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Exhibit 10.5    
  

 
 

Execution Copy

OMNIBUS AGREEMENT 

among

CROSSTEX
ENERGY HOLDINGS INC. 

CROSSTEX
ENERGY GP, LLC 

CROSSTEX
ENERGY GP, L.P. 

CROSSTEX
ENERGY SERVICES, L.P. 

and 

CROSSTEX
ENERGY, L.P. 

 
 

OMNIBUS AGREEMENT    
  

        THIS OMNIBUS AGREEMENT is entered into on, and effective as of, the Closing Date by and among Crosstex Energy Holdings Inc., a Delaware corporation
("Crosstex Energy Holdings"), Crosstex Energy GP, LLC, a Delaware limited liability company ("Crosstex GP"), Crosstex Energy GP, L.P., a Delaware limited partnership (the "General Partner"), Crosstex
Energy Services, L.P., a Delaware limited partnership (the "Operating Partnership"), and Crosstex Energy, L.P., a Delaware limited partnership (the "Partnership"). 

 
 

R E C I T A L S:    
  

        Crosstex Energy Holdings, Crosstex GP, the Partnership, the Operating Partnership and the General Partner desire by their execution of this Agreement to evidence
their understanding, (i) as more fully set forth in Article II of this Agreement, with respect to (a) those business opportunities that Crosstex Energy Entities (as defined
herein) will not pursue during the term of this Agreement unless each of the Partnership and the Operating Partnership has declined to engage in such business opportunity for its own account and
(b) the procedures whereby such business opportunities are to be offered to the Partnership and the Operating Partnership and accepted or declined and (ii) as more fully set forth in
Article III of this Agreement, with respect to the maximum amount to be paid by the Partnership to the General Partner and its Affiliates for general and administrative services in the one year
period following the date hereof. 

        In
consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows: 

 
 

ARTICLE I
  Definitions    
  

 
 
        1.1    Definitions.     (a) Capitalized terms used herein but not defined shall have the meanings given them
in the Partnership Agreement. 

        (b)  As
used in this Agreement, the following terms shall have the respective meanings set forth below: 

        "Affiliate" has the meaning assigned to such term in the Partnership Agreement. 

        "Agreement" means this Omnibus Agreement, as it may be amended, modified, or supplemented from time to time in accordance with
Section 4.5 hereof. 

        "Allocated General and Administrative Expenses" means expenses associated with centralized corporate functions including general and
administrative services and including, but not limited to, certain management, engineering, legal, accounting, finance, information technology, insurance, human resource, administration of employee
benefit plans and other shared corporate services; provided, however, that Allocated General and Administrative Expenses shall not include the direct
operating and maintenance expenses associated with the operation of the assets of the Partnership. 

        "Change of Control" has the meaning assigned to such term in Section 2.4. 

        "Closing Date" means the date of the closing of the Partnership's initial public offering of Common Units. 

        "Common Units" has the meaning assigned to such term in the Partnership Agreement. 

        "Conflicts Committee" has the meaning assigned to such term in the Partnership Agreement. 

        "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of Voting Securities, by contract or otherwise. 

 

        "Crosstex Energy Entities" means Crosstex Energy Holdings and any Person controlled, directly or indirectly, by Crosstex Energy Holdings
other than the Partnership Group. 

        "Crosstex Energy Holdings" has the meaning assigned to such term in the preamble to this Agreement. 

        "Crosstex GP" has the meaning assigned to such term in the preamble to this Agreement. 

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

        "General Partner" has the meaning assigned to such term in the preamble to this Agreement. 

        "Group Member" means a member of the Partnership Group. 

        "Initial Offering" has the meaning assigned to such term in the Partnership Agreement. 

        "Management" means collectively those individuals who are listed as executive officers of Crosstex GP in the final prospectus relating to
the Initial Offering. 

        "Offer" has the meaning assigned to such term in Section 2.3. 

        "Operating Partnership" has the meaning assigned to such term in the preamble to this Agreement. 

        "Partnership" has the meaning assigned to such term in the preamble to this Agreement. 

        "Partnership Agreement" means the Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of the Closing Date,
as such agreement is in effect on the Closing Date, to which reference is hereby made for all purposes of this Agreement. No amendment or modification to the Partnership Agreement subsequent to the
Closing Date shall be given effect for the purposes of this Agreement unless consented to by each of the parties to this Agreement. 

        "Partnership Group" means the Partnership, the Operating Partnership and any Subsidiary of any such entity, treated as a single
consolidated entity. 

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

        "Restricted Business" has the meaning assigned to such term in Section 2.1. 

        "Subsidiary" has the meaning assigned to such term in the Partnership Agreement. 

        "Voting Securities" means securities of any class of Person entitling the holders thereof to vote on a regular basis in the election of
members of the board of directors or other governing body of such Person. 

        "Yorktown Funds" means Yorktown Energy Partners IV, L.P., Yorktown Energy Partners V, L.P. and any other investment fund sponsored by or
managed by Yorktown Partners, LLC, including any fund formed subsequent to the Closing Date. 

 
 

ARTICLE II
  Business Opportunities    
  

 
 
        2.1    Restricted Businesses.     For so long as the General Partner (or any Affiliate of Crosstex Energy
Holdings) is a general partner of the Partnership, each of the Crosstex Energy Entities
shall be prohibited from engaging in the business of gathering, transmitting, treating, processing, storing and marketing of natural gas and the transportation, fractionation, storing and marketing of
natural gas liquids (the "Restricted Business"). 

2

 

 
 

           2.2    Permitted Exceptions.     Notwithstanding any provision of Section 2.1 to the contrary, a
Crosstex Energy Entity may pursue an opportunity to purchase or invest in, and may
ultimately purchase, own and/or operate, a Restricted Business under the following circumstances: 

        (a)  The
Restricted Business was engaged in by a Crosstex Energy Entity on the date of this Agreement, including, without limitation, the business relating to the Excluded
Assets (as defined in the First Contribution, Conveyance and Assumption Agreement, dated as of November 27, 2002, among Crosstex Energy Holdings, the Partnership, the Operating Partnership, the
General Partner and the other parties named therein); provided, however, that any future acquisitions or opportunities related to such Restricted Business shall be subject to the procedures set forth
in Section 2.3. 

        (b)  The
Crosstex Energy Entity first offers the Partnership the opportunity to pursue such opportunity and the board of directors of Crosstex GP (with the approval of the
Conflicts Committee) has elected not to cause a Group Member to pursue such opportunity or acquisition in accordance with the procedures set forth in Section 2.3. 

