Document:

exv10w13

EXHIBIT 10.13

ATMEL CORPORATION CHANGE OF CONTROL AND SEVERANCE PLAN

AND SUMMARY PLAN DESCRIPTION

     1. Introduction. The purpose of this Atmel Corporation Change of Control and Severance Plan
(the “Plan”) is to provide assurances of specified severance benefits to eligible employees of the
Company whose employment is subject to being involuntarily terminated due to death, Disability, or
other than for Cause or voluntarily terminated for Good Reason under the circumstances described in
the Plan, including but not limited to following a Change of Control of the Company. The Company
recognizes that the potential of a Change of Control can be a distraction to employees and can
cause such employees to consider alternative employment opportunities. The Plan is intended to (i)
assure that the Company will have continued dedication and objectivity of key employees,
notwithstanding the possibility, threat or occurrence of a Change of Control and (ii) provide such
employees with an incentive to continue their employment and to motivate them to maximize the value
of the Company prior to and following a Change of Control for the benefit of its stockholders.
This Plan is an “employee welfare benefit plan,” as defined in Section 3(1) of the Employee
Retirement Income Security Act of 1974, as amended. This document constitutes both the written
instrument under which the Plan is maintained and the required summary plan description for the
Plan.

     2. Important Terms. To help you understand how this Plan works, it is important to know the
following terms:

          2.1 “Administrator” means the Compensation Committee of the Board or another duly constituted
committee of members of the Board, or officers of the Company as delegated by the Board, or any
person to whom the Administrator has delegated any authority or responsibility pursuant to Section
12, but only to the extent of such delegation.

          2.2 “Base Pay” means a Covered Employee’s regular straight-time salary as in effect during the
last regularly scheduled payroll period immediately preceding the date on which an Involuntary
Termination occurs. Base Pay does not include payments for overtime, shift premium, incentive
compensation, incentive payments, bonuses, commissions or other compensation.

          2.3 “Board” means the Board of Directors of the Company.

          2.4 “Cause” means (i) the Covered Employee’s willful and continued failure to perform the
duties and responsibilities of his or her position after there has been delivered to the Covered
Employee a written demand for performance from the Company’s Chief Executive Officer which
describes the basis for the Chief Executive Officer’s belief that the Covered Employee has not
substantially performed his or her duties and the Covered Employee has not corrected such failure
within thirty (30) days of such written demand; (ii) any act of personal dishonesty taken by the
Covered Employee in connection with his or her responsibilities as an employee of the Company with
the intention or reasonable expectation that such action may result in the substantial personal
enrichment of the Covered Employee; (iii) the Covered Employee’s conviction of, or plea of nolo
contendere to, a felony that the Board reasonably believes has had or will have a material
detrimental effect on the Company’s reputation or business; (iv) a breach of any fiduciary duty
owed to the Company by the Covered Employee that has a material detrimental effect on the Company’s
reputation or business; (v) the Covered Employee being found liable in any Securities and Exchange
Commission or other civil or criminal securities law action or entering any cease and desist order
with respect to such action (regardless of whether or not the Covered Employee admits or denies
liability); (vi) the Covered Employee (A) obstructing or impeding;

1

 

(B) endeavoring to obstruct, impede or improperly influence, or (C) failing to materially cooperate
with, any investigation authorized by the Board or any governmental or self-regulatory entity (an
“Investigation”); however, the Covered Employee’s failure to waive attorney-client privilege
relating to communications with the Covered Employee’s own attorney in connection with an
Investigation will not constitute “Cause”; or (vii) the Covered Employee’s disqualification or bar
by any governmental or self-regulatory authority from serving in the capacity contemplated by his
or her position or the Covered Employee’s loss of any governmental or self-regulatory license that
is reasonably necessary for the Covered Employee to perform his or her responsibilities to the
Company, if (A) the disqualification, bar or loss continues for more than thirty (30) days, and (B)
during that period the Company uses its good faith efforts to cause the disqualification or bar to
be lifted or the license replaced, it being understood that while any disqualification, bar or loss
continues during the Covered Employee’s employment, the Covered Employee will serve in the capacity
contemplated by his or her position to whatever extent legally permissible and, if the Covered
Employee’s service in the capacity contemplated by his or her position is not permissible, the
Covered Employee will be placed on leave (which will be paid to the extent legally permissible).

          2.5 “Change of Control” means the occurrence of any of the following events: (i) the
consummation by the Company of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity) more than fifty percent (50%) of
the total voting power represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; (ii) the consummation of the sale or
disposition by the Company of all or substantially all of the Company’s assets; (iii) any “person”
(as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing more than fifty percent (50%) of the total
voting power represented by the Company’s then outstanding voting securities; or (iv) a change in
the composition of the Board occurring within a one-year period, as a result of which fewer than a
majority of the directors are Incumbent Directors. “Incumbent Directors” will mean directors who
either (A) are directors of the Company as of the date hereof, or (B) are either (x) elected by the
Board pursuant to Section 3.4 of the Bylaws of the Company, or (y) nominated by the Board for
election by the stockholders pursuant to Section 3.3 of the Bylaws of the Company, in either case
(x) or (y), with the affirmative votes of at least a majority of those directors whose election or
nomination was not in connection with any transactions described in subsections (i), (ii), or (iii)
or in connection with an actual or threatened proxy contest relating to the election of directors
of the Company.

          2.6 “Change of Control Determination Period” means the time period beginning three (3) months
before the Change of Control and ending twelve (12) months following the Change of Control.
Notwithstanding the foregoing, if a Change of Control event described in Section 2.5(iv) occurs
and, within twelve (12) months following such Change of Control, a Change of Control event
described in Section 2.5(i) through Section 2.5(iii) occurs (the “Subsequent Change of Control”),
the “Change of Control Determination Period” will also include the time period beginning on the
date of the Subsequent Change of Control and ending on the date that is twelve (12) months
following such Subsequent Change of Control.

          2.7 “Change of Control Severance Benefits” means the compensation and other benefits the
Covered Employee will be provided pursuant to Section 4.

          2.8 “Company” means Atmel Corporation, a Delaware corporation.

          2.9 “Covered Employee” means an employee of the Company or any parent or subsidiary of the
Company who has been designated by the Administrator to participate in the Plan as shown on

2

 

Appendix A and/or Appendix B, attached hereto, and has executed and delivered a Participation Agreement to
the Company. For this purpose, each U.S. employee of the Company who becomes a Section 16 Officer
on or after the Effective Date shall be deemed to have been designated by the Administrator to
participate in the Plan under Tier 1 of Appendix A and Appendix B as of the date he or she becomes
a Section 16 Officer and shall be a Covered Employee upon executing and delivering a Participation
Agreement to the Company.

          2.10 “Disability” means total and permanent disability as defined in Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended (the “Code”).

          2.10 “Effective Date” means August 5, 2008.

          2.11 “Equity Compensation Awards” means, with respect to a Covered Employee, the Covered
Employee’s unvested equity compensation awards outstanding on the later of the date of his or her
Involuntary Termination or the Change of Control, other than performance-based restricted stock
unit awards or other equity compensation awards that vest based on achievement of performance
goals. For the sake of clarity, nothing herein will be deemed to extend the maximum term of a
Covered Employee’s stock options as set forth in the applicable stock option agreements by and
between the Covered Employee and the Company.

          2.12 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

          2.13 “Good Reason” means the Covered Employee’s termination of employment within ninety (90)
days following the end of the Cure Period (as defined below) as a result of the occurrence of any
of the following without his or her written consent: (i) a material diminution of the Covered
Employee’s authority, duties, or responsibilities, relative to the Covered Employee’s authority,
duties, or responsibilities in effect immediately prior to such reduction; provided, however, that
solely with respect to the Tier 2 Covered Employees whose names are indicated with an asterisk
(“*”) on Appendix A attached hereto, a reduction of authority, duties, or responsibilities that
occurs solely as a necessary and direct consequence of the Company undergoing a Change of Control
and being made part of a larger entity will not be considered material, (ii) a material diminution
by the Company in the Base Pay of the Covered Employee as in effect immediately prior to such
reduction; provided, however, that following a Change of Control, a comparable reduction of the
Base Pay of substantially all other executives of the consolidated entity that includes the Company
will not constitute “Good Reason”, (iii) the relocation of the Covered Employee to a facility or a
location more than fifty (50) miles from his or her then present location, or (iv) the failure of
the Company to obtain the assumption of the Plan by any successor in accordance with Section 21
below; provided, however, that the Covered Employee must provide written notice to the Board of the
condition that could constitute a “Good Reason” event within ninety (90) days of the initial
existence of such condition and such condition must not have been remedied by the Company within
thirty (30) days (the “Cure Period”) of such written notice.

          2.14 “Involuntary Termination” means a termination of employment of a Covered Employee under
the circumstances described in Sections 4.1 and 5.1.

          2.15 “Participation Agreement” means the individual agreement (a form of which is shown in
Appendix C) provided by the Administrator to an employee of the Company designating such employee
as a Covered Employee under the Plan, which has been signed and accepted by the employee.

          2.16 “Plan” means the Atmel Corporation Change of Control Severance and Plan, as set forth in
this document, and as hereafter amended from time to time.

          2.17 “Section 16 Officer” means a U.S. employee of the Company who has been designated by the
Board, at its discretion and consistent with applicable law, as being subject to the reporting
requirements

3

 

of Section 16 of the Securities Exchange Act of 1934, as amended.

          2.18 “Section 409A Limit” means the lesser of two (2) times: (i) the Covered Employee’s
annualized compensation based upon the annual rate of pay paid to the Covered Employee during his
or her taxable year preceding the Covered Employee’s taxable year in which the Covered Employee’s
separation from service occurs as determined under Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or
(ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section
401(a)(17) of the Code for the year in which the Covered Employee’s employment is terminated.

          2.19 “Severance Benefits” means the compensation and other benefits the Covered Employee will
be provided pursuant to Section 5.

          2.20 “Target Bonus” means, with respect to a Covered Employee, the Covered Employee’s target
bonus pursuant to the Company’s applicable corporate bonus plan (i) at the rate in effect for the
fiscal year in which the Covered Employee’s Involuntary Termination occurs and (ii) assuming one
hundred percent (100%) achievement of the Covered Employee’s and the Company’s performance
objectives, if any. Notwithstanding the foregoing, the Covered Employee’s Target Bonus for
purposes of the Plan shall be deemed to be the amount received as a bonus by the Covered Employee
for the Company’s fiscal year preceding the date of the Covered Employee’s termination of
employment if a target bonus has not been established for the then current fiscal year.

          2.21 “Tier 1 Covered Employee” means (i) with respect to the Change of Control Severance
Benefits provided pursuant to Section 4, a Covered Employee who has been designated by the
Administrator under Tier 1 as shown on Appendix A attached hereto and (ii) with respect to the
Severance Benefits provided pursuant to Section 5, a Covered Employee who has been designated by
the Administrator under Tier 1 as shown on Appendix B attached hereto.

          2.22 “Tier 2 Covered Employee” means with respect to the Change of Control Severance Benefits
provided pursuant to Section 4, a Covered Employee who has been designated by the Administrator
under Tier 2 as shown on Appendix A attached hereto.

     3. Eligibility for Change of Control Severance Benefits and Severance Benefits. An individual
is eligible for the Change of Control Severance Benefits or the Severance Benefits under the Plan,
in the amount set forth in Section 4 or Section 5, respectively, only if he or she is a Covered
Employee on the date he or she experiences an Involuntary Termination.

     4. Change of Control Severance Benefits.

          4.1 Involuntary Termination in Connection with a Change of Control. If, at any time within
the Change of Control Determination Period, (i) a Covered Employee terminates his or her employment
with the Company (or any parent or subsidiary of the Company) for Good Reason, or (ii) the Company
(or any parent or subsidiary of the Company) terminates such Covered Employee’s employment due to
death, Disability, or other than for Cause, then, subject to the Covered Employee’s compliance with
Section 7, the Covered Employee shall receive the following Change of Control Severance Benefits
from the Company:

               4.1.1 Cash Severance Benefits.

                    4.1.1.1 Tier 1 Covered Employee. If the Covered Employee is a Tier 1 Covered Employee, he or
she shall be entitled to (i) a lump sum payment in cash equal to one (1) times the Covered
Employee’s Base Pay and (ii) a lump sum payment in cash equal to the Covered Employee’s Target

4

 

Bonus, prorated to the date of the Covered Employee’s Involuntary Termination. The prorated
amount of the Covered Employee’s Target Bonus that is payable in accordance with the preceding
sentence will be calculated by multiplying the Covered Employee’s Target Bonus by a fraction with
the numerator equal to the number of days during the year in which his or her Involuntary
Termination occurs that the Covered Employee was employed by the Company, and the denominator equal
to 365;

                    4.1.1.2 Tier 2 Covered Employee. If the Covered Employee is a Tier 2 Covered Employee, he or
she shall be entitled to (i) a lump sum payment in cash equal to 0.75 times the Covered Employee’s
Base Pay and (ii) a lump sum payment in cash equal to the Covered Employee’s Target Bonus, prorated
to the date of the Covered Employee’s termination. The prorated amount of the Covered Employee’s
Target Bonus that is payable in accordance with the preceding sentence will be calculated by
multiplying the Covered Employee’s Target Bonus by a fraction with the numerator equal to the
number of days during the year in which his or her Involuntary Termination occurs that the Covered
Employee was employed by the Company, and the denominator equal to 365.

               4.1.2 Continued Medical Benefits. If the Covered Employee, and any spouse and/or dependents
of the Covered Employee (“Family Members”), has coverage on the date of the Covered Employee’s
Involuntary Termination under a group health plan sponsored by the Company, the Company will pay
the total applicable premium cost for continued group health plan coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1986, 29 U.S.C. Sections 1161-1168; 26 U.S.C. Section
4980B(f), as amended, and all applicable regulations (referred to collectively as “COBRA”),
provided that the Covered Employee is eligible for and validly elects to continue coverage under
COBRA for the Covered Employee and his Family Members, as follows:

                    4.1.2.1 Tier 1 Covered Employee. For a period of up to twelve (12) months.

                    4.1.2.2 Tier 2 Covered Employee. For a period of up to nine (9) months.

               4.1.3 Equity Award Accelerated Vesting. Except as otherwise provided in an appendix
attached hereto with respect to Covered Employees employed in one or more jurisdictions outside the
United States, one hundred percent (100%) of each Tier 1 Covered Employee’s and each Tier 2 Covered
Employee’s Equity Compensation Awards automatically shall accelerate and all restrictions or
repurchase rights applicable thereto shall immediately lapse so as to become fully vested and
exercisable. The period over which such Equity Compensation Awards may be exercised shall be
governed by the applicable provisions of the Company’s stock plans and related award agreements.

