Document:

exv10w1

Exhibit 10.1

FIFTH AMENDMENT AND CONSENT

     THIS FIFTH AMENDMENT AND CONSENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is entered into as of November 7, 2008 by and among each of the persons listed
on the signature pages hereof as banks (the “Banks”), Crosstex Energy, L.P., a Delaware
limited partnership (the “Borrower”), and Bank of America, N.A., as administrative agent
(in such capacity, the “Administrative Agent”) and as collateral agent (in such capacity,
the “Collateral Agent”).

ARTICLE I

BACKGROUND

     A. The Banks, the Administrative Agent and the Borrower are parties to that certain Fourth
Amended and Restated Credit Agreement dated as of November 1, 2005, as amended by the First
Amendment dated as of February 24, 2006, the Second Amendment dated as of June 29, 2006, the Third
Amendment dated as of March 28, 2007 and the Fourth Amendment dated as of September 19, 2007 (as so
amended, the “Credit Agreement”). Terms defined in the Credit Agreement and not otherwise
defined herein have the same respective meanings when used herein.

     B. Crosstex Seminole Gas, L.P. (“Crosstex Seminole”), a Subsidiary of the Borrower and
a Guarantor, owns an undivided 12.4% interest (the “Seminole Plant Interest”) in a certain
gas processing plant known as the Seminole Gas Processing Plant (previously known as the Seminole
CO2 Recovery Plant) and as described in that certain Unit Agreement which is recorded in Volume
189, Page 559 of the Oil and Gas Records of Gaines County, Texas.

     C. Crosstex Seminole intends to sell the Seminole Plant Interest in exchange for Net Cash
Proceeds (calculated without subtracting taxes paid or reasonably estimated to be payable as a
result of such sale) equal to at least $75,000,000.00 (the “Seminole Plant Sale”).

     D. The Seminole Plant Sale is prohibited under Section 6.04 of the Credit Agreement.

     E. The Borrower has requested, and the Banks have agreed, to consent to the Seminole Plant
Sale and to make certain amendments to the Credit Agreement, each as provided for herein.

ARTICLE II

AGREEMENT

     NOW THEREFORE, in consideration of the covenants, conditions and agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and adequacy of which are all
hereby acknowledged, the parties hereto covenant and agree as follows:

 

 

     Section 1. Amendments. The Credit Agreement is hereby amended as follows:

          (a) The definition of “Acquisition Adjustment Period” in Section 1.01 of the
Credit Agreement is hereby amended by replacing “the Second Amendment Effective Date” with
“December 31, 2010”.

          (b) The definition of “Applicable Margin” in Section 1.01 of the Credit
Agreement is hereby amended by (i) replacing “if at any time during an Acquisition Adjustment
Period, the Leverage Ratio is greater than 4.50 to 1.00, then the Applicable Margin shall be, with
respect to Eurodollar Rate Advances, 2.00% and with respect to Reference Rate Advances, 0.50%” with
“if at any time during an Acquisition Adjustment Period, the Leverage Ratio is greater than 4.50 to
1.00, then the Applicable Margin shall be, with respect to Eurodollar Rate Advances, 3.25% and with
respect to Reference Rate Advances, 2.25%” and (ii) replacing the pricing grid in its entirety as
follows:

	 	 	 	 	 	 	 	 	 
	 	 	Eurodollar Rate	 	Reference Rate	 	Commitment	 	Letter of
	Leverage Ratio	 	Advances	 	Advances	 	Fees	 	Credit Fees
	= 4.25
	 	3.00%
	 	2.00%
	 	0.500%
	 	3.00%
	= 3.75 and

< 4.25
	 	2.75%
	 	1.75%
	 	0.500%
	 	2.75%
	= 3.25 and

< 3.75
	 	2.25%
	 	1.25%
	 	0.375%
	 	2.25%
	= 2.75 and

< 3.25
	 	2.00%
	 	1.00%
	 	0.300%
	 	2.00%
	= 2.25 and

< 2.75
	 	1.75%
	 	0.75%
	 	0.250%
	 	1.75%
	< 2.25
	 	1.50%
	 	0.50%
	 	0.200%
	 	1.50%

          (c) The definition of “EBITDA” in Section 1.01 of the Credit Agreement is
hereby amended by (i) replacing “For purposes of calculating the Leverage Ratio only” with “For
purposes of calculating (x) the Leverage Ratio and (y) for any period ending prior to the Fifth
Amendment Effective Date, the Interest Charge Coverage Ratio” and (ii) adding the following
paragraph to the end of such definition:

	 	 	Notwithstanding the foregoing, such pro forma adjustments to EBITDA (x) for the
periods of calculation ending December 31, 2008 and March 31, 2009 shall be limited
to 20% of the total actual EBITDA for such period, (y) for the period of calculation
ending June 30, 2009 shall be limited to 15% of the total actual EBITDA for such
period and (z) for periods of calculation ending thereafter, shall be limited to 10%
of the total actual EBITDA for such period, in each case, which total actual EBITDA
shall be determined without including any such pro forma adjustments to EBITDA.

          (d) The definition of “Interest Expense” in Section 1.01 of the Credit
Agreement is hereby amended by inserting “prior to the Fifth Amendment Effective Date” immediately
after “on a pro forma basis at any time”.

2

 

          (e) The definition of “Reference Rate” in Section 1.01 of the Credit Agreement
is hereby restated in its entirety as follows:

     “Reference Rate” means for any day a fluctuating rate per annum equal
to the highest of the following, in each case, to the extent determinable by the
Administrative Agent: (a) the Federal Funds Rate plus 1/2 of 1%, (b) the Eurodollar
Rate with respect to Interest Periods of one month determined as of approximately
11:00 a.m. (London time) on such day plus 1.50% and (c) the rate of interest in
effect for such day as publicly announced from time to time by Bank of America as
its “prime rate.” The “prime rate” is a rate set by Bank of America based upon
various factors including Bank of America’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for pricing
some loans, which may be priced at, above, or below such announced rate. Any change
in such rate announced by Bank of America shall take effect at the opening of
business on the day specified in the public announcement of such change.

          (f) Section 1.01 of the Credit Agreement is hereby amended by adding the following new
defined terms in their appropriate alphabetical order:

     “Defaulting Bank” means any Bank that (a) has failed to fund any
portion of the Advances or L/C Advances required to be funded by it hereunder within
one Business Day of the date required to be funded by it hereunder unless such
failure has been cured, (b) has otherwise failed to pay over to the Administrative
Agent, the Collateral Agent, the Issuing Bank or any other Bank any other amount
required to be paid by it hereunder within one Business Day of the date when due,
unless the subject of a good faith dispute or unless such failure has been cured, or
(c) has been deemed insolvent or become the subject of a bankruptcy or other similar
proceeding.

     “Fifth Amendment Effective Date” means November 7, 2008.

     “Impacted Bank” means (a) any Bank that is a Defaulting Bank and (b)
any Bank as to which (i) the Borrower, the Administrative Agent or the Issuing Bank
has a good faith belief that such Bank has defaulted in fulfilling its obligations
under one or more other syndicated credit facilities or (ii) an entity that controls
such Bank has been deemed insolvent or become subject to a bankruptcy or other
similar proceeding.

          (g) Section 2.13(a)(iii)(C) of the Credit Agreement is hereby restated in its entirety
as follows:

     (C) if a default of any Bank’s obligations to fund under Section
2.13(c) exists or any Bank is at such time an Impacted Bank hereunder, unless
the Issuing Bank has entered into arrangements satisfactory to the Issuing Bank with
the Borrower or such Bank to eliminate the Issuing Bank’s risk with respect to such
Bank.