        (c)  The
fair market value of the assets that comprise the Restricted Business represents less than a majority of the fair market value of the business being considered for
purchase or investment, in the reasonable belief of majority of the board of directors of Crosstex Energy Holdings; provided that the Crosstex Energy Entity subsequently offers the Partnership the
opportunity to purchase the assets that comprise the Restricted Business in accordance with the procedures set forth in Section 2.3 and the board of directors of Crosstex GP, with the approval
of the Conflicts Committee, has elected not to cause a Group Member to pursue such opportunity or acquisition. 

 
 

           2.3    Procedures.     (a) In the event that a Crosstex Energy Entity becomes aware of an opportunity
to purchase a Restricted Business, then as soon as practicable, such Crosstex
Energy Entity shall notify the Partnership of such opportunity and deliver to Crosstex GP all information prepared by or on behalf of such Crosstex Energy Entity relating to such potential purchase.
As soon as practicable, but in any event within 30 days after receipt of such notification and information, Crosstex GP, on behalf of the Partnership, shall notify the Crosstex Energy Entity
that either (i) Crosstex GP, on behalf of the Partnership, has elected, with the approval of the Conflicts Committee, not to cause a Group Member to pursue the opportunity to acquire such
Restricted Business, or (ii) Crosstex GP, on behalf of the Partnership, has elected to cause a Group Member to pursue the opportunity to acquire such Restricted Business. If, at any time,
Crosstex GP abandons such opportunity (as evidenced in writing by Crosstex GP following the request of the Crosstex Energy Entity), the Crosstex Energy Entity may pursue such opportunity. Any
Restricted Business which is permitted to be purchased by a Crosstex Energy Entity must be so purchased (i) within 12 months of the time the Crosstex Energy Entity becomes able to pursue
such acquisition in accordance with the provisions of this Section 2.3 and (ii) on terms not materially more favorable to the Crosstex Energy Entity than were offered to the Partnership.
If either of these conditions are not satisfied, the opportunity must be reoffered to the Partnership in accordance with this Section 2.3(a). 

        (b)  In
the event that a Crosstex Energy Entity acquires a Restricted Business as part of a larger transaction in accordance with Section 2.2(c), then not later than
30 days after the consummation of the acquisition, such Crosstex Energy Entity shall notify Crosstex GP of such purchase and offer the Partnership the opportunity to purchase the Restricted
Business constituting a portion of such purchase and deliver to Crosstex GP all information prepared by or on behalf of or in the possession of such Crosstex Energy Entity relating to the Restricted
Business. As soon as practicable, but in any event within 60 days after receipt of such notification, Crosstex GP shall notify the Crosstex Energy Entity that either (i) Crosstex GP has
elected, with the approval of the Conflicts Committee, not to cause a Group Member to purchase such Restricted Business, in which event the Crosstex Energy Entity shall be forever free to continue to
engage in such particular Restricted Business; provided, however, that any future acquisitions or opportunities related to such particular Restricted Business shall be subject 

3

 

to the procedures set forth in this Section 2.3, or (ii) Crosstex GP has elected to cause a Group Member to purchase such Restricted Business, in which event the following procedures
shall be followed: 

          (i)  Within
30 days of receipt of the notice from Crosstex GP that Crosstex GP has elected to cause a Group Member to purchase the Restricted Business, the Crosstex
Energy Entity shall submit a good faith offer to Crosstex GP to sell the Restricted Business (the "Offer") to any Group Member on the terms and for the consideration stated in the Offer. 

        (ii)  After
receipt of such Offer by Crosstex GP, the Crosstex Energy Entity and Crosstex GP shall negotiate in good faith the terms on which the Restricted Business will be
sold to a Group Member. The Crosstex Energy Entity shall provide all information concerning the business, operations and finances of such Restricted Business as may be reasonably requested by Crosstex
GP. 

        (iii)  If
the Crosstex Energy Entity and Crosstex GP agree on such terms within 60 days after receipt by Crosstex GP of the Offer, a Group Member shall purchase the
Restricted Business on such terms as soon as commercially practicable after such agreement has been reached. 

        (iv)  If
the Crosstex Energy Entity and Crosstex GP are unable to agree on the terms of a sale during the 60-day period after receipt by Crosstex GP of the Offer,
the Crosstex Energy Entity and Crosstex GP will engage an independent investment banking firm with a national reputation to determine the fair market value of the Restricted Business. In determining
the fair market value of the Restricted Business, the investment banking firm will have access to the proposed sale and purchase values for the Offer submitted by the Crosstex Energy Entity and
Crosstex GP, respectively. Such investment banking firm will determine the value of the Restricted Business within 30 days and furnish the Crosstex Energy Entity and Crosstex GP with its
opinion of such value. The fees and expenses of the investment banking firm's appraisal will be split equally between the Crosstex Energy Entity and the Partnership Group. Upon receipt of such
opinion, Crosstex GP will have the option, but not the obligation, subject to the approval of the Conflicts Committee, to: 

        (v)  (A)
cause a Group Member to purchase the Restricted Business in accordance with the following process: 

        (1)  if
the valuation of the investment banking firm is in the range between the proposed sale/purchase values of the Crosstex Energy Entity and Crosstex GP, a Group Member
will have the right to purchase the Restricted Business at the valuation submitted by the investment banking firm; 

        (2)  if
the valuation of the investment banking firm is less than the proposed purchase value submitted by Crosstex GP, a Group Member will have the right to purchase the
Restricted Business at the valuation submitted by the investment banking firm; and 

        (3)  if
the valuation of the investment banking firm is greater than the proposed sale value submitted by the Crosstex Energy Entity, a Group Member will have the right to
purchase the Restricted Business for the amount submitted by the Crosstex Energy Entity; or 

        (B)  decline
to purchase such Restricted Business, in which event the Crosstex Energy Entity forever will be free to continue to own and operate the assets and business
comprising such particular Restricted Business; provided, however, that any future acquisitions or opportunities related to such particular Restricted Business shall be subject to the procedures set
forth in this Section 2.3. 