               4.1.4 Outplacement Assistance. The Covered Employee shall be entitled to transitional
outplacement benefits in accordance with the policies and guidelines of the Company as in effect
immediately prior to the Change of Control.

     5. Severance Benefits.

          5.1 Involuntary Termination Other Than During the Change of Control Determination Period. If,
at any time before or after the Change of Control Determination Period, the Company (or any parent
or subsidiary of the Company) terminates a Tier 1 Covered Employee’s employment due to death,
Disability, or other than for Cause, then, subject to the Covered Employee’s compliance with
Section 7, the Tier 1 Covered Employee shall be entitled to (i) a lump sum payment in cash equal to
one (1) times the Covered Employee’s Base Pay, (ii) a lump sum payment in cash equal to the Covered
Employee’s Target Bonus, prorated to the date of the Covered Employee’s Involuntary Termination and
(iii) if the Tier 1 Covered Employee and his Family Members have coverage on the date of the Tier 1
Covered Employee’s Involuntary Termination under a group health plan sponsored by the Company, the
Company will pay the total applicable premium cost for continued group health plan coverage under
COBRA, provided that the Tier 1 Covered Employee is eligible for and validly elects to continue
coverage under COBRA for the Tier 1 Covered Employee and his Family Members, for a period of up to
twelve (12 ) months. The prorated amount of the

5

 

Covered Employee’s Target Bonus that is payable in accordance with the preceding sentence will be
calculated by multiplying the Covered Employee’s Target Bonus by a fraction with the numerator
equal to the number of days during the year in which his or her Involuntary Termination occurs that
the Covered Employee was employed by the Company, and the denominator equal to 365.

     6. Parachute Payments. In the event that the severance and other benefits provided for in
this Plan or otherwise payable or provided to the Covered Employee (i) constitute “parachute
payments” within the meaning of Section 280G of the Code and (ii) but for this Section 6, would be
subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the
Employee’s severance benefits hereunder shall be either

               (a) delivered in full, or

               (b) delivered as to such lesser extent which would result in no portion of such severance
benefits being subject to the Excise Tax,

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by the Covered Employee on an after-tax
basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of
such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and the
Covered Employee otherwise agree in writing, any determination required under this Section 6 shall
be made in writing in good faith by the Company’s independent tax accountants immediately prior to
the Change of Control (the “Accountants”). In the event of a reduction in accordance with
subsection (b) above, the reduction will occur, with respect to such severance and other benefits
considered “parachute payments” within the meaning of Section 280G of the Code, in accordance with
the following:

               (x) Assignment of Values. Each payment will be assigned an “Economic Value” and a “280G
Value.” The 280G Value will equal the value of the payment for purposes of Section 280G of the
Code as determined by the Accountants in accordance with Section 280G of the Code and applicable
Treasury Regulations. The Economic Value will be determined as follows:

                    (1) Cash payments. The Economic Value of cash payments will equal the 280G Value of each such
payment.

                    (2) Equity awards.

                         A. Options and Stock Appreciation Rights. The Economic Value of a Share (as defined below)
subject to a stock option or stock appreciation right will be the difference equal to (i) the fair
market value of such Share as of the date the 280G Value of the Share is determined for purposes of
this Section, minus (ii) the per share exercise price of the award.

                         B. Restricted Stock and Restricted Stock Units. The Economic Value of a Share subject to a
restricted stock or restricted stock unit award will be the difference equal to (i) the fair market
value of such Share as of the date the 280G Value of the Share is determined for purposes of this
Section, less (ii) the per share purchase price of the award, if any.

                         C. For purposes of this Section 6, each share of common stock subject to each stock option,
stock appreciation right, restricted stock award and restricted stock unit award, the payment or
vesting acceleration of which constitutes a parachute payment within the meaning of Section 280G of
the Code (a “Share”), will be a separate “payment.” As a result, an Economic Value, 280G Value,
and 280G Ratio (as defined below) will be determined for each Share. For purposes of illustration
only, assume that the Covered Employee is granted an option on January 1, 2008, covering 500 Shares
at a per share exercise price of $5. The option is scheduled to vest in equal annual installments
of 250 Shares on January 1, 2010 and January 1, 2011. However, if a change of control occurs and
the Covered Employee is terminated without cause, the Covered Employee is entitled to 100% vesting
acceleration. On March 1, 2009, a change of control occurs with a deal price of $10 and the
Covered Employee is terminated without cause. The Accountants determine that the

6

 

Covered Employee’s severance benefits should be reduced in accordance with this Section 6 and
that the amount of the 280G Value to be reduced is $100. The Accountants determine that the
Economic Value, 280G Value, and 280G Ratio for each of the 500 Shares subject to the option are as
follows:

                              (i) The Economic Value for each Share is $5 (i.e., $10 deal price less the $5 per share
exercise price).

                              (ii) The 280G Value of each Share that would have vested on January 1, 2010 (the “2010
Shares”), is $1, as determined by the Accountants based on appropriate assumptions used in
calculating the 280G Value in accordance with Section 280G of the Code and applicable Treasury
Regulations.

                              (iii) The 280G Value of each Share that would have vested on January 1, 2011 (the “2011
Shares”), is $2, as determined by the Accountants based on appropriate assumptions used in
calculating the 280G Value in accordance with Section 280G of the Code and applicable Treasury
Regulations.

                              (iv) The 280G Ratio of each 2010 Share is 5:1 (i.e., $5 Economic Value divided by the $1 280G
Value).

                              (v) The 280G Ratio of each 2011 Share is 5:2 (.i.e., the $5 Economic Value divided by the $2
280G Value).

                              The 280G Ratio of a 2011 Share is lower than the 280G Ratio of a 2010 Share. Consequently,
the Accountants will reduce the 2011 Shares first. As each 2011 Share has a 280G Value of $2, the
Accountants must reduce the 2011 Shares by 50 Shares (i.e., reducing the 2011 Shares by 50 Shares
will reduce the Covered Employee’s aggregate 280G Value by $100 (50 Shares multiplied by $2).
After taking the reduction into account, the Covered Employee vests in a total of 450 Shares (i.e.,
250 Shares that would have vested on January 1, 2010 and 200 Shares that would have vested on
January 1, 2011).

                    (3) Other Benefits and Payments. The Economic Value of each payment attributable to
Company-paid continued coverage under a group health plan sponsored by the Company and outplacement
assistance, if any, will equal the 280G Value of each payment, such that the 280G Ratio for each
such payment will be equal to one (1).

               (y) Ranking of Payments. After the 280G Value and Economic Value of each payment are
determined, the Accountants will rank the payments in order of increasing 280G Ratio as follows:
the payment with the lowest 280G Ratio will be ranked first and all other payments will be ranked
in ascending order with respect to their 280G Ratios with the payment with the highest 280G Ratio
ranked last. For this purpose, the “280G Ratio” will mean, with respect to each payment, the ratio
determined by dividing: (1) the Economic Value of the payment by (2) the 280G Value of the payment.
For purposes of clarity, the Accountants will determine a separate 280G Ratio for each Share.

               (z) Reduction of Parachute Payments. The portion of each payment that is a parachute payment
under Section 280G of the Code will be reduced in the order in which the payments have been ranked
in accordance with subsection (y) above. For purposes of clarity, a Share or the acceleration of a
Share, as applicable, may be reduced in whole Shares only and may not be reduced by a fraction of
such Share. In the event that two or more payments have the same 280G Ratio, the portion of each
payment that is a parachute payment will be reduced in accordance with the following rules:

                    (1) Cash Payments.

                         A. With respect to two or more cash payments that have the same 280G Ratio, such payments will
be reduced on a pro-rata basis.

                         B. Any cash payments that have the same 280G Ratio as payments that are not cash payments will
be reduced prior to reducing the payments that are not cash payments.

7

 

                    (2) Equity Awards.

                         A. With respect to two or more Shares, if the Shares have the same 280G Ratio, the order of
reduction of such Shares will be based on the 280G Value of the Shares. Shares with a higher 280G
Value will be subject to earlier reduction, such that a Share with the highest 280G Value will be
reduced first and a Share with the lowest 280G Value will be reduced last.

                         B. In the event that two or more Shares (i) have the same 280G Ratio and (ii) have the same
280G Value, the Shares will be subject to reduction based on the dates of grant of the equity
awards covering such Shares. Shares subject to equity awards granted earlier will be subject to
earlier reduction, such that a Share subject to an equity award with the earliest grant date will
be reduced first and a Share subject to an equity award with the most recent grant date will be
reduced last. Notwithstanding the foregoing, if any one or more Shares subject to one or more
nonstatutory stock options have the same 280G Ratio as any one or more Shares subject to one or
more incentive stock options, Shares subject to incentive stock options will be subject to
reduction only after Shares subject to nonstatutory stock options with the same 280G Ratio have
been reduced in full.

                         C. Any Shares that have the same 280G Ratio as payments attributable to Company-paid continued
coverage under a group health plan sponsored by the Company or outplacement assistance, if any,
will be reduced prior to any such other payments having the same 280G Ratio that are neither cash
nor Shares, provided that cash payments and Shares with the same 280G Ratio have been reduced in
full.

                    (3) Other Benefits and Payments. With respect to two or more payments that: (A) have the same
280G Ratio and (B) are payments attributable to Company-paid continued coverage under a group
health plan sponsored by the Company or outplacement assistance, if any, such payments will be
subject to pro rata reduction, provided that cash payments and Shares with the same 280G Ratio have
been reduced in full.

          For purposes of making the calculations required by this Section 6, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable,
good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The
Company and the Covered Employee shall furnish to the Accountants such information and documents as
the Accountants may reasonably request in order to make a determination under this Section. The
Company shall bear all costs the Accountants may reasonably incur in connection with any
calculations contemplated by this Section 6.

     7. Conditions to Receipt of Severance.

          7.1 Release Agreement. As a condition to receiving Change of Control Severance Benefits or
Severance Benefits under this Plan, each Covered Employee will be required to sign a waiver and
release of all claims arising out of his or her Involuntary Termination and employment with the
Company and its subsidiaries and affiliates (the “Release”). The form of release that the Covered
Employee will be required to sign will be determined as follows: (i) if a Tier 1 Covered Employee
experiences an Involuntary Termination at any time before or after the Change of Control
Determination Period and is entitled to Severance Benefits under Section 5.1, the Covered Employee
will be required to sign the form of release attached hereto as Appendix D-1 (if the Covered
Employee is a U.S. employee of the Company) or F-1 (if the Covered Employee is a non-U.S. employee
of the Company); (ii) if a Change of Control is triggered by an occurrence described in Sections
2.5(i) or (ii) or Section 2.5(iii) (provided that the occurrence described in Section 2.5(iii) is
approved by the Board), each Tier 1 Covered Employee and Tier 2
Covered Employee who incurs an
Involuntary Termination during the Change of Control Determination Period will be required to sign
the form of release attached hereto as Appendix D-1 or Appendix D-2 (if the Covered Employee is a
U.S. employee of the Company), respectively, or F-1 or F-2 (if the Covered Employee is a non-U.S.
employee of the Company), respectively; or (iii) if a Change of Control is triggered by an
occurrence described in Section 2.5(iii) that is not approved by the Board or an occurrence
described in Section 2.5(iv), each Tier 1 Covered Employee or Tier 2 Covered Employee that incurs
an Involuntary Termination during the Change of Control Determination Period will be required to
sign the

8

 

form of release attached hereto as Appendix E-1 or Appendix E-2 (if the Covered Employee is a
U.S. employee of the Company), respectively, or Appendix G-1 or G-2 (if the Covered Employee is a
non-U.S. employee of the Company), respectively. For purposes of the
Plan, the term "Release" shall refer to the form of release that the Covered Employee is required to execute in accordance with the preceding sentence.  The Release will include specific
information regarding the amount of time the Covered Employee will have to consider the terms of
the Release and return the signed agreement to the Company. In no event will the period to return
the Release be longer than sixty (60) days, inclusive of any revocation period set forth in the
Release, following the later of the Covered Employee’s Involuntary Termination or the Change of
Control (the “Release Period”).

          7.2 Non-solicitation. As a condition to receiving Change of Control Severance Benefits or
Severance Benefits under this Plan, each Covered Employee agrees that the Covered Employee will not
solicit any employee of the Company for employment other than at the Company, as follows:

               7.2.1 Tier 1 Covered Employee. During the Covered Employee’s employment with the Company and
for twelve (12) months following his or her termination.

               7.2.2 Tier 2 Covered Employee. During the Covered Employee’s employment with the Company and
for nine (9) months following his or her termination.

          Public solicitation, such as by taking out ads in a newspaper, advertising on the web and the
like, not specifically aimed at employees of the Company, will not constitute a breach of this
Section 7.2.

          7.3 Nondisparagement. During the Covered Employee’s employment with the Company and, for a
Tier 1 Covered Employee and Tier 2 Covered Employee, for twelve (12) months or nine (9) months
following his or termination, respectively, the Covered Employee and the Company will not knowingly
and materially disparage, libel, slander, or otherwise make any materially derogatory statements
regarding the other; provided that the Company’s obligations under this Section 7.3 shall apply
only to the Company’s executive officers and members of its Board of Directors (the “Board”) who
serve in such capacities during the course of the Covered Employee’s employment with the Company
and only for so long as each such officer or member of the Board is an employee or director of the
Company; provided further that the Company’s obligations under this Section 7.3 extend only to
those communications that are made by the above-referenced officers or directors in their
capacities as officers or directors of the Company. Notwithstanding the foregoing, nothing
contained in the Plan will be deemed to restrict the Covered Employee, the Company or any of the
Company’s current or former officers and/or directors from providing information to any
governmental or regulatory agency or body (or in any way limit the content of any such information)
to the extent they are requested or required to provide such information pursuant a subpoena or as
otherwise required by applicable law or regulation, or in accordance with any governmental
investigation or audit relating to the Company. Further, nothing contained in this Section 7.3
shall in any way limit the rights or relief that the Covered Employee or Company may have under
common law or otherwise with respect to the conduct prohibited in this paragraph.

