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Exhibit 10.5    
    

 
 

CROSSTEX ENERGY, INC.
  LONG-TERM INCENTIVE PLAN
  (Amended and Restated Effective as of December 31, 2003)    
    

ARTICLE I. ESTABLISHMENT AND PURPOSE  

        1.1   Establishment. The Crosstex Energy Holdings, Inc. 2000 Stock Option Plan was originally approved by the Board of
Directors of Crosstex Energy, Inc., a Delaware corporation, on May 5, 2000. In furtherance of the purposes of said plan and in order to amend said plan in certain respects, the plan is
hereby amended and restated in its entirety and renamed the Crosstex Energy, Inc. Long-Term Incentive Plan (the "Plan"), as set forth in this document. 

        1.2   Purpose. The purposes of the Plan are to attract able persons to enter the employ of the Company, to encourage Employees
to remain in the employ of the Company and to provide motivation to Employees to put forth maximum efforts toward the continued growth, profitability and success of the Company, by providing
incentives to such persons through the ownership and/or performance of the Common Stock of Crosstex. A further purpose of the Plan is to provide a means through which the Company may attract able
persons to become directors of the Company and to provide such individuals with incentive and reward opportunities. Toward these objectives, Awards may be granted under the Plan to Employees and
Outside Directors on the terms and subject to the conditions set forth in the Plan. 

        1.3   Effectiveness. This amended and restated Plan shall become effective as of December 31, 2003, the date of its
adoption by the Board, provided it is duly approved by the holders of at least a majority of the shares of Common Stock present or represented and entitled to vote at a meeting of the stockholders of
Crosstex duly held in accordance with applicable law within twelve months after the date of adoption of the Plan by the Board. If the amended and restated Plan is not so approved, the amended and
restated Plan shall not be effective, any Award granted under the amended and restated Plan shall be null and void, and the Superseded Plan (and option grants made under said plan) shall remain in
full force and effect. 

ARTICLE II. DEFINITIONS  

        2.1   Affiliate. "Affiliate" means, with respect to any Person, any other Person that directly or indirectly through one or
more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term "control" means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. With respect to an Incentive Stock Option,
"Affiliate" means a "parent corporation" or a "subsidiary corporation" of Crosstex, as those terms are defined in Section 424(e) and (f) of the Code. 

        2.2   Award. "Award" means an award granted to a Participant in the form of an Option, Phantom Option, Restricted Stock, SAR,
or Other Incentive Award, whether granted singly, in combination or in tandem. All Awards shall be granted by, confirmed by, and subject to the terms of, an Award Agreement. 

        2.3   Award Agreement. "Award Agreement" means a written agreement between Crosstex and a Participant that sets forth the
terms, conditions, restrictions and/or limitations applicable to an Award. 

        2.4   Board. "Board" means the Board of Directors of Crosstex. 

        2.5   Cause. "Cause" means the termination of a Participant's employment or service by reason of fraud, dishonesty, any
unauthorized use or disclosure by the Participant of any confidential information or trade secrets of Crosstex, or the performance of other acts detrimental to Crosstex or an Affiliate, as determined
by the Committee in its absolute discretion. 

 

        2.6   Change of Control. "Change of Control" shall have the meaning set forth in Section 12.1. 

        2.7   Code. "Code" means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and
successor provisions and regulations thereto. 

        2.8   Committee. "Committee" means (i) with respect to the application of this Plan to Employees, the Compensation
Committee of the Board or such other committee of the Board as may be designated by the Board to administer the Plan, which committee shall consist of two or more non-employee directors,
each of whom is both a "non-employee director" under Rule 16b-3 of the Exchange Act and an "outside director" under Section 162(m) of the Code, and
(ii) with respect to the application of this Plan to an Outside Director, the Board. To the extent that no Committee exists that has the authority to administer the Plan, the functions of the
Committee shall be exercised by the Board. If for any reason the appointed Committee does not meet the requirements of Rule 16b-3 or Section 162(m) of the Code, such
noncompliance with such requirements shall not affect the validity of Awards, grants, interpretations or other actions of the Committee. 

        2.9   Common Stock. "Common Stock" means the common stock, $.01 par value per share, of Crosstex, or any stock or other
securities of Crosstex hereafter issued or issuable in substitution or exchange for the Common Stock. 

        2.10 Company. "Company" means Crosstex and its Affiliates. 

        2.11 Crosstex. "Crosstex" means Crosstex Energy, Inc., a Delaware corporation, or any successor thereto. 

        2.12 Effective Date. "Effective Date" means the date this Plan becomes effective as provided in Section 1.3. 

        2.13 Employee. "Employee" means an employee of Crosstex or an Affiliate of Crosstex; provided, however, that the term
"Employee" does not include an Outside Director or an individual performing services for Crosstex or an Affiliate who is treated for tax purposes as an independent contractor at the time of
performance of the services. 

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

        2.15 Fair Market Value. "Fair Market Value" means the closing sales price of a share of Common Stock on the applicable date
(or if there is no trading in the Common Stock on such date, on the next preceding date on which there was trading) as reported in The Wall Street
Journal(or other reporting service approved by the Committee). In the event the Common Stock is not publicly traded at the time a determination of fair market value is required
to be made hereunder, the determination of fair market value shall be made in good faith by the Committee. 

        2.16 Grant Date. "Grant Date" means the date an Award is granted by the Committee. 

        2.17 Incentive Stock Option. "Incentive Stock Option" means an Option that is intended to meet the requirements of
Section 422(b) of the Code. 

        2.18 Nonqualified Stock Option. "Nonqualified Stock Option" means an Option that is not an Incentive Stock Option. 

        2.19 Option. "Option" means an option to purchase shares of Common Stock granted to a Participant pursuant to
Article VII. An Option may be either an Incentive Stock Option or a Nonqualified Stock Option, as determined by the Committee. 

        2.20 Other Incentive Award. "Other Incentive Award" means an incentive award granted to a Participant pursuant to
Article XI. 

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        2.21 Outside Director. "Outside Director" means a "non-employee director" of the Company, as defined in
Rule 16b-3. 

        2.22 Participant. "Participant" means an Employee or Outside Director to whom an Award has been granted under the Plan. 

        2.23 Person. "Person" means an individual or a corporation, limited liability company, partnership, joint venture, trust,
unincorporated organization, association, government agency or political subdivision thereof or other entity. 

        2.24 Phantom Option. "Phantom Option" means a fictional option granted to a Participant pursuant to Article VIII. 

        2.25 Plan. "Plan" means this Crosstex Energy, Inc. Long-Term Incentive Plan, as amended from time to time. 

        2.26 Restricted Stock. "Restricted Stock" means shares of Common Stock granted to a Participant pursuant to
Article IX, which are subject to such restrictions as may be determined by the Committee. Restricted Stock shall constitute issued and outstanding shares of Common Stock for all corporate
purposes. 

        2.27 Rule 16b-3. "Rule 16b-3" means Rule 16b-3 promulgated by the
SEC under the Exchange Act, or any successor rule or regulation thereto as in effect from time to time. 

        2.28 SAR. "SAR" means a stock appreciation right granted to a Participant pursuant to Article X. 

        2.29 Superseded Plan. "Superseded Plan" means the Crosstex Energy Holdings, Inc. 2000 Stock Option Plan, as in effect
prior to the Effective Date. 

ARTICLE III. PLAN ADMINISTRATION  

        3.1   Plan Administrator. The Plan shall be administered by the Committee. The Committee may delegate some or all of its power
to the Chief Executive Officer or other executive officer of the Company as the Committee deems appropriate; provided, that (i) the Committee may not delegate its power with regard to the grant
of an Award to any person who is a "covered employee" within the meaning of Section 162(m) of the Code or who, in the Committee's judgment, is likely to be a covered employee at any time during
the period an Award to such employee would be outstanding, and (ii) the Committee may not delegate its power with regard to the selection for participation in the Plan of an officer or other
person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an Award to such an officer or other person. 

        3.2   Authority of Administrator. The Committee shall have total and exclusive responsibility to control, operate, manage and
administer the Plan in accordance with its terms. The Committee shall have all the authority that may be necessary or helpful to enable it to discharge its responsibilities with respect to the Plan.
Without limiting the generality of the preceding sentence, the Committee shall have the exclusive right to: (i) interpret the Plan and the Award Agreements executed hereunder;
(ii) determine eligibility for participation in the Plan; (iii) decide all questions concerning eligibility for, and the amount of, Awards granted under the Plan; (iv) construe
any ambiguous provision of the Plan or any Award Agreement; (v) prescribe the form of the Award Agreements embodying Awards granted under the Plan; (vi) correct any defect, supply any
omission or reconcile any inconsistency in the Plan or any Award Agreement; (vii) issue administrative guidelines as an aid to administering the Plan and make changes in such guidelines as the
Committee from time to time deems proper; (viii) make regulations for carrying out the Plan and make changes in such regulations as the Committee from time to time deems proper;
(ix) determine whether Awards should be granted singly, in combination or in tandem; (x) to the extent permitted under the Plan, grant waivers of Plan terms, conditions, restrictions and
limitations; (xi) accelerate the exercise, vesting or payment of an Award when such 

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action
or actions would be in the best interests of the Company; (xii) grant Awards in replacement of Awards previously granted under the Plan or any other employee benefit plan of the Company;
and (xiii) take any and all other actions the Committee deems necessary or advisable for the proper operation or administration of the Plan. 

        3.3   Discretionary Authority. The Committee shall have full discretionary authority in all matters related to the discharge of
its responsibilities and the exercise of its authority under the Plan, including, without limitation, its construction of the terms of the Plan and its determination of eligibility for participation
and Awards under the Plan. The decisions of the Committee and its actions with respect to the Plan shall be final, conclusive and binding on all persons having or claiming to have any right or
interest in or under the Plan, including Participants and their respective estates, beneficiaries and legal representatives. 

