

	 	 	 	St. Louis MO 63105
	 

	 	 	 	Attention: Jim Cunnane
	 

	 	 	 	Facsimile: (314) 863-4360
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Andrews Kurth LLP
	 

	 	 	 	1350 I Street, NW, Suite 1100
	 

	 	 	 	Washington, DC 20005
	 

	 	 	 	Attention: Bill Cooper
	 

	 	 	 	Facsimile: (202) 974-9537
	 
	 	 	 	 
	 

	 	(c)
	 	If to Kayne Anderson MLP Investment Company or Kayne Anderson
Energy Total Return Fund, Inc.:
	 
	 	 	 	 
	 

	 	 	 	1800 Avenue of the Stars, 2nd Floor
	 

	 	 	 	Los Angeles, CA 90067
	 

	 	 	 	Attention: David Shladovsky, Esq.
	 

	 	 	 	Facsimile: (310) 284-6490

14

 

	 	 	 	 	 
	 

	 	 	 	and
	 
	 	 	 	 
	 

	 	 	 	1100 Louisiana, Suite 4550
	 

	 	 	 	Houston, Texas 77002
	 

	 	 	 	Attention: Kevin McCarthy
	 

	 	 	 	Facsimile: (713) 655-7359
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Vinson & Elkins L.L.P.
	 

	 	 	 	1001 Fannin, Suite 2300
	 

	 	 	 	Houston, TX 77002
	 

	 	 	 	Attention: Dan Fleckman
	 

	 	 	 	Facsimile: (713) 615-5859
	 
	 	 	 	 
	 

	 	(d)
	 	If to Lehman Brothers MLP Partners, L.P.:
	 
	 	 	 	 
	 

	 	 	 	Lehman Brothers MLP Partners, L.P.
	 

	 	 	 	c/o Lehman Brothers Inc.
	 

	 	 	 	399 Park Avenue, 9th Floor
	 

	 	 	 	New York, NY 10022
	 

	 	 	 	Attention: Michael J. Cannon
	 

	 	 	 	Facsimile: 646-758-4208
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Vinson & Elkins L.L.P.
	 

	 	 	 	1001 Fannin, Suite 2300
	 

	 	 	 	Houston, TX 77002
	 

	 	 	 	Attention: Dan Fleckman
	 

	 	 	 	Facsimile: (713) 615-5859
	 
	 	 	 	 
	 

	 	(e)
	 	If to Lubar Equity Fund, LLC:
	 
	 	 	 	 
	 

	 	 	 	Lubar Equity Fund, LLC
	 

	 	 	 	700 N. Water Street
	 

	 	 	 	Suite 1200
	 

	 	 	 	Milwaukee, WI 53202
	 

	 	 	 	Attn: David J. Lubar
	 

	 	 	 	Facsimile: (414) 291–9061
	 
	 	 	 	 
	 

	 	(f)
	 	If to Tortoise North American Energy Corp.:
	 
	 	 	 	 
	 

	 	 	 	10801 Mastin, Suite 222
	 

	 	 	 	Overland Park, KS 66210
	 

	 	 	 	Attention: David Schulte

15

 

	 	 	 	 	 
	 

	 	 	 	Facsimile: (913) 981-1021
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Blackwell Sanders Peper Martin LLP
	 

	 	 	 	2300 Main Street, Suite 1000
	 

	 	 	 	Kansas City, MO 64108
	 

	 	 	 	Attention: Steven F. Carman
	 

	 	 	 	Facsimile: (816) 983-8080
	 
	 	 	 	 
	 

	 	(g)
	 	If to Crosstex:
	 
	 	 	 	 
	 

	 	 	 	Crosstex Energy, Inc.
	 

	 	 	 	2501 Cedar Springs
	 

	 	 	 	Dallas, Texas 75201
	 

	 	 	 	Attention: Barry E. Davis
	 

	 	 	 	Facsimile: (214) 953-9500
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Baker Botts L.L.P.
	 

