Document:

exv10w5

 

Exhibit 10.5

AMENDMENT NO. 5 TO THE

CHS INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

CHS Inc.
(formerly known as Cenex Harvest States Cooperatives), pursuant to the power of amendment
reserved to it in Section 8.1 of the CHS Inc. Supplemental Executive Retirement Plan (“Plan”),
hereby amends the Plan in the manner set forth below effective as of January 1, 2007

	1.	 	Section 4.0 of the Plan is amended to read in full as
follows:
	 
	 	 	Section 4.6. Time and Form of Participant’s Benefit.

     (a) Payment of Benefit. The Actuarial Value of the benefit payable under this
Article IV will be paid in a single lump sum upon a
Participant’s benefit distribution date.
For this purpose, the term “benefit distribution date” shall mean the date that is six (6)
months after the Participant’s separation from service (as that term is defined under Section
409A of the Code). Payment shall be deemed paid as of the benefit distribution date if it is
made no later than the last day of the calendar year in which occurs the benefit distribution
date, or if later, the 15th day of the third calendar month following the benefit distribution
date.

     (b) Grandfathered Participants. With respect to any “grandfathered” participant
whose benefit is computed under a traditional defined benefit formula pursuant to Section
4.4(c) (and not as an account balance benefit under Section 4.2), the Actuarial Value shall be
determined as of the separation date, and then such single sum shall be credited with interest
for the period beginning on the separation date and ending on the payment date (using the
“applicable interest rate” as defined under Section 417(e) of the Code.)

     IN WITNESS WHEREOF, CHS Inc. has caused its name to be hereunto subscribed on this
8th day of November, 2007.

	 	 	 	 	 
	 	CHS INC.

 	 
	 	By  	/s/ John D Johnson
 	 
	 	 	Its 	President and CEOexv10w6

 

	 	 	 	 	 

Exhibit 10.6

AMENDMENT NO. 6 TO THE

CHS INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

CHS Inc. (formerly known as Cenex Harvest States Cooperatives), pursuant to the power of amendment
reserved to it in Section 8.1 of the CHS Inc. Supplemental Executive Retirement Plan (“Plan”),
hereby amends the Plan in the manner set forth below effective as of January 1, 2008.

	1.	 	Section 4.6 of the Plan is amended to read in full as follows:
	 
	 	 	Section 4.6. Time and Form of Participant’s Benefit.

     (a) Payment of Benefit. The Actuarial Value of the benefit payable under this Article
IV will be paid in a single lump sum upon a Participant’s benefit distribution date. For this
purpose, the term “benefit distribution date” shall mean the date that is six (6) months after the
Participant’s separation from service (as that term is defined under Section 409A of the Code).
Payment shall be deemed paid as of the benefit distribution date if it is made no later than the
last day of the calendar year in which occurs the benefit distribution date, or if later, the 15th
day of the third calendar month following the benefit distribution date.

     (b) Grandfathered Participants. With respect to any “grandfathered” participant whose
benefit is computed under a traditional defined benefit formula pursuant to Section 4.4(c) (and
not as an account balance benefit under Section 4.2), the Actuarial Value shall be determined as
of the separation date, and then such single sum shall be credited with interest for the period
beginning on the separation date and ending on the payment date (based on the applicable interest
rate under Section 417(e) of the Code, using the first segment rate applicable for the look-back
month and stability period used under the Pension Plan).

 

 

     (c) 409A Compliance; 409A Grandfathered Participants. Between January 1,
2005 and July 1, 2006 (the effective date of the amendment bringing the Plan into compliance with
Section 409A of the Code), the Plan was operated and administered in compliance with transition
rules promulgated by the Treasury under Notice 2005-1 and proposed
regulations. Effective July I,
2006, the Plan was amended to comply with Section 409A of the Code with respect to both the portion
of the participant’s benefit that is “grandfathered”
from application of Section 409A of the Code
(i.e. the portion that was earned and vested as of December 31, 2004) and the portion that is
subject to Section 409A of the Code. Notwithstanding the foregoing, with respect to any participant
whose entire benefit payable under this Plan is grandfathered from application of Section 409A of
the Code (i.e., the entire benefit was both earned and vested as of December 31, 2004), such
participant’s entire benefit shall continue to be payable in accordance with the terms of the Plan
as existed prior to January 1, 2005.

     IN WITNESS WHEREOF, CHS Inc. has caused its name to be hereunto subscribed on
this 21st day of December 2007.

	 	 	 	 	 
	 	CHS INC.

 	 
	 	By  	/s/
John D Johnson
 	 
	 	 	Its 	President and CEO 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 
	STATE OF MINNESOTA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF DAKOTA

	 	 	)	 	 	 

     On this 21st day of December, 2007, before me personally appeared
John D. Johnson to me personally known, who, being by me first duly sworn, did
depose and say that he is the President and CEO of CHS Inc., the corporation named
in the foregoing instrument, and that said instrument was signed on behalf of said
corporation by authority of its Board of Directors, and he acknowledged said
instrument to be the free act and deed of said corporation.

	 	 	 	 	 
	 	 	 
	 	/s/ NANCI L. LILJA
 	 
	 	Notaryexv10w7

 

Exhibit 10.7

AMENDMENT NO. 1 TO THE

CHS INC.

SPECIAL SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

CHS Inc., pursuant to the power of amendment reserved to it in Section 7.1 of the CHS Inc. Special
Supplemental Executive Retirement Plan (“Plan”), hereby amends the Plan in the
manner set forth below effective as of July 1, 2006.

1. The definition of “Change of Control” in Section 2.1 of the Plan is amended to read as follows:

     “Change of Control” means the first to occur of a change in the ownership or effective
control of CHS, or in the ownership of a substantial portion of the assets of CHS, as defined
under Section 409A of the Code.

2. The definition of “Total Disability” in Section 2.1 of the Plan is amended to read as follows:

     “Total Disability” means the Participant is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to
last for a continuous period of no less than twelve months, receiving income replacement
benefits for a period of not less than three months under CHS’ long-term disability plan.

3. Article V of the Plan is amended to read as follows:

     Section 5.1. Time and Form of Participant’s Benefit. Except as provided in Sections
5.2, 5.3 and 5.4, the Participant’s Account will be paid in a single lump sum upon a Participant’s
benefit distribution date. For this purpose, the term “benefit distribution date” shall mean the
date that is six (6) months after the Participant’s separation from service (as that term is
defined under Section 409A of the Internal Revenue Code). Payment shall be deemed paid as of the
benefit distribution date if it is made no later than the last day of the calendar year in which
occurs the benefit distribution date, or if later, the 15th day of the third calendar month
following the benefit distribution date.

     Section 5.2. Death Benefit. Notwithstanding any provision in this Plan to the
contrary, in the event of the Participant’s death prior to the payment of the entire amount
credited to the Participant’s Account, any unpaid amounts shall be paid to the Participant’s
Beneficiary upon the Participant’s death. Payment shall be deemed paid as of the Participant’s
death if it is made no later than the last day of the calendar year in which occurs the
Participant’s death, or if later, the 15th day of the third calendar month following the
Participant’s death.

     Section 5.3. Disability. Notwithstanding any provision in this Plan to the contrary,
in the event of the Total Disability of a Participant prior to the payment or the entire amount

 

 

credited to the Participant’s Account, any unpaid amounts shall be paid to the Participant as of
the Participant’s Total Disability. Payment shall be deemed paid as of the Participant’s Total
Disability if it is made no later than the last day of the calendar year in which occurs the
Participant’s Total Disability, or if later, the 15th day of the third calendar mouth following the
Participant’s Total Disability.

     Section 5.4.
Change of Control. Notwithstanding any provision in this Plan to the
contrary, in the event of a Change of Control of CHS, all Participants shall be paid the entire amounts
credited to their Accounts in the form of a single lump sum as of
such Change of Control. Payment
shall be deemed paid as of the Change of Control if it is made no later than the last day of the
calendar year in which occurs the Change of Control, or if later, the 15th day of the third
calendar month following the Change of Control.

     IN WITNESS WHEREOF, CHS Inc. has caused its name to be hereunto subscribed on this
30th day of May, 2006.

	 	 	 	 	 
	 	CHS INC.