          7.4 Other Requirements. A Covered Employee’s receipt of severance payments pursuant to Section
4.1 or 5.1 will be subject to the Covered Employee continuing to comply with the provisions of this
Section 7 and the terms of any confidential information agreement, proprietary information and
inventions agreement and such other appropriate agreement between the Covered Employee and the
Company. Benefits under this Plan shall terminate immediately for a Covered Employee if such
Covered Employee, at any time, violates any such agreement or the provisions of this Section 7.

     8. Timing of Benefits.

          8.1 Timing of Change of Control Severance Benefits. Subject to Section 10 below, the

9

 

Change of Control Severance Benefits that do not constitute Deferred Compensation Separation
Benefits (as defined in Section 10 below) shall commence or be paid, as applicable, as soon as
administratively practicable but within ten (10) calendar days following the later of the date of
the Covered Employee’s termination of employment (or, if required by Section 10, the Covered
Employee’s separation from service) or the Change of Control or, if later, on the date the Release
becomes effective. Subject to Section 10 below, the Change of Control Severance Benefits that do
constitute Deferred Compensation Separation Benefits will commence or be paid as applicable, as
follows:

               8.1.1 If the Covered Employee’s Release Period ends on or before December 15 of the calendar
year in which the Covered Employee’s Involuntary Termination or, if later, the Change of Control
occurs, his or her Deferred Compensation Separation Benefits will commence or be made, as
applicable, on or before December 31 of that calendar year.

               8.1.2 If the Covered Employee’s Release Period ends after December 15 of the calendar year in
which the Covered Employee’s Involuntary Termination or, if later, the Change of Control occurs,
his or her Deferred Compensation Separation Benefits will commence or be paid, as applicable, on
the later of (a) the first payroll date in the calendar year next following the calendar year of
the Covered Employee’s Involuntary Termination or (b) the first payroll date following the date his
or her Release becomes effective, subject to Section 10 below.

          8.2 Timing of Severance Benefits. Subject to Section 10 below, the Severance Benefits that do
not constitute Deferred Compensation Separation Benefits (as defined in Section 10 below) shall
commence or be paid, as applicable, as soon as administratively practicable but within ten (10)
calendar days following the date of the Covered Employee’s termination of employment (or, if
required by Section 10, the Covered Employee’s separation from service) or, if later, on the date
the Release becomes effective. Subject to Section 10 below, the Severance Benefits that do
constitute Deferred Compensation Separation Benefits will commence or be paid as applicable, as
follows:

               8.2.1 If the Covered Employee’s Release Period ends on or before December 15 of the calendar
year in which the Covered Employee’s Involuntary Termination occurs, his or her Deferred
Compensation Separation Benefits will commence or be made, as applicable, on or before December 31
of that calendar year.

               8.2.2 If the Covered Employee’s Release Period ends after December 15 of the calendar year in
which the Covered Employee’s Involuntary Termination occurs, his or her Deferred Compensation
Separation Benefits will commence or be paid, as applicable, on the later of (a) the first payroll
date in the calendar year next following the calendar year of the Covered Employee’s Involuntary
Termination or (b) the first payroll date following the date his or her Release becomes effective,
subject to Section 10 below.

     9. Non-Duplication of Benefits. Notwithstanding any other provision in the Plan to the
contrary, the Change of Control Severance Benefits and Severance Benefits provided hereunder (or
alternatively and if applicable, provided under the Company’s VP Change of Control Severance Plan
(the “VP Plan”), if a Covered Employee is also a participant of the VP Plan)1 are
intended to be and are exclusive and in lieu of any other change of control and severance benefits
or payments to which the Covered Employee may otherwise be entitled, either at law, tort, or
contract, in equity, or under the Plan, in the event of any termination of the Covered Employee’s
employment. The Covered Employee will be entitled to no change of control or severance benefits or
payments upon a termination of employment that constitute an Involuntary Termination other than
those benefits expressly set forth herein and those benefits required to be provided by applicable
law or as negotiated in accordance with applicable law. Notwithstanding the foregoing, if the
Covered Employee is entitled to any benefits other than the benefits under the Plan by operation of
applicable law or as negotiated in

 

			
	1	 	For the avoidance of doubt, if a Covered Employee also
is a “Covered Employee” under the VP Plan, then for so long as the VP Plan
remains in effect, the Covered Employee shall receive benefits under the VP
Plan rather than under this Plan).

10

 

accordance with applicable law, his or her benefits under the Plan shall be reduced by the
value of the benefits the Covered Employee receives by operation of applicable law or as negotiated
in accordance with applicable law, as determined by the Administrator in its discretion.

     10. Section 409A.

          10.1 Notwithstanding anything to the contrary in the Plan, no Deferred Compensation Separation
Benefits (as defined below) or other severance benefits that are exempt from Section 409A (as
defined below) pursuant to Treasury Regulation Section 1.409A-1(b)(9) will become payable until the
Covered Employee has a “separation from service” within the meaning of Section 409A of the Code and
the final regulations and any guidance promulgated thereunder (“Section 409A”). Further, if the
Covered Employee is subject to Section 409A and is a “specified employee” within the meaning of
Section 409A at the time of the Covered Employee’s separation from service (other than due to
death), then any Deferred Compensation Separation Benefits otherwise due to the Covered Employee on
or within the six (6) month period following his or her separation from service will accrue during
such six (6) month period and will become payable in a lump sum payment (less applicable
withholding taxes) on the date six (6) months and one (1) day following the date of the Covered
Employee’s separation from service. All subsequent payments of Deferred Compensation Separation
Benefits, if any, will be payable in accordance with the payment schedule applicable to each
payment or benefit. For purposes of clarity, the following severance benefits shall not constitute
Deferred Compensation Separation Benefits: (A) the vesting acceleration of outstanding awards of
stock options, stock appreciation rights or restricted stock described in Section 4.1.3 unless such
awards include deferral or other features that cause such awards to be subject to Section 409A; (B)
the Company-paid continued group health plan coverage described in Section 4.1.2; and (C) any other
payment or benefit that satisfies the conditions described in Section 10.2 below. Notwithstanding
anything herein to the contrary, if the Covered Employee dies following his or her separation from
service but prior to the six (6) month anniversary of his or her date of separation, then any
payments delayed in accordance with this paragraph will be payable in a lump sum (less applicable
withholding taxes) to the Covered Employee’s estate as soon as administratively practicable after
the date of his or her death and all other Deferred Compensation Separation Benefits will be
payable in accordance with the payment schedule applicable to each payment or benefit. For
purposes of the Plan, “Deferred Compensation Separation Benefits” will mean the severance payments
or benefits payable to the Covered Employee, if any, pursuant to the Plan that, when considered
together with any other severance payments or separation benefits, is considered deferred
compensation under Section 409A.

          10.2 Each payment and benefit payable under the Plan is intended to constitute a separate
payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. Any severance payment
that satisfies the requirements of the “short-term deferral” rule set forth in Section
1.409A-1(b)(4) of the Treasury Regulations shall not constitute a Deferred Compensation Separation
Benefit. Any severance payment that entitles the Covered Employee to taxable reimbursements or
taxable in-kind benefits covered by Section 1.409A-1(b)(9)(v) shall not constitute a Deferred
Compensation Separation Benefit. Any severance payment or portion thereof that qualifies as a
payment made as a result of an involuntary separation from service pursuant to Section
1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit shall
not constitute a Deferred Compensation Separation Benefit.

          10.3 It is the intent of this Plan to comply with the requirements of Section 409A so that
none of the severance payments and benefits to be provided hereunder will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so
comply. Notwithstanding anything to the contrary in the Plan, including but not limited to Section
14, the Company reserves the right to amend the Plan as it deems necessary or advisable, in its
sole discretion and without the consent of the Covered Employees, to comply with Section 409A of
the Code or to otherwise avoid income recognition under Section 409A of the Code prior to the
actual payment of Change of Control Severance Benefits or Severance Benefits or imposition of any
additional tax (provided that no such amendment shall materially reduce the benefits provided
hereunder).

11

 

     11. Withholding. The Company will withhold from any Change of Control Severance Benefits or
Severance Benefits all federal, state, local and other taxes required to be withheld therefrom and
any other required payroll deductions.

     12. Administration. The Plan will be administered and interpreted by the Administrator (in
his or her sole discretion). The Administrator is the “named fiduciary” of the Plan for purposes
of ERISA and will be subject to the fiduciary standards of ERISA when acting in such capacity. Any
decision made or other action taken by the Administrator prior to a Change of Control with respect
to the Plan, and any interpretation by the Administrator prior to a Change of Control of any term
or condition of the Plan, or any related document, will be conclusive and binding on all persons
and be given the maximum possible deference allowed by law. Following a Change of Control, any
decision made or other action taken by the Administrator with respect to the Plan, and any
interpretation by the Administrator of any term or condition of the Plan, or any related document
that (i) does not affect the benefits payable under the Plan shall not be subject to review unless
found to be arbitrary and capricious or (ii) does affect the benefits payable under the Plan shall
not be subject to review unless found to be unreasonable or not to have been made in good faith.
In accordance with Section 2.1, the Administrator may, in its sole discretion and on such terms and
conditions as it may provide, delegate in writing to one or more officers of the Company all or any
portion of its authority or responsibility with respect to the Plan; provided, however, that any
Plan amendment or termination or any other action that could reasonably be expected to increase
significantly the cost of the Plan must be approved by the Board or the Compensation Committee of
the Board.

     13. Eligibility to Participate. To the extent that the Administrator has delegated
administrative authority or responsibility to one or more officers of the Company in accordance
with Sections 2.1 and 12, each such officer will not be excluded from participating in the Plan if
otherwise eligible, but he or she is not entitled to act or pass upon any matters pertaining
specifically to his or her own benefit or eligibility under the Plan. The Administrator will act
upon any matters pertaining specifically to the benefit or eligibility of each such officer under
the Plan.

     14. Amendment or Termination. The Company, by action of the Administrator, reserves the right
to amend or terminate the Plan at any time, without advance notice to any Covered Employee and
without regard to the effect of the amendment or termination on any Covered Employee or on any
other individual. Any amendment or termination of the Plan will be in writing. Notwithstanding
the preceding, (a) any amendment to the Plan that causes an individual or group of individuals to
cease to be a Covered Employee will not be effective unless it both is approved by the
Administrator and communicated to the affected individual in writing prior to the Change of Control
Determination Period and (b) once a Covered Employee has incurred an Involuntary Termination, no
amendment or termination of the Plan may, without that Covered
Employee’s written consent, reduce or alter to the detriment of
the Covered Employee,
the Severance Benefits payable to that Covered Employee (including,
without limitation, imposing additional conditions or modifying the
timing of payment). In addition, notwithstanding the
preceding, once the Change of Control Determination Period has begun, the Company may not, without
a Covered Employee’s written consent, amend or terminate the Plan in any way, nor take any other
action, that (a) prevents that Covered Employee from becoming eligible for Severance Benefits or
Change of Control Severance Benefits under the Plan or
(b) reduces or alters to the detriment of the Covered Employee
the Severance Benefits
or Change of Control Severance Benefits payable, or potentially payable, to a Covered Employee
under the Plan (including, without limitation, imposing additional
conditions or modifying the timing of payment). For the avoidance of doubt, “Change of Control Severance Benefits payable, or
potentially payable” shall include any Change of Control Severance Benefits payable pursuant to an
appendix attached hereto with respect to Covered Employees employed in one or more jurisdictions
outside the United States as contemplated in Section 4. Any action of the Company in amending or
terminating the Plan will be taken in a non-fiduciary capacity. Notwithstanding anything in the
Plan to the contrary, the Plan shall have an initial term of five (5) years commencing on the
Effective Date and shall automatically terminate on the fifth (5th) anniversary of the Effective
Date unless otherwise extended by the Compensation Committee of the Board, in its discretion. On
or about the fourth (4th) anniversary of the Effective Date, the Compensation Committee of the
Board will review

12

 

the Plan in good faith and determine whether to extend the initial term of the Plan.

     15. Claims Procedure. Any employee or other person who believes he or she is entitled to any
payment under the Plan may submit a claim in writing to the Administrator within ninety (90) days
of the earlier of (i) the date the claimant learned the amount of their Change of Control Severance
Benefits or Severance Benefits under the Plan or (ii) the date the claimant learned that he or she
will not be entitled to any benefits under the Plan. If the claim is denied (in full or in part),
the claimant will be provided a written notice explaining the specific reasons for the denial and
referring to the provisions of the Plan on which the denial is based. The notice will also
describe any additional information needed to support the claim and the Plan’s procedures for
appealing the denial. The denial notice will be provided within ninety (90) days after the claim
is received. If special circumstances require an extension of time (up to ninety (90) days),
written notice of the extension will be given within the initial ninety (90) day period. This
notice of extension will indicate the special circumstances requiring the extension of time and the
date by which the Administrator expects to render its decision on the claim. The Administrator has
delegated the claims review responsibility to the Company’s Vice President, Human Resources, except
in the case of a claim filed by or on behalf of the Company’s Vice President, Human Resources, in
which case, the claim will be reviewed by the Company’s Chief Executive Officer.

     16. Appeal Procedure. If the claimant’s claim is denied, the claimant (or his or her
authorized representative) may apply in writing to the Administrator for a review of the decision
denying the claim. Review must be requested within sixty (60) days following the date the claimant
received the written notice of their claim denial or else the claimant loses the right to review.
The claimant (or representative) then has the right to review and obtain copies of all documents
and other information relevant to the claim, upon request and at no charge, and to submit issues
and comments in writing. The Administrator will provide written notice of its decision on review
within sixty (60) days after it receives a review request. If additional time (up to sixty (60)
days) is needed to review the request, the claimant (or representative) will be given written
notice of the reason for the delay. This notice of extension will indicate the special
circumstances requiring the extension of time and the date by which the Administrator expects to
render its decision. If the claim is denied (in full or in part), the claimant will be provided a
written notice explaining the specific reasons for the denial and referring to the provisions of
the Plan on which the denial is based. The notice shall also include a statement that the claimant
will be provided, upon request and free of charge, reasonable access to, and copies of, all
documents and other information relevant to the claim and a statement regarding the claimant’s
right to bring an action under Section 502(a) of ERISA. The Administrator has delegated the
appeals review responsibility to the Company’s Vice President, Human Resources, except in the case
of an appeal filed by or on behalf of the Company’s Vice President, Human Resources, in which case,
the appeal will be reviewed by the Company’s Chief Executive Officer.

