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Exhibit 4.2  

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT  

dated as of May 25, 2007 

among 

ABRAXAS PETROLEUM CORPORATION  

ABRAXAS ENERGY PARTNERS, L.P.  

and 

THE PURCHASERS NAMED IN THIS AGREEMENT  

 
 

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT    
    

        This EXCHANGE AND REGISTRATION RIGHTS AGREEMENT ("Agreement") is made and entered into as of the 25th day of May,
2007, by and among Abraxas Petroleum Corporation, a Nevada corporation ("Parent"), Abraxas Energy Partners, L.P., a Delaware limited partnership (the
"Partnership") and each of the persons listed on Schedule 1 attached to this Agreement (each a
"Purchaser" and collectively the "Purchasers"). 

W
I T N E S S E T H 

        WHEREAS,
at or prior to the execution of this Agreement, Parent, Abraxas General Partner, LLC, a Delaware limited liability company (the "General
Partner"), the Partnership and the other parties named therein shall enter into that certain Contribution, Conveyance and Assumption Agreement (the
"Contribution Agreement"); 

        WHEREAS,
in connection with the consummation of the transactions contemplated by the Contribution Agreement, among other things (i) Parent will contribute certain Assets to the
Operating Company (the "Contribution") in exchange for a general partner interest and an indirect limited partner interest in the Partnership;
(ii) the Partnership and the other parties named therein shall enter into that certain $150,000,000 Revolving Credit Facility with Société
Générale (the "Credit Agreement") under which the Partnership will immediately borrow $35,000,000.00; and (iii) the
Partnership and the Operating Company will assume certain of Parent's indebtedness, and will use the proceeds from the sale of Purchased Securities to refinance the $125,000,000 Floating Rate Senior
Notes issued by the Parent and currently outstanding (the "Floating Rate Senior Notes") and as otherwise contemplated in the Contribution Agreement; 

        WHEREAS,
subject to the terms and conditions set forth in that certain Purchase Agreement dated as of the date hereof (the "Partnership Purchase
Agreement") by and among Parent, the Partnership, the General Partner and the Purchasers, the Partnership has agreed to issue and sell to the Purchasers, and the Purchasers
desire to purchase from the Partnership, up to 6,002,408 Common Units of the Partnership (the "Purchased Common Units"); 

        WHEREAS,
pursuant to the terms of that certain Securities Purchase Agreement dated as of the date hereof (the "Securities Purchase
Agreement") by and among Parent and the Purchasers, (i) each Purchaser will purchase the number of shares of the Parent's Common Stock shown opposite such Purchaser's
name on Schedule 1 thereto ("Purchased Shares"), at a price of $3.83 per share (the
"Purchase Price") and (ii) the Parent shall issue to each Purchaser a warrant to purchase a number of shares of Common Stock equal to the product
of (a) the number of Purchased Shares purchased by such Purchaser, times (b) 0.20, on the additional terms and conditions set forth in  Exhibit A thereto (the "Warrants"); and 

        WHEREAS,
it is a condition to the obligations of the Purchasers under the Partnership Purchase Agreement and the Securities Purchase Agreement that, contemporaneously with the sale of
the Common Units and the Parent Securities, the parties hereto execute and deliver this Agreement; 

        NOW,
THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants herein contained, the parties hereto hereby agree as follows: 

1.    Definitions. The following terms have the meanings indicated: 

        "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. 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. 

        "Agreement" has the meaning set forth in the preamble hereto. 

        "AMEX" means the American Stock Exchange. 

 

        "Applicable Number" has the meaning set forth in Section 2. 

        "Assets" has the meaning set forth in the Contribution Agreement. 

        "Black Out Period" has the meaning set forth in Section 7.3(c). 

        "Business Day" means any day other than a Saturday, Sunday, or a legal holiday for commercial banks in New York, New York. 

        "Commission" means the Securities and Exchange Commission. 

        "Common Units" has the meaning assigned to such term in the Partnership Agreement. 

        "Common Stock" has the meaning set forth in Section 2. 

        "Contribution" has the meaning set forth in the recitals hereto. 

        "Contribution Agreement" has the meaning set forth in the recitals hereto. 

        "Credit Agreement" has the meaning set forth in the recitals hereto. 

        "Effectiveness Date" has the meaning set forth in Section 7.1(b). 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Exchange Shares" has the meaning set forth in Section 2. 

        "Exchange Price" means a price per share of Common Stock equal to 0.9 times the Market Price. 

        "Existing Credit Facility" means that certain Loan Agreement, dated as of October 28, 2004, by and among the Partnership, the
subsidiaries of the Partnership signatory thereto, the lenders signatory thereto and Wells Fargo Foothill, Inc., as the Arranger and Administrative Agent, as amended. 

        "Filing Date" has the meaning set forth in Section 7.1(a). 

        "Floating Rate Senior Notes" has the meaning set forth in the recitals hereto. 

        "General Partner" has the meaning set forth in the recitals hereto. 

        "Initial Exchange Date" has the meaning set forth in Section 3.1. 

        "Initial Exchange Shares" means the aggregate number of Exchange Shares equal to 19.99% of the total number of shares of Common Stock
issued and outstanding on the Trigger Date. 

        "IPO" means the initial public offering of Common Units by the Partnership under the Securities Act that results in the Common Units being
listed for trading on the New York Stock Exchange, the Nasdaq Global Market or AMEX or any affiliate of the New York Stock Exchange, the Nasdaq Global Market or AMEX. 

        "Law" means any federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, law, rule or regulation in
effect as of the date hereof. 

        "Liens" means mortgages, charges, pledges, liens (statutory or other), security interests, hypothecations, assignments for security,
claims, or preferences or priorities or other encumbrances or similar agreements or preferential agreements of any kind or nature whatsoever serving to provide security for any obligations whether or
not filed, recorded or otherwise perfected under applicable law upon or with respect to any kind of property or asset, whether real, personal or mixed, or tangible or intangible. 

        "Liquidated Damages Amount" has the meaning set forth in Section 7.2. 

        "Losses" means any and all losses, claims, damages, liabilities, settlement costs and expenses, including, without limitation, reasonable
attorneys' fees. 

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        "Management Stockholder" means any executive officer of Parent as of the date hereof who owns Voting Securities 

        "Material Adverse Effect" means with respect to any Person (i) a material adverse effect on the legality, validity or
enforceability of this Agreement, the Purchased Shares or the Purchased Common Units, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition
(financial or otherwise) of any such Person, (iii) a material adverse effect on the ability of such Person to perform in any material respect on a timely basis its obligations under this
Agreement or the Parent Purchase Agreement, or (iv) an event which would reasonably be expected to subject such Person to any material liability. 

        "Market Price" means the volume weighted average price of the Common Stock for the ten (10) Business Days immediately prior to the
Initial Exchange Date as quoted on the principal securities exchange on which the Common Stock is then quoted or traded. 

        "Operating Company" means Abraxas Operating, LLC, a Texas limited liability company. 

        "Parent" has the meaning set forth in the preamble hereto. 

        "Parent Securities" shall mean the Purchased Shares and the Warrants. 

        "Parent Stockholders" has the meaning set forth in Section 3.3. 

        "Partnership" has the meaning set forth in the preamble hereto. 

        "Partnership Agreement" means that First Amended and Restated Agreement of Limited Partnership of the Partnership, dated May 25,
2007. 

        "Partnership Purchase Agreement" has the meaning set forth in the recitals hereto. 

        "Person" means any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or
subdivision thereof) or any court or other federal, state, local or other governmental authority or other entity of any kind. 

        "Per Unit Purchase Price" shall mean $16.66, subject to appropriate adjustment in the event the Partnership effects a distribution,
subdivision or combination of Common Units. 

        "Preliminary Prospectus or Preliminary Prospectuses" has the meaning set forth in
Section 7.1(e). 

        "Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened. 

        "Pro Rata Share" means a fraction, the numerator of which is the number of Common Units purchased by a Purchaser pursuant to the
Partnership Purchase Agreement and the denominator of which is the total number of Common Units purchased by all Purchasers. 

        "Prospectus" has the meaning set forth in Section 7.1(c). 

        "Purchased Common Units" has the meaning set forth in the recitals hereto. 

        "Purchased Securities" means the Purchased Common Units and the Purchased Shares. 

        "Purchased Shares" has the meaning set forth in the recitals hereto. 

        "Purchase Price" has the meaning set forth in the recitals hereto. 

        "Purchaser" and "Purchasers" has the meaning set forth in the preamble hereto. 

        "Purchaser Underwriter Registration Statement" has the meaning set forth in Section 7.1. 

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        "Registration Statement" has the meaning set forth in Section 7.1(a) and Section 7.4(a)(ii). 

        "Rule 144" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such rules may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule. 

        "SEC Filings" has the meaning set forth in the Securities Purchase Agreement. 

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

        "Securities Purchase Agreement" has the meaning set forth in the recitals hereto. 

        "Selling Stockholder" has the meaning set forth in Section 7.4(a)(i). 

        "Selling Stockholder Indemnified Parties" has the meaning set forth in Section 7.4(b). 

        "Short Sales" means, without limitation, all "short sales" as defined in Rule 200 promulgated under Regulation SHO under the
Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps, "put equivalent positions" (as
defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker
dealers or foreign regulated brokers. 

        "Stockholder Approval" means the approval by the holders of the requisite number of shares of Common Stock to the issuance of shares of
Common Stock pursuant to the terms of this Agreement at a duly called meeting of the Stockholders in accordance with the rules of the AMEX or such other securities exchange on which the Common Stock
is then quoted or traded and all other Laws. 

        "Stockholders' Meeting" has the meaning set forth in Section 3.3. 

        "Suspension" has the meaning set forth in Section 7.3(c). 

        "Suspension Notice" has the meaning set forth in Section 7.3(c). 

        "Termination Date" has the meaning set forth in Section 10. 

        "Transfer Agent" has the meaning set forth in the Partnership Agreement. 

        "Trigger Date" has the meaning set forth in Section 3.1. 

        "Underwritten Offering" has the meaning set forth in the Securities Purchase Agreement. 

        "Voting Securities" means the Common Stock and all other securities of any class of Parent entitling the holders thereof to vote in the
election of, or to appoint, members of the Board of Directors of Parent. 

        "Warrants" has the meaning set forth in the recitals hereto. 

2.    Agreement to Exchange Securities. Subject to the terms and conditions set forth in this Agreement, Parent agrees, from and after the
Trigger Date until the Termination Date, to exchange a number of shares of common stock, par value $.01 per share of Parent ("Common Stock"), for each
Purchased Common Unit (collectively, the "Exchange Shares") in an amount equal to the Per Unit Purchase Price divided by the Exchange Price (the
"Applicable Number"). 

3.    Mechanics of Exchange. 

        3.1   Subject
to the terms of this Section 3, if the IPO has not been consummated on or before 5:00 p.m. on November 15, 2008 (the
"Trigger Date"), then beginning on the Business Day immediately after the Trigger Date (the "Initial Exchange
Date") and ending at the close of business on the 

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Termination
Date, each of the Purchasers shall have the right to exchange each of the Purchased Common Units into the Applicable Number of Exchange Shares. 

        3.2   Notwithstanding
Section 3.1 above, each Purchaser shall have the option, during the period beginning on the Initial Exchange Date and ending on the date that
Stockholder Approval is received by Parent, to exchange each Purchased Common Unit then owned by such Purchaser into the Applicable Number of Exchange Shares; provided, however, that the maximum
number of Exchange Shares a Purchaser may receive in connection with an exchange effectuated pursuant to this Section 3.2 shall be equal to such Purchaser's Pro Rata Share of the Initial
Exchange Shares. 

        3.3   On
the Initial Exchange Date, Parent shall take all action necessary to convene a meeting of its stockholders (the "Parent
Stockholders") to consider and vote upon the issuance of the aggregate number of shares of Common Stock issuable upon exchange of the Purchased Common Units for shares of
Common Stock pursuant to this Agreement in excess of the Initial Exchange Shares as soon as practicable, but in any event not later than 60 days after the Trigger Date (the
"Stockholders' Meeting"). Except as provided in this Section 3.3, the board of directors of Parent shall, in connection with such meeting,
recommend approval of the issuance of shares of Common Stock in excess of the Initial Exchange Shares and take all other lawful action to solicit the approval of the issuance of shares of Common Stock
in excess of the Initial Exchange Shares by the Parent Stockholders; provided, however, that the board of directors of Parent shall not be required to recommend such approval if it advised by counsel
that such recommendation would violate its fiduciary duties to Parent's stockholders under applicable Law. 