 	 
	 	By  	/s/ John D Johnson
 	 
	 	 	Its 	President & CEOexv10w1

 

Exhibit 10.1

COMMON UNIT PURCHASE AGREEMENT

by and among

CROSSTEX ENERGY, L.P.

and

THE PURCHASERS PARTY HERETO

 

 

Table of Contents

	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Accounting Procedures and Interpretation
	 	 	5	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	AGREEMENT TO SELL AND PURCHASE
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 Authorization of Sale of the Purchased Units
	 	 	5	 
	Section 2.02 Sale and Purchase
	 	 	5	 
	Section 2.03 Closing
	 	 	5	 
	Section 2.04 Conditions to Closing
	 	 	5	 
	Section 2.05 Crosstex Deliveries
	 	 	6	 
	Section 2.06 Purchasers’ Deliveries
	 	 	7	 
	Section 2.07 Independent Nature of Purchasers’ Obligations and Rights
	 	 	7	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES AND COVENANTS RELATED TO CROSSTEX
	 	 	 	 
	 
	 	 	 	 
	Section 3.01 Partnership Existence
	 	 	8	 
	Section 3.02 Capitalization and Valid Issuance of Purchased Units
	 	 	8	 
	Section 3.03 Registration Statement and Prospectus
	 	 	10	 
	Section 3.04 Crosstex SEC Documents
	 	 	10	 
	Section 3.05 No Material Adverse Change
	 	 	11	 
	Section 3.06 Litigation
	 	 	11	 
	Section 3.07 No Conflicts; Compliance with Laws
	 	 	11	 
	Section 3.08 Authority, Enforceability
	 	 	12	 
	Section 3.09 Approvals
	 	 	12	 
	Section 3.10 MLP Status
	 	 	12	 
	Section 3.11 Investment Company Status
	 	 	12	 
	Section 3.12 Certain Fees
	 	 	12	 
	Section 3.13 No Side Agreements
	 	 	12	 
	Section 3.14 Insurance
	 	 	13	 
	Section 3.15 Internal Accounting Controls
	 	 	13	 
	Section 3.16 Form S-3 Eligibility
	 	 	13	 
	Section 3.17 Listing and Maintenance Requirements
	 	 	13	 
	Section 3.18 Material Agreements
	 	 	13	 
	Section 3.19 Subsequent Offerings
	 	 	13	 
	Section 3.20 Confidential Information
	 	 	13	 
	Section 3.21 Further Agreements of Crosstex
	 	 	13	 

 

 

	 	 	 	 	 
	ARTICLE IV
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES AND COVENANTS OF THE PURCHASERS
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 Existence
	 	 	14	 
	Section 4.02 Authorization, Enforceability
	 	 	14	 
	Section 4.03 No Breach
	 	 	14	 
	Section 4.04 Certain Fees
	 	 	14	 
	Section 4.05 No Side Agreements
	 	 	14	 
	Section 4.06 Lock-Up Agreement
	 	 	15	 
	Section 4.07 Short Selling
	 	 	15	 
	Section 4.08 Crosstex Information
	 	 	15	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	INDEMNIFICATION, COSTS AND EXPENSES
	 	 	 	 
	 
	 	 	 	 
	Section 5.01 Indemnification by Crosstex
	 	 	16	 
	Section 5.02 Indemnification by the Purchasers
	 	 	16	 
	Section 5.03 Indemnification Procedure
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 6.01 Interpretation and Survival of Provisions
	 	 	17	 
	Section 6.02 Survival of Provisions
	 	 	17	 
	Section 6.03 No Waiver; Modifications in Writing
	 	 	18	 
	Section 6.04 Binding Effect; Assignment
	 	 	18	 
	Section 6.05 Non-Disclosure
	 	 	18	 
	Section 6.06 Communications
	 	 	19	 
	Section 6.07 Entire Agreement
	 	 	20	 
	Section 6.08 Governing Law
	 	 	20	 
	Section 6.09 Waiver of Jury Trial
	 	 	20	 
	Section 6.10 Execution in Counterparts
	 	 	20	 

Exhibit A — Form of Opinion of Crosstex Counsel

 

 

COMMON UNIT PURCHASE AGREEMENT

     This COMMON UNIT PURCHASE AGREEMENT, dated as of April 8, 2008 (this “Agreement”), is
by and between CROSSTEX ENERGY, L.P., a Delaware limited partnership (“Crosstex”), and each
of the purchasers set forth in Schedule A hereto (the “Purchasers”).

     WHEREAS, Crosstex has filed with the Commission (as defined below), pursuant to the Securities
Act (as defined below) and the rules and regulations adopted by the Commission thereunder, the
Registration Statement (as defined below) relating to the offer and sale from time to time of up to
$500,000,000.00 aggregate initial offering price of common units representing limited partner
interests in Crosstex (“Common Units”) and certain other Crosstex securities, and such
Registration Statement has become effective; and

     WHEREAS, Crosstex desires to sell to each of the Purchasers, and each of the Purchasers
desires, severally and not jointly, to purchase from Crosstex, certain of those Common Units, in
accordance with the provisions of this Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt of which is hereby acknowledged, the parties
hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. As used in this Agreement, and unless the context requires a
different meaning, the following terms have the meanings indicated:

     “Affiliate” means, with respect to a specified Person, any other Person, directly or
indirectly controlling, controlled by or under direct or indirect common control with such
specified Person. For purposes of this definition, “control” (including, with correlative
meanings, “controlling,” “controlled by,” and “under common control with”) means the power to
direct or cause the direction of the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise.

     “Allocated Purchase Price” means with respect to each Purchaser, the dollar amount set
forth opposite such Purchaser’s name under the heading “Allocated Purchase Price” on
Schedule A hereto.

     “Basic Documents” means, collectively, this Agreement, the Partnership Agreement, the
Non-Disclosure Agreement and any and all other agreements or instruments executed and delivered to
the Purchasers by Crosstex or any Subsidiary of Crosstex hereunder or thereunder.

     “Business Day” means any day other than a Saturday, Sunday, any federal legal holiday
or day on which banking institutions in the State of New York or State of Texas are authorized or
required by law or other governmental action to close.

     “Closing” shall have the meaning specified in Section 2.03.

 

 

     “Closing Date” shall have the meaning specified in Section 2.03.

     “Commission” means the United States Securities and Exchange Commission.

     “Common Units” has the meaning set forth in the recitals.

     “Company Lock-Up Date” means 90 days from the Closing Date.

     “Crosstex” has the meaning set forth in the introductory paragraph.

     “Crosstex Credit Facility” means the Fourth Amended and Restated Credit Agreement,
dated as of November 1, 2005, by and among Crosstex and the lenders named therein, as amended as of
the date hereof.

     “Crosstex Financial Statements” shall have the meaning specified in
Section 3.04.

     “Crosstex Master Shelf Agreement” means the Amended and Restated Note Purchase
Agreement, dated as of July 25, 2006 among Crosstex Energy, L.P., Prudential Investment Management,
Inc. and certain other parties, as amended as of the date hereof.

     “Crosstex Material Adverse Effect” means any material and adverse effect on (a) the
assets, liabilities, financial condition, business, operations, affairs or prospects of Crosstex
and its Subsidiaries taken as a whole; (b) the ability of Crosstex and its Subsidiaries taken as a
whole to carry out their business as such business is conducted as of the date hereof or to meet
their obligations under the Basic Documents on a timely basis; or (c) the ability of Crosstex to
consummate the transactions under any Basic Document; provided, however, that a
Crosstex Material Adverse Effect shall not include any material and adverse effect on the foregoing
to the extent such material and adverse effect results from, arises out of, or relates to (x) a
general deterioration in the economy or changes in the general state of the industries in which the
Crosstex Parties operate, except to the extent that the Crosstex Parties, taken as a whole, are
adversely affected in a disproportionate manner as compared to other industry participants, (y) the
outbreak or escalation of hostilities involving the United States, the declaration by the United
States of a national emergency or war or the occurrence of any other calamity or crisis, including
acts of terrorism, or (z) any change in accounting requirements or principles imposed upon Crosstex
and its Subsidiaries or their respective businesses or any change in applicable Law, or the
interpretation thereof.

     “Crosstex Parties” means Crosstex, the General Partner, and all of Crosstex’s
Subsidiaries.

     “Crosstex Related Parties” shall have the meaning specified in Section 5.02.

     “Crosstex SEC Documents” shall have the meaning specified in Section 3.04.

     “Delaware LLC Act” shall have the meaning specified in Section 3.02.

     “Delaware LP Act” shall have the meaning specified in Section 3.02.

2

 

     “Effective Date” shall have the meaning specified in Section 3.03.

     “Effective Time” shall have the meaning specified in Section 3.03.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations of the Commission promulgated thereunder.

