X0201 3 2004-01-12 0 0001209821 CROSSTEX ENERGY INC XTXI 0001209818 DAVIS WILLIAM W 2501 CEDAR SPRINGS SUITE 600 DALLAS TX 75201 0 1 0 0 Senior VP & CFO Employee Stock Option (Right to Buy) 12.00 2005-05-05 Common Stock 25000 D Series A 7??% Cumulative Convertible Preferred Stock 12 Common Stock 25468 D On January 7, 2002, the reporting person was granted an option to purchase 25,000 shares of common stock. The option vests in three equal installments on each anniversary of October 1, 2001, resulting in the vesting of the option as to 16,667 shares. 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. 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