        3.4   Liability; Indemnification. No member of the Committee nor any person to whom authority has been delegated, shall be
personally liable for any action, interpretation or determination made in good faith with respect to the Plan or Awards granted hereunder, and each member of the Committee (or delegatee of the
Committee) shall be fully indemnified and protected by Crosstex with respect to any liability he or she may incur with respect to any such action, interpretation or determination, to the extent
permitted by applicable law. 

ARTICLE IV. SHARES SUBJECT TO THE PLAN  

        4.1   Available Shares. The maximum number of shares of Common Stock that shall be available for grant of Awards under the Plan
shall not exceed a total of 1,200,000, subject to adjustment as provided in Sections 4.2 and 4.3; provided, however, that from and after such time as Crosstex registers a class of equity securities
under Section 12 of the Exchange Act, the maximum number of shares of Common Stock for which Options and SARs may be granted under the Plan to any one Participant during a calendar year is
100,000. Shares of Common Stock issued pursuant to the Plan may be shares of original issuance or treasury shares or a combination of the foregoing, as the Committee, in its absolute discretion, shall
from time to time determine. 

        4.2   Adjustments for Recapitalizations and Reorganizations.

        (a)   The
shares with respect to which Awards may be granted under the Plan are shares of Common Stock as presently constituted, but if, and whenever, prior to the expiration
or satisfaction of an Award theretofore granted, Crosstex shall effect a subdivision or consolidation of shares of Common Stock or the payment of a stock dividend on Common Stock in the form of
Crosstex Common Stock without receipt of consideration by Crosstex, the number of shares of Common Stock with respect to which such Award may thereafter be exercised or satisfied, as applicable,
(i) in the event of an increase in the number of outstanding shares, shall be proportionately increased, and the exercise price per share shall be proportionately reduced, and (ii) in
the event of a reduction in the number of outstanding shares, shall be proportionately reduced, and the exercise price per share shall be proportionately increased. 

        (b)   If
Crosstex recapitalizes or otherwise changes its capital structure, thereafter upon any exercise or satisfaction, as applicable, of an Award theretofore granted the
Participant shall be entitled to (or entitled to purchase, if applicable) under such Award, in lieu of the number of shares of Common Stock then covered by such Award, the number and class of shares
of stock or other securities to which the Participant would have been entitled pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the Participant had been
the holder of record of the number of shares of Common Stock then covered by such Award. 

        (c)   In
the event of changes in the outstanding Common Stock by reason of a reorganization, merger, consolidation, combination, separation (including a spin-off
or other distribution of stock 

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or
property), exchange, or other relevant change in capitalization occurring after the date of grant of any Award and not otherwise provided for by this Section 4.2, any outstanding Awards and
any Award Agreements evidencing such Awards shall be subject to adjustment by the Committee in its absolute discretion as to the number, price and kind of shares or other consideration subject to, and
other terms of, such Awards to reflect such changes in the outstanding Common Stock. 

        (d)   In
the event of any changes in the outstanding Common Stock provided for in this Section 4.2, the aggregate number of shares available for grant of Awards under
the Plan may be equitably adjusted by the Committee, whose determination shall be conclusive. Any adjustment provided for in this Section 4.2 shall be subject to any required stockholder
action. 

        4.3   Adjustments for Awards. The Committee shall have full discretion to determine the manner in which shares of Common Stock
available for grant of Awards under the Plan are counted. Without limiting the discretion of the Committee under this Section 4.3, unless otherwise determined by the Committee, the following
rules shall apply for the purpose of determining the number of shares of Common Stock available for grant of Awards under the Plan: 

        (a)   Options and Restricted Stock. The grant of Options and Restricted Stock shall reduce the number of shares available for
grant of Awards under the Plan by the number of shares subject to such Award. 

        (b)   SARs and Phantom Options. The grant of SARs and Phantom Options shall not affect the number of shares available for grant
of Awards under the Plan. 

        (c)   Other Incentive Awards. The grant of an Other Incentive Award in the form of Common Stock or that may be paid or settled
only in Common Stock shall reduce the number of shares available for grant of Awards under the Plan by the number of shares subject to such Award. The grant of an Other Incentive Award that may be
paid or settled only for cash shall not affect the number of shares available for grant of Awards under the Plan. The grant of an Other Incentive Award that may be paid or settled in either Common
Stock or cash shall reduce the number of shares available for grant of Awards under the Plan by the number of shares subject to such Award. 

        (d)   Termination. If any Award referred to in paragraphs (a) and (c) above (other than an Other Incentive Award
that may be paid or settled only for cash) is canceled or forfeited, or terminates, expires or lapses, for any reason (other than the termination of a Related Option (as defined in
Section 10.1) upon
exercise of its corresponding SARs), the shares then subject to such Award shall again be available for grant of Awards under the Plan. 

        (e)   Payment of Exercise Price and Withholding Taxes. If previously acquired shares of Common Stock are used to pay the
exercise price of an Award, the number of shares available for grant of Awards under the Plan shall not be increased by the number of shares delivered as payment of such exercise price. If previously
acquired shares of Common Stock are used to pay withholding taxes payable upon exercise, vesting or payment of an Award, or shares of Common Stock that would be acquired upon exercise, vesting or
payment of an Award are withheld to pay withholding taxes payable upon exercise, vesting or payment of such Award, the number of shares available for grant of Awards under the Plan shall not be
increased by the number of shares delivered or withheld as payment of such withholding taxes. 

        (f)    Fractional Shares. If any such adjustment would result in a fractional security being (i) available under the
Plan, such fractional security shall be disregarded or (ii) subject to an Award, Crosstex shall pay the holder of such Award, in connection with the first vesting, exercise or settlement of
such Award in whole or in part occurring after such adjustment, an amount in cash determined by multiplying (x) the fraction of such security (rounded to the nearest 

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hundredth)
by (y) the excess, if any, of the Fair Market Value on the vesting, exercise or settlement date over the exercise price, if any, of such Award. 

ARTICLE V. ELIGIBILITY  

        All Employees and Outside Directors are eligible to participate in the Plan. The Committee shall recommend, from time to time, Participants from those Employees
and Outside Directors who, in the opinion of the Committee, can further the Plan purposes. Once a Participant is recommended for an Award by the Committee, the Committee shall determine the type and
size of Award to be granted to the Participant and shall establish in the related Award Agreement the terms, conditions, restrictions and/or limitations applicable to the Award, in addition to those
set forth in the Plan and the administrative rules and regulations, if any, established by the Committee. Outside Directors shall be eligible to participate in the Plan and receive Awards in the
discretion of the Committee. 

ARTICLE VI. FORM OF AWARDS  

        Awards may, at the Committee's sole discretion, be granted under the Plan in the form of Options pursuant to Article VII, Phantom Options pursuant to
Article VIII, Restricted Stock pursuant to Article IX, SARs pursuant to Article X, and Other Incentive Awards pursuant to Article XI, or a
combination thereof. All Awards shall be subject to the terms, conditions, restrictions and limitations of the Plan. The Committee may, in its absolute discretion, subject any Award to such other
terms, conditions, restrictions and/or limitations (including, but not limited to, the time and conditions of exercise, vesting or payment of an Award and restrictions on transferability of any shares
of Common Stock issued or delivered pursuant to an Award), provided they are not inconsistent with the terms of the Plan. Awards under a particular Article of the Plan need not be uniform, and Awards
under more than one Article of the Plan may be combined into a single Award Agreement. Any combination of Awards may be granted at one time and on more than one occasion to the same Participant. 

ARTICLE VII. OPTIONS  

        7.1   General. Awards may be granted to Employees and Outside Directors in the form of Options. Options granted under the Plan
may be Incentive Stock Options or Nonqualified Stock Options, or a combination of both; provided, however, that Incentive Stock Options may be granted only to Employees. 

        7.2   Terms and Conditions of Options. An Option shall be exercisable in whole or in such installments and at such times as may
be determined by the Committee. The price at which a share of Common Stock may be purchased upon exercise of a Nonqualified Stock Option shall be determined by the Committee, but such exercise price
shall not be less than 50% of the Fair Market Value per share of Common Stock on the Grant Date. Except as otherwise provided in Section 7.3, the term of each Option shall be as specified by
the Committee; provided, however, that, no Options shall be exercisable later than ten years from the Grant Date. Options may be granted with respect to Restricted Stock or shares of Common Stock that
are not Restricted Stock, as determined by the Committee in its absolute discretion. 

        7.3   Restrictions Relating to Incentive Stock Options. Options granted in the form of Incentive Stock Options shall, in
addition to being subject to the terms and conditions of Section 7.2, comply with Section 422(b) of the Code. Accordingly, no Incentive Stock Options shall be granted later than ten
years from the date of adoption of the Plan by the Board. In addition, no Incentive Stock Option shall be exercisable after the expiration of ten years from the Grant Date. To the extent that the
aggregate Fair Market Value (determined at the time the respective Incentive Stock Option is granted) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time
by an individual during any calendar year under all incentive stock option plans of Crosstex and its Affiliates 

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exceeds
$100,000, such excess Incentive Stock Options shall be treated as options which do not constitute Incentive Stock Options. The Committee shall determine, in accordance with the applicable
provisions of the Code, which of a Participant's Incentive Stock Options will not constitute Incentive Stock Options because of such limitation and shall notify the Participant of such determination
as soon as practicable after such determination. The price at which a share of Common Stock may be purchased upon exercise of an Incentive Stock Option shall be determined by the Committee, but such
exercise price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the Grant Date. No Incentive Stock Option shall be granted to an Employee under the Plan if, at the
time such Option is granted, such Employee owns stock possessing more than 10% of the total combined voting power of all classes of stock of Crosstex or an Affiliate, within the meaning of
Section 422(b)(6) of the Code, unless (i) on the Grant Date of such Option, the exercise price of such Option is at least 110% of the Fair Market Value of the Common Stock subject to the
Option and (ii) such Option by its terms is not exercisable after the expiration of five years from the Grant Date of the Option. 