     17. Legal Expenses. In the event that, on or following a Change of Control that is triggered
by an occurrence described in Section 2.5(iii) that is not approved by the Board or an occurrence
described in Section 2.5(iv), either party brings an action to enforce or effect its rights under
this Plan, the Company will reimburse the Covered Employee for his or her costs and expenses
incurred in connection with the action (including, without limitation, in connection with the
Covered Employee defending himself against an action brought by the Company to enforce or effect
its rights under the Plan), including the costs of mediation, arbitration, litigation, court fees,
and reasonable attorneys’ fees. Notwithstanding the preceding, no reimbursement will be made to
the Covered Employee for an action originally brought by the Covered Employee if an entity of
competent jurisdiction issues a final order that the Covered Employee’s action was frivolous. This
right to reimbursement will be subject to the following additional requirements: (i) the Covered
Employee must submit documentation of the costs, expenses and fees to be reimbursed within thirty
(30) days of the end of his or her taxable year in which the costs, expenses and fees were
incurred; (ii) the amount of any reimbursement provided during his or her taxable year shall not
affect any expenses eligible for reimbursement in any other taxable year; (iii) the

13

 

reimbursement of eligible costs and expenses shall be made by the Company within thirty (30) days
of the Covered Employee’s submission of documentation of the costs, expenses and fees to be
reimbursed but no later than the last day of the Covered Employee’s taxable year that immediately
follows the taxable year in which the costs or expenses were incurred; and (iv) the right to any
such reimbursement shall not be subject to liquidation or exchange for another benefit or payment.

     18. Source of Payments. All Change of Control Severance Benefits and Severance Benefits will
be paid in cash from the general funds of the Company; no separate fund will be established under
the Plan, and the Plan will have no assets. No right of any person to receive any payment under
the Plan will be any greater than the right of any other general unsecured creditor of the Company.

     19. Inalienability. In no event may any current or former employee of the Company or any of
its subsidiaries or affiliates sell, transfer, anticipate, assign or otherwise dispose of any right
or interest under the Plan. At no time will any such right or interest be subject to the claims of
creditors nor liable to attachment, execution or other legal process.

     20. No Enlargement of Employment Rights. Neither the establishment or maintenance of the
Plan, any amendment of the Plan, nor the making of any benefit payment hereunder, will be construed
to confer upon any individual any right to be continued as an employee of the Company. The Company
expressly reserves the right to discharge any of its employees at any time, with or without cause.
However, as described in the Plan, a Covered Employee may be entitled to benefits under the Plan
depending upon the circumstances of his or her termination of employment.

     21. Successors. Any successor to the Company of all or substantially all of the Company’s
business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation,
liquidation or otherwise) will assume the obligations under the Plan and agree expressly to perform
the obligations under the Plan in the same manner and to the same extent as the Company would be
required to perform such obligations in the absence of a succession. For all purposes under the
Plan, the term “Company” will include any successor to the Company’s business and/or assets which
become bound by the terms of the Plan by operation of law, or otherwise.

     22. Applicable Law. The provisions of the Plan will be construed, administered and enforced
in accordance with ERISA and, to the extent applicable, the internal substantive laws of the State
of California (with the exception of its conflict of laws provisions).

     23. Severability. If any provision of the Plan is held invalid or unenforceable, its
invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will
be construed and enforced as if such provision had not been included.

     24. Headings. Headings in this Plan document are for purposes of reference only and will not
limit or otherwise affect the meaning hereof.

     25. Indemnification. The Company hereby agrees to indemnify and hold harmless the officers
and employees of the Company, and the members of its boards of directors, from all losses, claims,
costs or other liabilities arising from their acts or omissions in connection with the
administration, amendment or termination of the Plan, to the maximum extent permitted by applicable
law. This indemnity will cover all such liabilities, including judgments, settlements and costs of
defense. The Company will provide this indemnity from its own funds to the extent that insurance
does not cover such liabilities. This indemnity is in addition to and not in lieu of any other
indemnity provided to such person by the Company.

14

 

     26. Additional Information.

	 	 	 
	Plan Name:

	 	Atmel Corporation Change of Control and Severance Plan
	 
	 	 
	Plan Sponsor:

	 	Atmel Corporation
	 

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 
	 	 
	Identification Numbers:

	 	EIN: - 77-0051991
	 

	 	PLAN: 503
	 
	 	 
	Plan Year:

	 	Company’s Fiscal Year
	 
	 	 
	Plan Administrator:

	 	Atmel Corporation
	 

	 	Attention: Administrator of the Atmel Corporation Change of Control and Severance Plan
	 

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 
	 	 
	 

	 	(408) 441-0311 
	 
	 	 
	Agent for Service of
Legal Process:

	 	Atmel Corporation
	 

	 	Attention: General Counsel
	 

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 
	 	 
	 

	 	(408) 441-0311 
	 
	 	 
	 

	 	Service of process may also be made upon the Administrator.
	 
	 	 
	Type of Plan

	 	Severance Plan/Employee Welfare Benefit Plan
	 
	 	 
	Plan Costs

	 	The cost of the Plan is paid by the Employer.

     27. Statement of ERISA Rights.

     As a Covered Employee under the Plan, you have certain rights and protections under ERISA:

     (a) You may examine (without charge) all Plan documents, including any amendments and
copies of all documents filed with the U.S. Department of Labor. These documents are
available for your review in the Company’s Human Resources Department.

     (b) You may obtain copies of all Plan documents and other Plan information upon written
request to the Administrator. A reasonable charge may be made for such copies.

     In addition to creating rights for Covered Employees, ERISA imposes duties upon the people who
are responsible for the operation of the Plan. The people who operate the Plan (called
"fiduciaries”) have a duty to do so prudently and in the interests of you and the other Covered
Employees. No one, including the Company or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from

15

 

obtaining a benefit under the Plan or exercising your rights under ERISA. If your claim for a
severance benefit is denied, in whole or in part, you must receive a written explanation of the
reason for the denial. You have the right to have the denial of your claim reviewed. (The claim
review procedure is explained in Sections 15 and 16 above.)

     Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request materials and do not receive them within thirty (30) days, you may file suit in a federal
court. In such a case, the court may require the Administrator to provide the materials and to pay
you up to $110 a day until you receive the materials, unless the materials were not sent because of
reasons beyond the control of the Administrator. If you have a claim which is denied or ignored,
in whole or in part, you may file suit in a federal court. If it should happen that you are
discriminated against for asserting your rights, you may seek assistance from the U.S. Department
of Labor, or you may file suit in a federal court.

     In any case, the court will decide who will pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and fees. If you lose,
the court may order you to pay these costs and fees, for example, if it finds that your claim is
frivolous.

     If you have any questions regarding the Plan, please contact the Administrator. If you have
any questions about this statement or about your rights under ERISA, you may contact the nearest
area office of the Employee Benefits Security Administration (formerly the Pension and Welfare
Benefits Administration), U.S. Department of Labor, listed in your telephone directory, or the
Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S.
Department of Labor, 200 Constitution Avenue, N.W. Washington, D.C. 20210. You may also obtain
certain publications about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration.

16

 

Appendix A

	 	 	 
	Tier	 	Employee Name2
	1
	 	[Includes Executive Officers]
	 	 	 
	2
	 	[Names]

 

			
	2	 	In accordance with Section 2.9, each U.S. employee of the Company
who becomes a Section 16 Officer on or after the Effective Date shall be deemed
to have been designated by the Administrator to participate in the Plan under
Tier 1 as of the date he or she becomes a Section 16 Officer and shall become a
Covered Employee upon execution of a Participation Agreement with the Company.
Appendix A shall be deemed to include each employee described in the preceding
sentence, notwithstanding that Appendix A has not been updated to include such
employee’s name in the table above.

A-1

 

Appendix B

	 	 	 
	Tier	 	Employee Name3
	1
	 	[Includes Executive Officers]

 

			
	3	 	In accordance with Section 2.9, each U.S. employee of the Company
who becomes a Section 16 Officer on or after the Effective Date shall be deemed
to have been designated by the Administrator to participate in the Plan under
Tier 1 as of the date he or she becomes a Section 16 Officer and shall become a
Covered Employee upon execution of a Participation Agreement with the Company.
Appendix B shall be deemed to include each employee described in the preceding
sentence, notwithstanding that Appendix B has not been updated to include such
employee’s name in the table above.

B-1

 

Appendix C

ATMEL CORPORATION

CHANGE OF CONTROL AND SEVERANCE PLAN

PARTICIPATION AGREEMENT

     This Participation Agreement (the “Agreement”) with respect to participation in the
Atmel Corporation Change of Control and Severance Plan (the “Plan”) is made as of [Click
and Type Date] by and between Atmel Corporation (the “Company”) and [Click and Type Name]
(“Employee”). Capitalized terms not otherwise defined herein shall have the meanings given
to them in the Plan.

     WHEREAS, the Company has adopted and sponsors the Plan, a copy of which is attached hereto;
and

     WHEREAS, Employee has been selected to participate in the Plan in accordance with and subject
to the terms of the Plan and this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises made herein, the parties hereby agree
as follows:

     1. Participation. Employee has been designated as a Covered Employee in the Plan,
subject to Employee executing this Agreement pursuant to which Employee has agreed to, among other
things, (i) waive his or her rights to any severance benefits provided under any other agreement
with the Company or arrangement or plan sponsored by the Company and (ii) amend any existing
employment or other agreement by and between Employee and the Company pursuant to which Employee is
entitled to receive severance benefits to remove the severance provisions from such agreement. The
terms and conditions of Covered Employee’s participation in the Plan are as set forth in the Plan
and herein.

     2. Severance Benefits. [INSERT THE FOLLOWING FOR TIER 1 COVERED EMPLOYEES IDENTIFIED
ON BOTH APPENDICES A AND B: Upon satisfaction of the conditions set forth in Sections 4 or 5 of the
Plan, as applicable, Employee will be eligible to receive the Change of Control Severance Benefits
set forth in Section 4.1 of the Plan or the Severance Benefits set forth in Section 5.1 of the
Plan, as applicable, subject to compliance with Section 7 of the Plan.] [INSERT THE FOLLOWING FOR
TIER 1 COVERED EMPLOYEES AND TIER 2 COVERED EMPLOYEES IDENTIFIED ON APPENDIX A ONLY: Upon
satisfaction of the conditions set forth in Section 4 of the Plan, Employee will be eligible to
receive the Change of Control Severance Benefits set forth in Section 4.1 of the Plan, subject to
compliance with Section 7 of the Plan.]

     3. Condition to Receipt of Benefits. Employee acknowledges and agrees that
notwithstanding anything herein, in the Plan, or otherwise to the contrary, Employee shall not be
entitled to any payments or benefits from the Company under the Plan or this Agreement in
connection with an Involuntary Termination of Employee’s employment with the Company unless
Employee has signed and not revoked a waiver and release of claims agreement in a form reasonably
satisfactory to the Company. Employee also acknowledges and agrees that receipt of any [INSERT THE
FOLLOWING FOR TIER 1 COVERED EMPLOYEES IDENTIFIED ON BOTH APPENDICES A AND B: Change of Control
Severance Benefits or Severance Benefits] [INSERT THE FOLLOWING FOR TIER 1 COVERED EMPLOYEES AND
TIER 2 COVERED EMPLOYEES IDENTIFIED ON APPENDIX A ONLY: Change of Control Severance Benefits] will
be subject to

C-1

 

Employee’s compliance with the conditions during the time periods set forth in Sections 7.2
through 7.4 of the Plan.

     4. Interaction with Other Severance Benefit Plans or Arrangements. The change of
control and severance benefits and payments provided under the Plan are intended to be and are
exclusive and in lieu of any other change of control and severance benefits and payments to which
Employee may otherwise be entitled, either at law, tort, or contract, in equity, or under the Plan,
in the event of any termination of Employee’s employment unless otherwise specifically agreed to by
the Employee and the Company in an agreement entered into after the Effective Date of the Plan.
Employee agrees that he or she will be entitled to no change of control or severance benefits or
payments upon a termination of employment that constitute an Involuntary Termination other than
those benefits expressly set forth in the Plan and those benefits required to be provided by
applicable law or as negotiated in accordance with applicable law. [INSERT THE FOLLOWING ONLY FOR
EMPLOYEES CURRENTLY WITH SEVERANCE PROTECTION: In particular, Employee hereby specifically waives
his or her entitlement to change of control and severance benefits and payments pursuant to the
[Letter] [Offer Letter] [Employment Agreement] dated [INSERT DATE] by and between Employee and the
Company.] Employee further agrees to amend any existing employment or other agreement by and
between Employee and the Company pursuant to which Employee is entitled to receive severance
benefits to remove the severance provisions from such agreement. Notwithstanding the foregoing, if
the Employee is entitled to any benefits other than the benefits under the Plan by operation of
applicable law or as negotiated in accordance with applicable law, his or her benefits under the
Plan shall be reduced by the value of the benefits the Employee receives by operation of applicable
law or as negotiated in accordance with applicable law, as determined by the Administrator in its
discretion.

     5. Additional Provisions.

          (a) Severability. If any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full
force and effect without said provision.

          (b) Integration; No Oral Modification. This Agreement and the Plan, constitute the
entire agreement of the parties with respect to the subject matter hereof and supersede all prior
agreements, written or oral. This Agreement may only be amended in writing signed by the parties
hereto.

          (c) Counterparts. This Agreement may be executed in counterparts, and each
counterpart shall have the same force and effect as an original and shall constitute an effective,
binding agreement on the part of each of the undersigned. Execution and delivery of this Agreement
by exchange of facsimile copies bearing the facsimile signature of a party shall constitute a valid
and binding execution and delivery of the Agreement by such party. Such facsimile copies shall
constitute enforceable original documents.

          (d) Headings. All captions and section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement.

          (e) Tax Withholding. All payments made pursuant to the Plan and this Agreement will
be subject to withholding of applicable taxes.

