X0201 3 2004-01-12 0 0001209821 CROSSTEX ENERGY INC XTXI 0001209815 WALES JAMES R 2501 CEDAR SPRINGS SUITE 600 DALLAS TX 75201 0 1 0 0 Executive Vice President Common Stock, par value $0.01 per share 91685 D Employee Stock Option (Right to Buy) 10.00 2005-05-05 Common Stock 42500 D Series A 7 1/2% Cumulative Convertible Preferred Stock 10 Common Stock 46706 D Series B 7 1/2% Cumulative Convertible Preferred Stock 12 Common Stock 14970 D On May 5, 2000, the reporting person was granted an option to purchase 42,500 shares of common stock. The option vested in two equal installments on May 5, 2001 and May 5, 2002. Immediately None Does not reflect a 2-for-1 stock split, to be effected in the form of a stock dividend, to be effective upon the closing of the Issuer's initial public offering, pursuant to which each share of Series A 7??% Cumulative Convertible Preferred Stock will become convertible into 2 shares of Common Stock. Does not reflect a 2-for-1 stock split, to be effected in the form of a stock dividend, to be effective upon the closing of the Issuer's initial public offering, pursuant to which each share of Series B 7??% Cumulative Convertible Preferred Stock will become convertible into 2 shares of Common Stock. Subject to certain adjustments as provided in the Certificate of Designations for such series of preferred stock. /s/ Leslie J. Wylie, by power of attorney 2004-01-12