        7.4   Additional Terms and Conditions. The Committee may subject any Award of an Option to such other terms, conditions,
restrictions and/or limitations as it determines are necessary or appropriate, provided they are not inconsistent with the Plan. 

        7.5   Exercise of Options. Subject to the terms and conditions of the Plan, Options shall be exercised by the delivery of a
written notice of exercise to Crosstex, setting forth the number of shares of Common Stock with respect to which the Option is to be exercised, accompanied by full payment for such shares. 

        Upon
exercise of an Option, the exercise price of the Option shall be payable to Crosstex in full either: (i) in cash or an equivalent acceptable to the Committee, or
(ii) in the absolute discretion of the Committee and in accordance with any applicable administrative guidelines established by the Committee, by tendering one or more previously acquired
nonforfeitable, unrestricted shares of Common Stock that have been held by the Participant for at least six months having an aggregate Fair Market Value at the time of exercise equal to the total
exercise price (including an actual or deemed multiple series of exchanges of such shares), or (iii) in a combination of the forms of payment specified in clauses (i) and
(ii) above. 

        From
and after such time as Crosstex registers the Common Stock under Section 12 of the Exchange Act, payment of the exercise price of an Option may also be made, in the absolute
discretion of the Committee, by delivery to Crosstex or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer to sell or margin
a sufficient portion of the shares with respect to which the Option is exercised and deliver the sale or margin loan proceeds directly to Crosstex to pay the exercise price and any required
withholding taxes. 

        As
soon as reasonably practicable after receipt of written notification of exercise of an Option and full payment of the exercise price and any required withholding taxes, Crosstex shall
deliver to the Participant, in the Participant's name, a stock certificate or certificates in an appropriate amount based upon the number of shares of Common Stock purchased under the Option. 

        7.6   Termination of Employment or Service. Each Award Agreement embodying the Award of an Option shall set forth the extent to
which the Participant shall have the right to exercise the Option following termination of the Participant's employment or service with the Company. Such provisions shall be determined by the
Committee in its absolute discretion, need not be uniform among all Options granted under the Plan and may reflect distinctions based on the reasons for termination of employment or service. In the
event a Participant's Award Agreement embodying the award of an 

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Option
does not set forth such termination provisions, the following termination provisions shall apply with respect to such Award: 

        (a)   Death or Disability. If the employment or service of a Participant shall terminate by reason of death or permanent and
total disability (within the meaning of Section 22(e)(3) of the Code), each outstanding Option held by the Participant may be exercised, to the extent then vested, until the earlier of
(i) the expiration of one year from the date of such termination of employment or service, or (ii) the expiration of the term of such Option. 

        (b)   Other Termination. If the employment or service of a Participant shall terminate for any reason other than a reason set
forth in paragraph (a) above or paragraph (c) below, whether on a voluntary or involuntary basis, each outstanding Option held by the Participant may be exercised, to the extent then
vested, until the earlier of (i) the expiration of three months from the date of such termination of employment or service, or (ii) the expiration of the term of such Option. 

        (c)   Termination for Cause. Notwithstanding paragraphs (a) and (b) above, if the employment or service of a
Participant is terminated for Cause, all outstanding Options held by the Participant shall immediately be forfeited to the Company and no additional exercise period shall be allowed, regardless of the
vested status of the Option. 

ARTICLE VIII. PHANTOM OPTIONS  

        8.1   General. Awards may be granted to Employees and Outside Directors in the form of Phantom Options. Phantom Options shall
be awarded in such numbers and at such times as the Committee shall determine. All Phantom Options shall be evidenced by an Award Agreement as described in Section 8.2 below and any payment or
settlement made upon exercise of a Phantom Option shall be made to the Participant in accordance with the terms and conditions set forth in the Award Agreement. 

        8.2   Award of Phantom Options. Each Award Agreement embodying a Phantom Option granted pursuant to the Plan shall specify the
strike price for each fictional share of Common Stock subject to the Phantom Option, the number of fictional shares subject to the Phantom Option being awarded, the manner and timing of the vesting of
the Phantom Option and of payments or transfer of shares to the Participant under such Award and such other terms and conditions not inconsistent with the provisions of the Plan as may be approved by
the Committee in its absolute discretion. The strike price of a Phantom Option shall be determined by the Committee, but such strike price shall not be less than 100% of the Fair Market Value per
share of Common Stock on the Grant Date of the Phantom Option. The term of each Phantom Option shall be as specified by the Committee; provided, however, that unless otherwise designated by the
Committee, no Phantom Option shall be exercisable later than ten years after the Grant Date of the Phantom Option. Except as otherwise provided in an applicable Award Agreement, Participants holding
Phantom Options shall not be entitled to any dividends, rights upon liquidation or other rights of a holder of shares of Common Stock. 

        8.3   Exercise. Subject to the terms and conditions of the Plan, Phantom Options shall be exercised by the delivery of a
written notice of exercise to Crosstex, setting forth the number of fictional shares with respect to which the Phantom Option is to be exercised. Subject to the terms and conditions of this Plan and
the applicable Award Agreement, upon exercise each fictional share subject to a Phantom Option entitles the Participant holding such Phantom Option to receive the amount, if any, by which the Fair
Market Value as of the date of exercise exceeds the strike price, payable in one or a combination of the following forms, as determined by the Committee in its absolute discretion: (i) a cash
payment or (ii) a whole number of shares of Common Stock (with cash payable in lieu of fractional shares). 

        8.4   Termination of Employment or Service. Upon a Participant's termination of employment or service with the Company for any
reason other than for Cause, the vested portion of such Participant's 

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Phantom
Option shall be deemed to be exercised pursuant to Section 8.3 above and the unvested portion of such Phantom Option shall immediately be forfeited to Crosstex. If the employment or
service of a Participant shall be terminated for Cause, all outstanding Phantom Options held by the Participant shall immediately be forfeited to Crosstex, regardless of the vested status of such
Phantom Options. 

ARTICLE IX. RESTRICTED STOCK  

        9.1   General. Awards may be granted to Employees and Outside Directors in the form of Restricted Stock. Restricted Stock shall
be awarded in such numbers and at such times as the Committee shall determine. 

        9.2   Restriction Period. At the time an Award of Restricted Stock is granted, the Committee shall establish a period of time
(the "Restriction Period") applicable to such Restricted Stock. Each Award of Restricted Stock may have a different Restriction Period, in the discretion of the Committee. The Restriction Period
applicable to a particular Award of Restricted Stock shall not be changed except as permitted by Article IV or Section 9.3 of this Article. 

        9.3   Other Terms and Conditions. Restricted Stock awarded to a Participant under the Plan shall be represented by a stock
certificate registered in the name of the Participant or, at the option of Crosstex, in the name of a nominee of Crosstex. Subject to the terms and conditions of the Award Agreement, a Participant to
whom Restricted Stock has been awarded shall have the right to receive dividends thereon during the Restriction Period, to vote the Restricted Stock and to enjoy all other stockholder rights with
respect thereto, except that (i) the Participant shall not be entitled to possession of the stock certificate representing the Restricted Stock until the Restriction Period shall have expired,
(ii) Crosstex shall retain custody of the Restricted Stock during the Restriction Period, (iii) the Participant may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose
of the Restricted Stock during the Restriction Period, and (iv) a breach of the terms and conditions established by the Committee pursuant to the Award of the Restricted Stock shall cause a
forfeiture of the Restricted Stock. At the time of an Award of Restricted Stock, the Committee may, in its absolute discretion, prescribe additional terms, conditions, restrictions and/or limitations
applicable to the Restricted Stock, including, but not limited to, rules pertaining to the termination of employment or service (by reason of death, permanent and total disability, or otherwise) of a
Participant prior to expiration of the Restriction Period. 

        9.4   Payment for Restricted Stock. A Participant shall not be required to make any payment for Restricted Stock awarded to the
Participant, except to the extent otherwise required by the Committee or by applicable law. 

        9.5   Miscellaneous. Nothing in this Article shall prohibit the exchange of shares of Restricted Stock issued under the Plan
pursuant to a plan of reorganization for stock or securities of Crosstex or another corporation that is a party to the reorganization, but the stock or securities so received for shares of Restricted
Stock shall, except as provided in Article IV or XII, become subject to the restrictions applicable to the Award of such Restricted Stock. Any shares of stock received as a result of a stock
split or stock dividend with respect to shares of Restricted Stock shall also become subject to the restrictions applicable to the Award of such Restricted Stock. 

ARTICLE X. SARs  

        10.1 General. The Committee may from time to time grant SARs in conjunction with all or any portion of any Option (the
"Related Option") either (i) at the time of the initial Option grant (not including any subsequent modification that may be treated as a new grant of an Incentive Stock Option for purposes of
Section 424(h) of the Code) or (ii) with respect to Nonqualified Stock Options, at any 

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time
after the initial Option grant while the Nonqualified Stock Option is still outstanding. SARs shall not be granted other than in conjunction with an Option granted hereunder. 

        10.2 Terms and Conditions. SARs granted hereunder shall comply with the following conditions and also with the terms of the
Award Agreement governing the Related Option: 

        (a)   The
SAR shall expire no later than the expiration of the Related Option. 

        (b)   Upon
the exercise of an SAR, the Participant shall be entitled to receive from Crosstex or the appropriate Affiliate an amount in cash equal to the excess of the
aggregate Fair Market Value of the shares of Common Stock with respect to which the SAR is then being exercised (determined as of the date of such exercise) over the aggregate purchase price of such
shares as provided in the Related Option. 

        (c)   SARs
shall be exercisable (i) only at such time or times and only to the extent that the Related Option shall be exercisable, (ii) only when the Fair
Market Value of the shares subject to the Related Option exceeds the purchase price of the shares as provided in the Related Option, and (iii) only upon surrender of the Related Option or any
portion thereof with respect to the shares for which the SARs are then being exercised. 