     “GAAP” means generally accepted accounting principles in the United States of America
in effect from time to time.

     “General Partner” means Crosstex Energy GP, L.P., a Delaware limited partnership, and
includes Crosstex Energy GP, LLC, a Delaware limited liability company and the general partner of
Crosstex Energy GP, L.P.

     “Governmental Authority” means, with respect to a particular Person, any country,
state, county, city and political subdivision in which such Person or such Person’s Property is
located or which exercises valid jurisdiction over any such Person or such Person’s Property, and
any court, agency, department, commission, board, bureau or instrumentality of any of them and any
monetary authority which exercises valid jurisdiction over any such Person or such Person’s
Property. Unless otherwise specified, all references to Governmental Authority herein with respect
to Crosstex means a Governmental Authority having jurisdiction over Crosstex, its Subsidiaries or
any of their respective Properties.

     “Indemnified Party” shall have the meaning specified in Section 5.03.

     “Indemnifying Party” shall have the meaning specified in Section 5.03.

     “Law” means any federal, state, local or foreign order, writ, injunction, judgment,
settlement, award, decree, statute, law, rule or regulation.

     “Lien” means any mortgage, claim, encumbrance, pledge, lien (statutory or otherwise),
security agreement, conditional sale or trust receipt or a lease, consignment or bailment,
preference or priority or other encumbrance upon or with respect to any property of any kind.

     “NASDAQ” means the NASDAQ Global Select Market.

     “Non-Disclosure Agreement” means the Letter Agreement, dated March 31, 2008, by and
between Kayne Anderson Capital Advisors, L.P. and Crosstex.

     “Partnership Agreement” means the Sixth Amended and Restated Agreement of Limited
Partnership of Crosstex, dated March 23, 2007, as amended from time to time.

     “Partnership Securities” means any class or series of equity interest in Crosstex (but
excluding any options, rights, warrants and appreciation rights relating to an equity interest in
Crosstex), including without limitation Common Units, Senior Subordinated Series D Units and the
Incentive Distribution Rights (as defined in the Partnership Agreement).

3

 

     “Person” means any individual, corporation, company, voluntary association,
partnership, joint venture, trust, limited liability company, unincorporated organization,
government or any agency, instrumentality or political subdivision thereof, or any other form of
entity.

     “Property” means any interest in any kind of property or asset, whether real, personal
or mixed, or tangible or intangible.

     “Prospectus” shall have the meaning specified in Section 3.03.

     “Purchase Price” means $100,000,020.00 which is the aggregate of each Purchaser’s
Allocated Purchase Price as set forth on Schedule A hereto.

     “Purchased Units” means with respect to each Purchaser, the number of Common Units as
set forth opposite such Purchaser’s name on Schedule A hereto.

     “Purchaser Lock-Up Period” shall have the meaning specified in Section 4.06.

     “Purchaser Related Parties” shall have the meaning specified in Section 5.01.

     “Purchasers” has the meaning set forth in the introductory paragraph of this
Agreement.

     “Registration Statement” shall have the meaning specified in Section 3.03.

     “Representatives” of any Person means the officers, directors, managers, employees,
agents, counsel, accountants, investment bankers and other representatives of such Person.

     “Rules and Regulations” shall have the meaning specified in Section 3.03.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and
the rules and regulations of the Commission promulgated thereunder.

     “Senior Subordinated Series D Units” means the senior subordinated Series D units
representing limited partner interests in Crosstex and any Common Units into which such Senior
Subordinated Series D Units convert.

     “Subsidiary” means, as to any Person, any corporation or other entity of which:
(i) such Person or a Subsidiary of such Person is a general partner or manager; (ii) at least a
majority of the outstanding equity interest having by the terms thereof ordinary voting power to
elect a majority of the board of directors or similar governing body of such corporation or other
entity (irrespective of whether or not at the time any equity interest of any other class or
classes of such corporation or other entity shall have or might have voting power by reason of the
happening of any contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more of its Subsidiaries; or (iii) any corporation or other entity as to which
such Person consolidates for accounting purposes.

     “Transfer” shall have the meaning specified in Section 4.06.

4

 

     Section 1.02 Accounting Procedures and Interpretation. Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all determinations with respect to
accounting matters hereunder shall be made, and all Crosstex Financial Statements and certificates
and reports as to financial matters required to be furnished to the Purchasers hereunder shall be
prepared, in accordance with GAAP applied on a consistent basis during the periods involved (except
as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by
Form 10-Q promulgated by the Commission) and in compliance as to form in all material respects with
applicable accounting requirements and with the published rules and regulations of the Commission
with respect thereto.

ARTICLE II

AGREEMENT TO SELL AND PURCHASE

     Section 2.01 Authorization of Sale of the Purchased Units. Crosstex has authorized the
issuance and sale to the Purchasers of the Purchased Units.

     Section 2.02 Sale and Purchase. Subject to the terms and conditions hereof, Crosstex
hereby agrees to issue and sell to each Purchaser, free and clear of any and all Liens, and each
Purchaser, severally and not jointly, hereby agrees to purchase from Crosstex, the number of
Purchased Units as set forth on Schedule A (such number of Purchased Units set forth
thereon with respect to each Purchaser), and each Purchaser agrees to pay Crosstex its Allocated
Purchase Price.

     Section 2.03 Closing. Subject to the terms and conditions hereof, the consummation of the
purchase and sale of the Purchased Units hereunder (the “Closing”) shall take place at
9:00 a.m., Central Daylight Time, on April 9, 2008 at the offices of Vinson & Elkins L.L.P., First
City Tower, 1001 Fannin Street, Houston, Texas 77002, or at such other time and date not later than
five (5) full Business Days thereafter as Crosstex and the Purchasers may agree (the “Closing
Date”). The parties agree that the Closing may occur via delivery of facsimiles of this
Agreement and cross-receipts; provided, that originals of such documents are sent via overnight
delivery to be received by the other party (or designee of such other party) on the first business
day immediately following the Closing Date.

     Section 2.04 Conditions to Closing.

     (a) Mutual Conditions. The respective obligations of each party to consummate the
purchase and issuance and sale of the Purchased Units shall be subject to the satisfaction on or
prior to the Closing Date of each of the following conditions (any or all of which may be waived by
a particular party on behalf of itself in writing, in whole or in part, to the extent permitted by
applicable Law):

          (i) no statute, rule, order, decree or regulation shall have been enacted or
promulgated, and no action shall have been taken, by any Governmental Authority which
temporarily, preliminarily or permanently restrains, precludes, enjoins or otherwise
prohibits the consummation of the transactions contemplated hereby or makes the transactions
contemplated hereby illegal; and

5

 

          (ii) there shall not be pending any suit, action or proceeding by any Governmental
Authority seeking to restrain, preclude, enjoin or prohibit the transactions contemplated by
this Agreement.

     (b) Purchasers’ Conditions. The respective obligation of each Purchaser to consummate
the purchase of the Purchased Units shall be subject to the satisfaction on or prior to the Closing
Date of each of the following conditions (any or all of which may be waived by such Purchaser in
writing, in whole or in part with respect to its Purchased Units, to the extent permitted by
applicable Law):

          (i) since the date of this Agreement, no Crosstex Material Adverse Effect shall have
occurred and be continuing;

          (ii) no notice of delisting shall have been received by Crosstex;

          (iii) the representations and warranties of Crosstex contained in this Agreement that
are qualified by materiality or Crosstex Material Adverse Effect shall be true and correct
as of the Closing Date as if made on and as of the Closing Date and all other
representations and warranties shall be true and correct in all material respects as of the
Closing Date as if made on and as of the Closing Date (except that representations made as
of a specific date shall be required to be true and correct as of such date only); and

          (iv) Crosstex shall have delivered, or caused to be delivered, to the Purchasers at the
Closing, Crosstex’s closing deliveries described in Section 2.05.

     (c) Crosstex’s Conditions. The obligation of Crosstex to consummate the sale of the
Purchased Units to each Purchaser shall be subject to the satisfaction on or prior to the Closing
Date of the following condition (which may be waived by Crosstex in writing, in whole or in part,
to the extent permitted by applicable Law): the representations and warranties of such Purchaser
contained in this Agreement shall be true and correct in all material respects at and as of the
Closing Date as if made on and as of the Closing Date (except that representations made as of a
specific date shall be required to be true and correct as of such date only).