3

 

          (h) Section 2.14 of the Credit Agreement is hereby amended by replacing “Defaulting
Bank” with “Impacted Bank”.

          (i) Section 6.13 of the Credit Agreement is hereby amended by replacing “3.00 to 1.00”
with “2.50 to 1.00”.

          (j) Section 6.14(a) of the Credit Agreement is hereby restated in its entirety as
follows:

     (a) If no Unsecured Note Indebtedness is outstanding on the applicable date of
determination, the Borrower shall not, as of the end of any fiscal quarter, permit
the Leverage Ratio for the Borrower and its Subsidiaries on a Consolidated basis to
be greater than (i) 5.00 to 1.00 for any fiscal quarter ending during the period
commencing on the Fifth Amendment Effective Date and ending June 30, 2009, (ii) 4.75
to 1.00 for the fiscal quarter ending September 30, 2009, and (iii) 4.50 to 1.00 for
any fiscal quarter ending thereafter; provided, however, that, for any fiscal
quarter ending after December 31, 2010, during an Acquisition Adjustment Period, the
maximum permitted Leverage Ratio shall be increased by 0.50 to 1.00 from the
otherwise applicable ratio set forth above.

          (k) Section 6.14(b) of the Credit Agreement is hereby amended by (i) replacing “5.50
to 1.00” with “5.25 to 1.00” and (ii) inserting “, for any fiscal quarter ending after December 31,
2010,” immediately after “provided, however, that”.

          (l) Section 6.14(c) of the Credit Agreement is hereby amended by (i) replacing “4.50
to 1.00” with “4.25 to 1.00” and (ii) inserting “, for any fiscal quarter ending after December 31,
2010,” immediately after “provided, however, that”.

     Section 2. Consent. The Banks hereby consent to (a) the amendment of the Note
Agreement pursuant to the Waiver and Letter Amendment No. 3 to Amended and Restated Note Purchase
Agreement, substantially in the form attached hereto as Exhibit A (the “Note Agreement
Amendment”) and (b) the Seminole Plant Sale and the release of the Seminole Plant Interest from
the Lien of the Collateral Agent under the Credit Documents contemporaneously with the consummation
of the Seminole Plant Sale and agree (i) that the Seminole Plant Sale shall not constitute a
Default or Event of Default under the Credit Agreement as a result of a violation of Section
6.04 of the Credit Agreement and (ii) that the consideration for the Seminole Plant Sale shall
not be included in the calculation of the limitation on dispositions in Section 6.04(g) of
the Credit Agreement; provided that (x) the Seminole Plant Sale is consummated on or before
January 31, 2009 on terms and conditions reasonably satisfactory to the Administrative Agent and
(y) the Net Cash Proceeds of the Seminole Plant Sale are used to prepay the Advances to the extent
required by Section 2.04(b)(ii) of the Credit Agreement. Such consent is limited to the
extent described herein and shall not be construed to be a consent to or a permanent waiver of
Section 6.04 of the Credit Agreement or any other terms, provisions, covenants, warranties
or agreements contained in the Credit Agreement or in any of the other Credit Documents. The
Administrative Agent, the Collateral Agent and the Banks reserve the right to exercise any rights
and remedies available to them in connection with any present or future Defaults or Events of
Default with respect to the Credit Agreement or any other provision of any Credit Document.

4

 

     Section 3. Conditions Precedent. The amendment to the Credit Agreement in Section
1(c)(i) shall become effective as of November 1, 2005 and the other amendments to the Credit
Agreement in Section 1 and the consent under the Credit Agreement in Section 2
shall become effective as of the date first set forth above upon the satisfaction of the following
conditions precedent:

          (a) The Administrative Agent shall have received each of the following:

               (1) this Amendment, duly executed by the Borrower, the Majority Banks, the Administrative
Agent and the Collateral Agent;

               (2) the acknowledgment attached to this Amendment, duly executed by each Guarantor; and

               (3) an executed copy of the Note Agreement Amendment.

          (b) The Borrower shall have paid the fees required by the Fee Letter dated as of November 7,
2008 between the Borrower and the Agent and all costs and expenses that have been invoiced and are
payable pursuant to Section 9.04 of the Credit Agreement.

     Section 4. Representations and Warranties. The Borrower represents and warrants to
the Banks, the Administrative Agent and the Collateral Agent as set forth below:

          (a) The execution, delivery and performance by the Borrower of this Amendment are within the
Borrower’s legal powers, have been duly authorized by all necessary partnership action and do not
(i) contravene the Borrower Partnership Agreement, (ii) violate any applicable Governmental Rule,
the violation of which could reasonably be expected to have a Material Adverse Effect, (iii)
conflict with or result in the breach of, or constitute a default under, any loan agreement,
indenture, mortgage, deed of trust or lease, or any other contract or instrument binding on or
affecting the Borrower or any Subsidiary or any of their respective properties, the conflict,
breach or default of which could reasonably be expected to have a Material Adverse Effect, or (iv)
result in or require the creation or imposition of any Lien upon or with respect to any of the
properties of the Borrower, other than Liens permitted by the Credit Agreement.

          (b) No Governmental Action is required for the due execution, delivery or performance by the
Borrower of this Amendment.

          (c) Assuming due execution and delivery by the Majority Banks, the Administrative Agent and
the Collateral Agent, this Amendment constitutes legal, valid and binding obligations of the
Borrower, enforceable against the Borrower in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization or
other similar laws affecting creditors’ rights generally or by general principles of equity
(regardless of whether such enforceability is considered in any proceeding in law or in equity).

          (d) The execution, delivery and performance of this Amendment do not adversely affect the
enforceability of any Lien of the Security Documents.

5

 

          (e) The quarterly and annual financial statements most recently delivered to the Banks
pursuant to Sections 5.01(c) and (d) of the Credit Agreement fairly present in all material
respects the Consolidated financial condition of the Borrower and its Subsidiaries as of the
respective dates thereof and the Consolidated results of the operations of the Borrower and its
Subsidiaries for the respective fiscal periods ended on such dates, all in accordance with GAAP
applied on a consistent basis (subject to normal year-end audit adjustments and the absence of
footnotes in the case of the quarterly financial statements). Since December 31, 2007, no Material
Adverse Effect has occurred. The Borrower and its Subsidiaries have no material contingent
liabilities except as disclosed in such financial statements or the notes thereto.

          (f) There is no pending or, to the knowledge of the Borrower, threatened action or proceeding
affecting the Borrower or any Subsidiary before any Governmental Person, referee or arbitrator that
could reasonably be expected to have a Material Adverse Effect.

          (g) The representations and warranties made by the Borrower and the Guarantors contained in
Article IV of the Credit Agreement and in each of the other Credit Documents are true and correct
in all material respects on and as of the date hereof, as though made on and as of such date, other
than any such representations or warranties that, by the their terms, refer to a specific date, in
which case as of such specific date.

          (h) No event has occurred and is continuing, or would result from the effectiveness of this
Amendment, which constitutes a Default.

     Section 5. Covenant. As soon as available and in any event prior to the consummation
of the Seminole Plant Sale, the Borrower shall provide the Administrative Agent with an executed
copy of the purchase and sale agreement between Crosstex Seminole and the purchaser of the Seminole
Plant Interest providing for the Seminole Plant Sale in form and substance reasonably acceptable to
the Administrative Agent.