	 	 	 	2001 Ross Avenue
	 

	 	 	 	Dallas, Texas 75201-2980
	 

	 	 	 	Attention: Doug Rayburn
	 

	 	 	 	Facsimile: (214) 661-4634

or, if to a transferee of such Purchaser, to such Holder at the address provided pursuant to
Section 2.10 above. All such notices and communications shall be deemed to have been
received at the time delivered by hand, if personally delivered; when receipt acknowledged, if sent
via facsimile or sent via Internet electronic mail; and when actually received, if sent by any
other means.

     Section 3.2 Successor and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including subsequent Holders of
Registrable Securities to the extent permitted herein.

     Section 3.3 Assignment of Rights. All or any portion of the rights and obligations of the
Purchasers under this Agreement may be transferred or assigned by such Purchaser in accordance with
Section 2.10 hereof.

     Section 3.4 Recapitalization, Exchanges, etc. Affecting the Common Stock. The provisions
of this Agreement shall apply to the full extent set forth herein with respect to any and all
capital stock of Crosstex or any successor or assign of Crosstex (whether by merger, consolidation,
sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution
of, the Registrable Securities, and shall be appropriately adjusted for combinations,
recapitalizations and the like occurring after the date of this Agreement.

16

 

     Section 3.5 Specific Performance. Damages in the event of breach of this Agreement by a
party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed that
each such Person, in addition to and without limiting any other remedy or right it may have, will
have the right to an injunction or other equitable relief in any court of competent jurisdiction,
enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of
the parties hereto hereby waives any and all defenses it may have on the ground of lack of
jurisdiction or competence of the court to grant such an injunction or other equitable relief. The
existence of this right will not preclude any such Person from pursuing any other rights and
remedies at law or in equity which such Person may have.

     Section 3.6 Counterparts. This Agreement may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which counterparts, when so executed
and delivered, shall be deemed to be an original and all of which counterparts, taken together,
shall constitute but one and the same Agreement.

     Section 3.7 Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     Section 3.8 Governing Law. The laws of the State of Texas shall govern this Agreement
without regard to principles of conflict of laws.

     Section 3.9 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

     Section 3.10 Entire Agreement. This Agreement, the Purchase Agreement and the
Non-Disclosure Agreement are intended by the parties as a final expression of their agreement and
intended to be a complete and exclusive statement of the agreement and understanding of the parties
hereto in respect of the subject matter contained herein or therein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein or therein
with respect to the rights granted by Crosstex set forth herein or therein. This Agreement, the
Purchase Agreement and the Non-Disclosure Agreement supersede all prior agreements and
understandings between the parties with respect to such subject matter.

     Section 3.11 Amendment. This Agreement may be amended only by means of a written amendment
signed by Crosstex and the Holders of a majority of the then outstanding Registrable Securities;
provided, however, that no such amendment shall materially and adversely affect the rights of any
Holder hereunder without the consent of such Holder.

     Section 3.12 No Presumption. In the event any claim is made by a party relating to any
conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a
particular party or its counsel.

17

 

[The remainder of this page is intentionally left blank.]

18

 

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

	 	 	 	 	 	 	 
	 	 	CROSSTEX ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William W. Davis
 

William W. Davis
	 	 
	 

	 	 	 	Executive Vice President and Chief Financial Officer	 	 

[Signature Page to XTXI Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	CHIEFTAIN CAPITAL MANAGEMENT, INC.,
as agent and attorney-in-fact for the Purchasers who
are its clients under separate investor advisor
agreements	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas D. Stern
 

     Thomas D. Stern
	 	 
	 

	 	 	 	     Managing Director	 	 

[Signature Page to XTXI Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	KAYNE ANDERSON MLP INVESTMENT COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James C. Baker
 

     James C. Baker
	 	 
	 

	 	 	 	     Vice President	 	 

[Signature Page to XTXI Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	KAYNE ANDERSON ENERGY TOTAL RETURN FUND, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James C. Baker
 

     James C. Baker
	 	 
	 

	 	 	 	     Vice President	 	 

[Signature Page to XTXI Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN BROTHERS MLP PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Lehman Brothers MLP Associates, L.P.,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LB I Group Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Cannon
 

     Michael J. Cannon
	 	 
	 

	 	 	 	     Authorized Signatory	 	 

[Signature Page to XTXI Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	LUBAR EQUITY FUND, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Lubar & Co., Incorporated	 	 
	 