 
 

           2.4    Termination.     The provisions of Article II may be terminated by any of the Crosstex
Energy Entities upon or at any time after a "Change of Control" of Crosstex Energy
Holdings, Crosstex GP or 

4

 

the General Partner by written notice to the Partnership. A Change of Control of Crosstex Energy Holdings, Crosstex GP or the General Partner shall be deemed to have occurred upon the occurrence of
one or more of the following events: (a) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of
Crosstex Energy Holdings, Crosstex GP or the General Partner to any other Person unless immediately following such sale, lease, exchange, or other transfer such assets are owned, directly or
indirectly, by the Crosstex Energy Entities, the Yorktown Funds or Management; (b) the consolidation or merger of Crosstex Energy Holdings, Crosstex GP or the General Partner with or into
another Person pursuant to a transaction in which the outstanding Voting Stock of Crosstex Energy Holdings, Crosstex GP or the General Partner is changed into or exchanged for cash, securities, or
other property, other than any such transaction where (i) the outstanding Voting Stock of Crosstex Energy Holdings, Crosstex GP or the General Partner is changed into or exchanged for Voting
Stock of the surviving corporation or its parent and (ii) the holders of the Voting Stock of Crosstex Energy Holdings, Crosstex GP or the General Partner immediately prior to such transaction
own, directly or indirectly, not less than a majority of the Voting Stock of the surviving Person or its parent immediately after such transaction; and (c) a "person" or "group" (within the
meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) being or becoming the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more
than 50% of all of the then outstanding Voting Stock of Crosstex Energy Holdings, Crosstex
GP or the General Partner, other than (i) in a merger or consolidation that would not constitute a Change of Control under clause (b) above and (ii) the Yorktown Funds or
Management. 

 
 

           2.5    Scope of Prohibition.     Except as provided in this Article II and the Partnership
Agreement, each Crosstex Energy Entity shall be free to engage in any business activity
whatsoever, including those that may be in direct competition with any Group Member. In addition, each Yorktown Fund will be free to own or engage in any business activity whatsoever, including those
that may be in direct competition with any Group Member. 

 
 

           2.6    Enforcement.     The Crosstex Energy Entities agree and acknowledge that the Partnership Group
does not have an adequate remedy at law for the breach by the Crosstex Energy
Entities of their covenants and agreements set forth in this Article II, and that any breach by the Crosstex Energy Entities of their covenants and agreements set forth in this
Article II would result in irreparable injury to the Partnership Group. The Crosstex Energy Entities further agree and acknowledge that any Group Member may, in addition to the other remedies
which may be available to the Partnership Group, file a suit in equity to enjoin the Crosstex Energy Entities from such breach, and consent to the issuance of injunctive relief under this
Agreement. 

 
 

ARTICLE III
  Services    
  

 
 
        3.1    General and Administrative Reimbursement.     The amount for which the General Partner or its
Affiliates shall be entitled to reimbursement from the Partnership pursuant to Sections 7.4(b) and 7.6(c) of the
Partnership Agreement for Allocated General and Administrative Expenses shall not exceed $6.0 million in the aggregate in the 12 months following the date of this Agreement;  provided further,
that such reimbursement cap will not apply to the cost of any third party legal, accounting or advisory services received, or the
direct expenses of the General Partner and its Affiliates incurred, in connection with acquisition or business development opportunities evaluated on behalf of the Partnership. 

 
 

ARTICLE IV
  Miscellaneous    
  

 
 
        4.1    Choice of Law; Submission to Jurisdiction.     This Agreement shall be subject to and governed by the
laws of the State of Delaware, excluding any conflicts-of-law rule or principle
that might refer 

5

 

the construction or interpretation of this Agreement to the laws of another state. Each party hereby submits to the jurisdiction of the state and federal courts in the State of Delaware and to venue
in Wilmington, Delaware. 

 
 

           4.2    Notice.     All notices or requests or consents provided for or permitted to be given pursuant
to this Agreement must be in writing and must be given by depositing same in
the United States mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by telecopier or telegram
to such party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by telegram or telecopier shall be effective upon actual receipt if received during the
recipient's normal business hours, or at the beginning of the recipient's next business day after receipt if not received during the recipient's normal business hours. All notices to be sent to a
party pursuant to this Agreement shall be sent to or made at the address set forth below such party's signature to this Agreement, or at such other address as such party may stipulate to the other
parties in the manner provided in this Section 4.2. 

 
 

          4.3    Entire Agreement.     This Agreement constitutes the entire agreement of the parties relating
to the matters contained herein, superseding all prior contracts or agreements, whether
oral or written, relating to the matters contained herein. 

 
 

           4.4    Effect of Waiver or Consent.     No waiver or consent, express or implied, by any party to or
of any breach or default by any Person in the performance by such Person of its obligations hereunder
shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by such Person of the same or any other obligations of such Person hereunder. Failure on
the part of a party to complain of any act of any Person or to declare any Person in default, irrespective of how long such failure continues, shall not constitute a waiver by such party of its rights
hereunder until the applicable statute of limitations period has run. 

 
 

           4.5    Amendment or Modification.     This Agreement may be amended or modified from time to time
only by the written agreement of all the parties hereto; provided, however, that the Partnership and
the Operating Partnership may not, without the prior approval of the Conflicts Committee, agree to any amendment or modification of this Agreement that, in the reasonable discretion of the General
Partner, will adversely affect the holders of Common Units. Each such instrument shall be reduced to writing and shall be designated on its face an "Amendment" or an "Addendum" to this Agreement. 

 
 

           4.6    Assignment.     No party shall have the right to assign its rights or obligations under this
Agreement without the consent of the other parties hereto. 

 
 

          4.7    Counterparts.     This Agreement may be executed in any number of counterparts with the same
effect as if all signatory parties had signed the same document. All counterparts shall
be construed together and shall constitute one and the same instrument. 

 
 

           4.8    Severability.     If any provision of this Agreement or the application thereof to any Person
or circumstance shall be held invalid or unenforceable to any extent, the remainder of
this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 

 
 

           4.9    Gender, Parts, Articles and Sections.     Whenever the context requires, the gender of all
words used in this Agreement shall include the masculine, feminine and neuter, and the number of all words shall
include the singular and plural. All references to Article numbers and Section numbers refer to Articles and Sections of this Agreement, unless the context otherwise requires. 

 
 

          4.10    Further Assurances.     In connection with this Agreement and all transactions contemplated by
this Agreement, each signatory party hereto agrees to execute and deliver such additional
documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, 

6

 

carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions. 

 
 

           4.11    Withholding or Granting of Consent.     Each party may, with respect to any consent or
approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its
sole and uncontrolled discretion, with or without cause, and subject to such conditions as it shall deem appropriate. 