        (d)   Upon
the exercise of an SAR, the Related Option shall be deemed to have been terminated to the extent of the number of shares of Common Stock with respect to which such
SARs are exercised. Upon the exercise or termination of the Related Option, the SARs with respect to such Related Option shall be deemed to have been terminated to the extent of the number of shares
of Common Stock with respect to which the Related Option was so exercised or terminated. 

        10.3 Exercise of SARs. Each exercise of SARs, or a portion thereof, shall be evidenced by a notice in writing to Crosstex. 

ARTICLE XI. OTHER INCENTIVE AWARDS  

        Subject to the terms and provisions of the Plan, Other Incentive Awards may be granted to Employees and Outside Directors in such amounts, upon such terms and at
any time and from time to time as shall be determined by the Committee in its absolute discretion. Other Incentive Awards may be granted based upon, payable in or otherwise related to, in whole or in
part, shares of Common Stock if the Committee, in its absolute discretion, determines that such Other Incentive Awards are consistent with the purposes of the Plan. Each grant of an Other Incentive
Award shall be evidenced by an Award Agreement that shall specify the amount of the Other Incentive Award and the terms, conditions, restrictions and/or limitations applicable to such Award. Payment
of Other Incentive Awards shall be made at such times and in such form, which may be cash, shares of Common Stock or other property (or a combination thereof), as established by the Committee, subject
to the terms of the Plan. 

ARTICLE XII. CHANGE OF CONTROL  

        12.1 Definition of Change of Control. A "Change of Control" shall be deemed to have occurred if (i) Yorktown Partners
LLC, a Delaware limited liability company, or its Affiliates including any funds under its management ("Yorktown") no longer directly or indirectly owns a controlling interest in Crosstex, other than
as a result of a firm commitment underwritten public offering, (ii) any sale, lease, exchange or other transfer (in one or a series of related transactions) of all or substantially all of the
assets of Crosstex to any Person or its Affiliates, other than an Affiliates, or (iii) any merger, reorganization, consolidation or other transaction pursuant to which more than 50% of the
combined voting power of the equity interests in Crosstex ceases to be owned by Persons who own such interests as of the initial public offering date of the Common Stock. The phrase "Immediately prior
to a Change of Control" shall be understood to mean sufficiently in advance of a Change of Control to permit 

10

 

Participants
to take all steps reasonably necessary to exercise an Award, if applicable, and to deal with the Common Stock underlying all Awards so that all Awards and Common Stock issuable with
respect thereto may be treated in the same manner as the shares of stock of other stockholders in connection with the Change of Control. 

        12.2 Effect on Outstanding Awards. Immediately prior to a Change or Control, all Awards (other than Options granted under the
Superseded Plan) shall automatically vest and become payable or exercisable, as the case may be, in full. In this regard, all restriction periods shall terminate and all performance criteria, if any,
shall be deemed to have been achieved at the maximum level. To the extent that an Option or SAR is not exercised upon a Change of Control, the Committee may, in its discretion, cancel such Award
without payment or provide for a replacement Award with respect to such property and on such terms as it deems appropriate. 

ARTICLE XIII. AMENDMENT AND TERMINATION  

        13.1 Plan Amendment and Termination. The Board may at any time suspend, terminate, amend or modify the Plan, in whole or in
part; provided, however, that no amendment or modification of the Plan shall become effective without the approval of such amendment or modification by the stockholders of Crosstex (i) if such
amendment or modification increases the maximum number of shares subject to the Plan (except as provided in Article IV) or changes the designation or class of persons eligible to receive Awards
under the Plan, or (ii) if counsel for Crosstex determines that such approval is otherwise required by or necessary to comply with applicable law. The Plan shall terminate upon the earlier of
(i) the termination of the Plan by the Board, or (ii) the expiration of ten years from the Effective Date. Upon termination of the Plan, the terms and provisions of the Plan shall,
notwithstanding such termination, continue to apply to Awards granted prior to such termination. No suspension, termination, amendment or modification of the Plan shall adversely affect in any
material way any Award previously granted under the Plan, without the consent of the Participant (or the permitted transferee) holding such Award. 

        13.2 Award Amendment and Cancellation. The Board may amend the terms of any outstanding Award granted pursuant to this Plan,
but no such amendment shall adversely affect in any material way the Participant's (or a permitted transferee's) rights under an outstanding Award without the consent of the Participant (or the
permitted transferee) holding such Award. The Board may, with a Participant's (or a permitted transferee's) written consent, cancel any outstanding Award held by such Participant (or permitted
transferee) in exchange for a new Award. 

ARTICLE XIV. MISCELLANEOUS  

        14.1 Award Agreements. After the Committee grants an Award under the Plan to a Participant, Crosstex and the Participant
shall enter into an Award Agreement setting forth the terms, conditions, restrictions and/or limitations applicable to the Award and such other matters as the Committee may determine to be
appropriate. The terms and provisions of the respective Award Agreements need not be identical. All Award Agreements shall be subject to the provisions of the Plan, and in the event of any conflict
between an Award Agreement and the Plan, the terms of the Plan shall govern. Any provision of this Plan to the contrary notwithstanding, all Options granted under the Superseded Plan shall be subject
to the provisions of the Superseded Plan, and in the event of any conflict between the terms of an Award Agreement granted under the Superseded Plan and the Superseded Plan, the terms of the
Superseded Plan shall govern. 

        14.2 Listing Conditions.

        (a)   As
long as the Common Stock is listed on a national securities exchange or system sponsored by a national securities association, the issuance of any shares of Common
Stock pursuant to an Award shall be conditioned upon such shares being listed on such exchange or 

11

 

system.
Crosstex shall have no obligation to issue such shares unless and until such shares are so listed, and the right to exercise any Option or other Award with respect to such shares shall be
suspended until such listing has been effected. 

        (b)   If
at any time counsel to Crosstex or its Affiliates shall be of the opinion that any sale or delivery of shares of Common Stock pursuant to an Award is or may in the
circumstances be unlawful or result in the imposition of excise taxes on Crosstex or its Affiliates under the statutes, rules or regulations of any applicable jurisdiction, Crosstex or its Affiliates
shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act of 1933, as amended, or
otherwise, with respect to shares of Common Stock or Awards,
and the right to exercise any Option or other Award shall be suspended until, in the opinion of said counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes
on Crosstex or its Affiliates. 

        (c)   Upon
termination of any period of suspension under this Section 14.2, any Award affected by such suspension which shall not then have expired or terminated shall
be reinstated as to all shares available before such suspension and as to shares which would otherwise have become available during the period of such suspension, but no such suspension shall extend
the term of any Award. 

        14.3 Additional Conditions. Notwithstanding anything in the Plan to the contrary: (i) Crosstex may, if it shall
determine it necessary or desirable for any reason, at the time of grant of any Award or the issuance of any shares of Common Stock pursuant to any Award, require the recipient of the Award or such
shares of Common Stock, as a condition to the receipt thereof, to deliver to Crosstex a written representation of present intention to acquire the Award or such shares of Common Stock for his or her
own account for investment and not for distribution; (ii) the certificate for shares of Common Stock issued to a Participant may include any legend which the Committee deems appropriate to
reflect any restrictions on transfer, and (iii) all certificates for shares of Common Stock delivered under the Plan shall be subject to such stop transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations and other requirements of the SEC, any stock exchange upon which the Common Stock is then quoted, any applicable federal or state securities
law, and any applicable corporate law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

        14.4 Nonassignability. No Award granted under the Plan may be sold, transferred, pledged, exchanged, hypothecated or
otherwise disposed of, other than by will or pursuant to the applicable laws of descent and distribution. Further, no such Award shall be subject to execution, attachment or similar process. Any
attempted sale, transfer, pledge, exchange, hypothecation or other disposition of an Award not specifically permitted by the Plan or the Award Agreement shall be null and void and without effect. All
Awards granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant or, in the event of the Participant's legal incapacity, by his or her guardian
or legal representative. 

        14.5 Withholding Taxes. The Company shall be entitled to deduct from any payment made under the Plan, regardless of the form
of such payment, the amount of all applicable income and employment taxes required by law to be withheld with respect to such payment, may require the Participant to pay to the Company such
withholding taxes prior to and as a condition of the making of any payment or the issuance or delivery of any shares of Common Stock under the Plan, and shall be entitled to deduct from any other
compensation payable to the Participant any withholding obligations with respect to Awards under the Plan. In accordance with any applicable administrative guidelines it establishes, the Committee may
allow a Participant to pay the amount of taxes required by law to be withheld from or with respect to an Award by (i) withholding shares of Common Stock from any payment of Common Stock due as
a result of such Award, or (ii) permitting the Participant to deliver to the Company 

12

 

previously
acquired shares of Common Stock, in each case having a Fair Market Value equal to the amount of such required withholding taxes. No payment shall be made and no shares of Common Stock shall
be issued pursuant to any Award unless and until the applicable tax withholding obligations have been satisfied. 

        14.6 No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any
Award granted hereunder, and except as otherwise provided herein, no payment or other adjustment shall be made in respect of any such fractional share. 

        14.7 Notices. All notices required or permitted to be given or made under the Plan or any Award Agreement shall be in writing
and shall be deemed to have been duly given or made if (i) delivered personally, (ii) transmitted by first class registered or certified United States mail, postage prepaid, return
receipt requested, (iii) sent by prepaid overnight courier service, or (iv) sent by telecopy or facsimile transmission, answer back requested, to the person who is to receive it at the
address that such person has theretofore specified by written notice delivered in accordance herewith. Such notices shall be effective (i) if delivered personally or sent by courier service,
upon actual receipt by the intended recipient, (ii) if mailed, upon the earlier of five days after deposit in the mail or the date of delivery as shown by the return receipt therefor, or
(iii) if sent by telecopy or facsimile transmission, when the answer back is received. Crosstex or a Participant may change, at any time and from time to time, by written notice to the other,
the address that it or such Participant had theretofore specified for receiving notices. Until such address is changed in accordance herewith, notices hereunder or under an Award Agreement shall be
delivered or sent (i) to a Participant at his or her address as set forth in the records of the Company or (ii) to Crosstex at the principal executive offices of Crosstex clearly marked
"Attention: LTIP Administrator." 