          (f) Governing Law. This Agreement will be governed by the laws of the State of
California (with the exception of its conflict of laws provisions).

     By their signatures below, the Company and Employee agree that participation in the Plan is
governed by this Agreement and by the provisions of the Plan, a copy of which is attached hereto
and made a part of this

C-2

 

document. Employee acknowledges receipt of a copy of the Plan, represents that Employee has
read and is familiar with its provisions and the provisions of this Agreement, and acknowledges
that decisions and determinations by the Administrator under the Plan shall be final and binding on
Employee.

(The remainder of this page has been intentionally left blank)

C-3

 

     IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first set forth
above.

	 	 	 	 	 
	ATMEL CORPORATION	 	EMPLOYEE
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:

	 	
 

[Click and Type Name]
	 	
 

C-4exv10w6

 Exhibit 10.6

SIXTH AMENDMENT TO FOURTH AMENDED AND

RESTATED CREDIT AGREEMENT AND CONSENT

     THIS SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT AND CONSENT (this
“Amendment”) is entered into as of February 27, 2009 by and among each of the persons
listed on the signature pages hereto as banks (the “Banks”), Crosstex Energy, L.P., a
Delaware limited partnership (the “Borrower”), and Bank of America, N.A., as administrative
agent (in such capacity, the “Administrative Agent”) and as collateral agent (in such
capacity, the “Collateral Agent”).

ARTICLE I

BACKGROUND

     A. The Banks, the Administrative Agent and the Borrower are parties to that certain Fourth
Amended and Restated Credit Agreement dated as of November 1, 2005, as amended by the First
Amendment dated as of February 24, 2006, the Second Amendment dated as of June 29, 2006, the Third
Amendment dated as of March 28, 2007, the Fourth Amendment dated as of September 19, 2007 and the
Fifth Amendment and Consent dated as of November 7, 2008 (as so amended, the “Credit
Agreement”). Terms defined in the Credit Agreement and not otherwise defined herein have the
same meanings when used herein.

     B. The Borrower has requested, and the Majority Banks have agreed, to (1) consent to the
modification of certain financial covenants under the Credit Agreement and (2) make certain
additional amendments to the Credit Agreement as provided for herein.

     C. The Borrower intends to amend the Note Agreement in order to accomplish similar amendments
to the Note Agreement.

ARTICLE II

AGREEMENT

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

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

     (a) Section 1.01 of the Credit Agreement is hereby amended by restating the following
definitions to read in their entirety as follows:

     “Applicable Margin” means, as of any date of determination, the
following percentages determined as a function of the Leverage Ratio for the
Borrower and its Subsidiaries on a Consolidated basis:

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 1

 

	 	 	 	 	 	 	 	 	 
	 	 	Eurodollar Rate	 	Reference Rate	 	Commitment	 	Letter of Credit
	Leverage Ratio	 	Advances	 	Advances	 	Fees	 	Fees
	≥ 5.00
	 	4.00%
	 	3.00%
	 	0.50%
	 	4.00%
	≥ 4.25 and

< 5.00
	 	3.50%
	 	2.50%
	 	0.50%
	 	3.50%
	≥ 3.75 and

< 4.25
	 	3.25%
	 	2.25%
	 	0.50%
	 	3.25%
	< 3.75
	 	2.75%
	 	1.75%
	 	0.50%
	 	2.75%

The foregoing ratio shall be determined from the Financial Statements of the
Borrower and its Subsidiaries most recently delivered pursuant to Section
5.01(c) or Section 5.01(d) and certified to by a Responsible Officer in
accordance with such Sections. Any change in the Applicable Margin shall be
effective upon the date of delivery of the Financial Statements pursuant to
Section 5.01(c) or Section 5.01(d), as the case may be, and receipt by the
Administrative Agent of the compliance certificate required by such
Sections. The Applicable Rate from the Sixth Amendment Effective Date until
the next determination will be for the Leverage Ratio of greater than or
equal to 5.00 to 1.00.

     “Asset Disposition” means any sale, transfer, license, lease or
other disposition (including any sale and leaseback transaction) of any
property or any series of related dispositions of property by any Person,
including any sale, assignment, transfer or other disposal, with or without
recourse, of any notes or accounts receivable or any rights and claims
associated therewith in which the property disposed either (a) generates
EBITDA greater than or equal to 1% of EBITDA for the four fiscal quarter
period ending as of the most recent fiscal quarter for which the Borrower
has delivered Financial Statements pursuant to Section 5.01(c) or (d) or (b)
has an aggregate book value greater than 1% of the book value of the
Consolidated assets of the Borrower and its Subsidiaries as of the end of
the most recent fiscal quarter for which the Borrower has delivered
Financial Statements pursuant to Section 5.01(c) or (d); provided,
that the term “Asset Disposition” shall not include any transaction
permitted by (i) Section 6.04(a), (ii) the first $5,000,000 of Net Cash
Proceeds received in any fiscal year of the Borrower or its Subsidiaries in
the aggregate pursuant to Section 6.04(b), and (iii) Section 6.04(c), (d),
(e), (f), (h) or (i).

     “Credit Documents” means, collectively, this Agreement, the
Notes, the Security Documents, the Guaranties, the Letter of Credit
Documents, any Interest Rate Contract between the Borrower or any Subsidiary
and a Bank or an Affiliate thereof, any Hydrocarbon Hedge Agreement between
the Borrower or any Subsidiary and a Bank or an
Affiliate thereof which is a party to the Intercreditor Agreement, the
Fee Letter, any Cash Management Agreement between the Borrower or any

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 2

 

Subsidiary and a Cash Management Bank which is a party to the Intercreditor
Agreement, and each other agreement, instrument or document executed at any
time in connection with the foregoing documents, as each such Credit
Document may be amended, modified, restated, or supplemented from
time-to-time, provided, however, the definition of Credit
Documents shall not include Hydrocarbon Hedge Agreements, Interest Rate
Contracts or Cash Management Agreements for the purposes of Sections 7.03(c)
and 9.01.

     “EBITDA” means, for the Borrower and its Subsidiaries on a
Consolidated basis for any period, (a) Net Income for such period
plus (b) to the extent deducted in determining Net Income, Interest
Expense, taxes, depreciation, amortization and other noncash items for such
period minus (c) to the extent included in determining Net Income,
all noncash items increasing Net Income for such period plus (d) to
the extent deducted in determining Net Income, Costs of Amendments.
Notwithstanding the foregoing, the purchase price of commodity derivative
instruments, net of all proceeds from the sale of such instruments, may be
amortized over the remaining term of such instruments.

For purposes of calculating the Leverage Ratio and Interest Coverage Ratio,
EBITDA shall be calculated, on a pro forma basis, after giving effect to,
without duplication, any permitted Acquisition occurring during the period
commencing on the first day of such period to and including the date of such
Acquisition (the “Reference Period”), as if such Acquisition
occurred on the first day of the Reference Period. In making the
calculation contemplated by the preceding sentence, EBITDA generated or to
be generated by such acquired Person or by such acquired Property shall be
determined in good faith by the Borrower based on reasonable assumptions and
may take into account pro forma expenses that would have been incurred by
the Borrower and its Subsidiaries in the operation of such acquired Person
or acquired Property, during such period computed on the basis of personnel
expenses for employees retained or to be retained by the Borrower and its
Subsidiaries in the operation of such acquired Person or acquired Property
and non-personnel costs and expenses incurred by the Borrower and its
Subsidiaries in the operation of the Borrower’s and its Subsidiaries’
business at similarly situated facilities of the Borrower or any of its
Subsidiaries; provided, however, that such pro forma
calculations shall be reasonably acceptable to the Administrative Agent if
the Borrower does not provide the Administrative Agent with an Approved
Consultant’s Report supporting such pro forma calculations.

For purposes of calculating the Leverage Ratio and the Interest Coverage
Ratio, EBITDA shall be calculated by deducting, to the extent previously
included in the calculation for any relevant period, EBITDA attributable to
a particular asset subject to an Asset Disposition prepayment required by

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 3

 

Section 2.04(b)(ii) after giving effect to such Asset Disposition occurring
during the period commencing on the first day of such period to and
including the date of such Asset Disposition (the “Asset Disposition
Reference Period”), as if such Asset Disposition occurred on the first
day of the Asset Disposition Reference Period.

Notwithstanding any provision of this Agreement which may otherwise be to
the contrary, if any lease pursuant to the Eunice Lease Documents is treated
under GAAP as a Capital Lease, then, for all computations of EBITDA
hereunder, such lease shall be treated as an operating lease and Net Income,
Interest Expense, taxes, depreciation, amortization and other noncash items,
for all purposes of determining EBITDA under this Agreement for any period,
shall be adjusted as though such lease was accounted for as an operating
lease.

     “Eurodollar Rate” means, for any Interest Period with respect
to a Eurodollar Rate Advance, the rate per annum equal to the British
Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA
LIBOR as designated by the Administrative Agent from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on
the first day of such Interest Period) with a term equivalent to such
Interest Period. If such rate is not available at such time for any reason,
then the “Eurodollar Rate” for such Interest Period shall be the rate per
annum determined by the Administrative Agent to be the rate at which
deposits in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the Eurodollar Rate Advance
being made, continued or converted by Bank of America, N.A. and with a term
equivalent to such Interest Period would be offered by Bank of America’s
London Branch to major banks in the London interbank eurodollar market at
their request at approximately 11:00 a.m. (London time) two Business Days
prior to the commencement of such Interest Period.

Notwithstanding anything to the contrary contained herein, the Eurodollar
Rate shall not be less than 2.75% per annum at any time.

     “Interest Charge Coverage Ratio” means, for the Borrower and
its Subsidiaries on a Consolidated basis, as of the end of any fiscal
quarter, the ratio of (a) EBITDA for the four-fiscal quarter period then
ended to (b) Cash Interest Expenses for the four-fiscal quarter period then
ended.

     “Interest Expense” means, for the Borrower and its Subsidiaries
determined on a Consolidated basis, for any period, the total interest,
letter
of credit fees, and other fees incurred in connection with any Debt for
such period (excluding all Costs of Amendments), whether paid or accrued,

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 4

 

including, without limitation, all commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers’ acceptance
financing, all as determined in conformity with GAAP. For purposes of
calculating the Interest Charge Coverage Ratio, Interest Expense shall be
calculated by deducting, to the extent previously included in the
calculation for any relevant period, the amount of interest incurred by the
Borrower in connection with (a) Advances that have been prepaid pursuant to
Section 2.04(b)(ii) and (b) the principal amount of Notes that have been
prepaid pursuant to paragraph 4A(ii)(a) of the Note Agreement, in both
instances, during the period commencing on the first day of such period to
and including the date of such prepayment.

     “Leverage Ratio” means, for the Borrower and its Subsidiaries
on a Consolidated basis, as of the end of any fiscal quarter, the ratio of
(a) Funded Debt for the Borrower and its Subsidiaries on a Consolidated
basis as of the end of such fiscal quarter to (b) EBITDA for the four fiscal
quarters then ended, provided, however, the outstanding
principal amount of the PIK Notes and the incurrence of any obligation to
pay the Leverage Fee and the Noteholder Leverage Fee shall not be included
in the definition of Funded Debt for the calculation of the Leverage Ratio.

     “Material Subsidiary” shall mean a Subsidiary of the Borrower
having: either (a) 1% or more of EBITDA for the four fiscal quarter period
ending as of the most recent fiscal quarter for which the Borrower has
delivered Financial Statements pursuant to Section 5.01(c) or (d); or (b) 1%
of the book value of the Consolidated assets of the Borrower and its
Subsidiaries as of the end of the most recent fiscal quarter for which the
Borrower has delivered Financial Statements pursuant to Section 5.01(c) or
(d); provided, however, to the extent that executing a
Guaranty would result in adverse tax consequences with respect to any
non-operating Subsidiary existing prior to the Sixth Amendment Effective
Date (as reasonably determined by the Borrower), such non-operating
Subsidiary shall not be considered a “Material Subsidiary” unless such
non-operating Subsidiary has (i) 5% or more of EBITDA for the four fiscal
quarter period ending as of the most recent fiscal quarter for which the
Borrower has delivered Financial Statements pursuant to Section 5.01(c) or
(d) or (ii) 5% of the book value of the Consolidated assets of the Borrower
and its Subsidiaries as of the end of the most recent fiscal quarter for
which the Borrower has delivered Financial Statements pursuant to Section
5.01(c) or (d).

     “Obligations” shall mean all present and future indebtedness,
liabilities and obligations of any kind and nature whatsoever of the
Borrower or any Subsidiary, including, without limitation, default interest,
interest accruing at the then applicable rate provided in this Agreement
after the maturity of the loans and interest accruing at the then
applicable rate provided in this Agreement after the filing of any petition
in

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 5

 

bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower or any Subsidiary, whether or not a
claim for post-filing or post-petition interest is allowed in such
proceeding), whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, that arise under, out of,
or in connection with, the Credit Agreement or any other Credit Document,
any promissory notes given under the Credit Agreement or any other document
made, delivered or given in connection therewith, whether on account of
principal (including amounts of cash required to be deposited, pursuant to
the Credit Documents, with the Administrative Agent or any Bank on account
of drawn or undrawn letters of credit), interest, premium, fees,
indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the Administrative Agent and the
Banks that are required to be paid by the Debtor Parties pursuant to the
terms of the Credit Documents or this Agreement).

     “Recovery Event” means any settlement of or payment in respect
of any property or casualty insurance claim (excluding any claim in respect
of business interruption) or any condemnation proceeding relating to any
asset of the Borrower or any of its Subsidiaries, in which the subject
property either (a) generates EBITDA greater than or equal to 1% of EBITDA
for the four fiscal quarter period ending as of the most recent fiscal
quarter for which the Borrower has delivered Financial Statements pursuant
to Section 5.01(c) or (d) or (b) has an aggregate book value greater than 1%
of the book value of the consolidated assets of the Borrower and its
Subsidiaries as of the end of the most recent fiscal quarter for which the
Borrower has delivered Financial Statements pursuant to Section 5.01(c) or
(d).