 
 

          4.12    U.S. Currency.     All sums and amounts payable to or to be payable pursuant to the provisions
of this Agreement shall be payable in coin or currency of the United States of America
that, at the time of payment, is legal tender for the payment of public and private debts in the United States of America. 

 
 

           4.13    Laws and Regulations.     Notwithstanding any provision of this Agreement to the contrary, no
party to this Agreement shall be required to take any act, or fail to take any act, under this
Agreement if the effect thereof would be to cause such party to be in violation of any applicable law, statute, rule or regulation. 

 
 

           4.14    Negotiation of Rights of Crosstex Energy Holdings, Limited Partners, Assignees, and Third Parties.     The provisions of this Agreement are enforceable solely by the parties to this Agreement, and no shareholder of Crosstex Energy Holdings and no limited partner,
member, assignee or other Person of the Partnership or the Operating Partnership shall have the right, separate and apart from Crosstex Energy Holdings, the Partnership or the Operating Partnership,
to enforce any provision of this Agreement or to compel any party to this Agreement to comply with the terms of this Agreement. 

[Remainder of This Page Intentionally Left Blank.]

7

 

        IN
WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Closing Date. 

	 	 	CROSSTEX ENERGY HOLDINGS INC.
	

 	
 	

By:	

/s/  BRYAN H. LAWRENCE      
 Bryan H. Lawrence

Chairman
	

 	
 	

Address for Notice:
	

 	
 	

2501 Cedar Springs, Suite 600

Dallas, Texas 75201
	

 	
 	
CROSSTEX ENERGY GP, LLC
	

 	
 	

By:	

/s/  WILLIAM W. DAVIS      
 William W. Davis

Senior Vice President and

Chief Financial Officer
	

 	
 	

Address for Notice:
	

 	
 	

2501 Cedar Springs, Suite 600

Dallas, Texas 75201

	

 	
 	
CROSSTEX ENERGY GP, L.P.
	

 	
 	

By:	
 	

Crosstex Energy GP, LLC, its

general partner
	

 	
 	

 	
 	

By:	

/s/  WILLIAM W. DAVIS      
 William W. Davis

Senior Vice President and

Chief Financial Officer
	

 	
 	

Address for Notice:
	

 	
 	

2501 Cedar Springs, Suite 600

Dallas, Texas 75201

8

 

	

 	
 	
CROSSTEX ENERGY SERVICES, L.P.
	

 	
 	

By:	
 	

Crosstex Energy Services GP, LLC,

its general partner
	

 	
 	

 	
 	

By:	

/s/  BARRY E. DAVIS      
 Barry E. Davis

President and

Chief Executive Officer
	

 	
 	

Address for Notice:
	

 	
 	

2501 Cedar Springs, Suite 600

Dallas, Texas 75201

	

 	
 	
CROSSTEX ENERGY, L.P.
	

 	
 	

By:	
 	

Crosstex Energy GP, L.P.,

its general partner
	

 	
 	

 	
 	

By:	
 	

Crosstex Energy GP, LLC, its

general partner
	

 	
 	

 	
 	

 	
 	

By:	

/s/  WILLIAM W. DAVIS      
 William W. Davis

Senior Vice President and

Chief Financial Officer
	

 	
 	

Address for Notice:
	

 	
 	

2501 Cedar Springs, Suite 600

Dallas, Texas 75201

9

QuickLinks

Exhibit 10.5

Execution Copy

OMNIBUS AGREEMENT

R E C I T A L S

ARTICLE I Definitions

1.1 Definitions.

ARTICLE II Business Opportunities

2.1 Restricted Businesses.

2.2 Permitted Exceptions.

2.3 Procedures.

2.4 Termination.

2.5 Scope of Prohibition.

2.6 Enforcement.

ARTICLE III Services

3.1 General and Administrative Reimbursement.

ARTICLE IV Miscellaneous

4.1 Choice of Law; Submission to Jurisdiction.

4.2 Notice.

4.3 Entire Agreement.

4.4 Effect of Waiver or Consent.

4.5 Amendment or Modification.

4.6 Assignment.

4.7 Counterparts.

4.8 Severability.

4.9 Gender, Parts, Articles and Sections.

4.10 Further Assurances.

4.11 Withholding or Granting of Consent.

4.12 U.S. Currency.

4.13 Laws and Regulations.

4.14 Negotiation of Rights of Crosstex Energy Holdings, Limited Partners, Assignees, and Third Parties.QuickLinks
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Exhibit 10.6    
  

 
 

CROSSTEX ENERGY GP, LLC
  EMPLOYMENT AGREEMENT    
  

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into this    day
of                        , 2002 (the
"Effective Date"), by and between Crosstex Energy GP, LLC, a Delaware limited liability company (the
"Company"), and                        , an individual ("Employee"). 

 
 

ARTICLE I
  Definitions and Interpretations    
  

 
 
        1.1.    Definitions.     For purposes of this Agreement, except as otherwise expressly provided herein or unless
the context otherwise requires, the following terms shall have the
following respective meanings: 

        "Accounting Firm" shall have the meaning set forth in Section 3.4(c). 

        "Base Salary" shall have the meaning set forth in Section 3.1. 

        "Board" means the Board of Directors of the Company. 

        "Cause" means (i) Employee has failed to perform the duties assigned to him and such failure has continued for thirty
(30) days following delivery by the Company of written notice to Employee of such failure, (ii) Employee has been convicted of a felony or misdemeanor involving moral turpitude,
(iii) Employee has engaged in acts or omissions against the Company constituting dishonesty, breach of fiduciary obligation, or intentional wrongdoing or misfeasance, (iv) Employee has
acted intentionally or in bad faith in a manner that results in a material detriment to the assets, business or prospects of the Company, or (v) Employee has breached any obligation under this
Agreement. 

        "Change in Control" shall be deemed to have occurred if (i) Crosstex Energy Holdings Inc., a Delaware corporation, and/or
its affiliates, collectively, no longer directly or indirectly hold a controlling interest in Crosstex Energy GP, L.P. or the Company and Employee does not remain employed by the Company upon the
occurrence of such event (whether Employee's employment is terminated voluntarily or by the Company), (ii) Yorktown Energy Partners V, L.P., a Delaware limited partnership, or its affiliates or
partners, cease to own as a group a controlling interest in Crosstex Energy Holdings Inc. and Employee does not remain employed by the Company upon the occurrence of such event (whether
Employee's employment is terminated voluntarily or by the Company), or (iii) the Company has caused the sale of at least fifty percent (50%) of the assets of the Partnership. 