     Section 6. Reference to and Effect on the Credit Agreement.

          (a) On and after the effective date of this Amendment each reference in the Credit Agreement
to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a
reference to the Credit Agreement, and each reference in the other Credit Documents to “the Credit
Agreement,” “thereunder,” “thereof,” “therein” or words of like import referring to the Credit
Agreement, shall mean and be a reference to the Credit Agreement as amended by this Amendment.

          (b) Except as specifically amended above, the Credit Agreement and the other Credit Documents
shall remain in full force and effect and are hereby ratified and confirmed. Without limiting the
generality of the foregoing, the Security Documents and all of the Collateral described therein do
and shall continue to secure the payment of all obligations stated to be secured thereby under the
Credit Documents.

          (c) Except as expressly set forth herein, the execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent
or any Bank under any of the Credit Documents or constitute a waiver of any provision of any of the
Credit Documents.

6

 

     Section 7. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each which when so executed and
delivered shall be deemed to be an original and all of which when taken together shall constitute
but one and the same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of an originally executed counterpart of
this Amendment.

     Section 8. Governing Law; Binding Effect. This Amendment shall be governed by, and
construed and enforced in accordance with, the laws of the State of Texas, and shall be binding
upon the Borrower, the Administrative Agent, the Collateral Agent, each Bank and their respective
successors and assigns.

     Section 9. Costs and Expenses. The Borrower agrees to pay on demand all costs and
expenses of the Administrative Agent in connection with the preparation, execution and delivery of
this Amendment and the other instruments and documents to be delivered hereunder, including the
reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect
thereto and with respect to advising the Administrative Agent as to its rights and responsibilities
hereunder and thereunder.

     THIS WRITTEN AMENDMENT AND THE CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.

     THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Remainder of this page blank; signature pages follow]

7

 

     Executed as of the date first set forth above.

	 	 	 	 	 
	 	 	CROSSTEX ENERGY, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Crosstex Energy GP, L.P.,
General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Crosstex Energy GP, LLC,

General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael Garberding
	 

	 	 	 	 
	 

	 	Name:
	 	Michael Garberding
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President — Finance
	 

	 	 	 	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

Each of the undersigned, as guarantors under the Second Amended and Restated Subsidiary Guaranty
dated as of November 1, 2005 (the “Guaranty”), hereby (a) consents to this Amendment, and
(b) confirms and agrees that the Guaranty is and shall continue to be in full force and effect and
is ratified and confirmed in all respects, except that, on and after the effective date of the
Amendment each reference in the Guaranty to “the Credit Agreement,” “thereunder,” “thereof,”
“therein” or any other expression of like import referring to the Credit Agreement shall mean and
be a reference to the Credit Agreement as modified by this Amendment.

	 	 	 	 	 
	 	CROSSTEX ENERGY SERVICES, L.P.

By: Crosstex Operating GP, LLC, its general partner

 	 
	 	By:  	/s/ Michael Garberding
 	 
	 	 	Name: 	Michael Garberding 
	 	 	Title: 	Vice President — Finance 
	 
	 	CROSSTEX OPERATING GP, LLC

CROSSTEX ENERGY SERVICES GP, LLC

CROSSTEX LIG, LLC

CROSSTEX TUSCALOOSA, LLC

CROSSTEX LIG LIQUIDS, LLC

CROSSTEX PROCESSING SERVICES, LLC

CROSSTEX PELICAN, LLC

 	 
	 	By:  	/s/ Michael Garberding
 	 
	 	 	Name: 	Michael Garberding 
	 	 	Title: 	Vice President — Finance 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	CROSSTEX ACQUISITION MANAGEMENT, L.P.

CROSSTEX MISSISSIPPI PIPELINE, L.P.

CROSSTEX SEMINOLE GAS, L.P.

CROSSTEX ALABAMA GATHERING SYSTEM, L.P.

CROSSTEX MISSISSIPPI INDUSTRIAL GAS SALES, L.P.

CROSSTEX GULF COAST TRANSMISSION LTD.

CROSSTEX GULF COAST MARKETING LTD.

CROSSTEX CCNG GATHERING LTD.

CROSSTEX CCNG PROCESSING LTD.

CROSSTEX CCNG TRANSMISSION LTD.

CROSSTEX TREATING SERVICES, L.P.

CROSSTEX NORTH TEXAS PIPELINE, L.P.

CROSSTEX NORTH TEXAS GATHERING, L.P.

CROSSTEX NGL MARKETING, L.P.

CROSSTEX NGL PIPELINE, L.P.

By: Crosstex Energy Services GP, LLC, general partner

of each above limited partnership

 	 
	 	By:  	/s/ Michael Garberding
 	 
	 	 	Name:  	Michael Garberding 	 
	 	 	Title:  	Vice President — Finance 	 
	 
	 	SABINE PASS PLANT FACILITY JOINT VENTURE

By: Crosstex Processing Services, LLC, as general

                         partner, and

By: Crosstex Pelican, LLC, as general partner

 	 
	 	By:  	/s/ Michael Garberding
 	 
	 	 	Name:  	Michael Garberding 	 
	 	 	Title:  	Vice President — Finance 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Administrative Agent, Collateral Agent, a Bank and

an Issuing Bank

 	 
	 	By:  	/s/ Jeffrey H. Rathkamp
 	 
	 	 	Name:  	Jeffrey H. Rathkamp 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.

 	 
	 	By:  	/s/ Timothy Brendel
 	 
	 	 	Name:  	Timothy Brendel 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Carmen Malizia
 	 
	 	 	Name:  	Carmen Malizia 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS FINANCING, INC.

 	 
	 	By:  	/s/ Gumaro Tijerina
 	 
	 	 	Name:  	Gumaro Tijerina 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Shannan Townsend
 	 
	 	 	Name:  	Shannan Townsend 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	BAYERISCHE HYPO-UND VEREINSBANK AG, NEW YORK BRANCH

 	 
	 	By:  	/s/ Yoram Danker
 	 
	 	 	Name:  	Yoram Danker 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Miriam Trautmann
 	 
	 	 	Name:  	Miriam Trautmann 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	BNP PARIBAS

 	 
	 	By:  	/s/ Larry Robinson
 	 
	 	 	Name:  	Larry Robinson 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Gregory E. George
 	 
	 	 	Name:  	Gregory E. George 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	CITIBANK, N.A.

 	 
	 	By:  	/s/ David E. Hunt
 	 
	 	 	Name:  	David E. Hunt 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	SCOTIABANC INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA

 	 
	 	By:  	/s/ Jason S. York
 	 
	 	 	Name:  	Jason S. York 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Daria Mahoney
 	 
	 	 	Name:  	Daria Mahoney 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP.

 	 
	 	By:  	/s/ Casey Lowary
 	 
	 	 	Name:  	Casey Lowary 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Darrell Holley
 	 
	 	 	Name:  	Darrell Holley 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	GUARANTY BANK

 	 
	 	By:  	/s/ Christopher S. Parada
 	 
	 	 	Name:  	Christopher S. Parada 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ Kenneth J. Fatur
 	 
	 	 	Name:  	Kenneth J. Fatur 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	NATIXIS

 	 
	 	By:  	/s/ Daniel Payer
 	 
	 	 	Name:  	Daniel Payer 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Louis P. Laville, III
 	 
	 	 	Name:  	Louis P. Laville, III 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	KEY BANK, N.A.