     “Reference Rate” means for any day a fluctuating rate per annum
equal to the highest of the following, in each case, to the extent
determinable by the Administrative Agent: (a) the Federal Funds Rate plus 1/2
of 1%, (b) the Eurodollar Rate with respect to Interest Periods of one month
determined as of approximately 11:00 a.m. (London time) on such day,
provided however, if such Eurodollar Rate is less than 2.75%, such rate
shall be 2.75%, plus 1.00% and (c) the rate of interest in effect for such
day as publicly announced from time to time by Bank of America as its “prime
rate.” The “prime rate” is a rate set by Bank of America based upon various
factors including Bank of America’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Bank of America shall take
effect at the opening of business on the day specified in the public
announcement of such change.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 6

 

     “Reinvestment Event” means any Recovery Event in respect of
which a Reinvestment Notice has been delivered.

     “Reinvestment Notice” means a written notice executed by a
Responsible Officer stating that no Event of Default has occurred and is
continuing and that the Borrower (directly or indirectly through a
Subsidiary) intends and expects to use all or a specified portion of the Net
Cash Proceeds of a Recovery Event to acquire assets useful in its business
and/or to repair Property, as applicable.

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

     “Arkoma Sale” means the transactions contemplated by that
certain Asset Purchase Agreement dated as of February 9, 2009, among
Producers Gas Gathering, JV, Crosstex Arkoma, LLC, and Crosstex Energy
Services, L.P.

     “Capital Assets” means, with respect to any Person, all
equipment, fixed assets and real Property or improvements of such Person, or
replacements or substitutions therefor or additions thereto, that, in
accordance with GAAP, have been or should be reflected as additions to
property, plant or equipment on the balance sheet of such Person.

     “Capital Expenditures” means, with respect to any Person for
any period, any expenditure in respect of the purchase or other acquisition
of any Capital Asset (excluding normal replacements and maintenance which
are properly charged to current operations). For purposes of this
definition, the purchase price (or, if such Capital Asset has already been
purchased, the fair market value) of any Capital Asset that is traded in,
swapped or exchanged for any existing Capital Asset or with insurance
proceeds shall be included in Capital Expenditures only to the extent of the
gross amount by which such purchase price exceeds the credit granted by the
seller of such Capital Asset for the Capital Asset being traded in at such
time or the amount of such insurance proceeds, as the case may be.

     “Cash Interest Expense” means, for the Borrower and its
Subsidiaries determined on a Consolidated basis, for any period, Interest
Expense for such period, less, to the extent included in the calculation of
Interest Expense, the sum of (a) the principal amount of the PIK Notes (to
the extent attributable to interest for such period) and interest on the PIK
Notes, (b) amortization of debt issuance costs, debt discount or premium and
other financing fees and expenses incurred by the Borrower or any of its
Subsidiaries, and (c) the incurrence of any obligation to pay the Leverage
Fee and the Noteholder Leverage Fee.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 7

 

     “Cash Management Accounts” has the meaning specified in Section
5.20(a).

     “Cash Management Agreement” means any agreement to provide cash
management services, including treasury, depository, overdraft, credit or
debit card, electronic funds transfer and other cash management
arrangements.

     “Cash Management Bank” means any Person that, at the time it
enters into a Cash Management Agreement is a Bank or an Affiliate of a Bank
and is or becomes a party to the Intercreditor Agreement, in its capacity,
as a party to such Cash Management Agreement; provided,
however, that if such Person ceases to be a Bank or an Affiliate of
a Bank, such Person shall no longer be a “Cash Management Bank”.

     “Costs of Amendments” means all upfront, consent, legal,
professional and advisory fees paid by the Borrower (whether or not incurred
by the Borrower) in connection with the negotiation and execution, delivery
and performance of the Borrower’s obligations under (a) each amendment to
this Agreement executed on or prior to the Sixth Amendment Effective Date,
among the Borrower, the Banks party thereto, and the Administrative Agent
and (b) each amendment to the Note Agreement executed on or prior to the
Sixth Amendment Effective Date, among the Borrower, the Guarantors and the
holders of the Note Obligations party thereto.

     “ECF Capital Expenditures” means, for any period, without
duplication, the sum of all expenditures made by the Borrower and its
Subsidiaries during such period for Capital Assets, but excluding (a) any
such expenditures financed with Excess Proceeds and (b) expenditures made
with amounts paid to the Borrower and its Subsidiaries by third parties
aiding in construction for such Capital Assets. For the sake of clarity,
amounts paid to the Borrower and its Subsidiaries by third parties aiding in
construction for Capital Assets that have not been expended in construction
for such Capital Assets shall not be included in the calculation of ECF
Capital Expenditures.

     “Excess Cash Flow” means, for any fiscal year of the Borrower,
the excess (if any) of (a) EBITDA for such fiscal year (without giving
effect to any pro forma adjustments made to EBITDA as a result of
Acquisitions or Asset Dispositions) over (b) the sum (for such fiscal year),
without duplication, of (i) Cash Interest Expense, (ii) scheduled principal
repayments on the Note Obligations and scheduled principal repayments and
amortization of Debt permitted by Section 6.02(f), to the extent actually
made, (iii) all taxes actually paid in cash by the Borrower and its
Subsidiaries during such fiscal year (excluding items included in this
calculation during the prior year as a reserve) or that will be paid within

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 8

 

six months after the end of such fiscal year and for which reserves
have been established, (iv) all prepayments of Debt made by the Borrower
pursuant to Section 2.03 in amounts equal to the corresponding Commitment
reductions in connection with such prepayments, (v) ECF Capital Expenditures
actually made by the Borrower and its Subsidiaries as permitted hereunder,
but excluding any such ECF Capital Expenditures made in such fiscal year
where a certificate in the form contemplated by the following clause, (vi)
was previously delivered, and (vi) ECF Capital Expenditures that the
Borrower or any of its Subsidiaries shall, during such fiscal year, become
obligated to make but that are not made during such fiscal year, provided
that the Borrower shall deliver a certificate to the Administrative Agent
not later than 90 days after the end of such fiscal year, signed by a
Responsible Officer and certifying that such ECF Capital Expenditures were
made during such 90-day period and were not financed with Excess Proceeds.

     “Excess Proceeds” shall mean the Net Cash Proceeds and Equity
Issuance Proceeds (as applicable) that are not required to be applied as
prepayments of (a) Advances under Section 2.04(b)(iii) and (iv) or (b) the
Note Obligations under the Note Agreement.

     “Hydrocarbon Cash Collateral” means the amount of cash and
Permitted Investments pledged and deposited with or delivered to a Person by
the Borrower or any Subsidiary as collateral for obligations of the Borrower
or any Subsidiary under any Hydrocarbon Hedge Agreements.

     “Leverage Fee” has the meaning specified in Section
2.04(b)(vii).

     “Maximum Cash Balance” has the meaning specified in Section
5.20(b).

     “Minimum Quarterly Distributions” shall have the meaning set
forth in Section 1.1 of the Borrower Partnership Agreement.

     “Newly Acquired Real Property Report” has the meaning specified
in Section 5.01(n).

     “Noteholder Leverage Fee means “Leverage Fee” as defined in the
Note Agreement.

     “PIK Notes” means “PIK Notes” as defined in the Note Agreement.

     “Sixth
Amendment Effective Date” means February 27, 2009.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 9

 

     (c) Section 1.01 of the Credit Agreement is hereby amended by deleting the following
defined terms:

     “Acquisition Adjustment Period”

     “Scheduled Completion Date”

     “Senior Leverage Ratio”

     (d) Section 2.03(c) of the Credit Agreement is hereby added in its entirety to read as
follows:

     (c) The aggregate Commitments shall be permanently reduced on the dates
and in the amounts set forth on the grid below:

	 	 	 	 	 
	Effective Date of	 	Amount of	 
	Permanent Reduction	 	Permanent Reduction	 
	of Commitment	 	of Commitment	 
	March 1, 2009
	 	$	1,764,706	 
	April 1, 2009
	 	$	588,235	 
	June 1, 2009
	 	$	1,764,706	 
	July 1, 2009
	 	$	588,235	 
	September 1, 2009
	 	$	1,764,706	 
	October 1, 2009
	 	$	588,235	 
	December 1, 2009
	 	$	1,764,706	 
	January 1, 2010
	 	$	588,235	 
	March 1, 2010
	 	$	1,764,706	 
	April 1, 2010
	 	$	588,235	 
	June 1, 2010
	 	$	1,764,706	 
	June 18, 2010
	 	$	15,000,000	 
	July 1, 2010
	 	$	588,235	 
	June 18, 2011
	 	$	15,000,000	 
	 
	 	 	 
	Total
	 	$	44,117,646	 
	 
	 	 	 

     (e) Section 2.04(b) of the Credit Agreement is hereby restated in its entirety as
follows:

     (b) Mandatory.

     (i) Reduction of Commitments. On the date of each
reduction of the aggregate Commitments pursuant to Section 2.03 or
if for any reason the outstanding amount of Advances plus the Letter
of Credit Exposure exceeds the aggregate Commitments then in effect,
the Borrower agrees to make a prepayment in respect of the
outstanding amount of the Advances and/or Cash Collateralize the
Letter of Credit Obligations to the extent, if any,

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 10

 

that the aggregate unpaid principal amount of all Advances plus
the Letter of Credit Exposure exceeds the aggregate Commitments.

     (ii) Asset Disposition. Upon the occurrence of any
Asset Disposition or any Recovery Event (except (A) to the extent
that a Reinvestment Notice shall be delivered in respect of such
Recovery Event or (B) with respect to cash receipts in the ordinary
course of business of the applicable recipient), then on the date of
receipt by the Borrower or the applicable Subsidiary of the Net Cash
Proceeds related thereto, the Advances shall immediately be prepaid
by an amount equal to the amount of such Net Cash Proceeds (except
to the extent such Net Cash Proceeds are otherwise required by the
Note Agreement to be applied to the ratable prepayment of the Note
Obligations); provided, that, notwithstanding the foregoing,
on each Reinvestment Prepayment Date the Advances shall be prepaid
by an amount equal to the Reinvestment Prepayment Amount with
respect to the relevant Reinvestment Event (except to the extent
such Reinvestment Prepayment Amount is otherwise required by the
Note Agreement to be applied to the ratable prepayment of the Note
Obligations). For purposes of calculating the Net Cash Proceeds
received from an Asset Disposition or from a Recovery Event, such
proceeds shall be determined as of the date of the applicable Asset
Disposition or Recovery Event, whether or not received on such date,
but no such amount shall be required to be applied to prepayment of
the Advances pursuant to this Section until received by the
applicable Person. The provisions of this Section do not constitute
consent to the consummation of any Asset Disposition not permitted
by Section 6.04. To the extent that the Borrower or applicable
Subsidiary receives proceeds from any Recovery Event in excess of
$10,000,000, such proceeds shall be maintained by the Collateral
Agent as Cash Collateral for the Obligations and the Noteholder
Obligations (in substantially the manner set forth in Section
2.13(g), with such funds being promptly released to the Borrower as
funds are needed for reinvestment as a result of such Recovery
Event) until a Reinvestment Prepayment Date has occurred.

     (iii) Debt Issuance. If any Debt for borrowed money
shall be issued or incurred by the Borrower or any of its
Subsidiaries (excluding any Debt incurred in accordance with Section
6.02(a), (b), (c), (d), (e), (f), (h), and (j)), then on the date of
such issuance or incurrence, the Advances shall be prepaid by an
amount equal to the amount of the Net Cash Proceeds of such issuance
or incurrence, except to the extent that such Net Cash Proceeds are
otherwise required by the Note Agreement to be applied to the
ratable prepayment of the Note Obligations. The

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 11

 

provisions of this Section do not constitute consent to the
issuance or incurrence of any Debt by the Borrower or any of its
Subsidiaries not otherwise permitted hereunder.

     (iv) Equity Issuance. If the Borrower or any
Subsidiary issues any Equity Interests, then Equity Issuance
Proceeds received by the Borrower or any of its Subsidiaries shall
be immediately applied to prepay the Advances on the date such
Equity Issuance Proceeds are received provided,
however, the Borrower shall not nor will it permit any
Subsidiary to issue any Equity Interest if a Default shall be
existing immediately after giving effect thereto or would result
therefrom.

     (v) Accrued Interest. Each prepayment under this
Section 2.04(b) shall be accompanied by accrued interest on the
amount prepaid to the date of such prepayment and amounts, if any,
required to be paid pursuant to Section 2.10 as a result of such
prepayment.

     (vi) Permanent Commitment Reduction. At 5:00 pm on the
date any mandatory prepayment under Section 2.04(b)(ii) (as a result
of an Asset Disposition), 2.04(b)(iii), 2.04(b)(iv) or 2.04(b)(viii)
becomes due and owing, the aggregate Commitments shall be
automatically and permanently reduced by the applicable amount set
forth in the grid below. Notwithstanding anything to the contrary
contained herein, no reductions in the aggregate Commitments shall
affect the availability or maximum amount of Letters of Credit in
Section 2.13.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Asset Dispositions and	 	 	 	 
	 	 	Excess Cash Flow	 	Debt	 	Equity
	Leverage Ratio
(giving pro forma
effect to such
transaction and the
use of proceeds
thereof for each
proportional level
of Leverage Ratio)

	 	Permanent Commitment
reduction equals
product of (x) amount
of Advances required
to be prepaid under
Section 2.04(b)(ii)
and (viii) (as
applicable) and (y)
the applicable
percentage set forth
below
	 	Permanent
Commitment
reduction equals
(x) product of the
applicable
percentage set
forth below and the
Net Cash Proceeds
of the Debt
issuance minus (y)
amount of Note
Obligations prepaid
under paragraph
4A(ii)(c) of the
Note Agreement
	 	Permanent
Commitment
reduction equals
(x) product of the
applicable
percentage set
forth below and the
amount of Advances
required to be
prepaid under
Section 2.04(b)(iv)
minus (y) amount of
Note Obligations
prepaid under
paragraph 4A(ii)(d)
of the Note
Agreement

	≥4.50

	 	 	100	%	 	 	100	%	 	 	50	%
	≥3.50 and < 4.50

	 	 	100	%	 	 	50	%	 	 	25	%
	< 3.50

	 	 	100	%	 	 	0	%	 	 	0	%

     (vii) Leverage Fee. The Borrower shall either make
prepayments under this Agreement resulting in corresponding

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 12

 

Commitment reductions in accordance with Section 2.03(a) or
2.04(b)(vi) (other than as a result of Section 2.04(b)(viii)), as
applicable, and the Note Obligations under the Note Agreement (not
including any Yield-Maintenance Amounts as defined therein) in at
least the cumulative amounts and on or before the dates set forth on
the grid below or incur a leverage fee equal to the product of
aggregate Commitments in effect on the date set forth on the grid
below and the applicable percentage set forth on the grid below
(collectively, the “Leverage Fee”). In the event that any
voluntary prepayment is made pursuant to Section 2.04(a) in
satisfaction of this Section 2.04(b)(vii), then the Borrower shall
also permanently reduce the aggregate Commitments under Section
2.03(a) in an amount equal to such voluntary prepayment.
Notwithstanding anything to the contrary contained herein, payments
made and corresponding Commitment reductions related thereto under
Section 2.03(c) and 2.04(b)(viii) or the payment of scheduled
amortization of the Note Obligations shall not be included to
determine Borrower’s compliance with this Section 2.04(b)(vii).
Such Leverage Fee shall be fully earned on the date indicated but
shall be due and payable on the earlier of (a) Termination Date or
(b) the Obligations are refinanced, whether by amendment and
restatement or otherwise.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Leverage Fee Payable
	 	 	Cumulative Prepayments	 	Under this Agreement
	 	 	Under this Agreement and	 	(based on the aggregate
	Period Ending	 	Note Agreement	 	Commitments)
	September 30, 2009
	 	$	100,000,000	 	 	 	1.00	%
	December 31, 2009
	 	$	200,000,000	 	 	 	1.00	%
	March 31, 2010
	 	$	300,000,000	 	 	 	2.00	%

     To the extent that a consent from the Banks is necessary in
order to permit a certain Asset Disposition for which the Net Cash
Proceeds are to be included in the calculation of cumulative
prepayments required hereunder, the Banks shall not charge a fee
provided, however, such agreement not to charge a
consent fee shall be limited to specific consents for which the sole
purpose is to permit such Asset Disposition.