        3.4   In
order to exchange the Purchased Common Units for the Exchange Shares, the holder thereof shall surrender at the office of the Transfer Agent, the certificate or
certificates therefor, duly endorsed or assigned to Parent or in blank, and give written notice to Parent in accordance with Section 8 hereof, together with the letter attached hereto as  Exhibit A, that such holder elects to convert the number of Purchased Common Units specified by such holder in such notice. Purchased Common
Units shall be deemed to have been exchanged immediately prior to the close of business on the day of surrender of the certificates for such Purchased Common Units for exchange in accordance with the
foregoing provisions, and at such time the rights of the holder of such Purchased Common Units as holders thereof shall cease and from and after such time the person or persons entitled to receive the
Exchange Shares issuable upon such conversion shall be treated for all purposes as the record holder or holders of such Exchange Shares. As promptly as practicable on or after the Initial Exchange
Date, Parent shall cause the Transfer Agent to issue and deliver at such office a certificate or certificates for the number of full shares of Common Stock issuable upon such exchange, together with
payment in lieu of any fraction of a share, as provided in Section 3.7, to the person or persons entitled to receive the same. If fewer than all the Purchased Common Units represented by a
certificate are exchanged, upon such exchange the Partnership shall (or cause the Transfer Agent for the Purchased Common Units to) issue a new certificate representing the Purchased Common Units not
so exchanged. 

        3.5   Notwithstanding
anything to the contrary set forth in this Agreement, prior to the receipt of Stockholder Approval, in no event shall the total number of Exchange Shares
that Parent shall be required to issue pursuant to this Agreement exceed the maximum number of shares of Common Stock that Parent can issue without Stockholder Approval pursuant to any rule of AMEX,
or any other national exchange on which Parent's Common Stock is then traded including, without limitation, Section 713 of the AMEX Listing Standards, Policies and Requirements, subject to
equitable adjustments from time to time for stock-splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date of this
Agreement. 

        3.6   If
Parent at any time shall consolidate or merge with or sell or convey all or substantially all of its assets to any other Person, the Purchaser shall thereafter be
entitled to exchange its Purchased 

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Common
Units into such number and kind of securities and property as would have been issuable or distributable on account of such consolidation, merger, sale or conveyance upon or with respect to the
securities to be received upon an exchange of Purchased Common Units immediately prior to such consolidation, merger, sale or conveyance. Parent shall take such steps in connection with such
consolidation or merger or sale as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or property
thereafter deliverable upon an exchange of Purchased Common Units. The foregoing provisions shall similarly apply to successive transactions of a similar nature by any such successor or purchaser.
Without limiting the generality of the foregoing, the registration rights provisions hereof shall apply to the securities of such successor or purchaser after any such consolidation, merger, sale or
conveyance. 

        3.7   No
fractional shares of Common Stock of Parent will be issued in connection with an exchange of Purchased Common Units, but in lieu of such fractional shares, Parent
shall make a cash payment thereafter upon the basis of the Market Price of its Common Stock on the date of such exchange. 

        3.8   Each
Management Stockholder hereby agrees to (i) vote all such Management Stockholder's Voting Securities and (ii) take all other necessary or desirable
actions within such Management Stockholder's control (whether in such Management Stockholder's capacity as a stockholder of Parent or otherwise, and including, without limitation, attendance at
meetings, in person or by proxy, for purposes of obtaining a quorum and execution of written consents in lieu of meetings), in each case, in favor of exchange of the Purchased Common Units for shares
of Common Stock in excess of the Initial Exchange Shares. 

        3.9   From
and after the date hereof, Parent shall use its commercially reasonable efforts to obtain the agreement of each of the directors of Parent to the terms of  Section 3.8. 

4.    Parent's Representations and Warranties. Parent hereby represents and warrants to the Purchasers that: 

        4.1   Corporate Existence; Authority. Parent is a corporation duly organized, validly existing and in good standing under the
laws of Nevada, and it has all requisite corporate power and authority to carry on its business as it is now being conducted. The individual executing and delivering this Agreement on behalf of Parent
has been duly authorized to execute and deliver this Agreement on behalf of Parent, and the signature of such individual is binding upon Parent. All corporate action on the part of the Parent, its
officers, directors and stockholders necessary for the authorization of this Agreement, the performance of all obligations of the Parent hereunder and the authorization, sale, issuance and delivery of
the Exchange Shares pursuant hereto has been taken. 

        4.2   Enforceability. Parent has duly executed and delivered this Agreement and (subject to its execution by the Purchasers) it
constitutes a valid and binding agreement of Parent enforceable in accordance with its terms against Parent, except as such enforceability may be limited by principles of public policy, and subject to
laws of general application relating to bankruptcy, insolvency and the relief of debtors generally and general principles of equity governing specific performance, injunctive relief or other equitable
remedies and except to the extent that the enforceability of the indemnification and contribution provisions of Section 7.4 relating to registration rights granted hereunder may be limited by
applicable laws.. 

        4.3   Capitalization. The authorized capital of Parent consists, or will consist immediately prior to the Closing, of: 

        (a)   1,000,000
shares of Preferred Stock, par value $0.01 per share, of which (i) 100,000 shares have been designated Series A Preferred Stock, par value
$100.00 per share, of which no shares are issued and outstanding; (ii) 45,741 shares have been designated Series B 8% Cumulative Convertible Preferred Stock, par value $100.00 per share,
of which no shares are issued or 

6

 

outstanding;
and (iii) 45,471 shares have been designated as Series 1995-B 8% Cumulative Convertible Preferred Stock, par value $.01 per share, of which no shares are issued
and outstanding. 

        (b)   200,000,000
shares of Common Stock of which 42,878,725 shares are issued and outstanding as of the date of this Agreement. 

        (c)   All
of the outstanding shares of Common Stock of Parent (i) have been duly and validly issued and are fully paid, non-assessable and not subject to
any preemptive or similar rights and (ii) were issued in compliance with all applicable state and Federal laws concerning the issuance of securities or pursuant to valid exemptions therefrom.
The Exchange Shares have been duly authorized
and when issued and delivered to the Purchasers as provided by this Agreement, will be validly issued, fully paid and non-assessable and the issuance of such Exchange Shares will not be
subject to any preemptive or similar rights. 

        (d)   Prior
to giving effect to the transactions set forth herein, there are no outstanding subscriptions, options, warrants, convertible securities, calls, commitments,
agreements or rights to purchase or otherwise acquire from Parent any shares of, or any securities convertible into, the capital stock of Parent except as disclosed in the SEC Filings. 

        4.4   No Conflicts. The issuance and sale of the Exchange Shares to the Purchasers as contemplated hereby and the performance
of this Agreement will not violate or conflict with Parent's Articles of Incorporation, as amended, or Bylaws, as amended, or any material agreements to which Parent is a party or by which it is
otherwise bound or any statute, rule or regulation (federal, state, local or foreign) to which it is subject, except, in the case of (iii) above, where such violation or conflict could not
reasonably be expected to have a Material Adverse Effect. 

5.    Covenants of Parent. Parent covenants and agrees that until the Termination Date it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of Exchange Shares upon an exchange of Purchased Common Units. Parent will take all such actions as may be necessary to insure that all
shares issuable upon an exchange of Purchased Common Units will be duly and validly authorized and issued and fully paid and non-assessable. 

6.    Restrictions on Transfer. 

        6.1   Resale Restrictions. Each Purchaser understands that the Exchange Shares to be received by the Purchasers in accordance
with the terms of this Agreement have not been registered under the Securities Act or under any state laws. Each Purchaser agrees, severally and not jointly, with the other Purchasers, not to offer,
sell or otherwise transfer the Exchange Shares, or any interest in the Exchange Shares, unless (i) the offer and sale is registered under the Securities Act, (ii) the Exchange Shares may
be sold in accordance with the applicable requirements and limitations of Rule 144 under the Securities Act and any applicable state laws and, if American Stock Transfer & Trust Company,
as transfer agent for the Parent, reasonably requests, such Purchaser delivers to Parent an opinion of counsel to such effect, or (iii) such Purchaser delivers to Parent an opinion of counsel
(at the expense of Parent) reasonably satisfactory to Parent that the offer and sale is otherwise exempt from Securities Act registration. Notwithstanding the foregoing subsections (ii) and
(iii), no opinion shall be required for transfers by a Purchaser to its Affiliates. 

        6.2   Short Selling Acknowledgement and Agreement. Each Purchaser understands and acknowledges, severally and not jointly with
any other Purchaser, that the Commission currently takes the position that coverage of short sales of securities "against the box" prior to the effective date of a registration statement is a
violation of Section 5 of the Securities Act. Each Purchaser agrees, severally and not jointly, that it will not engage in any Short Sales that result in the disposition of the Exchange Shares
acquired hereunder by the Purchaser until such time as the Registration Statement is declared effective. No Purchaser makes any representation, warranty or covenant hereby that it will not engage in
Short 

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Sales
in the securities of Parent otherwise owned by such Purchaser or borrowed from a broker after the time that the transactions contemplated by this Agreement are first publicly announced. 

        6.3   Restrictive Legend. Each Purchaser understands and agrees that a legend in substantially the following form will be
placed on the certificates or other documents representing the Exchange Shares: 

"THE
SHARES OF COMMON STOCK EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SHARES UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE OFFER AND SALE IS EXEMPT FROM SECURITIES ACT REGISTRATION, AND THE TERMS OF SECTION 6.1 OF THE EXCHANGE AND REGISTRATION RIGHTS AGREEMENT PURSUANT TO
WHICH THE SHARES OF COMMON STOCK WERE ORIGINALLY ACQUIRED AND APPLICABLE STATE SECURITIES LAWS HAVE BEEN COMPLIED WITH. A COPY OF THE EXCHANGE AND REGISTRATION RIGHTS AGREEMENT IS ON FILE AT THE
CORPORATE OFFICE OF THE CORPORATION." 

        6.4   Illiquid Investment. Each Purchaser acknowledges and agrees that it must bear the economic risk of its investment in the
Exchange Shares for an indefinite period of time, until such time as the Exchange Shares are registered or an exemption from registration is available. 

7.    Registration of the Common Stock; Compliance with the Securities Act. 

        7.1   Registration Procedures and Other Matters. Parent shall: 

        (a)   subject
to receipt of necessary information from the Purchasers after prompt request from Parent to the Purchasers to provide such information, no later than the 30th
day following the Trigger Date (the "Filing Date"), prepare and file with the Commission a registration statement on
Form S-3 or such other successor form (except that if Parent is not then eligible to register for resale the Exchange Shares on Form S-3, in which case such
registration shall be on Form S-1 or any successor form) (a "Registration Statement") to enable the resale of the Exchange Shares, by
the Purchasers or their transferees from time to time over the AMEX or any other national exchange on which Parent's Common Stock is then traded, or in privately-negotiated transactions. No Purchaser
may include any Exchange Shares in the Registration Statement pursuant to this Agreement unless such Purchaser furnishes to Parent in writing within ten (10) business days after receipt of
request therefor, such requested information; 

        (b)   use
its commercially reasonable efforts, subject to receipt of necessary information from the Purchasers after prompt request from Parent to the Purchasers to provide
such information, to cause the Registration Statement to become effective prior to the 120th day following the Trigger Date; provided, however, that if Parent has filed the Registration Statement by
the Filing Date and the Commission has not declared the Registration Statement effective prior to the date that is specified in Rule 3-12 of Regulation S-X
promulgated by the Commission, then the time period for becoming effective shall be extended to the 180th day following the Trigger Date (the "Effectiveness
Date"); 

        (c)   use
its commercially reasonable efforts to cause such Registration Statement to remain continuously effective and prepare and file with the Commission such amendments
and supplements to the Registration Statement and the prospectus used in connection therewith (the "Prospectus") (and the applicable Exchange Act
reports incorporated therein by reference, so filed on a timely basis) as may be necessary to keep the Registration Statement current, effective and free from any material misstatement or omission to
state a material fact for a period ending on the date that is, with respect to each Purchaser's Exchange Shares purchased hereunder, the earlier of 

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(i) the
date on which the Purchaser may sell all Exchange Shares then held by the Purchaser without restriction under Rule 144(k), or (ii) such time as all Exchange Shares
received by such Purchaser pursuant to this Agreement have been sold or otherwise transferred pursuant to a registration statement or otherwise; 