 	 
	 	By:  	/s/ Todd Coker
 	 
	 	 	Name:  	Todd Coker 	 
	 	 	Title:  	AVP 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Rebecca Wilson
 	 
	 	 	Name:  	Rebecca Wilson 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	SOCIETE GENERALE

 	 
	 	By:  	/s/ Stephen W. Warfel
 	 
	 	 	Name:  	Stephen W. Warfel 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	STERLING BANK

 	 
	 	By:  	/s/ Jeff Forbis
 	 
	 	 	Name:  	Jeff Forbis 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	COMPASS BANK

 	 
	 	By:  	/s/ Greg Determann
 	 
	 	 	Name:  	Greg Determann 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	BANK OF SCOTLAND

 	 
	 	By:  	/s/ Julia R. Franklin
 	 
	 	 	Name:  	Julia R. Franklin 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD.

 	 
	 	By:  	/s/ Leon Mo
 	 
	 	 	Name:  	Leon Mo 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	NATIONAL CITY BANK

 	 
	 	By:  	/s/ Tom Garbach
 	 
	 	 	Name:  	Tom Garbach 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

	 	 	 	 	 
	 	COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK BA

“RABOBANK NEDERLAND” NEW YORK BRANCH

 	 
	 	By:  	/s/ Jeff P. Geisbauer
 	 
	 	 	Name:  	Jeff P. Geisbauer 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                                              /s/ Rebecca O. Morrow
 	 
	 	 	Name:  	Rebecca O. Morrow 	 
	 	 	Title:  	Executive Director 	 
	 

Signature Page to Fifth Amendment and Consent

Crosstex Energy, L.P.

 

 

EXHIBIT A

Note Agreement Amendment

See attached.exv10w2

Exhibit 10.2

EXECUTION COPY

WAIVER AND LETTER AMENDMENT NO. 3

to

AMENDED AND RESTATED

NOTE PURCHASE AGREEMENT

As of November 7, 2008

	 	 	 
	To:

	 	Each of the Holders listed
	 

	 	on Exhibit A attached hereto

Ladies and Gentlemen:

     We refer to the Amended and Restated Note Purchase Agreement, dated as of March 31, 2005, as
amended as of June 22, 2005, November 1, 2005, March 13, 2006 and June 29, 2006, as Amended and
Restated as of July 25, 2006 and as amended by Letter Amendment No. 1 to Amended and Restated Note
Purchase Agreement, dated as of March 30, 2007, and Letter Amendment No. 2 to Amended and Restated
Note Purchase Agreement, dated as of September 19, 2007 (as so amended and restated and amended,
the “Agreement”), among Crosstex Energy, L.P., a Delaware limited partnership (the “Company”), on
one hand, and each of you (the “Holders”), on the other hand. Unless otherwise defined in this
Waiver and Letter Amendment No. 3 to Amended and Restated Note Purchase Agreement (this
“Amendment”), the terms defined in the Agreement shall be used herein as therein defined.

     Crosstex Seminole Gas, L.P. (“Crosstex Seminole”), a Subsidiary of the Company and a
Guarantor, owns an undivided 12.4% interest (the “Seminole Plant Interest”) in a certain gas
processing plant known as the Seminole Gas Processing Plant (previously known as the Seminole CO2
Recovery Plant) and as described in that certain Unit Agreement which is recorded in Volume 189,
Page 559 of the Oil and Gas Records of Gaines County, Texas. Crosstex Seminole intends to sell the
Seminole Plant Interest in exchange for Net Cash Proceeds (calculated without subtracting taxes
paid or reasonably estimated to be payable as a result of such sale) equal to at least
$75,000,000.00 (the “Seminole Plant Sale”). The Seminole Plant Sale is prohibited under paragraph
6C(5) of the Agreement.

     The Company has requested that the Holders waive the provisions of paragraphs 4F(i) and 6C(5)
of the Agreement with respect to the Seminole Plant Sale and agree to make certain amendments to
the Agreement as hereinafter provided. Subject to the terms and conditions specified herein, and
provided that the Company agrees to certain amendments to the Agreement and the Notes set forth
below, the Holders have indicated their willingness to grant such waivers and to make such
amendments requested by the Company as more particularly set forth herein.

     Accordingly, subject to satisfaction of the conditions set forth in paragraph 4 hereof, and in
reliance on the representations and warranties of the Company set forth in paragraph 3 hereof,

 

 

the Holders hereby agree with the Company to amend the Agreement and the Notes as provided in
paragraph 1 below effective as of the Amendment No. 3 Effective Date (as defined in paragraph 4
below) and grant the waivers with respect to the Seminole Plant Sale below effective at the time
provided in paragraph 2 below.

     1. Amendments.

          (a) Paragraph 1A. Authorization of Series A Notes; Exhibit A-1; Series A Notes. Paragraph 1A
of the Agreement, Exhibit A-1 to the Agreement and each outstanding Series A Note is hereby amended
to change the interest rate thereof from “6.95%” to “7.45%” in each place where it appears therein.

          (b) Paragraph 1B. Authorization of Series B Notes; Exhibit A-2; Series B Notes. Paragraph 1B
of the Agreement, Exhibit A-2 to the Agreement and each outstanding Series B Note is hereby amended
to change the interest rate thereof from “6.88%” to “7.38%” in each place where it appears therein.

          (c) Paragraph 1C. Authorization of Series C Notes, Exhibit A-3; Series C Notes. Paragraph 1C
of the Agreement, Exhibit A-3 to the Agreement and each outstanding Series C Note is hereby amended
to change the interest rate thereof from “6.96%” to “7.46%” in each place where it appears therein.

          (d) Paragraph 1D. Authorization of Series D Notes, Exhibit A-4; Series D Notes. Paragraph 1D
of the Agreement, Exhibit A-4 to the Agreement and each outstanding Series D Note is hereby amended
to change the interest rate thereof from “6.23%” to “6.73%” in each place where it appears therein.

          (e) Paragraph 1E. Authorization of Series E Notes; Exhibit A-5; Series E Notes. Paragraph 1E
of the Agreement, Exhibit A-5 to the Agreement and each outstanding Series E Note is hereby amended
to change the interest rate thereof from “6.32%” to “6.82%” in each place where it appears therein.

          (f) Paragraph 1F. Authorization of Series F Notes; Exhibit A-6; Series F Notes. Paragraph 1F
of the Agreement, Exhibit A-6 to the Agreement and each outstanding Series F Note is hereby amended
to change the interest rate thereof from “6.96%” to “7.46%” in each place where it appears therein.

          (g) Paragraph 5A. Reporting Requirements. Paragraph 5A of the Agreement is hereby amended by
adding the following to the end thereof to read as follows:

“Together with any financial statements delivered under clauses (i) or (ii) hereof, the
Company shall deliver a schedule showing the interest accrued on the Notes during such
fiscal quarter, any Excess Leverage Fee accrued under paragraph 5R(1) hereof during such
fiscal quarter and showing the computations in reasonable detail.”