     (viii) Excess Cash Flow. Within 90 days after the end
of each of the fiscal years of the Borrower ending on December 31,
2009 and December 31, 2010, the Borrower shall prepay an amount
initially equal to (A) if the Leverage Ratio is greater than or
equal to 4.50 to 1.00, 75% of the Excess Cash Flow at such fiscal
year end or (B) if the Leverage Ratio is less than 4.50 to 1.00, 50%
of the Excess Cash Flow at such fiscal year end.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 13

 

Each such prepayment shall be applied first to the
Advances (except to the extent that such amount of Excess Cash Flow
are otherwise required by the Note Agreement to be applied to the
ratable prepayment of the Note Obligations) and second to
Cash Collateralize all outstanding Letters of Credit. Any amount
remaining after the prepayment of the Advances, the Note
Obligations, and to Cash Collateralize Letters of Credit in
accordance with the terms herein and the Note Agreement may be
retained by the Borrower for use in the ordinary course of its
business. Upon the drawing of any Letter of Credit that has been
Cash Collateralized, the funds held as Cash Collateral shall be
applied (without any further action by or notice to or from the
Borrower or any Subsidiary) to reimburse the Issuing Bank or the
Banks, as applicable.

     (f) Section 2.08(e) is hereby added to the Credit Agreement to read in its entirety as
follows:

     (e) If, as a result of any restatement of or other adjustment to the
financial statements of the Borrower, the Borrower or the Majority Banks
determine in good faith that (i) the Leverage Ratio as calculated by the
Borrower as of any applicable date was inaccurate and (ii) a proper
calculation of the Leverage Ratio would have resulted in higher pricing for
such period, the Borrower shall immediately and retroactively be obligated
to pay to the Administrative Agent for the account of the applicable Banks,
promptly on demand by the Administrative Agent (or, after the occurrence of
an actual or deemed entry of an order for relief with respect to the
Borrower under the Bankruptcy Code of the United States, automatically and
without further action by the Administrative Agent or any Bank), an amount
equal to the excess of the amount of interest and fees that should have been
paid for such period over the amount of interest and fees actually paid for
such period. This paragraph shall not limit the rights of the
Administrative Agent or any Bank under any other provision of this
Agreement. The Borrower’s obligations under this paragraph shall survive
the termination of the aggregate Commitments and the repayment of all other
Obligations hereunder.

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

     (A) unless such issuance, increase, or extension would not cause the
Letter of Credit Exposure to exceed the lesser of (i) $300,000,000 minus the
aggregate amount of all then existing Hydrocarbon Cash Collateral and (ii)
the aggregate Commitments less the aggregate outstanding principal amount of
all Advances;

     (h) Section 2.15 of the Credit Agreement is hereby deleted in its entirety.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 14

 

 

     (i) The penultimate sentence in Section 4.05 of the Credit Agreement is hereby restated
in its entirety as follows:

     Since September 30, 2008, no Material Adverse Effect has occurred.

     (j) Section 3.02(a) of the Credit Agreement is hereby amended to delete the “and” at
the end thereof.

     (k) Section 3.02(b) of the Credit Agreement is hereby amended to delete the “.” at the
end thereof and replace it with “; and”.

     (l) Section 3.02(c) of the Credit Agreement is hereby added to read in its entirety as
follows:

     (c) after giving effect to the receipt of the proceeds of the requested
Borrowing and the anticipated cash receipts and cash uses of the Borrower
and its Subsidiaries on the date of the applicable Borrowing and the next
Business Day, the aggregate balances in the Cash Management Accounts on such
next Business Day shall not be in excess of $25,000,000.

     (m) The introductory language of Section 5.01 of the Credit Agreement is hereby
restated in its entirety as follows:

     Section 5.01. Reporting Requirements. The Borrower will
furnish to the Administrative Agent:

     (n) Section 5.01(b) of the Credit Agreement is hereby restated in its entirety as
follows:

     (b) Monthly Financials. As soon as available and in any event
within 35 days after the end of each month of each calendar year, commencing
with the month ending February 28, 2009, an unaudited Consolidated balance
sheet of the Borrower and its Subsidiaries as of the end of such month and
unaudited Consolidated statements of operations, changes in partners’
capital and cash flows of the Borrower and its Subsidiaries for the period
commencing at the end of the preceding fiscal year and ending with the end
of such month, setting forth in each case in comparative form the
corresponding figures for the corresponding period of the preceding fiscal
year and the actual to budgeted performance, all in reasonable detail and
duly certified (subject to normal year-end audit adjustments and the absence
of footnotes) by the chief financial officer, chief accounting officer or
Vice President — Finance of the Ultimate General Partner as having been
prepared in accordance with GAAP, together with a certificate of said
officer stating that no Default has
occurred and is continuing or, if a Default has occurred and is
continuing, a statement as to the nature thereof and the action that the
Borrower proposes to take with respect thereto.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 15

 

 

     (o) Section 5.01(l) of the Credit Agreement is hereby amended to delete the “and” at
the end thereof.

     (p) Section 5.01(m) of the Credit Agreement is hereby amended to delete the “.” at the
end thereof and replace it with “;”.

     (q) Section 5.01(n) of the Credit Agreement is hereby added to read in its entirety as
follows:

     (n) Interests in Real Property. As soon as available, but in
any event within 60 days after the end of each fiscal quarter of each fiscal
year of the Borrower, commencing with the fiscal quarter ending March 31,
2009, a summary of substantially all new real property interests (including
owned and leased properties, easements and other property interests)
acquired and recorded by the Borrower or any Subsidiary (“Newly Acquired
Real Property Report”) during the preceding fiscal quarter;

     (r) Section 5.01(o) of the Credit Agreement is hereby added to read in its entirety as
follows:

     (o) Capital Expenditures. As soon as available, but in any
event within 45 days after the end of each fiscal quarter of each fiscal
year of the Borrower, commencing with the fiscal quarter ending March 31,
2009, a report detailing Capital Expenditures (i) actually made during such
fiscal year of the Borrower compared to the budgeted amount therefor and
(ii) projected for the remainder of such fiscal year;

     (s) Section 5.01(p) of the Credit Agreement is hereby added to read in its entirety as
follows:

     (p) Annual Budget. As soon as available, but in any event
within 60 days after the end of each fiscal year of the Borrower, an annual
business plan and budget of the Borrower and its Subsidiaries on a
Consolidated basis, prepared on a basis consistent with past practices,
including forecasts prepared by management of the Borrower, in form
reasonably satisfactory to the Administrative Agent;

     (t) Section 5.01(q) of the Credit Agreement is hereby added to read in its entirety as
follows:

     (q) 13 Week Cash Flow Budget and Monthly Operating Report. As
soon as available, but in any event within 35 days after the end of each
calendar month, (i) a rolling 13-week cash flow budget in form mutually
satisfactory to the Administrative Agent and the Borrower,
including forecasts of receipts and disbursements prepared by
management of the Borrower and a comparison of actual to budgeted
performance and (ii) a report of key operating metrics in form mutually
satisfactory to the Administrative Agent and the Borrower; and

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 16

 

 

     (u) Section 5.01(r) of the Credit Agreement is hereby added to read in its entirety as
follows:

     (r) Post-Closing Report. Within 90 days after the Sixth Amendment
Effective Date, a report on the progress of completing the post-closing requirements
set forth in Section 5.21.

     (v) Section 5.01 of the Credit Agreement is hereby amended by deleting the last
paragraph thereof in its entirety.

     (w) Section 5.13 of the Credit Agreement is hereby restated in its entirety as follows:

     Section 5.13. Use of Proceeds. The proceeds of Advances will
be used by the Borrower (a) to refinance existing Debt to the extent not
prohibited hereunder, (b) for Capital Expenditures to the extent permitted
by Section 6.12, (c) for working capital, including the issuance of Letters
of Credit, (d) to fund Minimum Quarterly Distributions and Quarterly
Distributions to the extent permitted by Section 6.06, (e) to pay fees,
costs and expenses owed pursuant to this Agreement, (f) as Hydrocarbon Cash
Collateral; provided, however, Hydrocarbon Cash Collateral
shall not (i) be provided to any Person other than to secure or support
trading on the New York Mercantile Exchange and (ii) exceed $50,000,000 at
any time outstanding and (g) for other general partnership purposes. The
Borrower is not engaged in the business of extending credit for the purpose
of purchasing or carrying margin stock (within the meaning of Regulation U).
No proceeds of the Borrowings will be used to purchase or carry any margin
stock in violation of Regulations T, U or X.

     (x) Section 5.17 of the Credit Agreement is hereby added in its entirety to read as
follows as follows:

     Section 5.17. Newly Acquired Real Property. Within 90 days (or
such longer period as permitted by the Collateral Agent in its sole
discretion) after each Newly Acquired Real Property Report is due but in any
event within 180 days after each Newly Acquired Real Property Report is due,
the Collateral Agent shall have received deeds of trust, trust deeds, deeds
to secure debt, mortgages, leasehold mortgages and leasehold deeds of trust,
in form reasonably satisfactory to the Collateral Agent and its counsel,
covering all real property interests owned by the Borrower and each
Guarantor as reflected on the Newly Acquired Real Property Report (other
than any such real property that the Collateral Agent and Majority
Banks determine a perfected Lien is unnecessary due to the cost in
relation to the benefit; provided, however, that such
determination by the Majority Bank(s) shall not be required so long as the
aggregate amount of the cost of all real property with respect to which the
Collateral Agent has

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 17

 

 

determined under this Section 5.17 a lien is
unnecessary does not exceed $5,000,000), duly executed by the Borrower or
such Subsidiary.

     (y) Section 5.18 of the Credit Agreement is hereby added in its entirety to read as
follows:

     Section 5.18. Quarterly Update Calls. The Borrower shall have
a periodic update call with the Administrative Agent and the Banks within 45
days after the last Business Day of each fiscal quarter of the Borrower (or
at another time reasonably requested by the Administrative Agent) to discuss
matters reasonably requested by the Administrative Agent and the Banks
including but not limited to progress updates on the Borrower’s strategic
alternatives.

     (z) Section 5.20 of the Credit Agreement is hereby added in its entirety to read as
follows:

     Section 5.20. Deposit Accounts, Disbursement Accounts and Other
Cash Management Accounts. (a) The Borrower shall and cause its
Subsidiaries to maintain its deposit accounts, disbursement accounts and
other cash management accounts (collectively, the “Cash Management
Accounts”) with a Bank or an Affiliate of a Bank, provided,
however, to the extent that a Cash Management Account is with a Bank
or an Affiliate of a Bank that ceases to be a party to the Credit Documents,
the Borrower shall cause such account to be transferred to another Bank or
closed within 30 days.

     (b) The Borrower and its Subsidiaries shall not maintain cash balances
for longer than 5 consecutive Business Days in excess of $25,000,000 in the
aggregate in their Cash Management Accounts (the “Maximum Cash
Balance”). Any amounts in excess of the Maximum Cash Balance after 5
consecutive Business Days shall be immediately paid by the Borrower to the
Advances (without a corresponding Commitment reduction).

     (aa) Section 5.21 of the Credit Agreement is hereby added in its entirety to read as
follows:

     Section 5.21. Post-Closing Covenants for Sixth Amendment.

     (a) Within 90 days (or such longer period as permitted by the
Collateral Agent in its sole discretion) after the Sixth Amendment Effective
Date, but in any event within 180 days after the Sixth
Amendment Effective Date, the Borrower shall deliver to the Collateral
Agent the following:

     (i) deeds of trust, trust deeds, deeds to secure debt, mortgages,
leasehold mortgages and leasehold deeds of trust, in form reasonably

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 18

 

 

satisfactory to the Collateral Agent and its counsel, and covering all
unencumbered property interests held by the Borrower and each Guarantor as
reflected on the Perfection Certificate (other than any such real property
that the Collateral Agent and Majority Banks determine a perfected Lien is
unnecessary due to the cost in relation to the benefit; provided,
however, that such determination by the Majority Bank(s) shall not
be required so long as the aggregate amount of the cost of all real property
with respect to which the Collateral Agent has determined under this
Section 5.21(a)(i) a lien is unnecessary does not exceed
$10,000,000), duly executed by the Borrower or such Guarantor;

     (ii) account control agreements in form reasonably satisfactory to the
Collateral Agent and duly executed by the appropriate parties with respect
to each deposit account and each securities account of the Borrower and each
Subsidiary that is not already the subject to an account control agreement
in favor of the Collateral Agent; and

     (iii) evidence that all insurance required to be maintained pursuant to
the Credit Documents has been obtained and is in effect, together with the
certificates of insurance, naming the Collateral Agent, on behalf of the
Banks, as an additional insured or loss payee, as the case may be, under all
insurance policies maintained with respect to the assets and properties of
the Borrower and its Subsidiaries that constitute Collateral.