        (d)   so
long as a Purchaser holds Exchange Shares received pursuant to this Agreement, provide copies to and permit single legal counsel designated by the Purchasers to
review the Registration Statement and all amendments and supplements thereto, no fewer than three (3) business days prior to their filing with the Commission, and not file any Registration
Statement, amendment or supplement thereto to which a holder of the Exchange Shares reasonably objects in writing within such three (3) business day period; 

        (e)   furnish
to the Purchasers with respect to the Exchange Shares included in the Registration Statement such number of copies of the Registration Statement, Prospectuses
and preliminary Prospectuses ("Preliminary Prospectuses" and individually, "Preliminary Prospectus") in
conformity with the requirements of the Securities Act and such other documents as the Purchasers may reasonably
request, in order to facilitate the public sale or other disposition of all or any of the Exchange Shares by the Purchasers; provided, however, that the obligation of Parent to deliver copies of
Prospectuses or Preliminary Prospectuses to the Purchasers shall be subject to the receipt by Parent of reasonable assurances from the Purchasers that the Purchasers will comply with the applicable
prospectus delivery requirements under the Securities Act and of such other securities or blue sky laws as may be applicable in connection with any use of such Prospectuses or Preliminary
Prospectuses; 

        (f)    file
documents required of Parent for customary blue sky clearance in states specified in writing by the Purchasers and use its commercially reasonable efforts to
maintain such blue sky qualifications during the period Parent is required to maintain the effectiveness of the Registration Statement pursuant to Section 7.1(c); provided, however, that Parent
shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented; 

        (g)   promptly
notify the Purchasers after it receives notice of the time when the Registration Statement has been declared effective by the Commission, or when a supplement
or amendment to any Registration Statement has been filed with the Commission; 

        (h)   advise
the Purchasers, promptly: (i) after it shall receive notice or obtain knowledge of the issuance of any stop order by the Commission delaying or suspending
the effectiveness of the Registration Statement or of the initiation or threat of any proceeding for that purpose; and it will promptly use its commercially reasonable efforts to prevent the issuance
of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued; and (ii) at any time when a Prospectus relating to the Exchange Shares is
required to be delivered under the Securities Act, upon discovery that, or upon the happening of an event as a result of which, the Prospectus included in the Registration Statement, as then in
effect, 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 light of the
circumstances then existing; 

        (i)    upon
request and subject to appropriate confidentiality obligations, furnish to each Purchaser 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
Exchange Shares; 

        (j)    in
the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel for Parent dated the effective date of the applicable registration
statement or the date of any amendment or supplement thereto, and a letter of like kind dated the date of the closing under 

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the
underwriting agreement, and (ii) a "cold comfort" letter, dated the date of the applicable registration statement or the date of any amendment or supplement thereto 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 Parent'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 and any prospectus supplement included therein) as are customarily covered in opinions of issuer's counsel and in accountants' letters
delivered to the underwriters in Underwritten Offerings of securities and such other matters as such underwriters or Purchasers may reasonably request; 

        (k)   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, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder; 

        (l)    make
available to the appropriate representatives of the managing underwriter and Purchasers access to such information and Parent personnel as is reasonable and
customary to enable such parties to establish a due diligence defense under the Securities Act; provided,  however, that Parent need not disclose any such
information to any such representative unless and until such representative has entered into or is
otherwise subject to a confidentiality agreement with Parent satisfactory to Parent; and 

        (m)  cause
all the Exchange Shares registered pursuant to this Agreement to be listed on each securities exchange or nationally recognized quotation system on which similar
securities issued by Parent are then listed. 

        Parent
agrees that, if any Purchaser could reasonably be deemed to be an "underwriter", as defined in Section 2(a)(11) of the Securities Act, in connection with the registration
statement in respect of any registration of Exchange Shares of any Purchaser pursuant to this Agreement, and any amendment or supplement thereof (any such registration statement or amendment or
supplement a "Purchaser Underwriter Registration Statement"), then Parent will cooperate with such Purchaser in allowing such Purchaser to conduct
customary "underwriter's due diligence" with respect to Parent and satisfy its obligations in respect thereof. In addition, at any Purchaser's request, Parent will furnish to such Purchaser, on the
date of the effectiveness of any Purchaser Underwriter Registration Statement and thereafter from time to time on such dates as such Purchaser may reasonably request, (i) a letter, dated such
date, from Parent's independent certified public accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering, addressed to such Purchaser, and (ii) an opinion, dated as of such date, of counsel representing Parent for purposes of such Purchaser Underwriter Registration Statement, in form,
scope and substance as is customarily given in an underwritten public offering, including standard "10b-5" assurances for such offering, addressed to such Purchaser. Parent will also
permit legal counsel to such Purchaser to review and comment upon any such Purchaser Underwriter Registration Statement at least five (5) business days prior to its filing with the Commission
and all amendments and supplements to any such Purchaser Underwriter Registration Statement within a reasonable number of days prior to their filing with the Commission and not file any Purchaser
Underwriter Registration Statement or amendment or supplement thereto in a form to which such Purchaser's legal counsel reasonably objects. 

10

   
        7.2   Failure of Registration Statement to Become Effective. Parent and the Purchasers agree that the Purchasers will suffer
damages if the Registration Statement is not declared effective on or prior to Effectiveness Date. Parent and the Purchasers further agree that it would not be feasible to ascertain the extent of such
damages with precision. Accordingly, if the Registration Statement is not declared effective on or prior to the Effectiveness Date, Parent shall pay as Liquidated Damages, and not as a penalty, 1% of
(i) the Purchase Price multiplied by (ii) the number of Exchange Shares held by such Purchaser (such product being the "Liquidated Damages
Amount") per thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effective.
The Liquidated Damages Amount will be paid in cash, unless Parent certifies that such cash payment would result in a breach under its credit facility or other documents evidencing indebtedness, then
Parent may pay the Liquidated Damages Amount in kind in the form of additional Common Stock. The determination of the number of shares of Common Stock to be issued as the Liquidated Damages Amount
shall be equal to the Liquidated Damages Amount divided by the lesser of (i) the Purchase Price per share; and (ii) the closing price of Parent's Common Stock on the AMEX on the date on
which the Liquidated Damages payment is due. In no event shall Parent be required to issue fractional shares pursuant to the terms of this Section 7.2 and all fractional shares shall be rounded
down to the next lowest number of whole shares. The parties agree that the amounts set forth in this Section 7.2 represent a reasonable estimate on the part of the parties, as of the date of
this Agreement, of the amount of damages that will be incurred by the Purchasers if the Registration Statement is not declared effective on or prior to the Effectiveness Date. Notwithstanding anything
to the contrary set forth in this Agreement, in no event shall the total number of Exchange Shares that Parent shall be required to issue pursuant to this Agreement exceed the maximum number of shares
of Common Stock that Parent can issue without Stockholder Approval pursuant to any rule of AMEX, or any other national exchange on which Parent's Common Stock is then traded including, without
limitation, Section 713 of the AMEX Listing Standards, Policies and Requirements, subject to equitable adjustments from time to time for stock-splits, stock dividends, combinations, capital
reorganizations and similar events relating to the Common Stock occurring after the date of this Agreement. 

        7.3   Transfer of Shares After Registration; Suspension. 

        (a)   Each
Purchaser agrees that it will not effect any disposition of the Exchange Shares that would constitute a sale within the meaning of the Securities Act except as
contemplated in the Registration Statement referred to in Section 7.1 and as described below or as otherwise permitted by law, and that it will promptly notify Parent in writing of any changes
in the information set forth in the Registration Statement regarding the Purchaser or its plan of distribution. 

        (b)   Except
in the event that paragraph (c) below applies, Parent shall if deemed necessary by Parent: (i) prepare and file from time to time with the
Commission a post-effective amendment to the Registration Statement or a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference
or file any other required document so that such Registration Statement 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, in light of the circumstances under which they were made, not misleading, and so that, as thereafter delivered to purchasers of the Common Stock being sold
thereunder, such Prospectus 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, in light
of the circumstances under which they were made, not misleading, (ii) provide the Purchasers copies of any documents filed pursuant to Section 7.3(b)(i), and (iii) inform each
Purchaser that Parent has complied with its obligations in Section 7.3(b)(i) (or that, if Parent has filed a post-effective amendment to the Registration Statement which has
not yet been declared effective, Parent will notify the Purchasers to that effect, will use its commercially reasonable efforts to secure the 

11

 

effectiveness
of such post-effective amendment as promptly as possible and will promptly notify the Purchaser pursuant to Section 7.3(b)(i) hereof when the amendment has
become effective). 

        (c)   In
the event of (i) any request by the Commission or any other federal or state governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to a Registration Statement or related Prospectus or for additional information; (ii) the issuance by the Commission or any other federal or state
governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose; (iii) the receipt by Parent of any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Exchange Shares for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; or (iv) any event or circumstance which, upon the advice of its counsel, necessitates the making of any changes in the Registration Statement or Prospectus, or any
document incorporated or deemed to be incorporated therein by reference, so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or any omission
to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a
material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading, then Parent shall promptly deliver a notice in writing to the Purchasers (the "Suspension Notice") to the effect of the foregoing and, upon
receipt of such Suspension Notice, the Purchasers will refrain from selling any Exchange Shares pursuant to the Registration Statement (a "Suspension")
until the Purchasers' receipt of copies of a supplemented or amended Prospectus prepared and filed by Parent, or until the Purchasers are advised in writing by Parent that the current Prospectus may
be used, and have received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in any such Prospectus. In the event of any Suspension, Parent
will use its commercially reasonable efforts to cause the use of the Prospectus so suspended to be resumed as promptly as practicable after the delivery of a Suspension Notice to the Purchasers.
Notwithstanding the foregoing, Parent shall not be required to amend or supplement the Registration Statement, any related Prospectus or any document incorporated therein by reference in the event
that, and for a period (a "Black Out Period") not to exceed, for so long as this Agreement is in effect, thirty (30) days consecutively in any
ninety (90) day period or ninety (90) days in any twelve (12) month period if either (A) any action by Parent pursuant to this Section 7.4(c) would violate
applicable law or (B) (x) an event
occurs and is continuing as a result of which the Registration Statement, any related Prospectus or any document incorporated therein by reference as then amended or supplemented would, in Parent's
good faith judgment, contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, and (y) (1) Parent determines in good faith that the disclosure of such event at such time would have a material adverse effect on the business, operations or
prospects of Parent or (2) the disclosure otherwise relates to a material business transaction which has not yet been publicly disclosed in any relevant jurisdiction. 

        (d)   Provided
that a Suspension or a Black Out Period is not then in effect, the Purchasers may sell Exchange Shares received pursuant to this Agreement under the
Registration Statement in the manner set forth under the caption "Plan of Distribution" in the Prospectus, provided that each arranges for delivery of a current Prospectus to the transferee of the
Exchange Shares. Upon receipt of a request therefor, Parent agrees to provide an adequate number of current Prospectuses to the Purchasers and to supply copies to any other parties requiring such
Prospectuses. 

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        7.4   Indemnification. 

        (a)   For
the purpose of this Section 7.4: 

        (i)    the
term "Selling Stockholder" shall include the Purchasers and their respective Affiliates; 

        (ii)   the
term "Registration Statement" shall include the Prospectus in the form first filed with the Commission pursuant to
Rule 424(b) of the Securities Act or filed as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing is required, any exhibit, supplement or amendment
included in or relating to the Registration Statement referred to in Section 7.1; and 

        (iii)  the
term "untrue statement" shall include any untrue statement or alleged untrue statement of a material fact in the
Registration Statement, or any omission or alleged omission to state in the Registration Statement a material fact required to be stated therein or necessary to make the statements therein not
misleading. 