          (h) Paragraph 5R. Excess Leverage Fee, RBC Fee and Interest Rate Increase. Paragraph 5R of
the Agreement is hereby amended and restated to read as follows:

2

 

          “5R(1). Excess Leverage Fee. If the Leverage Ratio as of the end of any fiscal
quarter, commencing with the fiscal quarter ending on September 30, 2008, is greater than
3.75:1.00, then for such fiscal quarter the Company agrees to pay to the holders of the
Notes, in addition to the interest accruing on the Notes and in addition to any increase in
such rate of interest that may result from the provisions of paragraph 5R(3), a fee (the
“Excess Leverage Fee”), payable in arrears on or before the 45th day after the
end of such fiscal quarter, equal to the product of (i) 0.75%, multiplied by (ii) the daily
average outstanding principal balance of the Notes during such fiscal quarter.
Notwithstanding the foregoing, no Excess Leverage Fee shall be payable with respect to any
period of any fiscal quarter with respect to which a RBC Fee is payable under paragraph
5R(2). The receipt by the holders of the Notes of any Excess Leverage Fee shall not
constitute a waiver of any Default or Event of Default.

          5R(2). RBC Fee. If a RBC Event occurs or has occurred and is continuing, then, in
addition to the interest accruing on the Notes, the Company agrees to pay to each Holder and
in addition to any increase in such rate of interest that may result from the provisions of
paragraph 5R(3), a fee (the “RBC Fee”) on the daily average outstanding principal amount of
such Note during the continuance of such RBC Event at a rate per annum equal to 0.75%. The
RBC Fee with respect to each Note shall be calculated on the same basis as interest on such
Note is calculated and shall be paid in arrears on each day upon which interest for any
period is due on such Note if a RBC Event continued for any part of such period; provided,
however, that any portion of the RBC Fee relating to any period prior to the time the
Company first received notice of the occurrence of a RBC Event that would otherwise have
been payable on a prior interest payment date or dates shall be payable within five (5)
Business Days after the Company receives notice of the occurrence of such RBC Event.
Notwithstanding the foregoing, any Excess Leverage Fee paid with respect to any period of
any fiscal quarter with respect to which a RBC Fee is payable shall be deducted from the
amount of such RBC Fee payable with respect thereto. The receipt by the Holders of any RBC
Fee shall not constitute a waiver of any Default or Event of Default. The holders shall use
their reasonable efforts to provide notice to the Company once they have knowledge that a
RBC Event is no longer continuing.

          5R(3). Interest Rate Increase. Notwithstanding the provisions of paragraph 1A, 1B,
1C, 1D, 1E or 1F of this Agreement or the terms contained in any Note, if at any time during
an Acquisition Adjustment Period the Leverage Ratio is greater than 5.25 to 1.00, then, in
addition to any Excess Leverage Fee that may be payable pursuant to paragraph 5R(1) or any
RBC Fee that may be payable pursuant to paragraph 5R(2), the rate of interest on each Note
shall be increased by adding 0.25% to the rate of interest set forth in such Note. The
payment of interest at such increased rate shall not constitute a waiver of any Default or
Event of Default and the increased rate of interest on each Note resulting from any such
increase shall be considered to be the coupon rate for such Note for the purposes of
determining the Default Rate.”

          (i) Paragraph 6A(2). Interest Charge Coverage Ratio. Paragraph 6A(2) of the Agreement is
hereby amended by deleting the number “3.00” where it appears therein and inserting therefor the
number “2.50”.

3

 

          (j) Paragraph 6A(3). Leverage Ratio. Paragraph 6A(3) of the Agreement is hereby amended and
restated to read as follows:

     “(a) If no Unsecured Note Indebtedness is outstanding on the applicable date of
determination, the Company shall not, as of the end of any fiscal quarter, permit the
Leverage Ratio for the Company and its Subsidiaries on a Consolidated basis to be greater
than (i) 5.00 to 1.00 for any fiscal quarter ending on or after December 31, 2008 and on or
before June 30, 2009, (ii) 4.75 to 1.00 for the fiscal quarter ending September 30, 2009,
and (iii) 4.50 to 1.00 for any fiscal quarter ending thereafter; provided, however, that,
for any fiscal quarter ending after December 31, 2010, during an Acquisition Adjustment
Period, the maximum permitted Leverage Ratio shall be increased by 0.50 to 1.00 from the
otherwise applicable ratio set forth above.

     (b) If any Unsecured Note Indebtedness is incurred or outstanding on the applicable
date of determination, the Company shall not, as of the end of any fiscal quarter, permit
the Leverage Ratio (calculated in accordance with paragraph 6C(2)(xi)) for the Company and
its Subsidiaries on a Consolidated basis to be greater than 5.25 to 1.00 on the date any
Unsecured Note Indebtedness is incurred and on the last day of any fiscal quarter ending
thereafter; provided, however, that, for any fiscal quarter ending after December 31, 2010,
during an Acquisition Adjustment Period, the maximum permitted Leverage Ratio shall be
increased by 0.50 to 1.00 from the otherwise applicable ratio set forth above.

     (c) If any Unsecured Note Indebtedness is incurred or outstanding on the applicable
date of determination, the Company shall not, as of the end of any fiscal quarter, permit
the Senior Leverage Ratio (calculated in accordance with paragraph 6C(2)(xi)) for the
Company and its Subsidiaries on a Consolidated basis to be greater than 4.25 to 1.0 on the
date any Unsecured Note Indebtedness is incurred and on the last day of any fiscal quarter
ending thereafter; provided, however, that, for any fiscal quarter ending after December 31,
2010, during an Acquisition Adjustment Period, the maximum permitted Senior Leverage Ratio
shall be increased by 0.50 to 1.00 from the otherwise applicable ratio set forth above.”

          (k) Paragraph 6C(5)(vii). Sales, Etc. of Property. The following is added to the end of
clause (vii) of paragraph 6C(5) of the Agreement:

“Notwithstanding the foregoing, no sale, lease, transfer or other disposition of Property
during the fiscal year ended December 31, 2008 and after the Amendment No. 3 Effective Date
shall be permitted under this clause (vii) other than sales, leases, transfers and
dispositions of Property for consideration not exceeding $20,000,000 in the aggregate, in
each case only if consummated in accordance with the waivers given under the Waiver and
Letter Amendment No. 3 to this Agreement.”

          (l) Paragraph 7A(ii). Acceleration. Paragraph 7A(ii) of the Agreement is hereby amended and
restated to read as follows:

4

 

     “(ii) the Company defaults in the payment of any interest on, any Excess Leverage Fee,
or any RBC Fee with respect to, any Note for more than three Business Days after the date
due; or”

          (m) Paragraph 10B. Other Terms. Paragraph 10B of the Agreement is hereby amended by amending
the definition of “Acquisition Adjustment Period” to delete the date “June 29, 2006” where it
appears therein and inserting therefor the date “December 31, 2010”.

          (n) Paragraph 10B. Other Terms. The definition of “EBITDA” in Paragraph 10B of the Agreement
is hereby amended by (i) replacing “For purposes of calculating the Leverage Ratio only” with “For
purposes of calculating (x) the Leverage Ratio and (y) for any period ending prior to the Amendment
No. 3 Effective Date, the Interest Charge Coverage Ratio” and (ii) adding the following paragraph
to the end of such definition:

“Notwithstanding the foregoing, such pro forma adjustments to EBITDA (x) for the periods of
calculation ending December 31, 2008 and March 31, 2009 shall be limited to 20% of the total
actual EBITDA for such period, (y) for the period of calculation ending June 30, 2009 shall
be limited to 15% of the total actual EBITDA for such period and (z) for periods of
calculation ending thereafter, shall be limited to 10% of the total actual EBITDA for such
period, in each case, which total actual EBITDA shall be determined without including any
such pro forma adjustments to EBITDA.”