     Section 2.05 Crosstex Deliveries. At the Closing, subject to the terms and conditions
hereof, Crosstex will deliver, or cause to be delivered, to the Purchasers:

     (a) The Purchased Units by electronic delivery to The Depository Trust Company on Purchasers’
behalf, registered in such name(s) as Purchasers have designated;

     (b) Copies of (i) the Certificate of Limited Partnership of Crosstex, (ii) the Certificate of
Limited Partnership of Crosstex Energy GP, L.P. and (iii) the Certificate of Formation of Crosstex
Energy GP, LLC, each certified by the Secretary of State of the jurisdiction of its formation as of
a recent date;

     (c) A certificate of the Secretary of State of the State of Delaware, dated a recent date,
that Crosstex is in good standing;

6

 

     (d) A cross-receipt executed by Crosstex and delivered to each Purchaser certifying that it
has received the Allocated Purchase Price with respect to such Purchaser as of the Closing Date;

     (e) An opinion addressed to the Purchasers from legal counsel to Crosstex, dated as of the
Closing Date, in the form and substance attached hereto as Exhibit A;

     (f) A copy of the final prospectus supplement relating to the Purchased Units and the offering
thereof, including the accompanying base prospectus, substantially in the form that will be filed
with the Commission pursuant to Rule 424(b) of the Rules and Regulations after the date and time
this Agreement is executed;

     (g) A certificate of the Secretary or Assistant Secretary of Crosstex Energy GP, LLC, on
behalf of Crosstex, certifying as to and attaching (1) the Partnership Agreement, (2) board
resolutions authorizing the execution and delivery of the Basic Documents and the consummation of
the transactions contemplated thereby, including the issuance of the Purchased Units and (3) its
incumbent officers authorized to execute the Basic Documents, setting forth the name and title and
bearing the signatures of such officers; and

     (h) A certificate, dated the Closing Date and signed by (x) the Chief Executive Officer and
(y) the Chief Financial Officer of Crosstex Energy GP, LLC, in their capacities as such, stating
that:

          (i) Crosstex has performed and complied with the covenants and agreements contained in
this Agreement that are required to be performed and complied with by Crosstex on or prior
to the Closing Date;

          (ii) The representations and warranties of Crosstex contained in this Agreement that
are qualified by materiality or Crosstex Material Adverse Effect were true and correct when
made and as of the Closing Date and all other representations and warranties were true and
correct in all material respects when made and are true and correct in all material respects
as of the Closing Date, in each case as though made at and as of the Closing Date (except
that representations made as of a specific date shall be required to be true and correct as
of such date only).

     Section 2.06 Purchasers’ Deliveries. At the Closing, subject to the terms and conditions
hereof, each Purchaser will deliver, or cause to be delivered, to Crosstex:

     (a) Payment to Crosstex of each Purchaser’s Allocated Purchase Price by wire transfer of
immediately available funds to an account designated by Crosstex in writing at least two Business
Days prior to the Closing Date; and

     (b) A cross-receipt executed by each Purchaser and delivered to Crosstex certifying that it
has received its respective Purchased Units as of the Closing Date.

     Section 2.07 Independent Nature of Purchasers’ Obligations and Rights. The obligations of
each Purchaser under any Basic Document are several and not joint with the obligations of any other
Purchaser, and no Purchaser shall be responsible in any way for the

7

 

performance of the obligations
of any other Purchaser under any Basic Document. The failure or waiver of performance under any
Basic Document by any Purchaser does not excuse performance by any other Purchaser. Nothing
contained herein or in any other Basic Document, and no action taken by any Purchaser pursuant
thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Purchasers are in any way
acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Basic Documents. Each Purchaser shall be entitled to independently protect and enforce its
rights, including without limitation, the rights arising out of this Agreement or out of the other
Basic Documents, and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.

ARTICLE III

REPRESENTATIONS AND WARRANTIES AND COVENANTS

RELATED TO CROSSTEX

     Crosstex represents and warrants to and covenants with each Purchaser as follows:

     Section 3.01 Partnership Existence. Crosstex (a) is a limited partnership duly formed,
validly existing and in good standing under the laws of the State of Delaware; and (b) has all
requisite power and authority, and has all governmental licenses, authorizations, consents and
approvals necessary, to own, lease, use and operate its Properties and carry on its business as its
business is now being conducted, except where the failure to obtain such licenses, authorizations,
consents and approvals would not be reasonably likely to have a Crosstex Material Adverse Effect.
Each of Crosstex’s Subsidiaries has been duly incorporated or formed, as the case may be, and is
validly existing and in good standing under the laws of the State or other jurisdiction of its
incorporation or organization, as the case may be, and has all requisite power and authority, and
has all governmental licenses, authorizations, consents and approvals necessary, to own, lease, use
or operate its respective Properties and carry on its business as now being conducted, except where
the failure to obtain such licenses, authorizations, consents and approvals would not be reasonably
likely to have a Crosstex Material Adverse Effect. None of Crosstex nor any of its Subsidiaries
are in default in the performance, observance or fulfillment of any provision of, in the case of
Crosstex, the Partnership Agreement or its Certificate of Limited Partnership or, in the case of
any Subsidiary of Crosstex, its respective certificate of incorporation, certification of
formation, bylaws, limited liability company agreement or other similar organizational documents.
Each of Crosstex and its
Subsidiaries is duly qualified or licensed and in good standing as a foreign limited partnership,
limited liability company or corporation, as applicable, and is authorized to do business in each
jurisdiction in which the ownership or leasing of its respective Properties or the character of its
respective operations makes such qualification necessary, except where the failure to obtain such
qualification, license, authorization or good standing would not be reasonably likely to have a
Crosstex Material Adverse Effect.

     Section 3.02
Capitalization and Valid Issuance of Purchased Units.

     

(a) As of the date of
this Agreement, prior to the issuance and sale of the Purchased Units, as contemplated hereby, the
issued and outstanding limited partner interests of Crosstex consist of 41,472,820 Common Units,
3,875,340 Senior Subordinated Series D Units and the Incentive Distribution Rights (as defined in
the Partnership Agreement). The only issued and outstanding general partner interests of Crosstex
are the interests of the General Partner described in the Partnership Agreement. All

8

 

outstanding
Common Units, Senior Subordinated Series D Units and Incentive Distribution Rights and the limited
partner interests represented thereby have been duly authorized and validly issued in accordance
with the Partnership Agreement and are fully paid (to the extent required under the Partnership
Agreement) and nonassessable (except as such nonassessability may be affected by matters described
in Section 17-607 of the Delaware Revised Uniform Limited Partnership Act (the “Delaware LP
Act”)).

     (b) Other than the Crosstex Energy GP, LLC Long-Term Incentive Plan, Crosstex has no equity
compensation plans that contemplate the issuance of partnership interests of Crosstex (or
securities convertible into or exchangeable for partnership interests of Crosstex). No
indebtedness having the right to vote (or convertible into or exchangeable for securities having
the right to vote) on any matters on which Crosstex unitholders may vote are issued or outstanding.
Except as set forth in the first sentence of this Section 3.02(b) or as are contained in
the Partnership Agreement, there are no outstanding or authorized (i) options, warrants, preemptive
rights, subscriptions, calls, or other rights, convertible or exchangeable securities, agreements,
claims or commitments of any character obligating Crosstex or any of its Subsidiaries to issue,
transfer or sell any partnership interests or other equity interest in, Crosstex or any of its
Subsidiaries or securities convertible into or exchangeable for such partnership interests,
(ii) obligations of Crosstex or any of its Subsidiaries to repurchase, redeem or otherwise acquire
any partnership interests or equity interests of Crosstex or any of its Subsidiaries or any such
securities or agreements listed in clause (i) of this sentence or (iii) voting trusts or similar
agreements to which Crosstex or any of its Subsidiaries is a party with respect to the voting of
the equity interests of Crosstex or any of its Subsidiaries.

     (c) (i) All of the issued and outstanding equity interests of each of Crosstex’s Subsidiaries
(except Crosstex DC Gathering Company, J.V.) are owned, directly or indirectly, by Crosstex free
and clear of any Liens (except for such restrictions as may exist under applicable Law and except
for such Liens as may be imposed under the Crosstex Credit Facility or the Crosstex Master Shelf
Agreement), and all such ownership interests have been duly authorized, validly issued and are
fully paid (to the extent required in the organizational documents of Crosstex’s Subsidiaries, as
applicable) and non-assessable (except as such nonassessability may be affected by matters
described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act,
Sections 18-607 and 18-804 of the Delaware Limited Liability Company Act (the “Delaware
LLC Act”), Article 5.09 of the Texas Limited Liability Company Act, Sections 3.03, 5.02 and
6.07 of the Texas Revised Limited Partnership Act and Sections 12:1327 and 12:1328 of the Louisiana
Limited Liability Company Act) and free of preemptive rights and (ii) except as disclosed in the
Crosstex SEC Documents, neither Crosstex nor any of its Subsidiaries owns any shares of capital
stock or other securities of, or interest in, any other Person, or is obligated to make any capital
contribution to or other investment in any other Person.

