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Exhibit 10.7    
    

 
 

Full Recourse Promissory Note    
    

Dallas, Texas  

	[Principal Amount]	 	[Date

        Reference
is made to that certain Subscription Agreement dated of even date herewith (the "Subscription Agreement"), by and between the
undersigned ("Subscriber") and Crosstex Energy Holdings Inc., a Delaware corporation (the  "Company"). This Full Recourse Promissory Note (the
"Note") is being tendered by Subscriber to the
Company as part of the total purchase price of the Shares (as defined below) pursuant to the Subscription Agreement. 

        1.     Obligation. In exchange for the issuance to Subscriber pursuant to the
Subscription Agreement of twenty thousand (20,000) shares of the Company's [Class/Series of Capital Stock], par value $.01 per share (the  "Shares"), the receipt of which is hereby acknowledged,
Subscriber hereby promises to pay to the order of the Company on the earlier to occur of
(i) [Maturity Date] or (ii) the date that is six months following the date the Subscriber ceases to be an employee of the Company (such earlier date is herein
referred to as the ("Maturity Date") at the Company's principal place of business, or at such other place as the Company may direct, the principal sum
of [Principal Amount] together with interest compounded annually on the unpaid principal at the rate of [Interest Rate]% per annum, which rate is not
less than the minimum rate established pursuant to Section 1274(d) of the Internal Revenue Code of 1986, as amended, on the earliest date on which there was a binding contract in writing for
the purchase of the Shares. Upon the occurrence and during the continuance of an Event of Default (as defined below), the unpaid principal balance of, and all accrued and unpaid interest on, this Note
shall bear interest at the rate of 12% per annum. All payments hereunder shall be made in lawful tender of the United States. Notwithstanding anything to the contrary contained herein, in the Pledge
Agreement (as defined below) or in the Subscription Agreement, in no event shall the interest payable hereon, whether before or after maturity, exceed the maximum amount of interest which, under
applicable law, may be charged hereon to the Subscriber. 

        2.     Security. Performance of Subscriber's obligations under this Note is
secured by a security interest in the Shares granted to the Company by Subscriber under a Stock Pledge Agreement dated of even date herewith between the Company and Subscriber (the  "Pledge Agreement").

        3.     Events of Default. Subscriber will be deemed to be in default under this
Note upon the occurrence of any of the following events (each an "Event of Default"): (i) upon Subscriber's failure to make any payment when due
under this Note, whether at the Maturity Date or otherwise; (ii) the failure of any representation or warranty in the Pledge Agreement to have been true, the failure of Subscriber to perform
any obligation under the Pledge Agreement, or upon any other breach by Subscriber of the Pledge Agreement; (iii) any voluntary or involuntary transfer of any of the Shares or any interest
therein (except a transfer to the Company) in violation of any term of that certain Stockholders' Agreement dated May 5, 2000; (iv) upon the filing regarding the Subscriber of any
voluntary or involuntary petition for relief under the United States Bankruptcy Code or the initiation of any proceeding under federal law or law of any other jurisdiction for the general relief of
debtors; or (v) upon the execution by Subscriber of an assignment for the benefit of creditors or the appointment of a receiver, custodian, trustee or similar party to take possession of
Subscriber's assets or property. 

        4.     Acceleration; Remedies On Default. Upon the occurrence of an Event of
Default described in Section 3(v) or 3(vi) above, this Note shall thereupon be immediately due and payable, without demand, presentment, notice of demand or of dishonor and
nonpayment, protest, notice of protest, notice of intention to accelerate, declaration or notice of acceleration, or any other notice or declaration of any kind, all of which are hereby expressly
waived by the Subscriber. During the continuance of any other Event of Default, the Company at any time and from time to time may without notice to the Subscriber declare any or all of this Note
immediately due and payable, and this 

Note
shall thereupon be immediately due and payable, without demand, presentment, notice of demand or of dishonor and nonpayment, protest, notice of protest, notice of intention to accelerate,
declaration or notice of acceleration, or any other notice or declaration of any kind, all of which are hereby expressly waived by Borrower. In addition, upon the occurrence of an Event of Default the
Company will have, without limitation of its rights and remedies under this Note or the Pledge Agreement, full recourse against any real, personal, tangible or intangible assets of Subscriber, and may
pursue any legal or equitable remedies that are available to it. 

        5.     Rule 144 Holding Period. SUBSCRIBER UNDERSTANDS THAT PURSUANT TO
SECTION 144(d)(2) PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1993 ACT"), THE HOLDING PERIOD SPECIFIED UNDER RULE 144(d) OF THE 1933 ACT WILL NOT BEGIN TO RUN WITH RESPECT TO SHARES
PURCHASED WITH THIS NOTE UNTIL EITHER (i) THE PURCHASE PRICE OF SUCH SHARES IS PAID IN FULL IN CASH OR BY OTHER PROPERTY ACCEPTED BY THE COMPANY, OR (ii) THIS NOTE IS SECURED BY
COLLATERAL, OTHER THAN THE SHARES THAT HAVE NOT BEEN FULLY PAID FOR IN CASH, HAVING A FAIR MARKET VALUE AT LEAST EQUAL TO THE AMOUNT OF SUBSCRIBER'S THEN OUTSTANDING OBLIGATION UNDER THIS NOTE
(INCLUDING ACCRUED INTEREST). 