          (o) Paragraph 10B. Other Terms. The definition of “Interest Expense” in Paragraph 10B of the
Agreement is hereby amended by inserting “prior to the Amendment No. 3 Effective Date” immediately
after “on a pro forma basis at any time”.

          (p) Paragraph 10B. Other Terms. Paragraph 10B of the Agreement is hereby further amended by
adding the following new terms in their appropriate alphabetical order as follows:

     “Amendment No. 3 Effective Date” shall have the meaning given in the Waiver and Letter
Amendment No. 3 to this Agreement, dated as of November 7, 2008.

     “Excess Leverage Fee” shall have the meaning given in paragraph 5R(1).

     “RBC Event” shall mean the occurrence and continuation of the following:

     (i) The Securities Valuation Office of the National Association
of Securities Commissioners (together with any successor
organization acceding to the authority thereof, hereinafter, the
“SVO”) after the Amendment No. 3 Effective Date increases the amount
of capital required to be held in reserve by a holder of the Notes
in respect of such Notes from that which was required prior to the
Amendment No. 3 Effective Date; and

     (ii) The amount of capital required to be held in reserve by a
holder of the Notes in respect of such Notes as required by the

5

 

SVO has not subsequently been reduced to a level at or below
that which was required prior to the Amendment No. 3 Effective Date.

Notwithstanding the foregoing, any changes in the capital reserve
requirements imposed by the SVO that are applicable to all companies
rated by the SVO generally shall not be considered a RBC Event.

“RBC Fee” shall have the meaning given in paragraph 5R(2).

          (q) Paragraph 11C. Consents to Amendments. Paragraph 11C of the Agreement is hereby amended
by inserting the word “decrease” before the words “the rate” in the first sentence of such
paragraph.

     2. Waivers.

     (a) Effective upon the Amendment No. 3 Effective Date, the Holders hereby (i) waive the
provisions of paragraph 6C(5) of the Agreement with respect to the Seminole Plant Sale, consent to
the release of the Seminole Plant Interest from the Lien of the Collateral Agent under the Security
Documents contemporaneously with the consummation of the Seminole Plant Sale and agree that the
Seminole Plant Sale shall not constitute a Default or Event of Default under the Agreement as a
result of a violation of paragraph 6C(5) of the Agreement, (ii) agree that the consideration for
the Seminole Plant Sale shall not be included in the calculation of the limitation on dispositions
in paragraph 6C(5)(vii) of the Agreement and (iii) so long as no Default or Event of Default shall
have occurred and be continuing at the time the Seminole Plant Sale is consummated, waive the
requirement under paragraph 4F(i) of the Agreement that the Company make an offer to prepay the
Notes as a result of the Seminole Plant Sale; provided, in each case, that (x) the Seminole Plant
Sale is consummated on or before January 31, 2009 for Net Cash Proceeds (calculated without
subtracting taxes paid or reasonably estimated to be payable as a result of such sale) equal to at
least $75,000,000, (y) the Net Cash Proceeds of the Seminole Plant Sale are used to prepay the
Advances (as defined in the Bank Agreement) and (z) no reduction in the commitments of the Banks to
make loans to the Company under the Bank Agreement shall result from the Seminole Plant Sale or
from the application of the Net Cash Proceeds from the Seminole Plant Sale to the Advances.

     (b) The foregoing waivers are limited to the extent described herein and shall not be
construed to be a permanent waiver of paragraph 6C(5) or paragraph 4F(i) of the Agreement, a waiver
of paragraph 6C(5) or paragraph 4F(i) of the Agreement with respect to any other sale, lease,
transfer or other disposition of any Property by the Company or any Subsidiary, whether or not
under similar circumstances, or a waiver of any other term, provision, covenant, warranty or
agreement contained in the Agreement or in any of the other Loan Documents. The Holders reserve
the right to exercise any rights and remedies available to them in connection with any present or
future Defaults or Events of Default with respect to the Agreement or any other provision of any
Loan Document.

     3. Representations and Warranties. In order to induce the Holders to enter into this
Amendment, the Company hereby represents and warrants as follows:

6

 

     (a) The execution, delivery and performance by the Company and the Guarantors of this
Amendment, the Agreement, as amended hereby, and each of the documents described in paragraph 4
hereof to which each is a party, have in each case been duly authorized by all necessary limited
liability company, limited partnership or other organizational action and do not and will not (i)
contravene the terms of the Company Partnership Agreement or the partnership or limited liability
company agreement or certificate of formation (or other organizational documents) of the General
Partner, the Company or any of their Subsidiaries, (ii) conflict with or result in any breach or
contravention of, or the creation of any Lien under, any document evidencing any contractual
obligation to which the General Partner, the Company or any of their Subsidiaries is a party and
which could subject any holder of Notes to any liability, (iii) conflict with or result in any
breach or contravention of any order, injunction, writ or decree of any governmental authority
binding on the General Partner, the Company, any of their Subsidiaries or their respective
properties, (iv) violate any applicable law binding on or affecting the General Partner, the
Company or any of their Subsidiaries, or (v) adversely affect the enforceability of any Lien of the
Security Documents other than Liens being released in connection with the Seminole Plant Sale.

     (b) Each of the representations and warranties contained in paragraph 8 of the Agreement is
true and correct in all material respects on and as of the date hereof, and will be true and
correct in all material respects immediately upon, and as of the date of, the effectiveness of this
Amendment in each case except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct in all material respects as
of such earlier date.

     (c) On and as of the date hereof, and after giving effect to this Amendment, no Default or
Event of Default exists under the Agreement.

     (d) No Governmental Action or consent of any other Person under any agreement to which the
Company or any of its Subsidiaries is a party (other than consents that have been obtained) is
required for the due execution, delivery or performance by the Company or the Guarantors of this
Amendment, the Agreement, as amended hereby, or each of the documents described in paragraph 4
hereof to be executed by the Company or any Guarantor.

     (e) This Amendment, the Agreement, as amended hereby, and each of the documents described in
paragraph 4 hereof to be executed by the Company or any Guarantor, constitute legal, valid and
binding obligations of the Company or such Guarantor, as applicable, enforceable against the
Company or such Guarantor, as applicable, in accordance with their respective terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization or
other similar laws affecting creditors’ rights generally or by general principles of equity
(regardless of whether such enforceability is considered in any proceeding in law or in equity).

     (f) The quarterly and annual financial statements most recently delivered to each Holder
pursuant to paragraphs 5A(i) and 5A(ii) of the Agreement fairly present the Consolidated financial
condition of the Company and its Subsidiaries as of the respective dates thereof and the
Consolidated results of the operations of the Company and its Subsidiaries for the respective
fiscal periods ended on such dates, all in accordance with GAAP applied on a consistent basis

7

 

(subject to normal year-end audit adjustments and the absence of footnotes in the case of the
quarterly financial statements). Since December 31, 2007, no event has occurred which could result
in a Material Adverse Effect. The Company and its Subsidiaries have no material contingent
liabilities except as disclosed in such financial statements or the notes thereto.

     (g) There is no pending or, to the knowledge of the Company, threatened action or proceeding
affecting the Company or any Subsidiary before any Governmental Person, referee or arbitrator that
could reasonably be expected to have a Material Adverse Effect.