     (d) The Purchased Units being purchased by each of the Purchasers hereunder and the limited
partner interests represented thereby will be duly authorized by Crosstex pursuant to the
Partnership Agreement prior to the Closing and, when issued and delivered to such Purchaser against
payment therefor in accordance with the terms of this Agreement, will be validly issued, fully paid
(to the extent required by the Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by matters described in Section 17-607 of the Delaware LP Act) and
will be free of any and all Liens and restrictions on transfer, other than restrictions

9

 

on transfer
under the Partnership Agreement or this Agreement and under applicable state and federal securities
laws.

     (e) The Common Units are listed on the NASDAQ, and Crosstex has not received any notice of
delisting. As of the date hereof, a “Notification Form: Listing of Additional Shares” and
supporting documentation, if required, related to the Purchased Units has been filed with the
NASDAQ.

     Section 3.03 Registration Statement and Prospectus. A registration statement on Form
S-3 (File No. 333-134712) pursuant to which to the Purchased Units will be offered has (i) been
prepared by Crosstex in conformity with the requirements of the Securities Act, and the rules and
regulations (the “Rules and Regulations”) of the Commission thereunder, (ii) been filed
with the Commission under the Securities Act, and (iii) become effective under the Securities Act.
Copies of such registration statement and each of the amendments thereto, if any, have been
delivered by Crosstex to the Purchasers. As used in this Agreement, “Effective Time” means
the date and the time as of which such registration statement, or the most recent post-effective
amendment thereto, if any, was declared effective by the Commission; “Effective Date” means
the date of the Effective Time; “Registration Statement” means the registration statement
referred to above, as amended at the Effective Time; and “Prospectus” means the final
prospectus supplement relating to the Purchased Units and the offering thereof, including the
accompanying base prospectus, as first filed with the Commission pursuant to Rule 424(b) of the
Rules and Regulations after the date and time this Agreement is executed. Reference made herein to
the Prospectus shall be deemed to refer to and include any information incorporated by reference
therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the date of such
Prospectus, and any reference to any amendment or supplement to the Prospectus shall be deemed to
refer to and include any document filed under the Exchange Act after the date of such Prospectus,
and incorporated by reference in the Prospectus; and any reference to any amendment to the
Registration Statement shall be deemed to include any periodic report of Crosstex filed with the
Commission pursuant to Section 13(a) or 15(d) of the Exchange Act after the Effective Time that is
incorporated by reference in the Registration Statement. The Commission has not issued any order
preventing or suspending the use of any Prospectus.  

     Section 3.04 Crosstex SEC Documents. Crosstex has timely filed with the Commission all
forms, registration statements, reports, schedules and statements required to be filed by it under
the Exchange Act or the Securities Act (all such documents together with the Registration
Statement, collectively the “Crosstex SEC Documents”). The Crosstex SEC Documents,
including, without limitation, any audited or unaudited financial statements and any notes thereto
or schedules included therein (the “Crosstex Financial Statements”), at the time filed (in
the case of registration statements, solely on the dates of effectiveness) (except to the extent
corrected by a subsequently filed Crosstex SEC Document filed prior to the date hereof) (a) did not
contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein (in light of the circumstances
under which they were made in the case of any prospectus) not misleading, (b) complied in all
material respects with the applicable requirements of the Exchange Act and the Securities Act, as
applicable, (c) complied as to form in all material respects with applicable accounting
requirements and with the published rules and regulations of the Commission with respect thereto,
(d) in the case of the Crosstex Financial Statements, were prepared in accordance with

10

 

GAAP applied
on a consistent basis during the periods involved (except as may be indicated in the notes thereto
or, in the case of unaudited statements, as permitted by Form 10-Q of the Commission), and (e) in
the case of the Crosstex Financial Statements, fairly present (subject in the case of unaudited
statements to normal, recurring and year-end audit adjustments) in all material respects the
consolidated financial position of Crosstex and its Subsidiaries as of the dates thereof and the
consolidated results of its operations and cash flows for the periods then ended. KPMG LLP is an
independent, registered
public accounting firm with respect to Crosstex and the General Partner and has not resigned or
been dismissed as independent public accountants of Crosstex or the General Partner as a result of
or in connection with any disagreement with Crosstex on a matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure.

     Section 3.05 No Material Adverse Change. Except as set forth in or contemplated by the
Crosstex SEC Documents filed with the Commission on or prior to the date hereof, since the date of
Crosstex’s most recent Form 10-K filing with the Commission, Crosstex and its Subsidiaries have
conducted their respective businesses in the ordinary course, consistent with past practice, and
there has been no (a) change, event, occurrence, effect, fact, circumstance or condition that has
had or would be reasonably likely to have a Crosstex Material Adverse Effect, (b) acquisition or
disposition of any material asset by Crosstex or any of its Subsidiaries or any contract or
arrangement therefor, otherwise than for fair value in the ordinary course of business or as
disclosed in the Crosstex SEC Documents, or (c) material change in Crosstex’s accounting
principles, practices or methods.

     Section 3.06 Litigation. Except as set forth in the Crosstex SEC Documents, there is no
action, suit, or proceeding pending (including any investigation, litigation or inquiry) or, to
Crosstex’s knowledge, contemplated or threatened against or affecting any of the Crosstex Parties
or any of their respective officers, directors, properties or assets, which (a) questions the
validity of this Agreement or the right of Crosstex to enter into this Agreement or to consummate
the transactions contemplated hereby or (b) (individually or in the aggregate) would be reasonably
likely to result in a Crosstex Material Adverse Effect.

     Section 3.07 No Conflicts; Compliance with Laws. The execution, delivery and performance
by Crosstex of the Basic Documents and compliance by Crosstex with the terms and provisions hereof
and thereof, and the issuance and sale by Crosstex of the Purchased Units, do not and will not
(a) assuming the accuracy of the representations and warranties of the Purchasers contained herein
and their compliance with the covenants contained herein, violate any provision of any Law or
Permit having applicability to Crosstex or any of its Subsidiaries or any of their respective
Properties, (b) conflict with or result in a violation or breach of any provision of the
certificate of limited partnership or other organizational documents of Crosstex, or the
Partnership Agreement, or any organizational documents of any of Crosstex’s Subsidiaries,
(c) require any consent, approval or notice under or result in a violation or breach of or
constitute (with or without due notice or lapse of time or both) a default (or give rise to any
right of termination, cancellation or acceleration) under any contract, agreement, instrument,
obligation, note, bond, mortgage, license, loan or credit agreement to which Crosstex or any of its
Subsidiaries is a party or by which Crosstex or any of its Subsidiaries or any of their respective
Properties may be bound, or (d) result in or require the creation or imposition of any Lien upon or
with respect to any of the Properties now owned or hereafter acquired by Crosstex

11

 

or any of its
Subsidiaries, except where any such conflict, violation, default, breach, termination,
cancellation, failure to receive consent, approval or notice, or acceleration with respect to the
foregoing provisions of this Section 3.07 would not be,
individually or in the aggregate, reasonably likely to result in a Crosstex Material Adverse
Effect.

     Section 3.08 Authority, Enforceability. Crosstex has all necessary partnership power and
authority to execute, deliver and perform its obligations under the Basic Documents, and the
execution, delivery and performance by Crosstex of the Basic Documents has been duly authorized by
all necessary action on the part of the General Partner; and the Basic Documents constitute the
legal, valid and binding obligations of Crosstex, enforceable in accordance with their terms,
except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and
similar laws affecting creditors’ rights generally or by general principles of equity and except as
the rights to indemnification may be limited by applicable law. No approval from the holders of
the Common Units and/or Senior Subordinated Series D Units is required in connection with
Crosstex’s issuance and sale of the Purchased Units to the Purchasers.