        (b)   Parent
agrees to indemnify and hold harmless each Selling Stockholder and its officers, directors, members and their respective successors and assigns (collectively, the
"Selling Stockholder Indemnified Parties") from and against any third party losses, claims, damages or liabilities to which such Selling
Stockholder Indemnified Parties may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise
out of, or are based upon (i) any breach of the representations or warranties of Parent contained herein, or failure to comply with the covenants and agreements of Parent contained herein,
(ii) any untrue statement of a material fact contained in the Registration Statement as amended at the time of effectiveness or any omission of a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, or (iii) any failure by Parent to fulfill any undertaking included in the
Registration Statement as amended at the time of effectiveness, and Parent will reimburse such Selling Stockholder Indemnified Parties for any reasonable legal or other expenses reasonably incurred in
investigating, defending or preparing to defend any such action, proceeding or claim, provided, however, that Parent shall not be liable in any such case to the extent that such loss, claim, damage or
liability arises out of, or is based upon, (1) an untrue statement made in such Registration Statement or any omission of a material fact required to be stated therein or necessary to make the
statements therein not misleading in reliance upon and in conformity with written information furnished to Parent by or on behalf of such Selling Stockholder Indemnified Parties specifically for use
in preparation of the Registration Statement, (2) a breach of any representations or warranties made by such Selling Stockholder herein, or the failure of such Selling Stockholder Indemnified
Parties to comply with its covenants and agreements contained in this Agreement hereof or (3) the use by the Selling Stockholder Indemnified Party of an outdated or defective Prospectus after
Parent has notified such Selling Stockholder Indemnified Party in writing that the Prospectus is outdated or defective and prior to the receipt by such Selling Stockholder Indemnified Party of a
supplemented Prospectus or written notice from Parent that the use of the applicable Prospectus may be resumed. Parent shall reimburse each Selling Stockholder Indemnified Party for the amounts
provided for herein on demand as such expenses are incurred. 

        (c)   Each
Purchaser agrees to indemnify and hold harmless Parent (and each person, if any, who controls Parent within the meaning of Section 15 of the Securities Act,
each officer of Parent who signs the Registration Statement and each director of Parent) from and against any third party losses, claims, damages or liabilities to which Parent (or any such officer,
director or controlling person) may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise
out of, or are based 

13

 

upon,
(i) any breach of the representations and warranties of such Purchaser contained herein or in Exhibit A hereto, (ii) any
failure to comply with the covenants and agreements of such Purchaser contained herein, or (iii) any untrue statement of a material fact contained in the Registration Statement or any omission
of a material fact required to be stated therein or necessary to make the statements therein not misleading if such untrue statement or omission was made in reliance upon and in conformity with
written information furnished by or on behalf of such Purchaser specifically for use in preparation of the Registration Statement, and such Purchaser will reimburse Parent (or such officer, director
or controlling person), as the case maybe, for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim;
provided, however, that such Purchaser's obligation to indemnify Parent or any other persons hereunder shall be limited to the amount by which the net amount received by such Purchaser from the sale
of the Exchange Shares to which such loss relates exceeds the amount of any damages which such Purchaser has otherwise been required to pay by reason of such untrue statement or omission, provided
further that, with respect to any indemnification obligation arising under clause (iii) of this paragraph (b), such obligation shall be limited to the net amount received by such
Purchaser from the sale of the Exchange Shares included in the Registration Statement in question. 

        (d)   Promptly
after receipt by any indemnified person of a notice of a claim or the commencement of any action in respect of which indemnity is to be sought against an
indemnifying person pursuant to this Section 7.4, such indemnified person shall notify the indemnifying person in writing of such claim or of the commencement of such action, but the omission
to so notify the indemnifying person will not relieve it from any liability which it may have to any indemnified person under this Section 7.4 (except to the extent that such omission
materially and adversely affects the indemnifying person's ability to defend such action or such failure results in the forfeiture by the indemnifying party of substantial rights or defenses) or from
any liability otherwise than under this Section 7.4. Subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified person, the indemnifying
person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified person promptly after receiving the aforesaid notice from such
indemnified person, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified
person of its election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in
connection with the defense thereof. Notwithstanding the indemnifying party's election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to
employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel (and local counsel) only in the event that
(i) the use of counsel chosen by the indemnifying party to represent the indemnified party would, in the opinion of counsel for the indemnified party, present such counsel with a potential or
actual conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party,
(iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of
such action or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. In no event shall any indemnifying person
be liable in respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the terms of such settlement; provided that such consent shall not be
unreasonably withheld. No indemnifying person shall, without the prior written consent of the 

14

 

indemnified
person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnification could have been sought
hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 

        (e)   If
the indemnification provided for in this Section 7.4 is unavailable to or insufficient to hold harmless an indemnified person under subsection (b) or
(c) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying person, in lieu of indemnifying
such indemnified person, shall contribute to the amount paid or payable by such indemnified person as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of Parent, on the one hand, and the Purchaser(s), on the other, in connection with the statements or omissions or other matters which
resulted in such losses, claims, damages or liabilities (or actions in respect thereof),
as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether the untrue statement
relates to information supplied by Parent, on the one hand, or the Purchaser(s), on the other, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent
such untrue statement. Parent and the Purchasers agree that it would not be just and equitable if contribution pursuant to this subsection (e) were determined by pro rata allocation (even if
the Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection (e).
The amount paid or payable by an indemnified person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (e) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of
this subsection (e), a Purchaser shall not be required to contribute any amount in excess of the amount by which the net amount received by such Purchaser from the sale of the Exchange Shares to which
such loss relates exceeds the amount of any damages which such Purchaser has otherwise been required to pay by reason of such untrue statement. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. Each Purchaser's obligations in
this subsection (e) to contribute shall be in proportion to its sale of Exchange Shares to which such loss relates and shall not be joint with any other Selling Stockholders. 

        (f)    The
parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the
provisions hereof including, without limitation, the provisions of this Section 7.4, and are fully informed regarding said provisions. They further acknowledge that the provisions of this
Section 7.4 fairly allocate the risks in light of the ability of the parties to investigate Parent and its business in order to assure that adequate disclosure is made in the Registration
Statement as required by the Securities Act. The parties are advised that federal or state public policy as interpreted by the courts in certain jurisdictions may be contrary to certain of the
provisions of this Section 7.4, and the parties hereto hereby expressly waive and relinquish any right or ability to assert such public policy as a defense to a claim under this
Section 7.4 and further agree not to attempt to assert any such defense. 

        7.5   Registration Expenses. Parent will bear all expenses incident to or incurred in connection with the preparation and
filing of the Registration Statement whether or not declared effective, including, without limitation, all registration and filing fees and expenses, fees and expenses of compliance with federal and
state securities laws or with blue sky laws as provided in Section 7.1(f), any NASD filing fees required to be made in connection with an underwritten offering of the Exchange Shares, 

15

 

application
and filing fees and expenses, duplicating and printing expenses, and fees and disbursements of counsel to Parent (including expenses of legal opinions) and all independent accountants, but
excluding fees and expenses of counsel to any of the Purchasers, fees and expenses of any accountants, engineers, consultants or any other advisers to the Purchasers, any underwriting discount or
commission and any broker-dealer sales commission that the Purchasers may incur in disposing of their Exchange Shares. 

        7.6   Termination of Conditions and Obligations. The conditions precedent imposed by this Agreement upon the transferability of
the Exchange Shares, shall cease and terminate as to any particular Exchange Share when the sale of the Exchange Share shall have been effectively registered under the Securities Act and sold or
otherwise disposed of in accordance with the intended method of disposition set forth in the Registration Statement covering the sale of the Exchange Share or at such time as an opinion of counsel
reasonably satisfactory to Parent shall have been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act. 

8.    Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed (A) if within
the United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered from outside the
United States, by International Federal Express or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail, three (3) business days after so
mailed, (ii) if delivered by nationally recognized overnight carrier, one (1) business day after so mailed, (iii) if delivered by International Federal Express, two
(2) business days after so mailed, (iv) if delivered by facsimile, upon electronic confirmation of receipt and shall be delivered as addressed as set forth in the Partnership Purchase
Agreement. 

9.    Reliance. Each Purchaser and Parent understand and agree that the other party and its respective officers, directors, employees and
agents may, and will, rely on the accuracy of the other party's respective representations and warranties in this Agreement to establish compliance with applicable securities laws. Each Purchaser and
Parent agree to indemnify and hold harmless all such parties against all losses, claims, costs, expenses and damages or liabilities which they may suffer or incur caused or arising from their reliance
on such representations and warranties. 

10.    Termination. This Agreement shall terminate upon the earliest to occur of: 

        (a)   the
consummation of the IPO; 

        (b)   as
to any Purchaser, the agreement of Parent and such Purchaser to terminate this Agreement; 

        (c)   the
liquidation and dissolution of the Partnership; or 

        (d)   the
date that the Registration Statement is declared effective by the Commission; 

provided,
however, that in the event that this Agreement is terminated pursuant to this Section 10 prior to the time specified in Section 7.1(c), the terms of Article 7 shall
survive until the time specified in Section 7.1(c). 

        The
date of the termination of this Agreement is referred to in this Agreement as the "Termination Date." 

11.    Miscellaneous. 

        11.1 Survival. The representations and warranties made in this Agreement shall survive the closing of the transactions
contemplated by this Agreement. 

        11.2 Assignment. This Agreement is not transferable or assignable, except that the rights of the Purchasers set forth in
Section 7 hereof shall be transferable by a Purchaser to its Affiliate. 

16

 

        11.3 Execution and Delivery of Agreement. Parent shall be entitled to rely on delivery by facsimile transmission of an
executed copy of this Agreement, and acceptance by Parent of such facsimile copy shall create a valid and binding agreement between the Purchaser and Parent. 

        11.4 Titles. The titles of the sections and subsections of this Agreement are for the convenience of reference only and are
not to be considered in construing this Agreement. 

        11.5 Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect or limit
the validity or enforceability of the remaining provisions of this Agreement. 

        11.6 Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to
the subject matters herein and supersedes and replaces any prior agreements and understandings, whether oral or written, between them with respect to such matters. 

        11.7 Waiver and Amendment. Except as otherwise provided herein, the provisions of this Agreement may be waived, altered,
amended or repealed, in whole or in part, only upon the mutual written agreement of Parent and Purchasers acquiring in the aggregate a majority of the Exchange Shares pursuant to this Agreement and if
any such amendment, modification, restatement or supplement would adversely affect the rights or increase the obligations of any Purchaser hereunder, the approval of such Purchaser will be required
for such amendment, modification, restatement or supplement. This Section 11.7 shall not be amended, modified, restated or supplemented without the written approval of 100% of the Purchasers.
No waiver of any provision of this Agreement shall be valid unless in writing and signed by the party against who that waiver is sought to be enforced. No failure or delay on the part of any of the
parties in exercising any right, power or privilege hereunder, and no course of dealing between or among any of the parties, shall operate as a waiver of any right, power or privilege hereunder. No
single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. No notice
to or demand on any of the parties in any case shall entitle such party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of any party to
any other or further action in any circumstances without notice or demand. 

        11.8 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. In the event that this Agreement is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format date file, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof. 

        11.9 Governing Law. This Agreement is governed by and shall be construed in accordance with the laws of the State of New
York. 

        11.10 Submission to Jurisdiction. Each of the parties to this Agreement hereby (a) irrevocably submits to the
non-exclusive personal jurisdiction of any New York state or federal court, over any claim arising out of or relating to this Agreement and irrevocably agrees that all such claims may be
heard and determined in such New York state or federal court, and (b) irrevocably waives, to the fullest extent permitted by applicable law, any objection it may now or hereafter have to the
laying of venue in any proceeding brought in a New York state or federal court, and any claim that any such proceeding brought in a New York state or federal court, has been brought in an inconvenient
forum; provided, however, that nothing in this paragraph is intended to waive the right of any of the parties to remove any such action or proceeding
commenced in any a New York state court to an appropriate New York federal court to the extent the basis for such removal exists under applicable law. Each of the parties hereby irrevocably agrees
that service of process may be made on him, her or it by mailing, by certified mail, a copy of such process to such party at his, her or its address for notices specified 

17

 

herein.
Each of the parties agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this paragraph shall affect the right of any of the parties to serve legal process in any other manner permitted by law or affect the right of any of the parties to bring
any action or proceeding in the courts of any other jurisdictions, domestic or foreign. 

        11.11 Attorney's Fees. In any action or proceeding brought to enforce any provision of this Agreement, or where any provision
hereof is validly asserted as a defense, the successful party shall be entitled to recover reasonable attorney's fees (including any fees incurred in any appeal) in addition to its costs and expenses
and any other available remedy. 