	 	Its:
	 	Manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David J. Lubar
 

     David J. Lubar
	 	 
	 

	 	 	 	     President	 	 

[Signature Page to XTXI Registration Rights Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	TORTOISE NORTH AMERICAN ENERGY CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David J. Schulte
 

David J. Schulte
	 	 
	 

	 	 	 	President	 	 

[Signature Page to XTXI Registration Rights Agreement]

 

 

Schedule A

	 	 	 	 	 	 	 	 	 
	 	 	Purchased	 	 	Allocated	 
	Purchaser	 	Shares*	 	 	Purchase Price	 
	Chieftain Capital Management, Inc. as agent
and attorney-in-fact for the Purchasers who
are its clients under separate investment
advisor agreements
	 	 	1,710,130	 	 	$	119,999,822.10	 
	Kayne Anderson MLP Investment Company
	 	 	57,005	 	 	 	4,000,040.85	 
	Kayne Anderson Energy Total Return Fund, Inc.
	 	 	285,025	 	 	 	20,000,204.25	 
	Lehman Brothers MLP Partners, L.P., as
successor in interest to LB I Group Inc.
	 	 	313,520	 	 	 	21,999,698.40	 
	Lubar Equity Fund, LLC
	 	 	156,070	 	 	 	12,001,783.00	 
	Tortoise North American Energy Corp.
	 	 	28,510	 	 	 	2,000,546.70	 
	 
	 	 	 	 	 	 
	Total
	 	 	2,550,260	 	 	$	180,002,095.30	 
	 
	 	 	 	 	 	 

 

			
	*	 	Subject to adjustment pursuant to Section 2.03 of the Purchase Agreement.

Schedule Aexv10w1

 

EXHIBIT 10.1

HEALTHMARKETS, INC.

Subscription Agreement

HealthMarkets, Inc.

9151 Boulevard 26

North Richland Hills, Texas 76180

Ladies and Gentlemen:

     1. Subscription for Class A-1 Common Stock. The undersigned subscriber (the
“Subscriber”) hereby irrevocably tenders this Subscription Agreement (this
“Agreement”) to HealthMarkets, Inc. (formerly UICI), a Delaware corporation (the
“Company”), subscribes for and offers to purchase 27,027 shares of Class A-1 Common Stock,
par value $0.01 per share, of the Company and agrees to pay therefor, and in full payment thereof,
$37.00 per share, in cash, in the aggregate amount of $999,999.00 (the “Subscription
Price”). In accordance with the terms of this Agreement, the Subscriber shall make payment of
the Subscription Price by check or wire transfer as directed by the Company. Upon receipt of the
foregoing, the Company will issue to the Subscriber a share certificate evidencing the number of
shares of Class A-1 Common Stock purchased by the Subscriber.

     2. Subscriber Representations and Warranties. The Subscriber hereby represents,
warrants acknowledges and agrees as follows:

          (a) Authorization. The Subscriber has full power and authority to execute,
deliver and perform this Agreement and to acquire the Class A-1 Common Stock. This
Agreement constitutes a valid and binding obligation of the Subscriber, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization and
moratorium laws and other laws of general application affecting enforcement of creditors’
rights generally.

          (b) Purchase for Own Account. The Class A-1 Common Stock will be acquired for
investment only and solely for the Subscriber’s own account, and not as a nominee or agent
for any other person, and not with a view to the public resale or distribution thereof
within the meaning of the Securities Act of 1933, as amended (the “Securities Act”),
and the Subscriber has no present intention of selling, granting any participation in, or
otherwise distributing the same.

          (c) Disclosure of Information. The Subscriber has had the opportunity to
review all documents and information which the Subscriber has requested concerning its
investment and the Company. The Subscriber has had the opportunity to ask questions of and
receive answers regarding the Company’s business, management and financial affairs and the
terms and conditions of the Class A-1 Common Stock.

          (d) Investment Experience; Ability to Bear Economic Risk. The Subscriber (i)
understands that the purchase of the Class A-1 Common Stock involves substantial risk, (ii)
has adequate means of providing for his current needs and possible contingencies, (iii) has
no need for liquidity in his investment in the Company, and (iv) can bear the economic risk
of losing his entire investment in the Company. The Subscriber has a preexisting personal
or business relationship with the Company and/or certain of its officers, directors or
controlling persons of a

 

 

nature and duration that enables the Subscriber to be aware of the character, business
acumen and financial circumstances of the Company and such persons.