     Section 3.09 Approvals. Except for the approvals that have already been obtained, no
authorization, consent, approval, waiver, license, qualification or written exemption from, nor any
filing, declaration, qualification or registration with, any Governmental Authority or any other
Person is required in connection with the execution, delivery or performance by Crosstex of any of
the Basic Documents, except where the failure to receive such authorization, consent, approval,
waiver, license, qualification or written exemption from, or to make such filing, declaration,
qualification or registration would not, individually or in the aggregate, be reasonably likely to
have a Crosstex Material Adverse Effect.

     Section 3.10 MLP Status. Crosstex has, for each taxable year beginning after December 31,
2001, during which Crosstex was in existence, met the gross income requirements of
Section 7704(c)(2) of the Internal Revenue Code of 1986, as amended.

     Section 3.11 Investment Company Status. Crosstex is not an “investment company” or a
company controlled by an “investment company” within the meaning of the Investment Company Act of
1940, as amended.

     Section 3.12 Certain Fees. No fees or commissions are or will be payable by Crosstex to
brokers, finders, or investment bankers with respect to the sale of any of the Purchased Units or
the consummation of the transactions contemplated by this Agreement. Crosstex agrees that it will
indemnify and hold harmless each Purchaser from and against any and all claims, demands, or
liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by
Crosstex or alleged to have been incurred by Crosstex in connection with the sale of the Purchased
Units or the consummation of the transactions contemplated by this Agreement.

     Section 3.13 No Side Agreements. There are no agreements by, among or between Crosstex or
any of its Affiliates, on the one hand, and any Purchaser or any of its Affiliates, on the other
hand, with respect to the transactions contemplated hereby other than the Basic Documents nor
promises or inducements for future transactions between or among any of such parties.

12

 

     Section 3.14 Insurance. Crosstex and its Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as are
prudent and customary in the businesses in which they are engaged. Crosstex does not have any
reason to believe that it or any Subsidiary will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as
may be necessary to continue its business.

     Section 3.15 Internal Accounting Controls. Crosstex and its Subsidiaries maintain a system
of internal accounting controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and
to maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences. Crosstex is not aware of any failures of such internal accounting
controls.

     Section 3.16 Form S-3 Eligibility. Crosstex satisfies the requirements for use of Form S-3
under the Securities Act.

     Section 3.17 Listing and Maintenance Requirements. The issuance and sale of the Purchased
Units does not contravene NASDAQ rules and regulations.

     Section 3.18 Material Agreements. Crosstex has provided the Purchasers with, or made
available to the Purchasers through the Crosstex SEC Documents, correct and complete copies of all
material agreements (as defined in Section 601(b)(10) of Regulation S-K promulgated by the
Commission) and of all exhibits to the Crosstex SEC Documents, including amendments to or other
modifications of pre-existing material agreements, entered into by Crosstex.

     Section 3.19 Subsequent Offerings. Until the Company Lock-Up Date, Crosstex will not grant, issue or sell any Partnership
Securities, any securities convertible into or exchangeable therefor or take any other action that
may result in the issuance of any of the foregoing.

     Section 3.20 Confidential Information. To the knowledge of Crosstex, none of its employees
or executive officers has disclosed material non-public information (other than the fact that
Crosstex was contemplating a private financing) to any prospective investor who has not entered
into a confidentiality or non-disclosure agreement between such prospective investor and Crosstex
relating to such information.

     Section 3.21 Further Agreements of Crosstex. Crosstex shall prepare the final prospectus
supplement relating to the Purchased Units and the offering thereof in a form approved by the
Purchasers and file such final prospectus supplement and the accompanying base prospectus, which
together constitute the Prospectus, pursuant to Rule 424(b) under the Securities Act not later than
the Commission’s close of business on the second business day following the execution and delivery
of this Agreement.

13

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES AND COVENANTS

OF THE PURCHASERS

     Each Purchaser, severally and not jointly, hereby represents and warrants and covenants to
Crosstex that:

     Section 4.01 Existence. Such Purchaser is duly organized and validly existing and in good
standing under the laws of its state of formation, with all necessary power and authority to own
properties and to conduct its business as currently conducted.

     Section 4.02 Authorization, Enforceability. Such Purchaser has all necessary legal power
and authority to enter into, deliver and perform its obligations under this Agreement. The
execution, delivery and performance of this Agreement by such Purchaser and the consummation by it
of the transactions contemplated hereby have been duly and validly authorized by all necessary
legal action, and no further consent or authorization of such Purchaser is required. This Agreement
has been duly executed and delivered by such Purchaser and constitutes legal, valid and binding
obligations of such Purchaser; provided that, the enforceability thereof may be limited by
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating
to or affecting creditors’ rights generally and by general principles of equity and except as the
rights to indemnification may be limited by applicable law (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     Section 4.03 No Breach. The execution, delivery and performance of this Agreement by such Purchaser and the consummation
by such Purchaser of the transactions contemplated hereby will not (a) conflict with or result in a
breach or violation of any of the terms or provisions of, or constitute a default under, any
material agreement to which such Purchaser is a party or by which the Purchaser is bound or to
which any of the property or assets of such Purchaser is subject, (b) conflict with or result in
any violation of the provisions of the organizational documents of such Purchaser, or (c) violate
any statute, order, rule or regulation of any court or governmental agency or body having
jurisdiction over such Purchaser or the property or assets of such Purchaser, except in the case of
clauses (a) and (c), for such conflicts, breaches, violations or defaults as would not prevent the
consummation of the transactions contemplated by this Agreement.

     Section 4.04 Certain Fees. No fees or commissions are or will be payable by such Purchaser
to brokers, finders, or investment bankers with respect to the purchase of any of the Purchased
Units or the consummation of the transactions contemplated by this Agreement. Such Purchaser
agrees, severally and not jointly with any other Purchaser, that it will indemnify and hold
harmless Crosstex from and against any and all claims, demands or liabilities for broker’s,
finder’s, placement, or other similar fees or commissions incurred by such Purchaser or alleged to
have been incurred by such Purchaser in connection with the purchase of the Purchased Units or the
consummation of the transactions contemplated by this Agreement.

     Section 4.05 No Side Agreements. There are no other agreements by, among or between such
Purchaser and any of its Affiliates, on the one hand, and Crosstex or any of its Affiliates, on the
other hand, with respect to the transactions contemplated hereby other than the

14

 

Basic Documents,
and there are no promises or inducements for future transactions between or among any of such
parties.

     Section 4.06 Lock-Up Agreement.

     (a) Restriction on Transfers. Without the prior written consent of Crosstex, except
as specifically provided in this Agreement, each Purchaser will not, during the period commencing
on the date hereof and ending one hundred fifty (150) days after the Closing Date (such period, the
“Purchaser Lock-Up Period”) (1) offer, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
lend, or otherwise transfer or dispose of, directly or indirectly, any of its Purchased Units or
(2) enter into any swap or other transaction or arrangement that transfers or that is designed to,
or that might reasonably be expected to, result in the transfer to another, in whole or in part,
any of the economic consequences of ownership of its Purchased Units, whether any such transaction
described in clause (1) or (2) above (any such transaction described in clauses (1) and (2), a
“Transfer”) is to be settled by delivery of Common Units or such other securities, in cash or
otherwise; provided, however, that any Purchaser may transfer its Purchased Units to an Affiliate
of such Purchaser or to any other Purchaser or an Affiliate of such other Purchaser, provided that
any such Affiliate transferee agrees to the restrictions set forth in this Section 4.06.

     (b) Partial Termination of Transfer Restriction. Notwithstanding the provisions of
Section 4.06(a), each Purchaser may effect the following Transfers during the Purchaser
Lock-Up Period:

          (i) Beginning on the ninetieth (90th) day after the Closing Date, each Purchaser may Transfer
Purchased Units in an aggregate amount of up to one-third (1/3) of the number of Purchased Units
set forth on Schedule A with respect to such Purchaser.

          (ii) Beginning on the one hundred twentieth (120th) day after the Closing Date, each Purchaser
may Transfer Purchased Units in an aggregate amount (including the amount referenced in Section
4.06(b)(i)) of up to two-thirds (2/3) of the number of Purchased Units set forth on
Schedule A with respect to such Purchaser.

     Section 4.07 Short Selling. Such Purchaser has not entered into any short sales of
the Common Units owned by it between the time it first began discussion with Crosstex about the
transactions contemplated by this Agreement and the date hereof (it being understood that the
entering into of a total return swap shall not be considered a short sale of Common Units).

     Section 4.08 Crosstex Information. Such Purchaser acknowledges and agrees that
Crosstex has provided or made available to such Purchaser (through EDGAR, Crosstex’s web site or
otherwise) the Registration Statement and all other Crosstex SEC Documents, as well as all press
releases issued by Crosstex through the date of this Agreement.