        11.12 Independent Nature of Purchaser's Obligations and Rights. The obligations of each Purchaser under this Agreement are
several and not joint with the obligations of any other present or subsequent purchaser of the Exchange Shares, and each Purchaser shall not be responsible in any way for the performance of the
obligations of any other Purchaser under this Agreement. The decision of each Purchaser to exchange Purchased Common Units for Exchange Shares pursuant to this Agreement will be made by such Purchaser
independently of any other Purchaser of the Exchange Shares and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties,
liabilities, results of operations, condition (financial or otherwise) or prospects of Parent or the Partnership that may have been made or given by any other Purchaser or by any agent or employee of
any such Purchaser, and no Purchaser or any of its agents or employees shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such information,
materials, statements or opinions. Nothing contained herein and no action taken by any Purchaser pursuant hereto, shall be deemed to constitute such Purchaser as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that such Purchaser is in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this
Agreement. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making an investment in the Exchange Shares and that no other Purchaser will be
acting as agent of such Purchaser in connection with monitoring its investment in the Exchange Shares. Each Purchaser shall be entitled to independently protect and enforce its rights, including
without limitation the rights arising out of this Agreement and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser
represents that it has been represented by its own separate legal counsel in its review and negotiations of this Agreement. 

        11.13 Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit
of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto and shall inure to the benefit of and be enforceable by each person who shall be a holder of
the Exchange Shares from time to time. 

        11.14 Remedies. The Parties agree that the covenants and obligations in this Agreement relate to special, unique and
extraordinary matters and that a violation of any of the terms hereof would cause irreparable injury in an amount which would be impossible to estimate or determine and for which any remedy at law
would be inadequate. As such, the parties agree that if any of the parties fails or refuses to fulfill any of its obligations under this Agreement or to make any payment or deliver any instrument
required hereunder, then the other parties shall have the remedy of specific performance, which remedy shall be cumulative and nonexclusive and shall be in addition to any other rights and remedies
otherwise available under any other contract or at law or in equity and to which such party might be entitled. 

18

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

	 	 	ABRAXAS PETROLEUM CORPORATION
	

 	
 	

By:	

/s/ Chris E. Williford

	 	 	Name:	Chris E. Williford
	 	 	Title:	Executive Vice President, Chief Financial Officer and Treasurer
	

 	
 	
ABRAXAS ENERGY PARTNERS, L.P.
	 	 	By:	Abraxas General Partner, LLC, General Partner
	

 	
 	

 	

By:	

/s/ Barbara M. Stuckey

	 	 	 	Name:	Barbara M. Stuckey
	 	 	 	Title:	President and Chief Operating Officer

[PURCHASER
SIGNATURE PAGES TO FOLLOW] 

	 	 	MANAGEMENT STOCKHOLDERS:
	

 	
 	

The undersigned agree to the provisions of Section 3.8.
	

 	
 	

/s/ Robert L.G. Watson
 Robert L.G. Watson
	

 	
 	

/s/ Chris E. Williford
 Chris E. Williford
	

 	
 	

/s/ Steven T. Wendel
 Steven T. Wendel
	

 	
 	

/s/ Lee Billingsley
 Lee Billingsley
	

 	
 	

/s/ William Wallace
 William Wallace
	

 	
 	

/s/ Barbara M. Stuckey
 Barbara M. Stuckey
	

 	
 	
DIRECTORS:
	

 	
 	

/s/ Franklin A. Burke
 Franklin A. Burke

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Exhibit 4.3  

        REGISTRATION RIGHTS AGREEMENT  

 by and among  

 ABRAXAS ENERGY PARTNERS, L.P.  

 and  

 THE PURCHASERS NAMED HEREIN  

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE I DEFINITIONS	 	1
	 	
SECTION 1.01	
 	

DEFINITIONS	
 	

1
	 	SECTION 1.02	 	REGISTRABLE SECURITIES	 	3
	
ARTICLE II REGISTRATION RIGHTS	
 	

3
	 	
SECTION 2.01	
 	

SHELF REGISTRATION	
 	

3
	 	SECTION 2.02	 	PIGGYBACK REGISTRATION	 	6
	 	SECTION 2.03	 	UNDERWRITTEN OFFERING	 	8
	 	SECTION 2.04	 	REGISTRATION PROCEDURES	 	9
	 	SECTION 2.05	 	COOPERATION BY HOLDERS	 	11
	 	SECTION 2.06	 	RESTRICTIONS ON PUBLIC SALE BY HOLDERS OF REGISTRABLE SECURITIES	 	12
	 	SECTION 2.07	 	EXPENSES	 	13
	 	SECTION 2.08	 	INDEMNIFICATION	 	13
	 	SECTION 2.09	 	RULE 144 REPORTING	 	15
	 	SECTION 2.10	 	LIMITATION ON SUBSEQUENT REGISTRATION RIGHTS	 	15
	
ARTICLE III MISCELLANEOUS	
 	

16
	 	
SECTION 3.01	
 	

COMMUNICATIONS	
 	

16
	 	SECTION 3.02	 	SUCCESSOR AND ASSIGNS	 	16
	 	SECTION 3.03	 	TRANSFER OR ASSIGNMENT OF REGISTRATION RIGHTS	 	16
	 	SECTION 3.04	 	AGGREGATION OF REGISTRABLE SECURITIES	 	16
	 	SECTION 3.05	 	RECAPITALIZATION, EXCHANGES, ETC. AFFECTING THE COMMON UNITS	 	16
	 	SECTION 3.06	 	CHANGE OF CONTROL	 	17
	 	SECTION 3.07	 	SPECIFIC PERFORMANCE	 	17
	 	SECTION 3.08	 	COUNTERPARTS	 	17
	 	SECTION 3.09	 	HEADINGS	 	17
	 	SECTION 3.10	 	GOVERNING LAW	 	17
	 	SECTION 3.11	 	SEVERABILITY OF PROVISIONS	 	17
	 	SECTION 3.12	 	ENTIRE AGREEMENT	 	17
	 	SECTION 3.13	 	AMENDMENT	 	17
	 	SECTION 3.14	 	NO PRESUMPTION	 	18
	 	SECTION 3.15	 	INTERPRETATION	 	18

i

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and entered into as of May 25, 2007, by and
among ABRAXAS ENERGY PARTNERS, L.P., a Delaware limited partnership (the "Partnership"), and the Purchasers listed on the signature pages attached
hereto (individually, a "Purchaser" or collectively "Purchasers"). Capitalized terms used herein without
definition shall have the meanings given to them in the Purchase Agreement, as defined below. 

 
 

RECITALS    
    

        WHEREAS, as of the date hereof, the Partnership and the Purchasers entered into a Purchase Agreement dated as of
May 25, 2007 (the "Purchase Agreement"), pursuant to which the Partnership agreed to issue and sell to each Purchaser, and each Purchaser agreed
to purchase from the Partnership, the Purchased Securities; and 

        WHEREAS, to induce the Purchasers to enter into the Purchase Agreement and to consummate the transactions contemplated therein, the
Partnership has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Purchasers; and 

        WHEREAS, it is a condition to the consummation of the transaction contemplated by 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 1.01    Definitions.    The terms set forth below are used herein as so defined: 

        "ABP" means Abraxas Petroleum Corporation, a Nevada corporation. 

        "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. 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. 

        "Agreement" has the meaning specified therefor in the introductory paragraph. 

        "Business Day" means any day other than a Saturday, Sunday, or a legal holiday for commercial banks in New York, New York. 

        "Commission" means the United States Securities and Exchange Commission. 

        "Common Stock" means common stock, par value $.01 per share, of ABP. 

        "Common Units" has the meaning assigned to such term in the Partnership Agreement. 

        "Effectiveness Period" has the meaning specified in Section 2.01(a)(i). 

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

        "Exchange Agreement" means that certain Exchange and Registration Rights Agreement dated as of the date hereof by and among ABP and the
purchasers named therein. 

        "Holder" means the record holder of any Registrable Securities. 

        "Included Registrable Securities" has the meaning specified in Section 2.02(a). 

 

        "IPO" means the initial public offering of Common Units by the Partnership under the Securities Act that results in the Common Units being
listed for trading on the New York Stock Exchange, the Nasdaq Global Market or the American Stock Exchange or any affiliate of the New York Stock Exchange, the Nasdaq Global Market or the American
Stock Exchange. 

        "IPO Liquidated Damages Amount" shall mean an amount equal to 0.25% of the product of $16.66 (subject to appropriate adjustments for any
subdivision or combination of the Purchased Securities after the date hereof) times the number of Purchased Securities then held by such Purchaser per 30-day period, that shall accrue
daily, for the first 60 days, with such amount increasing by an additional 0.25% of the product of $16.66 (subject to appropriate adjustments for any subdivision or combination of Purchased
Securities after the date hereof) times the number of Purchased Securities then held by such Purchaser per 30-day period for each subsequent 60 days, up to a maximum per
30-day period of 1.00% of the product of $16.66 (subject to appropriate adjustments for any subdivision or combination of Purchased Securities after the date hereof) times the number of
Purchased Securities then held by such Purchaser. The IPO Liquidated Damages Amount for any period of less than 30-days shall be prorated by multiplying the IPO Liquidated Damages Amount
to be paid in a full 30-day period by a fraction, the numerator of which is the number of days for which the IPO Liquidated Damages Amount is owed, and the denominator of which is 30. 

        "IPO Registration Statement" has the meaning specified in Section 2.01(a). 

        "Liquidated Damages" has the meaning specified in Section 2.01(e)(i). 

        "Losses" has the meaning specified in Section 2.08(a). 

        "Managing Underwriter" means the book running lead manager or managers of any Underwritten Offering including the IPO. 

        "Partnership" has the meaning specified therefor in the introductory paragraph. 

        "Partnership Agreement" means the First Amended and Restated Agreement of Limited Partnership of Abraxas Energy Partners, L.P. dated
May 25, 2007. 

        "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 Statement or Prospectus" has the meaning specified in  Section 2.02(b). 

        "Purchase Agreement" has the meaning specified in the recitals. 

        "Purchased Securities" means the Common Units issued and sold by the Partnership pursuant to the Purchase Agreement. 

        "Purchased Underwriter Registration Statement" has the meaning specified in Section 2.05(m). 

        "Purchasers" has the meaning specified in the introductory paragraph hereto. 

        "Registrable Securities" means the Common Units (i) comprising the Purchased Securities and any units or other equity securities
issued in exchange therefor in connection with any merger, consolidation, recapitalization or other business combination involving the Partnership, (ii) issued as Liquidated Damages pursuant to  Section 2.01(e)(i)
, or (iii) issued in respect of such Purchased Securities by reason of or in connection with any dividend, distribution,
split or purchase in any rights offering, until such time as such securities cease to be Registrable Securities pursuant to Section 1.02. 

        "Registration Expenses" has the meaning specified therefor in Section 2.07(a). 

        "Required Effective Date" has the meaning specified in Section 2.01(a)(i). 

2

 

        "S-3 Shelf Registration Statement" has the meaning specified in  Section 2.01(b). 

        "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 in Section 2.07(a)(ii). 

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

        "Selling Holder Indemnified Persons" has the meaning specified in Section 2.08(a). 

        "Shelf Liquidated Damages" shall mean an amount equal to 0.25% of the product of $16.66 (subject to appropriate adjustments for any
subdivision or combination of Registrable Securities after the date hereof) times the number of Registrable Securities then held by such Holder (and not then included on an effective Piggyback
Registration Statement or Prospectus) per 30-day period, that shall accrue daily, for the first 60 days, with such amount increasing by an additional 0.25% of the product of $16.66
(subject to appropriate adjustments for any subdivision or combination of Registrable Securities after the date hereof) times the number of Registrable Securities then held by such Holder (and not
then included on an effective Piggyback Registration Statement or Prospectus) per 30-day period for each subsequent 60 days, up to a maximum per 30-day period of 1.00%
of the product of $16.66 (subject to appropriate adjustments for any subdivision or combination of Registrable Securities after the date hereof) times the number of Registrable Securities then held by
such Holder. Shelf Liquidated Damages for any period of less than 30-days shall be prorated by multiplying the Shelf Liquidated Damages to be paid in a full 30-day period by a
fraction, the numerator of which is the number of days for which Shelf Liquidated Damages are owed, and the denominator of which is 30. 

        "Shelf Registration Filing Date" has the meaning specified in Section 2.01(a)(i). 

        "Shelf Registration Statement" has the meaning specified in Section 2.01(a)(i). 

        "Underwritten Offering" means an offering (including an offering pursuant to a Shelf Registration Statement) in which Common Units are
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 1.02    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)
or is eligible for sale without registration, pursuant to Rule 144(k) promulgated by the Commission pursuant to the Securities Act (or any similar provision then in force under the Securities
Act), in the opinion of counsel to the Partnership; (c) such Registrable Security is held by the Partnership or one of its subsidiaries; (d) such Registrable Security has been converted
into shares of Common Stock pursuant to the Exchange Agreement; (e) the Partnership is liquidated and dissolved of the Partnership; or (f) 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. 