     (h) Neither the Company, the General Partner, the Ultimate General Partner nor any of their
Subsidiaries have paid, or agreed to pay, any fees or other compensation to the lenders under the
Bank Agreement for or with respect to the Amendment to Bank Agreement (as defined below) except for
an amendment fee of 0.25% of the amount of the Commitments (as defined in the Bank Agreement as in
effect on the date hereof) under the Bank Agreement and an arrangement fee payable to the
Administrative Agent, the amendment to the definition of “Applicable Margin” in the Bank Agreement
as set forth in the Amendment to Bank Agreement and the reimbursement of legal fees and expenses
incurred in connection with the Amendment to Bank Agreement.

     4. Conditions to Effectiveness. When each of the following conditions have been satisfied (i)
the amendment to the Agreement in Section 1(n)(i) shall become effective as of November 1, 2005 and
(ii) the other amendments to the Agreement in Section 1 and the waivers under the Agreement in
Section 2 shall become effective as of the date (the “Amendment No. 3 Effective Date”) first above
written:

     (a) Each Holder shall have received the following, each to be dated the date of execution and
delivery thereof unless otherwise indicated, and each to be in form and substance satisfactory to
the Required Holder(s) and executed and delivered by each of the parties thereto:

     (i) this Amendment, duly executed by the Company, the Guarantors and the Holders; and

     (ii) an executed copy of an amendment to the Bank Agreement providing for waivers and
amendments to the Bank Agreement substantially the same as the waivers and amendments to the
Agreement as set forth in this Amendment (the “Amendment to Bank Agreement”); and

     (b) each Holder shall have received a payment of an amendment fee in an amount equal to 25
basis points times the aggregate principal amount of the Notes held by such Holder on the date of
this Amendment.

     5. Affirmative Covenant. The Company hereby covenants and agrees that promptly after the
Amendment No. 3 Effective Date it shall execute and deliver to each Holder an amended and restated
Note in exchange for the Note currently held by such Holder to reflect the amendments thereto made
under Section 1(a) through 1(f) hereof, in form and substance satisfactory to such Holder. Upon
receipt of an amended and restated Note each Holder shall promptly surrender its current Note or an
affidavit of lost note, as applicable, to the Company.

8

 

     6. Miscellaneous.

     (a) Effect on Agreement. On and after the Amendment No. 3 Effective Date, each reference in
the Agreement to “this Agreement”, “hereunder”, “hereof”, or words of like import referring to the
Agreement and each reference in the Notes and all other documents executed in connection with the
Agreement to “the Agreement”, “thereunder”, “thereof”, or words of like import referring to the
Agreement shall mean the Agreement as amended by this Amendment. The Agreement, as amended by this
Amendment, is and shall continue to be in full force and effect and is hereby in all respects
ratified and confirmed. Except as set forth in this Amendment, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy under
the Agreement nor constitute a waiver of any provision of the Agreement. Without limiting the
generality of the foregoing, except as set forth in this Amendment nothing in this Amendment shall
be deemed to (i) constitute a waiver of compliance or consent to noncompliance by the Company or
any other Person with respect to any term, provision, covenant or condition of the Agreement or any
other Loan Document or (ii) prejudice any right or remedy that any holder of Notes may now have or
may have in the future under or in connection with the Agreement or any other Loan Document.

     (b) Counterparts. This Amendment may be executed in any number of counterparts (including
those transmitted by facsimile) and by any combination of the parties hereto in separate
counterparts, each of which counterparts shall be an original and all of which taken together shall
constitute one and the same Amendment. Delivery of this Amendment may be made by facsimile
transmission of a duly executed counterpart copy hereof.

     (c) Expenses. The Company confirms its agreement, pursuant to paragraph 11B of the Agreement,
to pay promptly all out-of-pocket expenses of the Holders related to the preparation, negotiation,
reproduction, execution and delivery of this Amendment and all matters contemplated hereby and
thereby, including without limitation all fees and out-of-pocket expenses of the Holders’ special
counsel.

     (d) Governing Law. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE
RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK.

     (e) Affirmation of Obligations. Notwithstanding that such consent is not required under the
Guaranties, each of the Guarantors consents to the execution and delivery of this Amendment by the
parties hereto. As a material inducement to the undersigned to amend the Agreement as set forth
herein, each of the Guarantors respectively (i) acknowledges and confirms the continuing existence,
validity and effectiveness of the Guaranty to which it is a party, and (ii) agrees that the
execution, delivery and performance of this Amendment shall not in any way release, diminish,
impair, reduce or otherwise affect its obligations thereunder.

     (f) FINAL AGREEMENT. THIS AMENDMENT, TOGETHER WITH THE AGREEMENT AND THE OTHER LOAN
DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL

9

 

AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     (g) Consent to Amendment to Bank Agreement. Each Holder hereby consents to the terms of the
Amendment to Bank Agreement.

{Remainder of this page blank; signature page follows.}

10

 

     If you agree to the terms and provisions hereof, please evidence your agreement by executing
and returning at least one counterpart to the Company at 2501 Cedar Springs, Suite 600, Dallas,
Texas 85201.

	 	 	 
	Very truly yours,
	 
	 	 
	CROSSTEX ENERGY, L.P.
	 
	 	 
	By:

	 	Crosstex Energy GP, L.P.,
	 

	 	its general partner
	 
	 	 
	By:

	 	Crosstex Energy GP, LLC,
	 

	 	its general partner
	 
	 	 
	By:

	 	/s/ Michael Garberding
	 

	 	 
	Name:

	 	Michael Garberding
	Title:

	 	Vice President — Finance

Agreed to as of the Amendment No. 3 Effective Date:

PRUDENTIAL INVESTMENT MANAGEMENT, INC.

	 	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

	 	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

PRUCO LIFE INSURANCE COMPANY

	 	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

 

 

PRUCO LIFE INSURANCE COMPANY OF

NEW JERSEY

	 	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

GIBRALTAR LIFE INSURANCE CO., LTD.

	 	 	 
	By:

	 	Prudential Investment Management (Japan), Inc.,
	 

	 	as Investment Manager
	 
	 	 
	By:

	 	Prudential Investment Management, Inc.,
	 

	 	as Sub-Adviser
	 
	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

RGA REINSURANCE COMPANY

	 	 	 
	By:

	 	Prudential Private Placement Investors,
	 

	 	L.P. (as Investment Advisor)
	 
	 	 
	By:

	 	Prudential Private Placement Investors, Inc.
	 

	 	(as its General Partner)
	 
	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

CONNECTICUT GENERAL LIFE INSURANCE

COMPANY

	 	 	 
	By:

	 	Prudential Investment Management, Inc.,
	 

	 	as Investment Manager
	 
	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

 

 

ZURICH AMERICAN INSURANCE COMPANY

	 	 	 
	By:

	 	Prudential Private Placement Investors,
	 

	 	L.P. (as Investment Advisor)
	 
	 	 
	By:

	 	Prudential Private Placement Investors, Inc.
	 

	 	(as its General Partner)
	 
	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

THE PRUDENTIAL LIFE INSURANCE

COMPANY, LTD.

	 	 	 
	By:

	 	Prudential Investment Management (Japan), Inc.,
as Investment Manager
	 
	 	 
	By:

	 	Prudential Investment Management, Inc.,
as Sub-Adviser
	 
	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

PRUDENTIAL RETIREMENT INSURANCE

AND ANNUITY COMPANY

	 	 	 
	By:

	 	Prudential Investment Management, Inc.,
	 

	 	as investment manager
	 
	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

 

 

MTL INSURANCE COMPANY

	 	 	 
	By:

	 	Prudential Private Placement Investors, L.P.
	 

	 	(as Investment Advisor)
	 
	 	 
	By:

	 	Prudential Private Placement Investors, Inc.
	 