15

 

ARTICLE V

INDEMNIFICATION, COSTS AND EXPENSES

     Section 5.01 Indemnification by Crosstex. Crosstex agrees to indemnify each Purchaser and
its Representatives (collectively, “Purchaser Related Parties”) from, and hold each of them
harmless against, any and all losses, actions, suits, proceedings (including any investigations,
litigation or inquiries), demands, and causes of action, and, in connection therewith, and promptly
upon demand, pay or reimburse each of them for all reasonable costs, losses, liabilities, damages,
or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees
and disbursements of counsel and all other reasonable expenses incurred in connection with
investigating, defending or preparing to defend any such matter that may be incurred by them or
asserted against or involve any of them as a result of, arising out of, or in any way related to
the breach of any of the representations, warranties or covenants of Crosstex contained herein,
provided such claim for indemnification relating to a breach of any representation or warranty is
made prior to the expiration of such representation or warranty.

     Section 5.02 Indemnification by the Purchasers.
Each Purchaser agrees, severally and not jointly, to indemnify Crosstex, the General Partners
and their respective Representatives (collectively, “Crosstex Related Parties”) from, and
hold each of them harmless against, any and all losses, actions, suits, proceedings (including any
investigations, litigation or inquiries), demands, and causes of action, and, in connection
therewith, and promptly upon demand, pay or reimburse each of them for all reasonable costs,
losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without
limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses
incurred in connection with investigating, defending or preparing to defend any such matter that
may be incurred by them or asserted against or involve any of them as a result of, arising out of,
or in any way related to the breach of any of the representations, warranties or covenants of such
Purchaser contained herein, provided such claim for indemnification relating to a breach of any
representation or warranty is made prior to the expiration of such representation or warranty,
provided, however, that the liability of each Purchaser shall not be greater in amount than such
Purchaser’s Allocated Purchase Price.

     Section 5.03 Indemnification Procedure. Promptly after any Crosstex Related Party or
Purchaser Related Party (hereinafter, the “Indemnified Party”) has received notice of any
indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third
person, which the Indemnified Party believes in good faith is an indemnifiable claim under this
Agreement, the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying
Party”) written notice of such claim or the commencement of such action, suit or proceeding,
but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any
liability it may have to such Indemnified Party hereunder except to the extent that the
Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and
the basis of such claim to the extent then known. The Indemnifying Party shall have the right to
defend and settle, at its own expense and by its own counsel, any such matter as long as the
Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party
undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to
do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all
commercially reasonable respects in the defense thereof and the settlement thereof. Such
cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any

16

 

books, records and other information reasonably requested by the Indemnifying Party and in the
Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at
the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified
Party of its intention to undertake to defend or settle any such asserted liability, and for so
long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be
liable for any additional legal expenses incurred by the Indemnified Party in connection with any
defense or settlement of such asserted liability; provided, however, that the
Indemnified Party shall be entitled (i) at its expense, to participate in the defense of such
asserted liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying
Party has failed to assume the defense and employ counsel or (B) if the defendants in any such
action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified
Party shall have concluded that there may be reasonable defenses available to the Indemnified Party
that are different from or in addition to those available to the Indemnifying Party or if the
interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the
Indemnifying Party, then the Indemnified Party shall have the
right to select a separate counsel and to assume such legal defense and otherwise to participate in
the defense of such action, with the expenses and fees of such separate counsel and other expenses
related to such participation to be reimbursed by the Indemnifying Party as incurred.
Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any
indemnified claim without the consent of the Indemnified Party, unless the settlement thereof
imposes no liability or obligation on, and includes a complete release from liability of, and does
not contain any admission of wrong doing by, the Indemnified Party.

ARTICLE VI

MISCELLANEOUS

     Section 6.01 Interpretation and Survival of Provisions. Article, Section, Schedule, and
Exhibit references are to this Agreement, unless otherwise specified. All references to
instruments, documents, contracts, and agreements are references to such instruments, documents,
contracts, and agreements as the same may be amended, supplemented, and otherwise modified from
time to time, unless otherwise specified. The word “including” shall mean “including but not
limited to.” Whenever Crosstex has an obligation under the Basic Documents, the expense of
complying with that obligation shall be an expense of Crosstex unless otherwise specified. Whenever
any determination, consent, or approval is to be made or given by the Purchasers, such action shall
be in such Purchaser’s sole discretion unless otherwise specified in this Agreement. If any
provision in the Basic Documents is held to be illegal, invalid, not binding, or unenforceable,
such provision shall be fully severable and the Basic Documents shall be construed and enforced as
if such illegal, invalid, not binding, or unenforceable provision had never comprised a part of the
Basic Documents, and the remaining provisions shall remain in full force and effect.

     Section 6.02 Survival of Provisions. The representations and warranties set forth in
Sections 3.02, 3.08, 3.09, 3.11, 3.12 and 4.04
hereunder shall survive the execution and delivery of this Agreement indefinitely, and the other
representations and warranties set forth herein shall survive for a period of twelve (12) months
following the Closing Date regardless of any investigation made by or on behalf of Crosstex or the
Purchasers. The covenants made in this Agreement or any other Basic Document shall survive the
Closing of the transactions described

17

 

herein and remain operative and in full force and effect
regardless of acceptance of any of the Purchased Units and payment therefor and repayment or
repurchase thereof. All indemnification obligations of Crosstex and the Purchasers and the
provisions of Article V shall remain operative and in full force and effect unless such
obligations are expressly terminated in a writing referencing that individual Section, regardless
of any purported general termination of this Agreement.

     Section 6.03 No Waiver; Modifications in Writing.

     (a) Delay. No failure or delay on the part of any party in exercising any right, power, or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right,
power, or remedy preclude any other or further exercise thereof or the exercise of any other right,
power, or remedy. The remedies provided for herein are cumulative and are not exclusive of any
remedies that may be available to a party at law or in equity or otherwise.

     (b) Specific Waiver. Except as otherwise provided herein, no amendment, waiver, consent,
modification, or termination of any provision of this Agreement or any other Basic Document (except
in the case of the Partnership Agreement for amendments adopted pursuant to Section 13.1 thereof)
shall be effective unless signed by each of the parties hereto or thereto affected by such
amendment, waiver, consent, modification, or termination. Any amendment, supplement or
modification of or to any provision of this Agreement or any other Basic Document, any waiver of
any provision of this Agreement or any other Basic Document, and any consent to any departure by
Crosstex from the terms of any provision of this Agreement or any other Basic Document shall be
effective only in the specific instance and for the specific purpose for which made or given.
Except where notice is specifically required by this Agreement, no notice to or demand on Crosstex
in any case shall entitle Crosstex to any other or further notice or demand in similar or other
circumstances.

     Section 6.04 Binding Effect; Assignment.

     (a) Binding Effect. This Agreement shall be binding upon Crosstex, each Purchaser, and
their respective successors and permitted assigns. Except as expressly provided in this Agreement,
this Agreement shall not be construed so as to confer any right or benefit upon any Person other
than the parties to this Agreement and their respective successors and permitted assigns.

     (b) Assignment of Rights. All or any portion of the rights and obligations of each
Purchaser under this Agreement may be transferred by such Purchaser to any Affiliate of such
Purchaser without the consent of Crosstex. No portion of the rights and obligations of each
Purchaser under this Agreement may be transferred by such Purchaser to a non-Affiliate without the
written consent of Crosstex.

     Section 6.05 Non-Disclosure. Notwithstanding anything herein to the contrary, the
Non-Disclosure Agreement shall remain in full force and effect regardless of any termination of
this Agreement. Other than the Form 8-Ks to be filed in connection with this Agreement, Crosstex,
the General Partner, their respective Subsidiaries and any of their respective Representatives
shall disclose the identity of, or any other information concerning, any Purchaser

18

 

or any of its
Affiliates only after providing such Purchaser a reasonable opportunity to review and comment on
such disclosure; provided, however, that nothing in this Section 6.05 shall
delay any required filing or other disclosure with
the Commission, NASDAQ or any Governmental Authority or otherwise hinder Crosstex, the General
Partner, their respective Subsidiaries or their Representatives’ ability to timely comply with all
laws or rules and regulations of the Commission, NASDAQ or other Governmental Authority.