        14.8 Binding Effect. The obligations of Crosstex under the Plan shall be binding upon any successor corporation or
organization resulting from the merger, consolidation or other reorganization of Crosstex, or upon any successor corporation or organization succeeding to all or substantially all of the assets and
business of Crosstex. The terms and conditions of the Plan shall be binding upon each Participant and his or her heirs, legatees, distributees and legal representatives. 

        14.9 Severability. If any provision of the Plan or any Award Agreement is held to be illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining provisions of the Plan or such agreement, as the case may be, but such provision shall be fully severable and the Plan or such agreement, as the
case may be, shall be construed and enforced as if the illegal or invalid provision had never been included herein or therein. 

        14.10 No Restriction of Corporate Action. Nothing contained in the Plan shall be construed to prevent Crosstex or any
Affiliate from taking any corporate action (including any corporate action to suspend, terminate, amend or modify the Plan) that is deemed by Crosstex or such Affiliate to be appropriate or in its
best interest, whether or not such action would have an adverse effect on the Plan or any Awards made or to be made under the Plan. No Participant or other person shall have any claim against Crosstex
or any Affiliate as a result of such action. 

        14.11 Governing Law. The Plan shall be governed by and construed in accordance with the internal laws (and not the principles
relating to conflicts of laws) of the State of Delaware except as superseded by applicable federal law. 

        14.12 No Right, Title or Interest in Company Assets. No Participant shall have any rights as a stockholder of Crosstex as a
result of participation in the Plan until the date of issuance of a stock certificate in his or her name and, in the case of Restricted Stock, unless and until such rights are granted to the
Participant pursuant to the Plan. To the extent any person acquires a right to receive payments from the Company under the Plan, such rights shall be no greater than the rights of an 

13

 

unsecured
general creditor of the Company, and such person shall not have any rights in or against any specific assets of the Company. All of the Awards granted under the Plan shall be unfunded. 

        14.13 Risk of Participation. Nothing contained in the Plan shall be construed either as a guarantee by Crosstex or its
Affiliates, or their respective stockholders, directors, officers or employees, of the value of any assets of the Plan or as an agreement by Crosstex or its Affiliates, or their respective
stockholders, directors, officers or employees, to indemnify anyone for any losses, damages, costs or expenses resulting from participation in the Plan. 

        14.14 No Guarantee of Tax Consequences. No person connected with the Plan in any capacity, including, but not limited to,
Crosstex and the Affiliates and their respective directors, officers, agents and employees, makes any representation, commitment or guarantee that any tax treatment, including, but not limited to,
federal, state and local income, estate and gift tax treatment, will be applicable with respect to any Awards or payments thereunder made to or for the benefit of a Participant under the Plan or that
such tax treatment will apply to or be available to a Participant on account of participation in the Plan. 

        14.15 Continued Employment or Service. Nothing contained in the Plan or in any Award Agreement shall confer upon any
Participant the right to continue in the employ or service of the Company, or interfere in any way with the rights of the Company to terminate a Participant's employment or service at any time, with
or without cause. 

        14.16 Miscellaneous. Headings are given to the articles and sections of the Plan solely as a convenience to facilitate
reference. Such headings shall not be deemed in any way material or relevant to the construction of the Plan or any provisions hereof. The use of the masculine gender shall also include within its
meaning the feminine. Wherever the context of the Plan dictates, the use of the singular shall also include within its meaning the plural, and vice versa. 

14

 

        IN
WITNESS WHEREOF, this Plan has been executed as of this 31st day of December 2003. 

	 	 	CROSSTEX ENERGY, INC.
	

 	
 	

By:	

 
	 	 	 	
 William W. Davis

Senior Vice President and Chief Financial Officer

15

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Exhibit 10.5

CROSSTEX ENERGY, INC. LONG-TERM INCENTIVE PLAN (Amended and Restated Effective as of December 31, 2003)QuickLinks
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Exhibit 10.6    
    

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into as of December 31, 2003, by and among Crosstex Energy Holdings Inc., a
Delaware corporation (the "Company"); Yorktown Energy Partners IV, L.P., a Delaware limited partnership, Yorktown Energy Partners V, L.P., a Delaware limited partnership and Lubar Nominees, a general
partnership (the "Investor Stockholders"); Barry E. Davis, A. Chris Aulds, James R. Wales, William W. Davis, Jack M. Lafield, Michael P. Scott, Lisa M. Brecht, John W. Daugherty, Mike Hopkins,
Mark E. Huff, Marc Lyons, Rodney A. Madden, Stewart McCorkle and Dale Wilson (the "Management Stockholders"). The Investor Stockholders and the Management Stockholders are herein sometimes
called the "Stockholders". 

RECITALS  

        WHEREAS, in connection with that certain Agreement Regarding 2003 Registration Statement and Waiver and Termination of Stockholders' Agreement dated as of
October 27, 2003 between the Company, the Investor Stockholders and the Management Stockholders, the Company, the Investor Stockholders and the Management Stockholders desire to enter into this
Agreement in order to grant the registration rights as set forth below. 

AGREEMENT  

	1.
	Definitions

        For
purposes of this Agreement, the following terms have the following meanings: 

        (a)   "Affiliate"
means, when used with respect to a specified Person, any other Person which, directly or indirectly, owns or controls, is under common ownership or control
with, or is owned or controlled by, such Person, and any directors, officers, partners or 5% or more owners of such Person, including without limitation, with respect to the Investor Stockholders,
Yorktown IV Company LLC, a Delaware limited liability company, Yorktown Partners LLC, a Delaware limited liability company, or an entity managed or otherwise controlled (by contract or otherwise) by
Yorktown IV Company LLC or Yorktown Partners LLC; 

        (b)   "Common
Stock" means shares of common stock, par value $.01 per share, of the Company; 

        (c)   "Common
Stock Equivalent" means (without duplication with any other Common Stock or Common Stock Equivalents) any rights, warrants, options, convertible securities or
Indebtedness, exchangeable securities or Indebtedness, or other rights, exercisable for or convertible or exchangeable into, directly or indirectly, Common Stock of the Company and securities
convertible or exchangeable into Common Stock (at the time of issuance or upon the passage of time or the occurrence of some future event), including the shares of Common Stock issuable upon
conversion of the Series A and Series B Preferred Stock; 

        (d)   "Disposition"
means any sale, assignment, hypothecation, gift, inter vivos transfer, pledge, mortgage or other encumbrance, or any other disposition of capital stock of
the Company whatsoever, whether voluntary or involuntary; 

        (e)   "Equity
Securities" means any capital stock of the Company, any securities directly or indirectly convertible into, or exercisable or exchangeable for, any capital stock
of the Company, or any right, option, warrant or other security which, with the payment of additional consideration, the expiration of time or the occurrence of any event shall give the holder thereof
the right to acquire any capital stock of the Company or any security convertible into or exercisable or exchangeable for, any capital stock of the Company; 

 

        (f)    "Excluded
Registration" means a registration under the Securities Act of (i) securities issuable under employee compensation or benefit programs or otherwise on
Form S-8 or an equivalent form, or (ii) securities issuable under an exchange offer or an offering of securities solely to the existing stockholders or employees of the
Company or to the existing stockholders of another company in connection with a merger or acquisition or otherwise on Form S-4 or an equivalent form; 

        (g)   "Indebtedness"
means (i) indebtedness for borrowed money or for the deferred purchase price of property or services or which is evidenced by a note, bond,
debenture, or similar instrument, (ii) obligations under any financing lease, (iii) obligations in respect of letters of credit, acceptances, or similar obligations, (iv) guaranty
obligations, and (v) liabilities secured by any lien on any property owned by the Person, whether or not the Person has assumed or otherwise become liable for the payment thereof; 

        (h)   "Person(s)"
means an individual, partnership, limited partnership, limited liability company, foreign limited liability company, trust, estate, corporation, custodian,
trustee, executor, administrator, nominee or entity in a representative capacity; 

        (i)    "register,"
"registered" and "registration" means a registration effected by preparing and filing a registration statement or similar document in compliance with the
Securities Act, and the declaration or order of effectiveness of such registration statement or similar document; 

        (j)    "Registrable
Shares" means at any time the shares of Common Stock and any other Equity Securities issued or issuable with respect thereto by way of stock dividend or
stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise; provided, however, that Registrable Shares shall not include
any shares (i) the sale of which has been registered pursuant to the Securities Act and which shares have been sold pursuant to such registration, or (ii) which have been sold to the
public pursuant to Rule 144 of the SEC under the Securities Act; 

        (k)   "Registrable
Shares then outstanding" means the number of shares of Common Stock and Equity Securities outstanding which are, and the number of shares of Common Stock
and Equity Securities issuable pursuant to then exercisable or convertible securities which are, Registrable Securities; 

        (l)    "SEC"
means the Securities and Exchange Commission; 

        (m)  "Securities"
Act means the Securities Act of 1933, as amended; and 

        (n)   "Stockholder"
means any person owning or having the right to acquire Registrable Securities who is a party to this Agreement as of the date hereof. 

	2.
	Request for Registration

        (a)   If
the Company shall receive a written request from either at least 50% of the Registrable Securities held by (i) the Management Stockholders or (ii) the
Investor Stockholders that the Company file a registration statement under the Securities Act covering the registration of the requesting Management or Investor Stockholders' Registrable
Securities, then the Company shall use commercially reasonable efforts to effect as soon as practicable the registration under the Securities Act of all of the Registrable Securities; provided,
however, that the Registrable Securities requested to be registered must have an anticipated aggregate offering price of $25,000,000 (prior to the deduction of underwriting discounts and commissions). 