        6.     Prepayment. Prepayment of principal and/or other amounts owed under this
Note may be made at any time without penalty; provided, however, that Subscriber shall make mandatory prepayments of amounts owed under this Note to the extent of any proceeds attributable to the
Shares that may arise on account of any (a) sale of all or substantially all of the assets of the Company, or (b) any merger, consolidation, reorganization or other transaction involving
the Company after giving effect to which the holders of a majority of the outstanding equity interests (on a fully diluted basis) of the Company immediately prior to such transaction will not own a
majority of the outstanding equity interests immediately following such transaction. Unless otherwise agreed in writing by the Company, each payment will be applied to the extent of available funds
from such payment in the following order: (i) first to the accrued and unpaid costs and expenses under the Note or the Pledge Agreement, (ii) then to accrued but unpaid interest, and
(iii) lastly to the outstanding principal. 

        7.     Governing Law. The validity, construction and performance of this Note
will be governed by the internal laws of the State of New York, excluding that body of law pertaining to conflicts of law. 

        8.     Attorneys' Fees; Waivers. If this Note is placed in the hands of an
attorney for collection after default, or if all or any part of the indebtedness represented hereby is proved, established or collected in any court or in any bankruptcy, receivership, debtor relief,
probate or other court proceedings, the Subscriber and all endorsers, sureties and guarantors of this Note jointly and severally agree to pay reasonable attorneys' fees and collection costs to the
holder hereof in addition to the principal and interest payable hereunder. The Subscriber and all endorsers, sureties and guarantors of this Note hereby severally waive demand, presentment for
payment, protest, notice of protest, notice of intention to accelerate the maturity of this Note, notice of the acceleration of the maturity of this Note, diligence in collecting, the bringing of any
suit against any party and any notice of or defense on account of any extensions, renewals, partial payments or changes in any manner of or in this Note or in any of its terms, provisions and
covenants, or any releases or substitutions of any security, or any delay, indulgence or other act of any trustee or any holder hereof, whether before or after maturity. 

*    *    *    *    *

        IN
WITNESS WHEREOF, Subscriber has executed this Note as of the date and year first above written. 

	

 Subscriber Name	
 	

 Subscriber's Signature

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Exhibit 10.7

Full Recourse Promissory NoteQuickLinks
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Exhibit 10.8    
    

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into as of October    , 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
                        , 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, 

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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 included by the Stockholders; 

3

 

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 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; 

4

 

        (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; 

        (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; 

5

 

        (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"); 

        (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; 

6

 

        (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 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 

7

 

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 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 

8

 

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 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 

9

 

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 

Jeffrey
A. Zlotky

Thompson & Knight L.L.P.

1700 Pacific Avenue, Suite 3300

10

 

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. 

        (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. 

11

 

        (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. 

        (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. 

12

 

        (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:	
 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

	

 	
 	

Address:

410 Park Avenue

New York, New York 10022

14

 

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

	 	 	YORKTOWN ENERGY PARTNERS V, L.P.
	

 	
 	

By:	

Yorktown V Company LLC,

its General Partner
	

 	
 	

 	

By:	
 	

	 	 	 	 	Name:	 	

	 	 	 	 	Title:	 	

	

 	
 	

Address:

410 Park Avenue

New York, New York 10022

15

 

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

	 	 	LUBAR NOMINEES
	

 	
 	

By:	

 David J. Lubar, a general partner
	

 	
 	

Address:

16

 

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

	 	 	
 Barry E. Davis
	

 	
 	

Address:

17

 

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

	 	 	
 A. Chris Aulds
	

 	
 	

Address:

18

 

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

	 	 	
 James R. Wales
	

 	
 	

Address:

19

 

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

	 	 	
 William W. Davis
	

 	
 	

Address:

20

 

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

	 	 	
 Jack M. Lafield
	

 	
 	

Address:

21

 

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

	 	 	
 Michael P. Scott
	

 	
 	

Address:

22

 

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

	 	 	
 Lisa M. Brecht
	

 	
 	

Address:

23

 

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

	 	 	
 John W. Daugherty
	

 	
 	

Address:

24

 

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

	 	 	
 Mike Hopkins
	

 	
 	

Address:

25

 

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

	 	 	
 Mark E. Huff
	

 	
 	

Address:

26

 

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

	 	 	
 Marc Lyons
	

 	
 	

Address:

27

 

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

	 	 	
 Rodney A. Madden
	

 	
 	

Address:

28

 

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

	 	 	
 Stewart McCorkle
	

 	
 	

Address:

29

 

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

	 	 	
 Dale Wilson
	

 	
 	

Address:

30

 

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

	 	CROSSTEX ENERGY HOLDINGS INC.
	

 	

By:	
 	

	 	Name:	 	

	 	Title:	 	

31

QuickLinks

Exhibit 10.8

REGISTRATION RIGHTS AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]