        "Code" shall mean the Internal Revenue Code of 1986, as amended, and any successor statute or statutes. 

        "Company Group" shall mean the Company, Crosstex Energy GP, L.P., the Partnership, Crosstex Energy Services, Ltd., and their
respective affiliates and subsidiaries. 

        "Confidential Information" shall have the meaning set forth in Section 5.1. 

        "Disability" shall mean a physical or mental condition of Employee that, in the good faith judgment of not less than a majority of the
entire membership of the Board (excluding Employee, if Employee is then a member of the Board), based upon certification by a licensed physician reasonably acceptable to Employee and the Board,
(i) prevents Employee from being able to perform the services required under this Agreement, (ii) has continued for a period of at least 180 days during any 12-month
period, and (iii) is expected to continue. 

1

 

        "Good Reason" means any of the following: (i) the assignment to Employee of any duties materially inconsistent with Employee's
position (including a materially adverse change in Employee's office, title and reporting requirements), authority, duties or responsibilities; (ii) the Company's requiring Employee to be based
at any office other than offices in the greater Dallas, Texas area; (iii) any termination by the
Company of Employee's employment other than as expressly permitted by this Agreement; (iv) a breach or violation by the Company of any material provision of this Agreement, which breach or
violation remains unremedied for more than 30 days after written notice thereof is given to the Company by Employee. For purposes of this definition, no act or failure to act on the Company's
part shall be considered a "Good Reason" unless Employee has given the Company written notice of such act or failure to act within 30 days thereof and the Company fails to remedy such act or
failure to act within 30 days of its receipt of such notice. 

        "Gross Up Payment" shall have the meaning set forth in Section 3.4(b). 

        "Partnership" means Crosstex Energy, L.P., a Delaware limited partnership. 

        "Person" means any individual, partnership, joint venture, corporation, trust, unincorporated organization or any other entity. 

        "Restricted Period" shall have the meaning set forth in Section 5.2(a). 

        "Severance Plan" shall have the meaning set forth in Section 4.1(e). 

        "Total Payment" shall have the meaning set forth in Section 3.4(a). 

 
 

          1.2.    Interpretations.     

        (a)  In
this Agreement, unless a clear contrary intention appears, (i) the words "herein," "hereof" and "hereunder" and other words of similar import refer to this
Agreement as a whole and not to any particular Article, Section or other subdivision, (ii) reference to any Article or Section, means such Article or Section hereof, (iii) the words
"including" (and with correlative meaning "include") means including, without limiting the generality of any description preceding such term, and (iv) where any provision of this Agreement
refers to action to be taken by either party, or which such party is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such party. 

        (b)  The
Article and Section headings herein are for convenience only and shall not affect the construction hereof. 

 
 

ARTICLE II
  Employment of Employee    
  

 
 
        2.1.    Employment.     The Company agrees to employ Employee and Employee agrees to be employed by the Company
upon the terms and conditions of this Agreement, commencing on the date
hereof and continuing until terminated as provided in Section 4.1. 

 
 

           2.2.    Position and Duties.     While employed hereunder, Employee shall serve as
the                        of the Company and shall have and may exercise all of the powers, functions, duties and
responsibilities normally attributable to such position and shall have such additional duties and responsibilities commensurate with such position as may from time to time be reasonably assigned to
Employee by the Board. Employee shall observe and comply with all lawful policies, directions and instructions of the Board, which are consistent with the foregoing provisions of this  Section 2.2,
and shall endeavor to promote the business, reputation and interests of the Company and the other members of the Company Group,
including the Partnership. 

 
 

          2.3.    Devotion of Time.     Employee shall devote substantially all of his business time, attention, skill
and efforts to the faithful and efficient performance of his duties hereunder.
Notwithstanding the 

2

 

foregoing, Employee may engage in the following activities so long as they do not interfere in any material respect with the performance of Employee's duties and responsibilities hereunder:
(i) service on corporate, civic, religious, educational and/or charitable boards or committees and (ii) management of his personal investments. 

 
 

           2.4.    Place of Employment.     Employee's place of employment hereunder shall be at the Company's
principal executive offices in the greater Dallas, Texas area. 

 
 

ARTICLE III
  Compensation and Benefits    
  

 
 
        3.1.    Compensation; Bonus.     For services rendered by Employee under this Agreement, the Company shall pay to
Employee an annual base salary of $                        (the
"Base Salary"), payable in accordance with the Company's payroll practice for its executives as it is earned. The Board shall review the Base Salary at
least annually and may adjust the amount of the Base Salary at any time as the Board may deem appropriate in its sole discretion; provided, however, that in no event may the Base Salary be decreased
below the above stated amount without the prior written consent of Employee. Employee shall be eligible for annual bonuses and participation in other short-term or long-term
incentive plans at the discretion of the Board. 

 
 

           3.2.    Reimbursement of Expenses.     The Company shall reimburse Employee for all ordinary and necessary
expenses incurred and paid by Employee in the course of the performance of Employee's duties
pursuant to this Agreement and consistent with the Company's policies in effect from time to time with respect to travel, entertainment and other business expenses, and subject to the Company's
requirements with respect to the manner of approval and reporting of such expenses. 

 
 

           3.3.    Additional Benefits.     Employee shall be entitled to receive all employee benefits, fringe
benefits, vacations and other perquisites that may be offered by the Company to its executives
as a group, including participation by Employee and, where applicable, Employee's dependents, in the various employee benefit plans or programs (including pension plans, profit sharing plans,
incentive plans, health plans, life insurance and disability insurance) provided to executives of the Company in general, subject to meeting the eligibility requirements with respect to each of such
benefit plans or programs. However, nothing in this Section 3.3 shall be deemed to prohibit the Company from making any changes in any of the
plans, programs or benefits described herein. 