        (b)   The
Company is obligated to effect two registrations for the Management Stockholders and four registrations for the Investor Stockholders pursuant to this
Section 2; provided, however, 

2

 

that
the Company shall not be required to effect more than [two] registrations in any 12-month period. 

        (c)   Notwithstanding
the foregoing, if the Company shall furnish, as applicable, to the Management Stockholders or the Investor Stockholders requesting a registration
pursuant to Section 2 (a) within 30 days of receiving such request a certificate signed by the President of the Company stating that in the good faith judgment of the Board of
Directors of the Company it would be seriously detrimental to the Company and its stockholders for such registration statement to be filed and it is therefore essential to defer the filing of such
registration statement, the Company shall have the right to defer such filing for up to two periods of not more than 45 days each after receipt of the request of the Management Stockholders or
Investor Stockholders, as applicable; provided, however, that the Company may not use this right more than once (for a total of up to 90 days) in any 12-month period; provided,
however, that the Company shall promptly notify the Management Stockholders or Investor Stockholders, as applicable, requesting a registration pursuant to this Section 2 of any decision by the
Company to abandon or indefinitely delay such public offering. 

	3.
	Company Registration

        (a)   Piggyback
Registration 

        Each
time the Company proposes to register any of its Equity Securities (other than pursuant to an Excluded Registration) under the Securities Act for sale to the public (whether for the
account of the Company or the account of any security holder of the Company) or proposes to make such an offering of equity securities pursuant to a previously filed registration statement pursuant to
Rule 415 under the Securities Act (such as a "universal shelf" registration statement) and the form of registration statement to be used permits the registration of Registrable Shares, the
Company shall give prompt written notice to each Stockholder, holding Registrable Shares (which notice shall be given not less than 30 days prior to the effective date of the Company's
registration statement), which notice shall offer each such Stockholder the opportunity to include any or all of its or his Registrable Shares in such registration statement, subject to the
limitations contained in Section 3(b) hereof. Each Stockholder who desires to have its or his Registrable Shares included in such registration statement shall so advise the Company in writing
(stating the number of shares desired to be registered) within 20 days after the date of such notice from the Company. Any Stockholder shall have the right to withdraw such Stockholder's
request for inclusion of such Stockholder's Registrable Shares in any registration statement pursuant to this Section 3(a) by giving written notice to the Company of such withdrawal. Subject to
Section 3(b) below, the Company shall include in such registration statement all such Registrable Shares so requested to be included therein; provided, however, that the Company may at any time
withdraw or cease proceeding with any such registration if it shall at the same time withdraw or cease proceeding with the registration of all other Equity Securities originally proposed to be
registered. 

        (b)   Priority
on Registration 

        If
(i) a registration pursuant to Section 3(a) involves an underwritten offering of the securities being registered to be distributed (on a firm commitment basis) by or
through one or more underwriters of recognized standing under underwriting terms customary and appropriate for such a transaction and (ii) the lead managing underwriter of such underwritten
offering shall inform the Company by letter of its belief that the amount of Registrable Shares requested to be included in such registration exceeds the amount which can be sold in (or during the
time of) such offering within a price range acceptable to the Stockholders requesting registration pursuant to Section 3(a), then the Company will include in such registration such amount of
securities which the Company is so advised can be sold in (or during the time of) such offering pro rata on the basis of the amount of such Registrable Shares so proposed to be sold and so requested
to be 

3

 

included
by the Stockholders; provided, however, that (A) if the underwritten registration is a primary offering on behalf of the Company, any shares requested to be included in the
registration statement (or registration statements) for any Person other than the Stockholders shall be eliminated first prior to any such pro rata reduction, (B) if the underwritten
registration is a secondary offering pursuant to Section 2, any shares requested to be included in the registration statement (or registration statements) for any Person other than the
requesting Management Stockholders or Investor Stockholders, as applicable, shall be eliminated prior to any such pro rata reduction, (C) if the underwritten registration is a secondary
offering on behalf of any holder(s) of Common Stock, other than pursuant to section 2, the shares requested to be included therein by the holders requesting such registration and the
Registrable Shares requested to be included by the Stockholders shall be included pro rata on the basis of the number of shares held by each such holder and (D) no such reduction shall reduce
the securities being offered by the Company for its own account. 

	4.
	Obligations of Purchaser

        A
Stockholder shall not participate in any registration statement hereunder unless such Stockholder agrees to (i) sell its Registrable Shares on the basis provided in any
customary underwriting arrangements approved by the Company and (ii) complete and execute all questionnaires, powers of attorney, indemnities, underwriting agreements, and other documents
reasonably required under the terms of such underwriting arrangements; provided, however, that a Stockholder shall not be required to make any representations or warranties in connection with any such
registration other than representations and warranties as to (A) the Stockholder's ownership of Registrable Shares to be sold or transferred free and clear of all liens, claims, and
encumbrances, (B) the Stockholder's power and authority to effect such transfer, and (C) such matters pertaining to compliance with securities laws as may be reasonably requested. 

	5.
	Holdback Agreement

        Unless
the managing underwriter otherwise agrees, each of the Company and the Stockholders agree, and the Company agrees, in connection with any underwritten registration, to use its
reasonable efforts to cause its Affiliates to agree, not to effect any public sale or private offer or distribution of any Common Stock or Common Stock Equivalents during the ten business days prior
to the effectiveness under the Securities Act of any underwritten registration and during such time period after the effectiveness under the Securities Act of any underwritten registration (not to
exceed 120 days) (except, if applicable, as part of such underwritten registration) as the Company and the managing underwriter may agree. 

	6.
	Registration Procedures

        Whenever
any Stockholder has requested that any Registrable Shares be registered pursuant to this Agreement, the Company will use its commercially reasonable efforts to effect the
registration and the sale of such Registrable Shares in accordance with the intended method of Disposition thereof, and pursuant thereto the Company will as expeditiously as possible: 

        (a)   prepare
and file with the SEC a registration statement on any appropriate form under the Securities Act with respect to such Registrable Shares and use its commercially
reasonable efforts to cause such registration statement to become effective; 

        (b)   prepare
and file with the SEC such amendments, post-effective amendments, and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement effective for a period of not less than 180 days (or such lesser period as is necessary for the underwriters in an
underwritten offering to sell unsold allotments) and comply with the provisions of the Securities Act with respect to the Disposition of 

4

 

all
securities covered by such registration statement during such period in accordance with the intended methods of Disposition by the sellers thereof set forth in such registration statement; 

        (c)   furnish
to each seller of Registrable Shares and the underwriters of the securities being registered such number of copies of such registration statement, each amendment
and supplement thereto, the prospectus included in such registration statement (including each preliminary prospectus), any documents incorporated by reference therein and such other documents as such
seller or underwriters may reasonably request in order to facilitate the Disposition of the Registrable Shares owned by such seller or the sale of such securities by such underwriters (it being
understood that, subject to Section 9 and the requirements of the Securities Act and applicable state securities laws, the Company consents to the use of the prospectus and any amendment or
supplement thereto by each seller and the
underwriters in connection with the offering and sale of the Registrable Shares covered by the registration statement of which such prospectus, amendment or supplement is a part); 

        (d)   use
its commercially reasonable efforts to register or qualify such Registrable Shares under such other securities or blue sky laws of such jurisdictions as the managing
underwriter reasonably requests; use its commercially reasonable efforts to keep each such registration or qualification (or exemption therefrom) effective during the period in which such registration
statement is required to be kept effective; and do any and all other acts and things which may be reasonably necessary or advisable to enable each seller to consummate the Disposition of the
Registrable Shares owned by such seller in such jurisdictions (provided, however, that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify but for this subparagraph or (ii) consent to general service of process in any such jurisdiction); 

        (e)   promptly
notify each seller and each underwriter and (if requested by any such Person) confirm such notice in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed and, with respect to a registration statement or any post-effective amendment, when the same has become effective,
(ii) of the issuance by any state securities or other regulatory authority of any order suspending the qualification or exemption from qualification of any of the Registrable Shares under state
securities or "blue sky" laws or the initiation of any proceedings for that purpose, and (iii) of the happening of any event which makes any statement made in a registration statement or
related prospectus untrue or which requires the making of any changes in such registration statement, prospectus or documents so that they will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and, as promptly as practicable thereafter, prepare and file with the SEC and
furnish a supplement or amendment to such prospectus so that, as thereafter deliverable to the purchasers of such Registrable Shares, such prospectus will not contain any untrue statement of a
material fact or omit a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 

        (f)    if
requested by the managing underwriter or any seller promptly incorporate in a prospectus supplement or post-effective amendment such information as the
managing underwriter or any seller reasonably requests to be included therein, including, without limitation, with respect to the Registrable Shares being sold by such seller, the purchase price being
paid therefor by the underwriters and with respect to any other terms of the underwritten offering of the Registrable Shares to be sold in such offering, and promptly make all required filings of such
prospectus supplement or post-effective amendment; 

5

 

        (g)   as
promptly as practicable after filing with the SEC of any document which is incorporated by reference into a registration statement (in the form in which it was
incorporated), deliver a copy of each such document to each seller; 

        (h)   cooperate
with the sellers and the managing underwriter to facilitate the timely preparation and delivery of certificates (which shall not bear any restrictive legends
unless required under applicable law) representing securities sold under any registration statement, and enable such securities to be in such denominations and registered in such names as the managing
underwriter or such sellers may request and keep available and make available to the Company's transfer agent prior to the effectiveness of such registration statement a supply of such certificates; 