 
 

ARTICLE II
  REGISTRATION RIGHTS    
    

        Section 2.01    Shelf Registration.    

        (a)   Shelf Registration and IPO Registration. 

        (i)    As
soon as practicable following the Closing Date, the Partnership shall use its commercially reasonable efforts to prepare and file with the Commission (i) a
registration 

3

 

statement
under the Securities Act for an IPO (the "IPO Registration Statement") and (ii) a registration statement under the Securities Act to
permit the public resale by the Holders of the Registrable Securities from time to time as permitted by Rule 415 (or any similar provision then in force) of the Securities Act (the
"Shelf Registration Statement"). The Partnership shall use its commercially reasonable efforts to cause the IPO Registration Statement and the Shelf
Registration Statement to become effective on or before February 14, 2008 (the "Required Effective Date"). The IPO Registration Statement and the
Shelf Registration Statement filed pursuant to this Section 2.01(a)(i) shall be on such appropriate registration form of the Commission as shall
be selected by the Partnership. 

        (ii)   The
Partnership shall cause the Shelf Registration Statement filed pursuant to Section 2.01(a)(i) to be
continuously effective, supplemented and amended to the extent necessary to ensure that it is available for the resale of all Registrable Securities by the Holders and that it conforms in all material
respects with the requirements of the Securities Act during the entire period beginning on the date the Shelf Registration Statement first is declared effective under the Securities Act and ending on
the earlier to occur of (i) the date all Registrable Securities covered by such Shelf Registration Statement have been distributed in the manner set forth and as contemplated in the Shelf
Registration Statement and (ii) the date on which all Registrable Securities covered by the Shelf Registration Statement have ceased to be Registrable Securities hereunder in accordance with  Section 1.02 (the "Effectiveness Period"). The Shelf Registration Statement when declared
effective will comply as to form in all material respects with all applicable requirements of the Securities 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. As soon as practicable following the date that the Shelf Registration Statement becomes effective, but in
any event within three Business Days of such date, the Partnership shall provide the Purchasers with written notice of the effectiveness of the Shelf Registration Statement. 

        (iii)  If
the Shelf Registration Statement is not declared effective by the Commission by the Required Effective Date, then following the Required Effective Date, until such
time as the Shelf Registration Statement is declared effective or there are no longer any Registrable Securities outstanding, the Partnership shall pay each Holder with respect to any such failure,
Shelf Liquidated Damages as liquidated damages and not as a penalty. The Holders' rights to be paid Shelf Liquidated Damages under this  Section 2.01 shall terminate when such Registrable Securities
cease to be Registrable Securities. If the Partnership is unable to proceed with
the Shelf Registration Statement due to (i) trading in securities generally on the exchange in which the Partnership has applied to list its securities having been suspended or materially
disrupted, (ii) a banking moratorium having been declared by federal or state authorities, or (iii) there having been a declaration of a national emergency by the President of the United
States or a declaration of war by the United States Congress, then the Partnership's obligation to pay the Shelf Liquidated Damages pursuant to this section shall temporarily cease until the
Partnership, in its good faith judgment, is no longer unable to proceed with the Shelf Registration Statement. 

        (iv)  If
the IPO Registration Statement is not declared effective by the Commission by the Required Effective Date, then the Partnership shall pay each Holder, as liquidated
damages and not as a penalty, the IPO Liquidated Damages Amount. The payment of the IPO Liquidated Damages Amount to a Holder pursuant to this provision shall cease at the earlier of (i) the
consummation of an IPO; (ii) the dissolution and liquidation of the Partnership; and (iii) the later of November 14, 2008 and the date on which the shareholders of ABP approve an
exchange of the Purchased Securities then held by the Holders into shares of Common Stock pursuant to the Exchange Agreement. If the Partnership is unable to proceed with the IPO due to
(i) trading in securities generally on the exchange in which the Partnership has applied to list its securities 

4

 

having
been suspended or materially disrupted, (ii) a banking moratorium having been declared by federal or state authorities, or (iii) there having been a declaration of a national
emergency by the President of the United States or a declaration of war by the United States Congress, then the Partnership's obligation to pay the IPO Liquidated Damages Amount pursuant to this
section shall temporarily cease until the Partnership, in its good faith judgment, is no longer unable to proceed with the IPO. 

        (b)   S-3 Registration Statement. If the Partnership becomes eligible to use Form S-3 or such
other short-form registration statement form under the Securities Act, the Partnership shall promptly give notice of such eligibility to the Holders covered thereby and may (unless the
Holders reasonably object) or shall, at the request of the Holders, promptly convert the Shelf Registration Statement on Form S-1 to a registration statement on
Form S-3 or such other short-form registration statement by means of a post-effective amendment or otherwise (the "S-3
Shelf Registration Statement") for the resale of any then existing Registrable Securities unless any Holder with Registrable Securities registered under the Shelf Registration
Statement notifies the Partnership within 10 Business Days of receipt of the Partnership notice that such conversion would interfere with its distribution of Registrable Securities already in progress
and provides a reasonable explanation therefor, in which case the Partnership will delay the conversion of the Shelf Registration Statement for a reasonable time after receipt of the first such
notice, not to exceed 30 days in the aggregate, for all Holders requesting such suspension (unless the Partnership, at such time as the conversion from Form S-1 to
Form S-3 or such other short-form registration statement may occur, would otherwise be required to amend the Shelf Registration Statement and require that Holders
suspend sales). Upon the effectiveness of the S-3 Shelf Registration Statement, all references to the Shelf Registration Statement in this Agreement shall then automatically be deemed to
be a reference to the S-3 Shelf Registration Statement. 

        (c)   Delay Rights. Notwithstanding anything to the contrary contained in this Agreement, the Partnership may, upon written
notice to any Selling Holder whose Registrable Securities are included in the Shelf Registration Statement, from time to time suspend such Selling Holder's use of any prospectus which is a part of the
Shelf Registration Statement (in which event the Selling Holder covenants and agrees that it shall immediately discontinue sales of the Registrable Securities pursuant to the Shelf Registration
Statement), for a period or periods not to exceed an aggregate of either 60 days in a 90-day period or 90 days in any 365-day period, if (i) the
Partnership is pursuing a material acquisition, merger, reorganization, disposition or other similar transaction and the Partnership determines in good faith that the Partnership's ability to pursue
or consummate such a transaction would be materially adversely affected by any required disclosure of such transaction in the Shelf Registration Statement, (ii) the Partnership has experienced
some other material non-public event or is in possession of material non-public information concerning the Partnership, the disclosure of which at such time, in the good faith
judgment of the Partnership, would materially adversely affect the Partnership, or (iii) at any time prior to the time when the Partnership is eligible to utilize the S-3 Shelf
Registration Statement, the Partnership has prepared and filed with the Commission a post-effective amendment for the purpose of updating financial information or other information therein
and such post-effective amendment has not been declared effective by the Commission. Upon disclosure of such information or the termination of the condition or expiration of the period
described above, as applicable, the Partnership shall provide prompt notice within two Business Days to each Selling Holder 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. 

        (d)   Delay in Effectiveness of Shelf Registration Statement; Certain Suspensions. If (i) the Holders shall be
prohibited from selling their Registrable Securities included under the Shelf Registration Statement as a result of a suspension pursuant to  Section 2.01(c) in excess of the periods permitted
therein or (ii) the Shelf Registration Statement is filed and declared effective but,
during the 

5

 

Effectiveness
Period, shall thereafter cease to be effective or fail to be usable for its intended purpose (other than in connection with a suspension pursuant to  Section 2.01(c)) without being succeeded by a
post-effective amendment to the Shelf Registration Statement, a supplement to the
prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, then until the suspension is lifted or a post-effective
amendment, supplement or report is filed with the Commission, but not including any day on which a suspension is lifted or such amendment, supplement or report is filed, if applicable, the Partnership
shall pay the Holders Shelf Liquidated Damages with respect to the Registrable Securities registered thereon, following (x) the date on which the suspension period exceeded the permitted period
under Section 2.01(c), if applicable, or (y) the eleventh Business Day after the Shelf Registration Statement ceased to be effective or
failed to be useable for its intended purposes, if applicable, as liquidated damages and not as a penalty. For purposes of this Section 2.01(d),
a suspension shall be deemed lifted on the date that notice that the suspension has been lifted is delivered to the Purchasers pursuant to  Section 3.01 of this Agreement. 

        (e)   Liquidated Damages. 

        (i)    General. The Shelf Liquidated Damages or IPO Liquidated Damages Amount (collectively, "Liquidated
Damages") payable to each Holder pursuant to this Agreement shall be payable within ten Business Days of the end of each such 30-day period. Any Liquidated Damages
shall be paid to each Holder in cash or immediately available funds; provided, however, that if the Partnership certifies that it is unable to pay Liquidated Damages in cash or immediately available
funds because such payment would result in a breach under any of the Partnership's or its subsidiaries' credit facilities, then the Partnership may pay the Liquidated Damages in kind in the form of
the issuance of additional Common Units. Upon any issuance of Common Units as Liquidated Damages, the Partnership shall promptly prepare and file an amendment to the Shelf Registration Statement prior
to its effectiveness adding such Common Units to such registration statement as additional Registrable Securities. The determination of the number of Common Units to be issued as Liquidated Damages
shall be equal to the amount of Liquidated Damages divided by the lesser of (i) market value of each Common Unit at the time the Liquidated Damages are paid or (ii) $16.66 (subject to
appropriate adjustments for any subdivision or combination of Registrable Securities after the date hereof). Any payments made pursuant to  Section 2.01 shall constitute the Holders' exclusive
remedy for such events. Liquidated Damages shall be paid to the Holders in immediately
available funds. 

        (ii)   Limitation. Notwithstanding anything in this Agreement to the contrary, the Holders shall not be entitled to receive
Shelf Liquidated Damages if the Partnership is already paying the Holders the IPO Liquidated Damages Amount. 

        Section 2.02    Piggyback Registration.    

        (a)   IPO Participation. Prior to the filing of an IPO Registration Statement, the Partnership shall offer the Holders then
holding more than $10 million of Registrable Securities (calculated based on the Per Unit Purchase Price of such Common Units), the opportunity to include in such IPO such number of Registrable
Securities as each such Holder may request in writing. Subject to Section 2.02(c), the Partnership shall include in such IPO Registration
Statement all such Registrable Securities ("Included Registrable Securities") with respect to which the Partnership has received requests within ten
Business Days after the Partnership's notice has been delivered in accordance with Section 3.01. If no request for inclusion from a Holder is
received within the specified time, such Holder shall have no further right to participate in the IPO. If, at any time after giving written notice of its intention to undertake an IPO and prior to the
closing of such IPO, the Partnership shall determine for any reason not to undertake or to delay such IPO, the Partnership may, at its election, give written notice of such determination to the
Selling Holders and, (i) in the case of a determination not to undertake such IPO, shall be relieved of its obligation to sell any Included Registrable Securities in connection with such
terminated IPO, and 

6

 

(ii) in
the case of a determination to delay such IPO, shall be permitted to delay offering any Included Registrable Securities for the same period as the delay in the IPO. If any Holder
disapproves of the terms of such IPO, such Holder may elect to withdraw therefrom by written notice to the Partnership and the Managing Underwriter delivered (i) prior to the commencement of
any marketing efforts for the Underwritten Offering or (ii) at any time up to and including the time of pricing of the Underwritten Offering if the price to the public at which the Registrable
Securities are proposed to be sold is not within the price range stated on the front cover of the preliminary prospectus for the IPO. The Partnership will provide notice to the Holders on the second
trading day prior to the date of commencement of marketing efforts and the applicable price or price range determined under the immediately preceding sentence. If any Holder disapproves of the terms
of an Underwritten Offering, such Holder may elect to withdraw therefrom by written notice to the Partnership of such withdrawal up to and including the time of pricing of such offering. No such
withdrawal shall affect the Partnership's obligation to pay all Registration Expenses. 