 
 

           3.4.    Gross Up Payment     

        (a)  If
the payments and benefits provided to Employee under this Agreement or under any other agreement with, or plan of, the Company (the "Total
Payment") (i) constitute a "parachute payment" as defined in Section 280G of the Code and exceed three times Employee's "base amount" as defined under Code
Section 280G(b)(3) by less than 10% of three times Employee's base amount, and (ii) would, but for this Section 3.4(a), be subject
to the excise tax imposed by Code Section 4999, then Employee's payments and benefits under this Agreement shall be either (A) paid in full, or (B) reduced and payable only as to
the maximum amount which would result in no portion of such payments and benefits being subject to excise tax under Code Section 4999, whichever results in the receipt by Employee on an
after-tax basis of the greatest amount of Total Payment (taking into account the applicable federal, state and local income taxes, the excise tax imposed by Code Section 4999 and
all other taxes (including any interest and penalties) payable by Employee). If a reduction of the Total Payment is necessary, Employee shall be entitled to select which payments or benefits will be
reduced and the manner and method of any such reduction of such payments and benefits. Within 30 days after the amount of any required reduction in payments and benefits is finally determined
under Section 3.4(c), Employee shall notify the Company in writing regarding which payments and benefits are to be reduced. If no notification is
given by Employee, the Company will determine which payments and benefits to reduce. If, as a result of any reduction required by this  Section 3.4(a), 

3

 

amounts previously paid to Employee exceed the amount to which Employee is entitled, Employee will promptly return the excess amount to the Company. 

        (b)  If
the Total Payment constitutes a "parachute payment" as defined in Code Section 280G and exceeds three times Employee's "base amount" as defined under Code
Section 280G(b)(3) by 10% or more of three times Employee's base amount, the Company shall provide to Employee, in cash, an additional payment in an amount to cover the full excise tax due
under Code Section 4999, plus Employee's state and federal income, employment, excise, and other taxes (including interest and penalties) on this additional payment (the
"Gross-Up Payment"). Any amount payable under this Section 3.4(b) shall be paid as
soon as possible following the date of Employee's termination, but in no event later than 30 days after such date. 

        (c)  All
determinations required to be made under this Section 3.4, including whether reductions are necessary or
whether a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be used in determining such Gross-Up Payment, shall be made by
the accounting firm used by the Company and/or the members of the Company Group at the time of such determination (the "Accounting Firm"). The
Accounting Firm shall provide detailed supporting calculations both to the Company and to Employee within 15 business days of the receipt of notice from the Company or Employee that there has been a
termination of Employee's employment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the Person effecting the change
in control transaction, Employee may appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. 

        (d)  In
the event Employee is entitled to a Gross-Up Payment under Section 3.4(b) and the Internal Revenue
Service subsequently increases the excise tax computation described in Section 3.4(b), the Company shall reimburse Employee for the full amount
necessary to make Employee whole on an after-tax basis (less any amounts received by Employee that Employee would not have received had the computations initially been computed as
subsequently adjusted), including the value of any underpaid excise tax, and any related interest and/or penalties due to the Internal Revenue Service. 

 
 

ARTICLE IV
  Termination of Employment    
  

 
 
        4.1.    Term and Termination.     

        (a)  Subject
to Section 4.1(b) and Section 4.1(c), the term of
this Agreement shall commence as of the Effective Date, and shall continue for a period of two (2) years. Commencing on the first anniversary of the date of this Agreement, on a daily basis,
the term of this Agreement shall be automatically extended by one additional day (such that the remaining term of this Agreement shall be one year) until Employee's employment hereunder shall have
terminated pursuant to this Section 4.1. 

        (b)  Notwithstanding
Section 4.1(a), this Agreement shall terminate immediately upon the death, Disability (as
hereinafter defined) or adjudication of legal incompetence of Employee, or upon the Company's ceasing to carry on its business or becoming bankrupt. 

        (c)  Notwithstanding  Section 4.1(a), the Company may terminate Employee's employment at any time for Cause or without
Cause; provided, however, that in no event shall the Company be entitled to terminate Employee's employment hereunder unless the Board shall adopt, by the affirmative vote of at least a majority of
the entire membership of the Board (excluding Employee, if Employee is then a member of the Board), a resolution authorizing such termination. 

        (d)  In
the event that (1) the Company elects to terminate Employee's employment with the Company for Cause or the Company's ceasing to carry on its business or
becoming bankrupt or 

4

 

(2) Employee terminates his employment with the Company other than for Good Reason, the Company shall pay or provide to Employee: 

          (i)  such
Base Salary as Employee shall have earned up to the date of his termination; and 

        (ii)  such
other fringe benefits normally provided to employees of the Company as Employee shall have earned up to the date of his termination. 

        (e)  In
the event that (1) the Company elects to terminate Employee's employment with the Company during the term hereof referred to in  Section 4.1(a) and such termination is without Cause,
(2) Employee's employment is terminated as a result of the death, Disability,
adjudication of legal incompetence of Employee, (3) Employee terminates his employment for Good Reason or (4) Employee's employment is terminated as a result of a Change in Control, the
Company shall pay to Employee: 

          (i)  the
unpaid amount of Employee's Base Salary for the remainder of the term of this Agreement, which amounts shall be paid at the regularly scheduled times, as if such
termination or Change in Control had not occurred; 

        (ii)  any
bonuses earned by Employee under any incentive plans under which Employee is a participant up to the date of such termination or Change in Control; and 

        (iii)  such
other fringe benefits (other than any bonus, severance pay benefit or participation in the Company's 401(k) employee benefit plan) normally provided to employees
of the Company as Employee shall have earned up to the date of his termination or Change in Control; and 

        (iv)  Employee
shall be entitled to continue his participation in any health plans of the Company for the remainder of the term of this Agreement. 

The
amount payable to Employee under this Section 4.1(e) is in lieu of, and not in addition to, any severance payment due or to become due to
Employee under any separate agreement or contract between Employee and the Company or pursuant to any severance payment plan, program or policy of the Company or any other member of the Company Group
(collectively, "Severance Plan"). Any severance amounts received by Employee under a Severance Plan shall be applied as an offset to (reduce or
eliminate, as the case may be) any future payments otherwise to be made to Employee under this Section 4.1(e);  i.e., no additional payments shall be
made under this Section 4.1(e) until the aggregate amount
of the offsets hereunder equals the severance amounts received by Employee under the Severance Plan. 

        (f)    Nothing
in this Agreement shall prevent or limit Employee's continuing or future participation in any plan, program, policy or practice provided by the Company for which
Employee may qualify, nor shall anything herein limit or otherwise affect such rights as Employee may have under any other contract or agreement with the Company or any other member of the Company
Group. Amounts which are vested benefits or which Employee is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company at or
subsequent to the termination of Employee's employment shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this
Agreement; provided, however, the time period after such termination shall not be credited as continued employment of Employee for any purpose under any such plan, policy, practice or program. 