        (i)    promptly
make available for inspection by any seller, any underwriter participating in any Disposition pursuant to any registration statement, and any attorney,
accountant or other agent or representative retained by any such seller or underwriter (collectively, the "Inspectors"), all financial and other records, pertinent corporate documents and properties
of the Company (collectively, the "Records"), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors and employees
to supply all information requested by any such Inspector in connection with such registration statement; provided, that, unless the disclosure of such Records is necessary to avoid or correct a
misstatement or omission in the registration statement or the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, the Company shall not be
required to provide any information under this subparagraph (i) if (A) the Company believes, after consultation with counsel for the Company, that to do so would cause the Company to
forfeit an attorney-client privilege that was applicable to such information or (B) if either (1) the Company has requested and been granted from the SEC confidential treatment of such
information contained in any filing with the SEC or documents provided supplementally or otherwise or (2) the Company reasonably determines in good faith that such Records are confidential and
so notifies the Inspectors in writing unless prior to furnishing any such information with respect to (A) or (B) such Stockholder requesting such information agrees to enter into a
confidentiality agreement in customary form and subject to customary exceptions; and provided, further that such Stockholder agrees that it will, upon learning that disclosure of such Records is
sought in a court of competent jurisdiction, give notice to the Company and allow the Company at its expense, to undertake appropriate action and to prevent disclosure of the Records deemed
confidential; 

        (j)    furnish
to each seller underwriter a signed counterpart of (i) an opinion or opinions of counsel to the Company, and (ii) a comfort letter or comfort
letters from the Company's independent public accountants, each in customary form and covering such matters of the type customarily covered by opinions or comfort letters, as the case may be, as the
sellers or managing underwriter reasonably requests; 

        (k)   cause
the Registrable Shares included in any registration statement to be (i) listed on each securities exchange, if any, on which similar securities issued by
the Company are then listed, or (ii) authorized to be quoted and/or listed (to the extent applicable) on the National Association of Securities Dealers, Inc. Automated Quotation
("NASDAQ") or the NASDAQ National Market System if the Registrable Shares so qualify; 

        (l)    provide
a CUSIP number for the Registrable Shares included in any registration statement not later than the effective date of such registration statement; 

        (m)  cooperate
with each seller and each underwriter participating in the Disposition of such Registrable Shares and their respective counsel in connection with any filings
required to be made with the National Association of Securities Dealers, Inc. ("NASD"); 

6

 

        (n)   during
the period when the prospectus is required to be delivered under the Securities Act, promptly file all documents required to be filed with the SEC pursuant to
Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act; 

        (o)   notify
each seller of Registrable Shares promptly of any request by the SEC for the amending or supplementing of such registration statement or prospectus or for
additional information; 

        (p)   prepare
and file with the SEC promptly any amendments or supplements to such registration statement or prospectus which, in the opinion of counsel for the Company or the
managing underwriter, is required in connection with the distribution of the Registrable Shares; 

        (q)   enter
into such agreements (including underwriting agreements in the managing underwriter's customary form) as are customary in connection with an underwritten
registration; and 

        (r)   advise
each seller of such Registrable Shares, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the SEC
suspending the effectiveness of such registration statement or the initiation or threatening of any proceeding for such purpose and promptly use its best 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. 

	7.
	Suspension of Dispositions

        Each
Stockholder agrees by acquisition of any Registrable Shares that, upon receipt of any notice (a "Suspension Notice") from the Company of the happening of any event of the kind
described in Section 6(e)(iii) such Stockholder will forthwith discontinue Disposition of Registrable Shares until such Stockholder's receipt of the copies of the supplemented or amended
prospectus, or until it is advised in writing (the "Advice") by the Company that the use of the prospectus may be resumed, and has received copies of any additional or supplemental filings which are
incorporated by reference in the
prospectus, and, if so directed by the Company, such Stockholder will deliver to the Company all copies, other than permanent file copies then in such Stockholder's possession, of the prospectus
covering such Registrable Shares current at the time of receipt of such notice. In the event the Company shall give any such notice, the time period regarding the effectiveness of registration
statements set forth in Section 6(b) hereof shall be extended by the number of days during the period from and including the date of the giving of the Suspension Notice to and including the
date when each seller of Registrable Shares covered by such registration statement shall have received the copies of the supplemented or amended prospectus or the Advice. The Company shall use its
commercially reasonable efforts and take such actions as are reasonably necessary to render the Advice as promptly as practicable. 

	8.
	Registration Expenses

        All
expenses incident to the Company's performance of or compliance with this Agreement, including, without limitation, (i) all registration and filing fees, (ii) all fees
and expenses associated with filings required to be made with the NASD (including, if applicable, the fees and expenses of any "qualified independent underwriter" as such term is defined in
Schedule E of the By-Laws of the NASD, and of its counsel), as may be required by the rules and regulations of the NASD, (iii) fees and expenses of compliance with securities
or "blue sky" laws (including reasonable fees and disbursements of counsel in connection with "blue sky" qualifications of the Registrable Shares), (iv) rating agency fees, (v) printing
expenses (including expenses of printing certificates for the Registrable Shares in a form eligible for deposit with Depository Trust Company and of printing prospectuses if the printing of
prospectuses is requested by a holder of Registrable Shares), (vi) messenger and delivery expenses, (vii) the Company's internal expenses (including without limitation all salaries and
expenses of its officers and employees performing legal or accounting duties), (viii) the fees and expenses incurred in 

7

 

connection
with any listing of the Registrable Shares, (ix) fees and expenses of counsel for the Company and fees and expenses of the Company's independent certified public accountants
(including the expenses of any special audit or "cold comfort" letters required by or incident to such performance), (x) securities acts liability insurance (if the Company elects to obtain
such insurance), (xi) the fees and expenses of any special experts retained by the Company in connection with such registration, (xii) the fees and expenses of other Persons retained by
the Company and (xiii) reasonable fees and expenses of one firm of counsel for the sellers (which shall be selected by the holders of a majority of the Registrable Shares being included in any
particular registration statement) (all such expenses being herein called "Registration Expenses"), will be borne by the Company whether or not any registration statement becomes effective; provided
that, except as expressed otherwise provided above, in no event shall Registration Expenses include any underwriting discounts or commissions and transfer taxes. 

	9.
	Indemnification

        (a)   The
Company agrees to indemnify and reimburse, to the fullest extent permitted by law, each seller of Registrable Shares, and each of its employees, advisors, agents,
representatives, partners, officers, and directors and each Person who controls such seller (within the meaning of the Securities Act or the Exchange Act) and any agent or investment advisor thereof
(collectively, the "Seller Affiliates") (i) against any and all losses, claims, damages, liabilities, and expenses, joint or several (including, without limitation, attorneys' fees and
disbursements except as limited by Section 9(c)) based upon, arising out of, related to or resulting from any untrue or alleged untrue statement of a material fact contained in any registration
statement, prospectus, or preliminary prospectus relating to the offer and sale of Registrable Shares, or any amendment thereof or supplement thereto, or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein not misleading, (ii) against any and all loss, liability, claim, damage, and expense whatsoever, as incurred, to
the extent of the aggregate amount paid in settlement of any litigation or investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based
upon, arising out of, related to or resulting from any such untrue statement or omission or alleged untrue statement or omission, and (iii) against any and all costs and expenses (including
reasonable fees and disbursements of counsel) as may be reasonably incurred in investigating, preparing, or defending against any litigation, or investigation or proceeding by any governmental agency
or body, commenced or threatened, or any claim whatsoever based upon, arising out of, related to or resulting from any such untrue statement or omission or alleged untrue statement or omission, to the
extent that any such expense or cost is not paid under subparagraph (i) or (ii) above; except insofar as the same are made in reliance upon and in strict conformity with information
furnished in writing to the Company by such seller or any Seller Affiliate for use therein or arise from such seller's or any Seller Affiliate's failure to deliver a copy of the registration statement
or prospectus or any amendments or supplements thereto after the Company has furnished such seller or Seller Affiliate with a sufficient number of copies of the same. The reimbursements required by
this Section 9(a) will be made by periodic payments during the course of the investigation or defense, as and when bills are received or expenses incurred. 

        (b)   In
connection with any registration statement in which a seller of Registrable Shares is participating, each such seller will furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the fullest extent permitted by law, each such seller
will indemnify the Company and its directors and officers and each Person who controls the Company (within the meaning of the Securities Act or the Exchange Act) against any and all losses, claims,
damages, liabilities, and expenses (including, without limitation, reasonable attorneys' fees and disbursements except as limited by Section 9(c)) resulting from any untrue statement or alleged
untrue statement 

8

 

of
a material fact contained in the registration statement, prospectus, or any preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or alleged untrue statement or omission or alleged
omission is contained in any information or affidavit so furnished in writing by such seller or any of its Seller Affiliates specifically for inclusion in the registration statement; provided that the
obligation to indemnify will be several, not joint and several, among such sellers of Registrable Shares, and the liability of each such seller of Registrable Shares will be in proportion to, and
provided further that such liability will be limited to, the net amount received by such seller from the sale of Registrable Shares pursuant to such registration statement; provided, however, that
such seller of Registrable Shares shall not be liable in any such case to the extent that prior to the filing of any such registration statement or prospectus or amendment thereof or supplement
thereto, such seller has furnished in writing to the Company information expressly for use in such registration statement or prospectus or any amendment thereof or supplement thereto which corrected
or made not misleading information previously furnished to the Company. 

        (c)   Any
Person entitled to indemnification hereunder will (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give such notice shall not limit the rights of such Person) and (ii) unless in such indemnified party's reasonable judgment a conflict of interest
between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party; provided, however, that any Person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the
fees and expenses of such counsel shall be at the expense of such Person unless (i) the indemnifying party has agreed to pay such fees or expenses, or (ii) the indemnifying party shall
have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such Person. If such defense is not assumed by the indemnifying party as permitted hereunder, the
indemnifying party will not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld). If such defense is
assumed by the indemnifying party pursuant to the provisions hereof, such indemnifying party shall not settle or otherwise compromise the applicable claim unless (i) such settlement or
compromise contains a full and unconditional release of the indemnified party or (ii) the indemnified party otherwise consents in writing. An indemnifying party who is not entitled to, or
elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such
claim. 