          (e) Independent Investment Decision. The Subscriber acknowledges that he has,
independently and without reliance upon the Company or any other person, and based on such
information as the Subscriber has deemed appropriate, made his own investment analysis and
decision to enter into this Agreement. No representations or warranties, oral or otherwise,
have been made to the Subscriber or any party acting on the Subscriber’s behalf other than
those contained in this Agreement.

          (f) Restricted Securities. The Subscriber understands that the Class A-1
Common Stock will not be registered under the Securities Act and that, as such, the Class
A-1 Common Stock may be resold without registration under the Securities Act, or pursuant to
an exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act.

          (g) Stockholders Agreement. The Subscriber, if not already a party thereto,
agrees to become a party to the Stockholders Agreement dated April 5, 2006, by and among the
Company, each of the Sponsor Stockholders (as defined therein), and each of the Management
Stockholders (as defined therein) and such other Persons as may thereinafter become parties
to or be bound by the Agreement (the “Stockholders Agreement”).

          (h) United States Person. The Subscriber is a “United States Person” within
the meaning of Section 7701(a)(30) of the Internal Revenue Code.

     3. Company Representations and Warranties. The Company hereby represents, warrants
acknowledges and agrees as follows:

     (a) Authorization of Class A-1 Common Stock. The shares of Class A-1 Common
Stock issued in connection with this Agreement are duly authorized and, when issued and
delivered in accordance with the terms hereof, will be validly issued, fully paid and
nonassessable.

     (a) Authorization. The Company is a Delaware corporation and has all necessary
corporate power and authority to execute, deliver and perform this Agreement and to issue
and deliver the Class A-1 Common Stock. This Agreement constitutes a valid and binding
obligation of the Company, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization and moratorium laws and other laws of general
application affecting enforcement of creditors’ rights generally.

     4. Notices. All notices delivered hereunder shall be in writing and shall be deemed
to have been given when hand delivered, when received if sent by facsimile or by same day or
overnight recognized commercial courier service or three days after mailed by registered or
certified mail, addressed to the address set forth on the signature page for the party to which
notice is given, or to such changed address(es) as such party may have fixed by notice, provided
however, that any notice of change of address shall be effective only upon receipt.

     5. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without giving effect to the principles of conflict of
laws of that State.

3

 

     6. Further Assurances. The Subscriber will provide the Company with such documents
supporting the representations of the Subscriber in this Agreement as the Company may reasonably
request.

     7. Amendment. Neither this Agreement nor any provisions hereof shall be modified,
discharged or terminated except by an instrument in writing signed by the Company and the
Subscriber.

     8. Severability. Whenever possible, each provision or portion of any provision of
this Agreement will be interpreted in such manner as to be effective and valid under applicable law
but if any provision or portion of this Agreement is held to be invalid, illegal or unenforceable
in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or portion of any provision in such
jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as
if such invalid, illegal or unenforceable provision or portion of any provision had never been
contained herein.

     9. Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or 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.

     10. Entire Agreement. This Agreement and the other agreements or documents referred
to herein contain the entire agreement of the parties, and there are no representations,
warranties, covenants or other agreements except as stated or referred to herein and in such other
agreements or documents.

     11. Expenses. Each party hereto shall pay its own costs and expenses in connection
with the transactions contemplated hereby.

[Signatures Appear on the Next Page]

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     The Subscriber has executed or caused this Agreement to be duly executed this 1st day of July,
2006.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Subscriber:	 	 
	 
	 	 	 	 
	 

	 	          /S/ Allen F. Wise	 	 
	 

	 	 	 	 
	 

	 	Allen F. Wise	 	 
	 
	 	 	 	 
	 

	 	Address:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Accepted on this 1st day of July, 2006.

HealthMarkets, Inc.

	 	 	 	 	 
	 

	 	 	 	 
	By:

	 	/s/
Glenn W. Reed	 	 
	 

	 	 	 	 
	Name: Glenn W. Reed	 	 
	Title: Executive Vice President and General Counsel

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]