 
 

ARTICLE V
  Confidential Information and Non-Competition    
  

 
 
        5.1.    Covenant Not to Disclose Confidential Information.     Employee acknowledges that during the course of his
employment with the Company he has or will have access to and knowledge of certain information and data that
the Company or other members of the Company Group consider 

5

 

confidential and that the release of such information or data to unauthorized persons would be extremely detrimental to the Company Group. As a consequence, Employee hereby agrees and acknowledges
that he owes a duty to the Company not to disclose, and agrees that, during or after the term of his employment, without the prior written consent of the Company, he will not communicate, publish or
disclose, to any person anywhere or use any Confidential Information (as hereinafter defined) for any purpose other than carrying out his duties as contemplated by this Agreement. Employee will use
his best efforts at all times to hold in confidence and to safeguard any Confidential Information from falling into the hands of any unauthorized person and, in particular, will not permit any
Confidential Information to be read, duplicated or copied. Notwithstanding the foregoing, Employee may disclose such Confidential Information to the extent required by applicable law or as a
consequence of any judicial or regulatory proceeding, based upon the opinion of legal counsel and only after Employee has requested that such Confidential Information be preserved to the maximum
extent practicable. Employee will return to the Company all Confidential Information in Employee's possession or under Employee's control when the duties of Employee no longer require Employee's
possession thereof, or whenever the Company shall so request, and in any event will promptly return all such Confidential Information if Employee's relationship with the Company is terminated for any
or no reason and will not retain any copies thereof. For purposes hereof, the term "Confidential Information" shall mean any information or data used by
or belonging or relating to the Company or any other member of the Company Group that is not known generally to the industry in which any member of the Company Group is or may be engaged (other than
as a result of disclosure by Employee in violation of this Agreement), including without limitation, any and all trade secrets, proprietary data and information relating to any member of the Company
Group's past, present or future business and products, price lists, customer lists, processes, procedures or standards, know-how, manuals, business strategies, records, drawings,
specifications, designs, financial information, whether or not reduced to writing, or information or data that the Company or any other member of the Company Group advises Employee should be treated
as confidential information. 

 
 

           5.2.    Covenant Not to Compete.     

        (a)  In
partial consideration for the Company's agreement to provide Employee access to Confidential Information and the other benefits provided by this Agreement, Employee
agrees that while employed by the Company and until the later to occur of one (1) year after the termination of such employment (for any reason) or the date on which the Company is no longer
obligated to make payments to Employee under this Agreement (the "Restricted Period"), Employee shall not, unless Employee receives the prior written
consent of the Board, own an interest in, manage, operate, join, control, lend money or render financial or other assistance to or participate in or be connected with, as an officer, employee,
partner, stockholder, consultant or otherwise, any Person that competes with any member of the Company Group in the (i) purchasing, selling, brokering or marketing of natural gas, including,
without limitation, locating buyers and sellers, preparing and negotiating purchase and sales contracts with the natural gas producers from which any member of the Company Group purchased natural gas,
or any customer of any member of the Company Group to which such member has sold gas during the
12-month period preceding the termination of such employment; (ii) the gathering, treating, processing, and/or transporting natural gas within a ten (10) mile radius of any
plant, equipment or facilities owned, leased (as lessor or lessee) or operated by any member of the Company Group as of the date of the termination of such employment; (iii) treating of natural
gas for the removal of carbon dioxide, hydrogen sulfide, or other contaminants in the states of Texas, Louisiana, Oklahoma and any state in which any member of the Company Group owns or operates a
natural gas treating facility as of the date of the termination of such employment; (iv) brokering, marketing, purchase for resale, purchase for inventory
(i.e., any purchase other than immediate use in projects not otherwise restricted under the terms hereof), sale or lease (as lessor) of new or used
equipment for treating natural gas for the removal of carbon dioxide, hydrogen sulfide, or other contaminant; and (v) owning or operating of a business or facility that is engaged or will
engage in the business of 

6

 

fabricating new or refurbishing used amine-treating facilities; provided, however, that following Employee's termination of employment the foregoing restriction shall apply only to (A) those
areas where any member of the Company Group was actually doing business on the date of such termination of employment and (B) those areas in respect of which any member of the Company Group
actively and diligently conducted at any time during the 12-month period ended on such date of termination an analysis to determine whether or not it would commence doing business in such
areas but, in the case of each such area the foregoing restriction shall cease to apply when each member of the Company Group ceases to actively conduct business (disregarding any temporary stoppages)
in such area or, if applicable, abandons its intent to conduct business in such area. 

        (b)  Employee
has carefully read and considered the provisions of this Section 5.2 and, having done so, agrees that the
restrictions set forth in this Section 5.2 (including the Restricted Period, scope of activity to be restrained and the geographical scope) are
fair and reasonable and are reasonably required for the protection of the interests of the Company Group and their respective officers, directors, employees, creditors, partners, members and
stockholders. Employee understands that the restrictions contained in this Section 5.2 may limit his ability to engage in a business similar to
the business of any member of the Company Group, but acknowledges that he will receive sufficiently high remuneration and other benefits from the Company hereunder to justify such restrictions. 

        (c)  During
the Restricted Period, Employee shall not, whether for his own account or for the account of any other Person (excluding the members of the Company Group),
intentionally (i) solicit, endeavor to entice or induce any employee of any member of the Company Group to terminate his employment with such member or accept employment with anyone else or
(ii) interfere in a similar manner with the business of the Company Group. 

        (d)  It
is specifically agreed that the Restricted Period, during which the agreements and covenants of Employee made herein shall be effective, shall be computed by
excluding from such computation any time which Employee is in violation of any provision of this Section 5.2. 

        (e)  In
the event that any provision of this Section 5.2 relating to the Restricted Period and/or the areas of
restriction shall be declared by a court of competent jurisdiction to exceed the maximum time period or areas such court deems reasonable and enforceable, the Restricted Period and/or areas of
restriction
deemed reasonable and enforceable by the court shall become and thereafter be the maximum time period and/or areas. 