     Section 6.06 Communications. All notices and demands provided for hereunder shall be in
writing and shall be given by registered or certified mail, return receipt requested, telecopy, air
courier guaranteeing overnight delivery or personal delivery to the following addresses:

     (a) If to KA First Reserve, LLC or Kayne Anderson Energy Development Company:

1800 Avenue of the Stars, 2nd Floor

Los Angeles, California 90067

Attention: David Shladovsky, Esq.

Facsimile: (310) 284-6490

Internet electronic mail: dshladovsky@kaynecapital.com

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Attention: James C. Baker

Facsimile: (713) 655-7359

Internet electronic mail: jbaker@kaynecapital.com

          If to Swank MLP Convergence Fund, LP, The Cushing MLP Opportunity Fund I, LP, Bel Air MLP
Energy Infrastructure Fund, LP or The Cushing MLP Total Return Fund:

Swank Capital, LLC

3300 Oak Lawn Avenue, Suite 650

Dallas, Texas 75219

Attention: Michael S. Minces, General Counsel,

Chief Compliance Officer

Facsimile: (214) 219-2353

Internet electronic mail: mminces@swankcapital.com

          with a copy to:

Vinson & Elkins L.L.P.

1001 Fannin, Suite 2500

Houston, Texas 77002

Attention: Sarah K. Morgan

Facsimile: (713) 615-5234

Internet electronic mail: smorgan@velaw.com

19

 

     (b) If to Crosstex:

Crosstex Energy, L.P.

2501 Cedar Springs

Dallas, Texas 75201

Attention: Barry E. Davis

Facsimile: (214) 953-9500

Internet electronic mail: barry.davis@crosstexenergy.com

          with a copy to:

Baker Botts L.L.P.

2001 Ross Avenue

Dallas, Texas 75201-2980

Attention: Doug Rayburn

Facsimile: (214) 661-4634

Internet electronic mail: doug.rayburn@bakerbotts.com

or to such other address as Crosstex or such Purchaser may designate in writing. All notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; upon actual receipt if sent by certified or registered mail, return receipt
requested, or regular mail, if mailed; upon actual receipt of the overnight courier copy, if sent
via facsimile; and upon actual receipt when delivered to an air courier guaranteeing overnight
delivery.

     Section 6.07 Entire Agreement. This Agreement, the other Basic Documents and the other
agreements and documents referred to herein are intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and therein.
There are no restrictions, promises, warranties or undertakings, other than those set forth or
referred to herein or the other Basic Documents with respect to the rights granted by Crosstex or
any of its Affiliates or the Purchasers or any of their Affiliates set forth herein or therein.
This Agreement, the other Basic Documents and the other agreements and documents referred to herein
or therein supersede all prior agreements and understandings between the parties with respect to
such subject matter.

     Section 6.08 Governing Law. This Agreement will be construed in accordance with and
governed by the laws of the State of Texas without regard to principles of conflicts of laws.

     Section 6.09 Waiver of Jury Trial. Each party to this Agreement irrevocably waives the
right to a trial by jury in connection with any matter arising out of this Agreement to the fullest
extent permitted by applicable law.

     Section 6.10 Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be
deemed to be an original and all of which counterparts, taken together, shall constitute but one
and the same Agreement.

20

 

     IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first
above written.

	 	 	 	 	 	 	 
	 	 	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,	 	 
	 

	 	 	 	Executive Vice President and Chief Financial Officer
	 	 

[Signature Page to Common Unit Purchase Agreement]

 

 

KA FIRST RESERVE, LLC

By:       KA Fund Advisors, LLC, as Manager

	 	 	 	 	 	 	 
	 

	 	By:
	 	Kayne Anderson Capital Advisors,
L.P., its Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Kayne Anderson Investment
Management, Inc., its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David Shladovsky	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	David Shladovsky	 	 
	 

	 	Title:
	 	Secretary and General Counsel
	 	 

	 	 	 	 	 	 	 
	 	 	KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James C. Baker	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James C. Baker	 	 
	 

	 	Title:
	 	Vice President
	 	 

[Signature Page to Common Unit Purchase Agreement]

 

 

SWANK MLP CONVERGENCE FUND, LP

By: Swank Energy Income Advisors, LP,

its General Partner

By: Swank Capital, LLC,

its General Partner

	 	 	 	 	 
	By:

	 	/s/ Jerry V. Swank	 	 
	 

	 	 	 	 
	 

	 	Jerry V. Swank, Managing Member
	 	 

THE CUSHING MLP OPPORTUNITY FUND I, LP

By: Swank Energy Income Advisors, LP,

its Investment Advisor

By: Swank Capital, LLC,

its General Partner

	 	 	 	 	 
	By:

	 	/s/ Jerry V. Swank	 	 
	 

	 	 	 	 
	 

	 	Jerry V. Swank, Managing Member
	 	 

BEL AIR MLP ENERGY INFRASTRUCTURE FUND, LP

By: Swank Energy Income Advisors, LP,

its Investment Advisor

By: Swank Capital, LLC,

its General Partner

	 	 	 	 	 
	By:

	 	/s/ Jerry V. Swank	 	 
	 

	 	 	 	 
	 

	 	Jerry V. Swank, Managing Member
	 	 

THE CUSHING MLP TOTAL RETURN FUND

By: Swank Energy Income Advisors, LP,

its Investment Advisor

By: Swank Capital, LLC,

its General Partner

	 	 	 	 	 
	By:

	 	/s/ Jerry V. Swank	 	 
	 

	 	 	 	 
	 

	 	Jerry V. Swank, Managing Member
	 	 

[Signature Page to Common Unit Purchase Agreement]

 

 

Schedule A

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Allocated	 
	Purchaser	 	Purchased Units	 	 	Purchase Price	 
	KA First Reserve, LLC
	 	 	1,250,000	 	 	$	37,500,000.00	 
	Kayne Anderson Energy Development Company
	 	 	83,334	 	 	$	2,500,020.00	 
	Swank MLP Convergence Fund, LP
	 	 	250,000	 	 	$	7,500,000.00	 
	The Cushing MLP Opportunity Fund I, LP
	 	 	1,430,000	 	 	$	42,900,000.00	 
	Bel Air MLP Energy Infrastructure Fund, LP
	 	 	70,000	 	 	$	2,100,000.00	 
	The Cushing MLP Total Return Fund
	 	 	250,000	 	 	$	7,500,000.00	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	 	3,333,334	 	 	$	100,000,020.00	 
	 
	 	 	 	 	 	 

Schedule A

 

 

Exhibit A — Form of Opinion of Crosstex Counsel

     Capitalized terms used but not defined herein have the meanings assigned to such terms in the
Common Unit Purchase Agreement, dated April 8, 2008 (the “Purchase Agreement”), by and
among Crosstex Energy, L.P. (“Crosstex”) and the purchasers named therein (the
“Purchasers”). Crosstex shall furnish to the Purchasers at the Closing an opinion of Baker
Botts L.L.P., counsel for Crosstex, addressed to the Purchasers and dated the Closing Date in form
satisfactory to Vinson & Elkins L.L.P., counsel for the Purchasers, and the Purchasers, stating
that:

          (i) The Purchase Agreement has been duly authorized, executed and delivered by the
Partnership.

          (ii) The Registration Statement has become effective under the Securities Act and, to such
counsel’s knowledge, no stop order suspending the effectiveness of the Registration Statement and
no proceedings for that purpose are pending or threatened under the Securities Act; and the Common
Units are registered under Section 12 of the Exchange Act.

          (iii) No permit, consent, approval, authorization, order, registration, filing or
qualification (“consent”) under the Delaware LP Act, the Delaware LLC Act, the federal law of the
United States of America or the laws of the State of Texas is required in connection with the
offering, issuance and sale by Crosstex of the Purchased Units, the execution, delivery and
performance of the Purchase Agreement by Crosstex or the consummation by Crosstex of the
transactions contemplated the Purchase Agreement, except for such consents (i) required under the
Securities Act, the Exchange Act and state securities or “Blue Sky” laws, as to which we do not
express any opinion, (ii) that have been obtained or made or (iii) that, if not obtained, would
not, individually or in the aggregate, have a Material Adverse Effect.

          (iv) The Registration Statement, at the Effective Time, and the Prospectus, as of its date,
were, on their face, appropriately responsive, in all material respects, to the requirements of the
Securities Act and the rules and regulations promulgated thereunder, except that in each case we
express no opinion with respect to the financial statements and the notes and schedules thereto,
and the financial and accounting data included or incorporated by reference in or omitted from the
Registration Statement or the Prospectus.

Exhibit A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]