	 	(as its General Partner)
	 
	 	 
	By:

	 	/s/ Brian Thomas
	 

	 	 
	 

	 	Vice President

ING USA ANNUITY AND LIFE INSURANCE COMPANY

ING LIFE INSURANCE AND ANNUITY COMPANY

RELIASTAR LIFE INSURANCE COMPANY

SECURITY LIFE OF DENVER INSURANCE COMPANY

	 	 	 
	By:

	 	ING Investment Management LLC, as Agent
	 
	 	 
	By:

	 	/s/ Paul Aronson
	 

	 	 
	 

	 	Name: Paul Aronson
	 

	 	Title: Vice President

JOHN HANCOCK LIFE INSURANCE COMPANY

	 	 	 
	By:

	 	/s/ Eugene X. Hodge, Jr.
	 

	 	 
	 

	 	Name: Eugene X. Hodge, Jr.
	 

	 	Title: Managing Director

JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY

	 	 	 
	By:

	 	/s/ Eugene X. Hodge, Jr.
	 

	 	 
	 

	 	Name: Eugene X. Hodge, Jr.
	 

	 	Title: Authorized Signatory

 

 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

	 	 	 
	By:

	 	/s/ Eugene X. Hodge, Jr.
	 

	 	 
	 

	 	Name: Eugene X. Hodge, Jr.
	 

	 	Title: Authorized Signatory

SIGNATURE 7 L.P.

	 	 	 
	By:

	 	John Hancock Life Insurance Company,
	 

	 	as Portfolio Advisor
	 
	 	 
	By:

	 	/s/ Eugene X. Hodge, Jr.
	 

	 	 
	 

	 	Name: Eugene X. Hodge, Jr.
	 

	 	Title: Authorized Signatory

GENWORTH LIFE AND ANNUITY INSURANCE COMPANY (AS SUCCESSOR BY

MERGER TO FIRST COLONY LIFE INSURANCE COMPANY)

	 	 	 
	By:

	 	/s/ John R. Endres
	 

	 	 
	 

	 	Name: John R. Endres
	 

	 	Title: Investment Officer

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

	 	 	 
	By:

	 	/s/ Lisa M. Ferraro
	 

	 	 
	 

	 	Name: Lisa M. Ferraro
	 

	 	Title: Director

 

 

METROPOLITAN LIFE INSURANCE COMPANY

METLIFE INVESTORS USA INSURANCE COMPANY

by Metropolitan Life Insurance Company, its investment manager

METLIFE INSURANCE COMPANY OF CONNECTICUT

by Metropolitan Life Insurance Company, its investment manager

METLIFE LIFE AND ANNUITY COMPANY OF CONNECTICUT

by Metropolitan Life Insurance Company, its investment manager

	 	 	 
	By:

	 	/s/ Judith A. Gulotta
	 

	 	 
	 

	 	Name: Judith A. Gulotta
	 

	 	Title: Managing Director

(executed by Metropolitan Life Insurance Company (i) as to itself

as a Purchaser and (ii) as investment manager to MetLife Investors

USA Insurance Company as a Purchaser, MetLife Insurance Company

of Connecticut as a Purchaser and MetLife Life and Annuity Company

of Connecticut as a Purchaser)

 

 

Agreed to and acknowledged by each of the undersigned for the purposes set forth in paragraph 6(e)
hereof:

	 	 	 
	GUARANTORS:
	CROSSTEX ACQUISITION MANAGEMENT, L.P.
	CROSSTEX MISSISSIPPI PIPELINE, L.P.
	CROSSTEX SEMINOLE GAS, L.P.
	CROSSTEX ALABAMA GATHERING SYSTEM, L.P.
	CROSSTEX MISSISSIPPI INDUSTRIAL GAS
SALES, L.P.
	CROSSTEX GULF COAST TRANSMISSION LTD.
	CROSSTEX GULF COAST MARKETING LTD.
	CROSSTEX CCNG GATHERING LTD.
	CROSSTEX CCNG PROCESSING LTD.
	CROSSTEX CCNG TRANSMISSION LTD.
	CROSSTEX TREATING SERVICES, L.P.
	CROSSTEX NORTH TEXAS PIPELINE, L.P.
	CROSSTEX NORTH TEXAS GATHERING, L.P.
	CROSSTEX NGL MARKETING, L.P.
	CROSSTEX NGL PIPELINE, L.P.
	 
	 	 
	By:

	 	Crosstex Energy Services GP, LLC
	 

	 	Sole General Partner of each above limited
	 

	 	partnership
	 
	 	 
	By:

	 	/s/ Michael Garberding
	 

	 	 
	Name:

	 	Michael Garberding
	Title:

	 	Vice President — Finance
	 
	 	 
	CROSSTEX ENERGY SERVICES, L.P.
	 
	 	 
	By:

	 	Crosstex Operating GP, LLC,
	 

	 	its general partner
	 
	 	 
	By:

	 	/s/ Michael Garberding
	 

	 	 
	Name:

	 	Michael Garberding
	Title:

	 	Vice President — Finance

 

 

	 	 	 
	CROSSTEX OPERATING GP, LLC
	CROSSTEX ENERGY SERVICES GP, LLC
	CROSSTEX LIG, LLC
	CROSSTEX TUSCALOOSA, LLC
	CROSSTEX LIG LIQUIDS, LLC
	CROSSTEX PROCESSING SERVICES, LLC
	CROSSTEX PELICAN, LLC
	 
	 	 
	By:

	 	/s/ Michael Garberding
	 

	 	 
	Name:

	 	Michael Garberding
	Title:

	 	Vice President — Finance
	 
	 	 
	SABINE PASS PLANT FACILITY JOINT VENTURE
	 
	 	 
	By:

	 	Crosstex Processing Services, LLC,
	 

	 	as general partner
	 

	 	and
	By:

	 	Crosstex Pelican, LLC, as general partner
	 
	 	 
	By:

	 	/s/ Michael Garberding
	 

	 	 
	Name:

	 	Michael Garberding
	Title:

	 	Vice President — Finance

 

 

Exhibit A

Holders

PRUDENTIAL INVESTMENT MANAGEMENT, INC.

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

PRUCO LIFE INSURANCE COMPANY

PRUCO LIFE INSURANCE COMPANY OF
NEW JERSEY

GIBRALTAR LIFE INSURANCE CO., LTD.

RGA REINSURANCE COMPANY

CONNECTICUT GENERAL LIFE INSURANCE
COMPANY

ZURICH AMERICAN INSURANCE COMPANY

THE PRUDENTIAL LIFE INSURANCE
COMPANY, LTD.

PRUDENTIAL RETIREMENT INSURANCE
AND ANNUITY COMPANY

MTL INSURANCE COMPANY

ING USA ANNUITY AND LIFE INSURANCE COMPANY

ING LIFE INSURANCE AND ANNUITY COMPANY

RELIASTAR LIFE INSURANCE COMPANY

SECURITY LIFE OF DENVER INSURANCE COMPANY

JOHN HANCOCK LIFE INSURANCE COMPANY

JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

SIGNATURE 7 L.P.

FIRST COLONY LIFE INSURANCE COMPANY

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

METROPOLITAN LIFE INSURANCE COMPANY

METLIFE INVESTORS USA INSURANCE COMPANY

METLIFE INSURANCE COMPANY OF CONNECTICUT

METLIFE LIFE AND ANNUITY COMPANY OF CONNECTICUT

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