        (b)   Underwritten Offering Participation. If at any time after the closing of an IPO, the Partnership proposes to
file (i) a shelf registration statement or (ii) a registration statement other than a shelf registration statement, in either case, for the sale of Common Units in an Underwritten
Offering for its own account and/or the account of another Person, then as soon as practicable but not less than ten Business Days prior to the filing of (x) any preliminary prospectus
supplement to a prospectus that includes the Registrable Securities, relating to such Underwritten Offering pursuant to Rule 424(b), (y) the prospectus supplement to a prospectus that
includes the Registrable Securities, relating to such Underwritten Offering pursuant to Rule 424(b) (if no preliminary prospectus supplement is used) or (z) such registration statement,
as the case may be (any of the foregoing registration statements, a "Piggyback Registration Statement or Prospectus"), the Partnership shall give notice
of such proposed Underwritten Offering to the Holders then holding more than $10 million of Registrable Securities (calculated based on the Per Unit Purchase Price of such Common Units) and
such notice shall offer the Holders the opportunity to include in such Underwritten Offering such number of Registrable Securities as each such Holder may request in writing. Subject to  Section 2.02(c), the Partnership shall include in such Underwritten Offering all such Registrable Securities with respect to which the
Partnership has received requests within five Business Days after the Partnership's notice has been delivered in accordance with Section 3.01. 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 Underwritten Offering. 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, the Partnership shall determine for any reason not to undertake or to delay such
Underwritten Offering, the Partnership may, at its election, give written notice of such determination to the Selling Holders and, (i) in the case of a determination not to undertake such
Underwritten Offering, shall be relieved of its obligation to sell any Registrable Securities included in such offering in connection with such terminated Underwritten Offering, and (ii) in the
case of a determination to delay such Underwritten Offering, shall be permitted to delay offering any such Registrable Securities for the same period as the delay in the Underwritten Offering. If any
Holder disapproves of the terms of an Underwritten Offering, such Holder may elect to withdraw therefrom by written notice to the Partnership of such withdrawal up to and including the time of pricing
of such offering. No such withdrawal shall affect the Partnership's obligation to pay all Registration Expenses. 

        (c)   Priority of Registration. If the Managing Underwriter or Underwriters of any proposed Underwritten Offering of Common
Units determines that the total amount of Common Units which the Selling Holders and any other Persons intend to include in such offering pursuant to  Section 2.02(a) and (b) exceeds the number which can be sold in such offering without being
likely to have an adverse effect in any material respect on the price, timing or distribution of the Common Units offered or the market for the Common Units, then the Common Units to be included in
such Underwritten Offering shall include the number of Registrable Securities that such Managing Underwriter or Underwriters 

7

 

advises
the Partnership can be sold without having such adverse effect, with such number to be first allocated to the Partnership and second, if there remains availability for additional Common Units
to be included in such Underwritten Offering, pro rata among the Selling Holders and third, if there remains availability for additional Common Units to
be included in such Underwritten Offering, pro rata among other holders of securities of the Partnership who have requested participation in the Underwritten Offering. 

        Section 2.03    Underwritten Offering.    

        (a)   Underwritten Offering. Any one or more Holders may deliver written notice to the Partnership that such Holders wish to
dispose of Registrable Securities under the Shelf Registration Statement in an Underwritten Offering if the Holders reasonably anticipate selling collectively at least $20 million of Common
Units (calculated based on the Per Unit Purchase Price of such Common Units). Upon receipt of such written request, the Partnership shall use commercially reasonable efforts to retain underwriters and
effect such sale through an Underwritten Offering and take all commercially reasonable actions as are reasonably requested by the Managing Underwriter or underwriters to expedite or facilitate the
disposition of such Registrable Securities, including the entering into an underwriting agreement, and participation by the Partnership's management in a "road show" or similar marketing effort;  provided, however, that the Partnership shall not be required to cause its management to participate in
a "road show" or similar marketing effort on behalf of any Holder if (i) the Managing Underwriter or underwriters of any such proposed Underwritten Offering advise the Partnership that the
gross proceeds of the Underwritten Offering are not expected to exceed $30 million; and (ii) a "bought deal" or "overnight transaction" is contemplated. The Partnership may elect to
include primary Common Units in any Underwritten Offering undertaken pursuant to this Section 2.03(a). In addition, any Underwritten Offering
undertaken pursuant to this Section 2.03 will be subject to the provisions of  Section 2.02(c). 

        (b)   General Procedures. In connection with an Underwritten Offering, each Selling Holder and the Partnership shall be
obligated to enter into an underwriting agreement which contains such representations, covenants, indemnities and other rights and obligations as are customary in underwriting agreements for firm
commitment offerings of 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, securities escrow agreements and other documents reasonably required under the terms of such
underwriting agreement, and furnish to the Partnership such information as the Partnership may reasonably request in writing for inclusion in the IPO Registration Statement, Piggyback Registration
Statement or Prospectus or Shelf Registration Statement, as the case may be. 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, the Partnership 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
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 the Partnership 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 the Offering contemplated by this  Section 2.03, such
Selling Holder may elect to withdraw therefrom by notice to the Partnership and the Managing Underwriter and such withdrawal
may be made up to and including the time of pricing of the Underwritten Offering. No such withdrawal or abandonment shall affect the Partnership's obligation to pay Registration Expenses. 

        (c)   Appointment of Underwriters. In connection with an Underwritten Offering, the Partnership shall have the sole right to
appoint the Managing Underwriters. 

8

 

        Section 2.04    Registration Procedures.    In connection with its obligations contained in  Section 2.01 and 2.02hereof, the Partnership will, as promptly as reasonably practicable: 

        (a)   subject
to Section 2.01(c), prepare and file with the Commission the Shelf Registration Statement, and any
amendments and supplements thereto and the prospectus used in connection therewith or reports filed with the Commission pursuant to Section 13(a), 13(c), 14 of 15(d) of the Exchange Act 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 Registrable Securities included in 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 and the Prospectus included therein 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 each
Selling Holder 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 any Selling Holder or, in the case of an Underwritten Offering, the Managing
Underwriter, shall reasonably request, provided that the Partnership 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 of Registrable Securities, at any time when a prospectus relating thereto is required to be delivered by any of
them under the Securities Act, of (i) the filing of the Shelf Registration Statement or any other registration statement contemplated by this Agreement or any prospectus or prospectus
supplement to be used in connection therewith, 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 (other than any event specified in Section 2.01(c))as a result of which the prospectus or prospectus
supplement contained in the Shelf Registration Statement or any other registration statement contemplated by this Agreement, as then in effect, 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,  provided, however, that the Partnership shall not be required to specify in the written notice to the
Selling Holders the nature of such event; (ii) the issuance or threat of issuance by the Commission of any stop order suspending the 

9

 

effectiveness
of the Shelf Registration Statement or any other registration statement contemplated by this Agreement, or the initiation of any proceedings for that purpose; (iii) the receipt by
the Partnership 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; or
(iv) the Commission requests that the Shelf Registration Statement or any other registration statement contemplated by this Agreement be amended or supplemented; following the provision of such
notice, the Partnership 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 such stop order, suspension, threat thereof or proceedings related thereto; 

        (f)    in
the case of an Underwritten Offering under Section 2.02 and  2.03 hereof, use its commercially reasonable efforts to furnish upon request, (i) an
opinion of counsel for the Partnership, dated the effective
date of the applicable registration statement or the date of any amendment or supplement thereto, and an opinion in customary form dated the date of the closing of the Underwritten Offering, and
(ii) a "cold comfort" letter or letters, dated the date of execution of the underwriting agreement and a letter or letters of like kind dated the date of the closing of the Underwritten
Offering, in each case, signed by the independent public accountants who have certified the financial statements included or incorporated by reference into the applicable registration statement, and
each of the opinion and the "cold comfort" letter or letters shall be in customary form and covering substantially the same matters with respect to such registration statement (and the prospectus and
any prospectus supplement included therein) and as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to the underwriters in Underwritten Offerings of
securities, and such other matters as such underwriters may reasonably request; 

        (g)   upon
request, furnish to each Selling Holder copies of any and all transmittal letters or other written 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; 

        (h)   otherwise
use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make generally available to its security
holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the provisions of Section 11(a) of the Securities Act in accordance
with Rule 158 thereunder (or any similar rule promulgated under the Securities Act) or otherwise; 

        (i)    make
available to the appropriate representatives of the Managing Underwriter and each Selling Holder access to such information and personnel as is reasonable and
customary to enable such parties to establish a due diligence defense under the Securities Act; provided that the Partnership need not disclose any
information to any such representative unless and until such representative has entered into a confidentiality agreement with the Partnership reasonably satisfactory to the Partnership (including any
confidentiality agreement referenced in Section 7.6 of the Purchase Agreement); 

        (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 the Partnership are then listed; 

        (k)   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; 

10

 

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

        (m)  cooperate
with such Purchaser in allowing such Purchaser to conduct customary "underwriter's due diligence" with respect to the Partnership and satisfy its obligations
in respect thereof if any Purchaser could reasonably be deemed to be an "underwriter," as defined in Section 2(a)(11) of the Securities Act, in connection with the registration statement in
respect of any registration of the Partnership's securities of any Purchaser pursuant to this Agreement, and any amendment or supplement thereof (any such registration statement or amendment or
supplement a "Purchaser Underwriter Registration Statement"). In addition, at any Purchaser's request, the Partnership will furnish to such Purchaser, on the date of the effectiveness of any Purchaser
Underwriter Registration Statement and thereafter from time to time on such dates as such Purchaser may reasonably request, (i) a letter, dated such date, from the Partnership's independent
certified public accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to such Purchaser,
and (ii) an opinion, dated as of such date, of counsel representing the Partnership for purposes of such Purchaser Underwriter Registration Statement, in form, scope and substance as is
customarily given in an underwritten public offering, including a standard "10b-5" assurance for such offering, addressed to such Purchaser. The Partnership will also permit legal counsel
to such Purchaser to review and comment upon any such Purchaser Underwriter Registration Statement at least five Business Days prior to its filing with the Commission and all amendments and
supplements to any such Purchaser Underwriter Registration Statement within a reasonable number of days prior to their filing with the Commission and not file any Purchaser Underwriter Registration
Statement or amendment or supplement thereto in a form to which such Purchaser's legal counsel reasonably objects. If any Purchaser desires to be named as a statutory underwriter in the Shelf
Registration Statement, it shall, within three business days of being informed by the Partnership of the filing thereof, notify the Partnership of such desire and the Partnership shall comply with
that request. 

        Section 2.05    Cooperation by Holders.    

        (a)   Each
Selling Holder, upon receipt of notice from the Partnership of the happening of any event of the kind described in  Section 2.01(c) or subsection (e)
of  Section 2.04, 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 Section 2.01(c) or subsection (e) of  Section 2.04 or until it is advised in writing by the Partnership 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 the Partnership, such Selling Holder will, or will request the Managing Underwriter or
underwriters, if any, to deliver to the Partnership (at the Partnership's expense) all copies in their possession or control, other than permanent file copies then in such Selling Holder's possession,
which shall be used solely to comply with any document retention policy of such Selling Holder of the prospectus and any prospectus supplement covering such Registrable Securities current at the time
of receipt of such notice unless supplemented by filings incorporated by reference. 

        (b)   The
Partnership shall have no obligation to include in the Shelf Registration Statement, Piggyback Registration Statement or Prospectus or IPO Registration Statement,
Registrable Securities of a Selling Holder who has failed to timely furnish such information which, in the opinion of counsel to the Partnership, is reasonably required in order for the registration
statement or prospectus supplement, as applicable, to comply with the Securities Act. 

11

 

        Section 2.06    Restrictions on Public Sale by Holders of Registrable Securities.    

        (a)   IPO. 

        (i)    Each
Holder selling Registrable Securities in the IPO will be required, upon request of the Managing Underwriters in the IPO, to enter into a standard
lock-up agreement covering Registrable Securities for a period of up to 90 days beginning on the date of a prospectus or prospectus supplement filed with the Commission with respect
to the pricing of the IPO, provided that the duration of the foregoing restrictions shall be no longer than the duration of the shortest restriction
generally imposed by the Managing Underwriters on the Partnership or the officers, directors or any other unitholder of the Partnership on whom a restriction is imposed. In the event that either
(x) during the last 17 days of the 90-day period referred to in this Section 2.06(a)(i), the Partnership issues an
earnings release or material news or a material event relating to the Partnership occurs or (y) prior to the expiration of the 90-day restricted period, the Partnership announces
that it will release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the 90-day
restricted period, the lock-up restrictions described in this Section 2.06(a)(i) shall continue to apply until the expiration of the
18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. 