 
 

           5.3.    Specific Performance.     Recognizing that irreparable damage will result to the Company in the
event of the breach or threatened breach of any of the foregoing covenants and assurances by
Employee contained in this Article V, and that the Company's remedies at law for any such breach or threatened breach will be inadequate, the
Company and its successors and assigns, in addition to such other remedies that may be available to them, shall be entitled to an injunction, including a mandatory injunction, to be issued by any
court of competent jurisdiction ordering compliance with this Agreement or enjoining and restraining Employee, and each and every person, firm or company acting in concert or participation with him,
from the continuation of such breach and, in addition thereto, he shall pay to the Company all ascertainable damages, including costs and reasonable attorneys' fees sustained by the Company or any
other member of the Company Group by reason of the breach or threatened breach of said covenants and assurances. The obligations of Employee and the rights of the Company, its successors and assigns
under this Article V and Section 6.7 shall survive the termination of this Agreement. The
covenants and obligations of Employee set forth in this Article V are in addition to and not in lieu of or exclusive of any other obligations and
duties of Employee to the Company Group, whether express or implied in fact or in law. 

7

 
 
 

ARTICLE VI
  Miscellaneous    
  

 
 
        6.1.    Satisfaction of Obligations.     The Company shall use its commercially reasonable efforts to obtain from
the Partnership, to the extent permitted under all agreements and other documents to
which the Company, the Partnership and/or other members of the Company Group are then subject, all funds necessary to satisfy the Company's obligations to Employee under this Agreement. 

 
 

           6.2.    Severability.     The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect. 

 
 

          6.3.    No Breach.     Employee represents and warrants to the Company that neither the execution nor
delivery of this Agreement, nor the performance of Employee's obligations hereunder
will conflict with, or result in a breach of, any term, condition, or provision of, or constitute a default under, any obligation, contract,
agreement, covenant or instrument to which Employee is a party or under which Employee is bound, including without limitation, the breach by Employee of a fiduciary duty to any former employers. 

 
 

           6.4.    Entire Agreement; Amendment.     This Agreement cancels and supersedes all previous agreements
relating to the subject matter of this Agreement, written or oral, between the parties hereto and
their respective affiliates and contains the entire understanding of the parties hereto and shall not be amended, modified or supplemented in any manner whatsoever except as otherwise provided herein
or in writing signed by each of the parties hereto. Failure of the Company to demand strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of the term,
covenant or condition, nor shall any waiver or relinquishment by the Company of any right or power hereunder at any one time or more times be deemed a waiver or relinquishment of the right or power at
any other time or times. 

 
 

          6.5.    Governing Law.     This Agreement and all rights and obligations of the parties hereunder shall be
governed by, and construed and interpreted in accordance with, the laws of the
State of Texas applicable to agreements made and to be performed entirely within the State, including all matters of enforcement, validity and performance. 

 
 

           6.6.    Notices.     All notices and all other communications provided for in the Agreement shall be in
writing and addressed (i) if to the Company, at its principal office
address or such other address as it may have designated by written notice to Employee for purposes hereof, directed to the attention of the Board with a copy to the Secretary of the Company and
(ii) if to Employee, at his residence address on the records of the Company or to such other address as he may have designated to the Company in writing for purposes hereof. Each such notice or
other communication shall be deemed to have been duly given when personally delivered or sent by United States registered mail, return receipt requested, postage prepaid, or by a nationally recognized
overnight delivery service, with delivery confirmed. 

 
 

          6.7.    Assignment.     This Agreement is personal and not assignable by Employee but it may be assigned by
the Company without notice to or consent of Employee to, and shall thereafter
be binding upon and enforceable by, any member of the Company Group and any person that shall acquire or succeed to substantially all of the business or assets of any member of the Company Group (and
such person shall be deemed included in the definition of the "Company" and the "Company Group" for all purposes of this Agreement) but is not otherwise assignable by the Company. 

 
 

          6.8.    Tax Withholdings.     The Company shall withhold from all payments hereunder all applicable taxes
(federal, state or other) that it is required to withhold therefrom unless Employee
has otherwise paid (or made other arrangements satisfactory) to the Company the amount of such taxes. 

8

 

 
 

          6.9.    Employment with Affiliates.     For purposes of this Agreement, employment with any member of the
Company Group shall be deemed to be employment with the Company. 

 
 

           6.10.    Expenses.     If any action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable
attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

 
 

          6.11.    Counterparts.     This Agreement may be executed in or more counterparts, each of which shall be
deemed to be an original, but all of which together will constitute one and the
same instrument. 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

9

 

        IN
WITNESS WHEREOF, the Company has caused this Employment Agreement to be duly executed, and Employee has hereunto set his hand, as of the day and year first above written. 

	 	 	CROSSTEX ENERGY GP, LLC
	

 	
 	
By:	

 
	 	 	 	

	

 	
 	

Name:	

 
	 	 	 	

	

 	
 	

Title:	

 
	 	 	 	

	

 	
 	
EMPLOYEE:
	

 	
 	

	

 	
 	

Name:	

 
	 	 	 	

10

  

 
 

Schedule Pursuant to Item 601    
  

	Name
 
	 	Position
	 	Annual Base Salary

	Barry E. Davis	 	President, Chief Executive Officer	 	$	201,500
	James R. Wales	 	Executive Vice President—Midstream Division	 	$	171,064
	A. Chris Aulds	 	Executive Vice President—Treating Division	 	$	171,064
	Jack M. Lafield	 	Senior Vice President—Business Development	 	$	160,875
	William W. Davis	 	Senior Vice President, Chief Financial Officer	 	$	160,875
	Michael P. Scott	 	Senior Vice President—Engineering and Operations	 	$	134,304

11

QuickLinks

Exhibit 10.6

CROSSTEX ENERGY GP, LLC EMPLOYMENT AGREEMENT

ARTICLE I Definitions and Interpretations

1.1. Definitions.

1.2. Interpretations.

ARTICLE II Employment of Employee

2.1. Employment.

2.2. Position and Duties.

2.3. Devotion of Time.

2.4. Place of Employment.

ARTICLE III Compensation and Benefits

3.1. Compensation; Bonus.

3.2. Reimbursement of Expenses.

3.3. Additional Benefits.

3.4. Gross Up Payment

ARTICLE IV Termination of Employment

4.1. Term and Termination.

ARTICLE V Confidential Information and Non-Competition

5.1. Covenant Not to Disclose Confidential Information.

5.2. Covenant Not to Compete.

5.3. Specific Performance.

ARTICLE VI Miscellaneous

6.1. Satisfaction of Obligations.

6.2. Severability.

6.3. No Breach.

6.4. Entire Agreement; Amendment.

6.5. Governing Law.

6.6. Notices.

6.7. Assignment.

6.8. Tax Withholdings.

6.9. Employment with Affiliates.

6.10. Expenses.

6.11. Counterparts.

Schedule Pursuant to Item 601

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