        (d)   Each
party hereto agrees that, if for any reason the indemnification provisions contemplated by Section 9(a) or Section 9(b) are unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities, or expenses (or actions in respect thereof) referred to therein, then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, liabilities, or expenses (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the actions which resulted in the losses, claims, damages, liabilities or expenses as
well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by such indemnifying party or indemnified 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 contribution
pursuant 

9

 

to
this Section 9(d) were determined by pro rata allocation (even if the Stockholders or any underwriters or all of them were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in this Section 9(d). The amount paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities, or expenses (or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party in
connection with investigating or, except as provided in Section 9(c), defending any such action or claim. Notwithstanding the provisions of this Section 9(d), no Stockholder shall be
required to contribute an amount greater than the dollar amount by which the proceeds received by such Stockholder with respect to the sale of any Registrable Shares exceeds the amount of damages
which such Stockholder has otherwise been required to pay by reason of such statement or omission. 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. The Stockholders' obligations in this Section 9(d) to contribute shall
be several in proportion to the amount of Registrable Shares registered by them and not joint. 

        If
indemnification is available under this Section 9, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 9(a) and
Section 9(b) without regard to the relative fault of said indemnifying party or indemnified party or any other equitable consideration provided for in this Section 9(d). 

        (e)   The
indemnification and contribution provided for under this Agreement will remain in full force and effect regardless of any investigation made by or on behalf of the
indemnified party or any officer, director, or controlling Person of such indemnified party and will survive the transfer of securities. 

	10.
	Termination of Registration Rights

        The
registration rights granted under Sections 2 and 3 of this Agreement shall terminate as to each Stockholder when the Registrable Securities cease to be Registrable Securities;
provided, however, that the provisions of Section 9 shall survive the termination of this Agreement. 

	11.
	Miscellaneous

        (a)   Notices 

        Any
notice, demand or other communication which any party to this Agreement may be required, or may elect, to give to anyone interested hereunder shall be validly given if personally
delivered or sent by facsimile, registered or certified mail, return receipt requested, or reputable overnight courier service (providing next business day service), addressed to the recipient as
follows: 

        If
to the Company: 

Crosstex
Energy Services, Inc.

2501 Cedar Springs, Suite 600

Dallas, Texas 75201

Attention: Barry E. Davis

Facsimile No.: (214) 953-9501 

With
additional copies to: 

Bryan
Lawrence

Yorktown Energy Partners IV, L.P.

410 Park Avenue

New York, New York 10022-4407

Facsimile No.: (212) 515-2105 

10

 

Jeffrey
A. Zlotky

Thompson & Knight L.L.P.

1700 Pacific Avenue, Suite 3300

Dallas, Texas 75201

Facsimile No.: (214) 969-1751 

Joe
A. Davis

Hunton & Williams

Energy Plaza, 30/F

1601 Bryan Street

Dallas, Texas 75201

Facsimile No.: (214) 880-0011 

        If
to any Stockholder, to such Stockholder's address as set forth opposite such Stockholder's name on the counterpart signature page to this Agreement; or, in either case, to such other
address as such party may designate by written notice to the other in accordance with the provisions of this Section 11(a). Notice shall be deemed to have been given when delivered personally
or on the first business day following confirmation of the receipt of a facsimile, five (5) business days following the date of deposit with the U.S. Post Office or on the first business day
following deposit with the office of such reputable courier service. 

        (b)   Entire
Agreement 

        This
Agreement, together with the Exhibits and Annexes and other writings referred to herein or delivered pursuant hereto, constitute the entire agreement between the parties hereto with
respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof. 

        (c)   Binding
Effect; Assignment; No Third Party Benefit 

        This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. Except as
otherwise expressly provided in this Agreement, neither this Agreement nor any of the rights, interests, or obligations hereunder shall be assigned by any of the parties hereto without the prior
written consent of the other parties. Nothing in this Agreement, express or implied, is intended to or shall confer upon any person other than the parties hereto, and their respective heirs, legal
representatives, successors, and permitted assigns, any rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement. 

        (d)   Severability

        If
any provision of this Agreement is held to be unenforceable, this Agreement shall be considered divisible and such provision shall be deemed inoperative to the extent it is deemed
unenforceable, and in all other respects this Agreement shall remain in full force and effect; provided, however, that if any such provision may be made enforceable by limitation thereof, then such
provision shall be deemed to be so limited and shall be enforceable to the maximum extent permitted by applicable law. 

        (e)   GOVERNING
LAW 

        THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF. 

11

 

        (f)    Descriptive
Headings 

        The
descriptive headings herein are inserted for convenience of reference only, do not constitute a part of this Agreement, and shall not affect in any manner the meaning or
interpretation of this Agreement. 

        (g)   Gender

        Pronouns
in masculine, feminine, and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice
versa, unless the context otherwise requires. 

        (h)   References

        All
references in this Agreement to Sections and other subdivisions refer to the Sections and other subdivisions of this Agreement unless expressly provided otherwise. The words "this
Agreement," "herein," "hereof," "hereby," "hereunder" and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. Whenever the
words "include," "includes" and "including" are used in this Agreement, such words shall be deemed to be followed by the words "without limitation." Each reference herein to an Exhibit refers to the
item identified separately in writing by the parties hereto as the described Exhibit or Annex to this Agreement. All Exhibits and Annexes are hereby incorporated in and made a part of this Agreement
as if set forth in full herein. 

        (i)    Injunctive
Relief 

        The
parties hereto acknowledge and agree that irreparable damage would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement, and shall be
entitled to enforce specifically the provisions of this Agreement, in any court of the United States or any state thereof having jurisdiction, in addition to any other remedy to which the parties may
be entitled under this Agreement or at law or in equity. 

        (j)    Consent
to Jurisdiction 

          (i)  The
parties hereto hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of Delaware and the federal courts of the United States of America
located in Delaware, and appropriate appellate courts therefrom, over any dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby, and each party hereby
irrevocably agrees that all claims in respect of such dispute or proceeding may be heard and determined in such courts. The parties hereby irrevocably waive, to the fullest extent permitted by
applicable law, any objection which they may now or hereafter have to the laying of venue of any dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby
brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. This consent to jurisdiction is being given solely for purposes of this Agreement and is not intended to, and shall not,
confer consent to jurisdiction with respect to any other dispute in which a party to this Agreement may become involved. 

         (ii)  Each
of the parties hereto hereby consents to process being served by any party to this Agreement in any suit, action, or proceeding of the nature specified in
subsection (a) above by the mailing of a copy thereof in the manner specified by the provisions of Section 7.1. 

12

 

        (iii)  EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

        (k)   Amendment 

        The
provisions of this Agreement may only be amended, waived or modified with a written instrument duly executed by a Super-Majority in Interest. Notwithstanding the immediately
preceding sentence, with respect to any change, modification or amendment to this Agreement which is necessary to admit an additional Stockholder in the manner expressly permitted by this Agreement,
such change, modification or amendment may be contained in a written instrument executed solely by the Company, provided that the Company notifies the Stockholders of such change, modification or
amendment. 

        (l)    Waiver 

        No
failure or delay by a party hereto in exercising any right, power, or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any other right, power, or privilege. 

        (m)  Counterparts

        This
Agreement may be executed by the parties hereto in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same
agreement. Each counterpart may consist of a number of copies hereof each signed by less than all, but together signed by all, the parties hereto. 

13

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

	 	 	YORKTOWN ENERGY PARTNERS IV, L.P.
	

 	
 	

By:	
 	

Yorktown IV Company LLC, its General Partner
	

 	
 	

 	
 	

By:	

/s/  PETER A. LEIDEL      

	 	 	 	 	Name:	Peter A. Leidel

	 	 	 	 	Title:	Member

	

 	
 	

YORKTOWN ENERGY PARTNERS V, L.P.
	

 	
 	

By:	
 	

Yorktown V Company LLC, its General Partner
	

 	
 	

 	
 	

By:	

/s/  PETER A. LEIDEL      

	 	 	 	 	Name:	Peter A. Leidel

	 	 	 	 	Title:	Member

	

 	
 	

LUBAR NOMINEES
	

 	
 	

By:	

/s/  SHELDON B. LUBAR      

	 	 	Name:	Lubar Nominees

	 	 	Title:	General Partners

	

 	
 	

/s/  BARRY E. DAVIS      
 Barry E. Davis
	

 	
 	

/s/  A. CHRIS AULDS      
 A. Chris Aulds
	

 	
 	

/s/  JAMES R. WALES      
 James R. Wales
	

 	
 	

/s/  WILLIAM W. DAVIS      
 William W. Davis
	

 	
 	

/s/  JACK M. LAFIELD      
 Jack M. Lafield
	

 	
 	

/s/  MICHAEL P. SCOTT      
 Michael P. Scott
	

 	
 	

/s/  LISA M. BRECHT      
 Lisa M. Brecht
	

 	
 	

/s/  JOHN W. DAUGHERTY      
 John W. Daugherty
	

 	
 	

/s/  MIKE HOPKINS      
 Mike Hopkins
	

 	
 	

/s/  MARK E. HUFF      
 Mark E. Huff
	

 	
 	

/s/  MARC LYONS      
 Marc Lyons
	

 	
 	

/s/  RODNEY A. MADDEN      
 Rodney A. Madden
	 	 	 	 

	

 	
 	

/s/  STEWART MCCORKLE      
 Stewart McCorkle
	

 	
 	

/s/  DALE WILSON      
 Dale Wilson
	

 	
 	

MK Holdings, L.P.

By: MK Holdings GP, L.L.C.
	

 	
 	

By:	

/s/  BARRY E. DAVIS      

	 	 	Name:	Barry E. Davis

	 	 	Title:	Manager

	

 	
 	

CROSSTEX ENERGY HOLDINGS INC.
	

 	
 	

By:	

/s/  BRYAN H. LAWRENCE      

	 	 	Name:	Bryan H. Lawrence

	 	 	Title:	Chairman

QuickLinks

Exhibit 10.6

REGISTRATION RIGHTS AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]