        (ii)   Each
Holder that does not sell Registrable Securities in the IPO, will be required, upon request of the Managing Underwriters in the IPO, to enter into a standard
lock-up agreement covering Registrable Securities for a period of up to 60 days beginning on the date of a prospectus or prospectus supplement filed with the Commission with respect
to the pricing of the IPO, provided that the duration of the foregoing restrictions shall be no longer than the duration of the shortest restriction
generally imposed by the Managing Underwriters on the Partnership or the officers, directors or any other unitholder of the Partnership on whom a restriction is imposed. In the event that either
(x) during the last 17 days of the 60-day period referred to in this Section 2.06(a)(ii), the Partnership issues an
earnings release or material news or a material event relating to the Partnership occurs or (y) prior to the expiration of the 60-day restricted period, the Partnership announces
that it will release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the 60-day
restricted period, the lock-up restrictions described in this Section 2.06(a)(ii) shall continue to apply until the expiration of the
18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. 

        (b)   Underwritten Offering. For one year following the consummation of an IPO, each Holder who, along with its Affiliates,
holds at least $10 million of Registrable Securities (calculated based on the Per Unit Purchase Price of such Common Units) shall agree 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 or prospectus supplement filed with the Commission with respect to the pricing of an Underwritten
Offering that is not the IPO, provided that (i) the duration of the foregoing restrictions shall be no longer than the duration of the shortest
restriction generally imposed by the underwriters on the Partnership or the officers, directors or any other unitholder of the Partnership on whom a restriction is imposed. In the event that either
(x) during the last 17 days of the 30-day period referred to in this Section 2.06(b), the Partnership issues an
earnings release or material news or a material event relating to the Partnership occurs or (y) prior to the expiration of the 30-day restricted period, the Partnership announces
that it will release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the 30-day
restricted period, the lock-up restrictions described in this Section 2.06(b) shall continue to apply until the expiration of the
18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event; provided,  however, that the
extension provided for by this sentence shall no longer 

12

 

apply
when the Partnership is eligible to use Form S-3 and meets the definition of "actively traded securities" in Regulation M. 

        Section 2.07    Expenses.    

        (a)   Certain Definitions. 

        (i)    "Registration Expenses" means all expenses incident to the Partnership's performance under or compliance with this
Agreement to effect the registration of Registrable Securities in a Shelf Registration Statement pursuant to Section 2.01, a Piggyback
Registration Statement or Prospectus pursuant to Section 2.02 or an Underwritten Offering pursuant to  Section 2.03, and the disposition of such
securities, including, without limitation, all registration, filing, securities exchange listing and
quotation system 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 the Partnership, 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 2.08 hereof, the Partnership shall not be responsible for legal fees or other costs incurred by Holders in connection with the exercise
of such Holders' rights hereunder. 

        (ii)   "Selling Expenses," means all underwriting fees, discounts and selling commissions allocable to the sale of the
Registrable Securities. 

        (b)   Expenses. The Partnership will pay all reasonable Registration Expenses in connection with the Shelf Registration
Statement filed pursuant to Section 2.01(a) of this Agreement, a Piggyback Registration Statement or Prospectus pursuant to  Section 2.02 or an
Underwritten Offering pursuant to Section 2.03, whether or not the
applicable registration statement becomes effective or any sale is made pursuant to the Shelf Registration Statement, a Piggyback Registration Statement or Prospectus or an Underwritten Offering. The
Partnership shall not be responsible for any Selling Expenses. Each Selling Holder shall pay all Selling Expenses in connection with any sale of its Registrable Securities hereunder. 

        Section 2.08    Indemnification.    

        (a)   By the Partnership. In the event of a registration of any Registrable Securities under the Securities Act pursuant to
this Agreement, the Partnership will indemnify and hold harmless each Selling Holder thereunder, its Affiliates and their respective directors and officers, 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 within the meaning of the
Securities Act and the Exchange Act (collectively, the "Selling Holder Indemnified Persons"), against any losses, claims, damages, expenses or
liabilities (including reasonable attorneys' fees and expenses) (collectively, "Losses"), joint or several, to which such Selling Holder Indemnified
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 amendment or supplement thereof, or any "free writing prospectus" (as defined in Rule 405 under the
Securities Act) (in the case of a prospectus, in the light of the circumstances under which they were made), and will reimburse each such Selling Holder Indemnified Person for any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such Loss or actions or proceedings within a reasonable time after such expenses are incurred and the Selling
Holder Indemnified Person notifies the Partnership of such expenses; provided, however, that the
Partnership will not be liable in any such 

13

 

case
if and to the extent that any such Loss arises out of or is based upon (i) either an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with
information furnished by such Selling Holder Indemnified Person in writing specifically for use in the Shelf Registration Statement or such other registration statement, or prospectus supplement, as
applicable or (ii) the breach by any Selling Holder of the agreements by such Selling Holder set forth in Section 2.01(c) or  Section 2.05(a). Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Selling Holder
Indemnified 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 the
Partnership, its Affiliates and their respective directors, officers, employees and agents and each Person, if any, who controls the Partnership within the meaning of the Securities Act or of the
Exchange Act to the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only with respect to (i) 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 or (ii) the breach by any Selling Holder of the agreements by such Selling Holder set forth in Section 2.01(c) or  Section 2.05(a); 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;  provided, however, that the failure to notify the indemnifying party shall not relieve it from any
liability that it may have under this Section 2.08 except to the extent that it has been materially prejudiced by such failure and shall not
relieve it from any liability which it may have to any indemnified party other than under this Section 2.08. 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 2.08 for any legal expenses subsequently incurred by such indemnified party in connection with the defense 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 outside
counsel to the indemnified party shall have concluded in writing 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 one 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, (i) no indemnifying party shall
settle any action brought against it with respect to which it is entitled to indemnification hereunder without the consent of the indemnified party, unless the settlement thereof imposes no liability
or obligation on, and includes a complete and unconditional release from all liability of, the indemnified party and does not contain any admission of wrongdoing or illegal activity by the indemnified
party and (ii) no indemnifying party shall be liable for any settlement of any such action effected without its consent (which shall not be unreasonably withheld). 

14

 

        (d)   Contribution. If the indemnification provided for in this  Section 2.08 is held by a court or government agency of competent jurisdiction to be unavailable to the
Partnership 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 the Partnership 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 the Partnership 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 above. 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 2.08 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. 

        Section 2.09    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, the Partnership agrees to use its commercially reasonable efforts to: 

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

        (b)   File
with the Commission in a timely manner all reports and other documents required to be filed by the Partnership under the Securities Act and the Exchange Act (at any
time that it is subject to such reporting); and 

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

        Section 2.10    Limitation on Subsequent Registration Rights.    From and after the date hereof, the
Partnership shall not, without the prior written consent of the Holders of a majority of the then outstanding Registrable Securities, enter into any agreement with any current or future holder of any
securities of the Partnership that would allow such current or future holder to require the Partnership to include securities in any registration statement filed by the Partnership on a basis that is
senior in any way to the registration rights granted to the Purchasers hereunder. 

15

 

 
 

ARTICLE III
  MISCELLANEOUS    
    

        Section 3.01    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 any Purchaser, at the most current address given by such Purchaser to the Partnership in accordance with the provisions of this  Section 3.01, which address initially is, with respect to the
Purchasers, the addresses set forth in the Purchase Agreement, 

        (b)   if
to a permitted transferee of a Purchaser, to such Holder at the address furnished by such permitted transferee, and 

        (c)   if
to the Partnership, at 500 N. Loop 1604 East, Suite 100, San Antonio, TX 78232, or such other address notice of which is given in accordance with the provisions of
this Section 3.01. 

        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; and
when actually received, if sent by any other means. 

        Section 3.02    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 3.03    Transfer or Assignment of Registration Rights.    The rights to cause the Partnership to
register Registrable Securities granted to the Holders hereunder may be transferred or assigned by one or more Holders to one or more transferee(s) or assignee(s) of such Registrable Securities,
provided that (a) unless such transferee is a Holder or an Affiliate of the transferring Holder, or the transfer is to a swap counterparty, following such transfer or assignment, each such
transferee or assignee owns Registrable Securities representing at least $10 million of Registrable Securities (calculated based on the Per Unit Purchase Price of such Common Units) or the
Partnership otherwise consents to such transfer or assignment, (b) the Partnership is 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 (c) each such transferee assumes in writing responsibility for
its portion of the obligations of such Holder under this Agreement (unless it is already a party to this Agreement). 

        Section 3.04    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 (i) Fiduciary/Claymore MLP Opportunity Fund and its Affiliates, FAMCO MLP Partners, LLC, Series ABP-1 and its Affiliates shall be aggregated together for purposes of
determining the availability of any rights under this Agreement, (ii) Energy Income and Growth Fund and its Affiliates, Third Point Partners Qualified LP and its Affiliates, Third Point
Partners LP and its Affiliates, Third Point Offshore Fund, Ltd. and its Affiliates, Third Point Ultra Ltd. and its Affiliates shall be aggregated together for purposes of determining the
availability of any rights under this Agreement, and (iii) Martin B Perlman Associates and its Affiliates, MEDDS III and its Affiliates, PH Industries, Inc. Money Purchase Plan and its
Affiliates, Perlman Value Partners and its Affiliates, Morgan Stanley FBO Leonard Greenberg Roth IRA and its Affiliates, Morgan Stanley FBO JoAnn Hassan IRA and its Affiliates, and Morgan Stanley FBO
JoAnn Hassan Roth IRA and its Affiliates shall be aggregated together for purposes of determining the availability of any rights under this Agreement. 

        Section 3.05    Recapitalization, Exchanges, etc. Affecting the Common Units.    The provisions of this
Agreement shall apply to the full extent set forth herein with respect to any and all Common Units or other partnership interests of the Partnership or any successor or assign of the Partnership
(whether by 

16

 

merger,
consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution of, the Registrable Securities, including any Common Units or other equity
securities that may be issued in exchange for Registrable Securities in connection with any merger, consolidation or other business combination involving the Partnership and any of its subsidiaries,
and shall be appropriately adjusted for combinations, recapitalizations and the like occurring after the date of this Agreement. 

        Section 3.06    Change of Control.    The Partnership shall not merge, consolidate or combine with any other
Person unless the agreement providing for such merger, consolidation or combination expressly provides for the continuation of the registration rights specified in this Agreement with respect to the
Registrable Securities or other equity securities issued pursuant to such merger, consolidation or combination. 

        Section 3.07    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, including specific performance, 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 3.08    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. In the event that this Agreement is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format date file, such signature shall create a
valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original
thereof. 

        Section 3.09    Headings.    The headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. 

        Section 3.10    Governing Law.    The laws of the State of New York shall govern this Agreement without regard
to principles of conflict of laws. 

        Section 3.11    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 3.12    Entire Agreement.    This Agreement is 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. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein with respect to the rights granted by the Partnership set forth herein. This Agreement and the Purchase Agreement
supersede all prior agreements and understandings between the parties with respect to such subject matter. 

        Section 3.13    Amendment.    This Agreement may be amended only by means of a written amendment signed by the
Partnership 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, relative to any other Holder, without the
consent of such Holder; and provided, further, however, that the immediately preceding proviso shall not
apply to, and thus shall 

17

 

not
prevent or impair the ability of the Partnership and the Holders of a majority of the then outstanding Registrable Securities to effect, a modification or waiver under of this Agreement. 

        Section 3.14    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. 

        Section 3.15    Interpretation.    Article and Section references are to this Agreement, unless otherwise
specified. All references to instruments, documents, contracts, and agreements are references to such instruments, documents,  contracts, and agreements as
the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified. The word
"including" shall mean "including but not limited to". Whenever any determination, consent or approval
is to be made or given by a Purchaser under this Agreement, such action shall be in such Purchaser's sole discretion unless otherwise specified. 

[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. 

	 	 	ABRAXAS ENERGY PARTNERS, L.P.
	

 	
 	

By:	

/s/ Barbara M. Stuckey

	 	 	Name:	Barbara M. Stuckey
	 	 	Title:	President and Chief Operating Officer

   

   

   

   

   

   

   

   

   

   

   

   

[Signature
Page to Registration Rights Agreement] 

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TABLE OF CONTENTS

REGISTRATION RIGHTS AGREEMENT

RECITALS

ARTICLE I DEFINITIONS

ARTICLE II REGISTRATION RIGHTS

ARTICLE III MISCELLANEOUS

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