     (b) Within 45 days after the Sixth Amendment Effective Date, the
Borrower shall deliver to the Collateral Agent, a complete and duly executed
updated Perfection Certificate in form and substance reasonably satisfactory
to counsel to the Administrative Agent.

     (bb) Sections 6.01 through 6.04 of the Credit Agreement are hereby restated in their
entirety as follows:

     Section 6.01. Liens, Etc. The Borrower will not create, incur,
assume or suffer to exist, or permit any Subsidiary to create, incur, assume
or suffer to exist, any Lien, or enter into any agreement with any other
Person not to create any Lien, on or with respect to any of its properties
of any character (including accounts receivable) whether now owned or
hereafter acquired, or sign or file, or permit any Subsidiary to sign or
file, under the Uniform Commercial Code of any jurisdiction, a financing
statement that names the Borrower or any Subsidiary as debtor (except in
connection with true leases), or sign, or permit any Subsidiary to sign, any
security agreement authorizing any secured party thereunder to file such a
financing statement (except in connection with true leases), excluding,
however, from the operation of the foregoing restrictions the following:

     (a) Liens created by the Security Documents;

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 19

 

 

     (b) Permitted Liens;

     (c) Liens securing obligations of such Person as lessee under Capital
Leases permitted by Section 6.02(f);

     (d) purchase-money Liens on property acquired or held by the Borrower
or any Subsidiary in the ordinary course of business, to secure the purchase
price of such property or to secure Debt incurred solely for the purpose of
financing the acquisition of such property to be subject to such Liens, or
Liens existing on any such property at the time of acquisition thereof (or
at the time the Borrower acquires the Subsidiary owning such property), or
renewals or refinancings of any of the foregoing Liens for the same or a
lesser amount; provided, however, that (i) no such Lien may
extend to or cover any property other than the property being acquired and
improvements and accessions thereto and proceeds thereof, (ii) no such
renewal or refinancing may extend to or cover any property not previously
subject to the Lien being renewed or refinanced, (iii) the Debt secured
thereby does not exceed the cost or fair market value, whichever is lower,
of the property being acquired on the date of acquisition and (iv) the
aggregate principal amount of Debt at any time outstanding secured by such
Liens may not exceed the amount permitted by paragraph 6.02(f);

     (e) the negative pledge contained in the Note Agreement and the
negative pledge contained in any agreement, instrument or document executed
at any time in connection with Debt permitted by Section 6.02(k);
provided, however that any such negative pledge in
connection with Debt permitted by Section 6.02(k) shall not place any
restriction on the creation or existence of any Lien now or hereafter
securing the Obligations or, as a result of the creation or existence of any
Lien securing the Obligations, cause or require the creation of any Lien
securing such Debt;

     (f) options, put and call arrangements, rights of first refusal, setoff
rights and customary limitations and restrictions constituting negative
pledges contained in, and limited to, specific leases, licenses,
conveyances, partnership agreements and co owners’ agreements, and similar
conveyances and agreements to the extent that any such Lien referred to in
this clause does not materially impair the use of the Property covered by
such Lien for the purposes for which such Property is held or materially
impair the value of such Property subject thereto;

     (g) Liens incurred in the ordinary course of business of the Borrower
or any Subsidiary with respect to obligations (other than Debt for borrowed
money) that do not exceed $10,000,000 at any one time outstanding;

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 20

 

 

     (h) licenses or leases or subleases as licensor, lessor or sublessor of
any of its Property, including intellectual property, in the ordinary course
of business;

     (i) Liens represented by the escrow of cash or Permitted Investments
securing the obligations of the Borrower or any Subsidiary under any
agreement to acquire, or pursuant to which it acquired, any Property, which
Liens secure the obligations of the Borrower or such Subsidiary to the
seller of such Property, provided that such acquisition is permitted
pursuant to the terms of this Agreement;

     (j) any Lien permitted by any Mortgage;

     (k) Liens on assets pursuant to merger agreements, stock or asset
purchase agreements and similar agreements in respect of the disposition of
such assets, provided that such merger agreement, stock or asset purchase
agreement or similar agreement in respect of the disposition of such asset
is permitted pursuant to the terms of this Agreement;

     (l) the negative pledge contained in the Promissory Note of Crosstex
Louisiana Energy, L.P. dated April 2, 2004, payable to the order of
Borrower; and

     (m) Liens on any Hydrocarbon Cash Collateral permitted under Section
5.13(f).

     Section 6.02. Debt. The Borrower will not create, incur,
assume or suffer to exist, or permit any Subsidiary to create, incur, assume
or suffer to exist, any Debt other than the following:

     (a) Debt under the Credit Documents;

     (b) Debt existing on the date of this Agreement and described in
Schedule 6.02, including renewals and refinancings of such Debt, so long as
the principal amount thereof is not increased (other than to pay any
associated premiums, fees and expenses);

     (c) Debt under one or more Interest Rate Contract or Hydrocarbon Hedge
Agreement (provided that the parties to this Agreement hereby agree that the
obligations of the Borrower to the Banks in respect of any Interest Rate
Contract or Hydrocarbon Hedge Agreement are secured by the Security
Documents, but only, with respect to each such Bank, if and so long as such
Bank remains a Bank);

     (d) Debt in respect of endorsement of negotiable instruments in the
ordinary course of business;

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 21

 

 

     (e) Debt between the Borrower and any Subsidiary or between
Subsidiaries, provided that (i) such Debt is noted on the books and records
of the Borrower and its Subsidiaries and (ii) in the case of any Debt owed
by the Borrower to any Subsidiary that is not a Guarantor, such Debt is
subordinated to the Obligations of the Borrower under the Credit Documents
on terms and conditions, and pursuant to documentation, in form and
substance satisfactory to the Administrative Agent in its sole reasonable
discretion;

     (f) Debt in respect of Capital Leases and Debt secured by Liens
permitted by Section 6.01(d) not exceeding $70,000,000 in aggregate amount
equivalent to principal at any time outstanding;

     (g) [Intentionally Omitted];

     (h) if any lease pursuant to the Eunice Lease Documents is treated
under GAAP as a Capital Lease, then, any such Debt which may be attributable
to the Eunice Lease Documents;

     (i) unsecured Debt in addition to Debt otherwise permitted herein, not
exceeding $30,000,000 in aggregate principal amount at any time outstanding,
provided that if such Debt is issued or incurred on or after the Sixth
Amendment Effective Date, such Debt has been issued or incurred by the
Borrower or a Subsidiary that is a Guarantor;

     (j) Debt under the Note Agreement in an aggregate principal amount not
to exceed $480,000,000 (not including the amount of any PIK Notes) as such
amount shall be reduced by the scheduled amortization repayments of
principal; and

     (k) unsecured Funded Debt of the Borrower and/or a Finance Entity
and/or any unsecured guaranty by the Borrower or any Guarantor of such
Funded Debt of the Borrower or any Affiliate of the Borrower; provided that
(i) the Borrower is in compliance with Section 6.14 immediately after giving
effect to the incurrence of any such Funded Debt or guaranty determined
based upon the outstanding amount of Funded Debt of the Borrower and its
Subsidiaries on a Consolidated basis immediately after giving effect to such
incurrence, EBITDA for the four fiscal quarters most recently ended on or
before the date of such incurrence and the maximum Leverage Ratio allowed as
of the end of the fiscal quarter most recently ended on or prior to the date
of such incurrence (and in the case of any guaranty of Funded Debt of the
Borrower or any other Affiliate of the Borrower, the aggregate amount of
such Funded Debt so guaranteed shall be “Funded Debt” of the Borrower
for purposes of calculating the Leverage Ratio), (ii) such Funded Debt
does not impose any financial or other “maintenance” covenants on the
Borrower or any of the Subsidiaries that are more onerous than the

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 22

 

 

covenants set forth in this Agreement, (iii) such Funded Debt shall not require any
scheduled payment on account of principal (whether by redemption, purchase,
retirement, defeasance, set-off or otherwise) prior to the Termination Date
and (iv) such Funded Debt shall contain terms and conditions that are
customary for such transactions.

     Section 6.03. Mergers, Acquisitions, Etc. The Borrower will
not merge or consolidate with or into, or sell, lease, transfer or otherwise
dispose of (whether in one transaction or in a series of transactions) all
or substantially all of its Property (whether now owned or hereafter
acquired) to, or enter into any Acquisition, or permit any Subsidiary to do
any of the foregoing, except for the following:

     (a) so long as no Default has occurred and is continuing or would be
caused thereby, the Borrower or any Subsidiary may make any Acquisition
whereby the sole cash compensation paid by the Borrower or any Subsidiary
for such Acquisition is made from Excess Proceeds; provided,
however, that any such Acquisition shall be permitted only if, (i)
before the effectiveness of such Acquisition and to the extent required by
the Majority Banks, the Borrower delivers to the Collateral Agent (A)
guaranties, mortgages, deeds of trust, security agreements, releases, UCC
financing statements and UCC terminations, duly executed by the parties
thereto, in form and substance satisfactory to the Collateral Agent and
accompanied by UCC searches, title investigations and legal opinions (except
with respect to priority) demonstrating that, upon the effectiveness of such
Acquisition and the recording and filing of any necessary documentation, the
Collateral Agent will have an Acceptable Security Interest on the Property
to be acquired and (B) evidence of company authority to enter into and
environmental assessments with respect to such Acquisition; (ii) the
Borrower or such Guarantor is the acquiring or surviving entity; (iii) no
Default or Event of Default exists and the Acquisition would not reasonably
be expected to cause a Default or Event of Default; (iv) after giving effect
to such Acquisition on a pro forma basis, the Borrower would have been in
compliance with all of the covenants contained in this Agreement, including,
without limitation, Sections 6.13 and 6.14 as of the end of the most recent
fiscal quarter, (v) the acquisition target is in the same or similar line of
business as Borrower and its Subsidiaries, and (vi) the terms of Section
6.10 are satisfied;

     (b) so long as no Default has occurred and is continuing or would be
caused thereby, any Subsidiary may sell or otherwise transfer all of its
Property to, or merge into or consolidate with, any other Subsidiary or the
Borrower; provided, however, that any such disposition,
merger or consolidation shall be permitted only if, before the effectiveness
of such
disposition, merger or consolidation and to the extent reasonably
required

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 23

 

 

by the Administrative Agent, the Borrower delivers to the
Collateral Agent documents of the type described in the proviso to clause
(a) above;

     (c) so long as no Default has occurred and is continuing or would be
caused thereby, any Subsidiary of the Borrower may sell or otherwise
transfer all of its Property to, or merge into or consolidate with, any
other Person so long as such transaction is not prohibited by Section 6.04;

     (d) any Subsidiary of the Borrower may dissolve so long as all of its
Property is distributed to the Borrower or a Subsidiary; provided that if
such dissolving Subsidiary is a Guarantor, all of its Property shall be
distributed to the Borrower or another Guarantor;

     (e) the Borrower and its Subsidiaries may acquire Property in the
ordinary course of business;

     (f) the El Paso Acquisition; and

     (g) so long as no Default has occurred and is continuing or would be
caused thereby, the Borrower may merge with or consolidate with any other
Person, provided, however, that such merger or consolidation
shall be permitted only if, (i) the Borrower is the surviving entity of such
merger or consolidation, (ii) no Change of Control results therefrom, (iii)
immediately after giving effect to such merger or consolidation, the
Leverage Ratio and the Interest Charge Coverage Ratio shall not be
negatively impacted, (iv) the Collateral Agent will have an Acceptable
Security Interest in all of the Collateral and each Guarantor will remain a
Guarantor of the Obligations (unless such Guarantor is dissolved or merged
into another Guarantor in connection with such transaction as otherwise
permitted by this Section 6.03), and (v) the result of such merger taken as
a whole will not be materially adverse to the interests of the Banks;
provided, however, if as a result of such transaction the Borrower’s entity
type (e.g., corporation, partnership, limited liability company or other) or
tax nature changes (A) the Borrower shall deliver to the Banks such opinions
of counsel and corporation, limited liability company or partnership
documents in connection therewith as the Majority Bank(s) may reasonably
request and (B) the Borrower and the Banks agree that this Agreement will be
amended in a manner reasonably satisfactory to the Majority Banks(s) (x) to
make appropriate changes to reflect any changes to the entity type and/or
tax nature of the Borrower while preserving the substance and terms of this
Agreement and (y) without the payment of a consent fee or other fee with
respect solely to the amendments to this Agreement specified in clause (x).

     Section 6.04. Sales, Etc. of Property. The Borrower will not
sell, lease, transfer or otherwise dispose of, or permit any Subsidiary to
sell,

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 24

 

 

lease, transfer or otherwise dispose of, any of its Property, except
for the following:

     (a) sales of inventory in the ordinary course of business;

     (b) sales, leases, transfers and other dispositions in the ordinary
course of business of worn out or other Property that is no longer useful in
the conduct of the business of the Borrower or any Subsidiary;

     (c) liquidations or other dispositions of cash and Permitted
Investments;

     (d) so long as no Default has occurred and is continuing or would be
caused thereby, sales and other transfers of Property from the Borrower or
any Subsidiary to the Borrower or to any other Subsidiary; provided,
however, that any such sale or other transfer of real property or
equity interests shall be permitted only if, before the effectiveness of
such sale or other transfer and to the extent required by the Majority
Banks, the Borrower delivers to the Collateral Agent documents of the type
described in the proviso to Section 6.03(a);

     (e) sales of Property resulting from the condemnation thereof;

     (f) sales or discounts of overdue accounts receivable in the ordinary
course of business, in connection with the compromise or collection thereof;

     (g) so long as no Default has occurred and is continuing or would be
caused thereby, sales, leases, transfers and other dispositions of Property
for consideration not exceeding $10,000,000 in the aggregate in any fiscal
year of the Borrower (such amount not to include the proceeds of the Arkoma
Sale, any sale, lease, or transfer permitted in clause (h) herein after the
Sixth Amendment Effective Date, or other disposition permitted by any of the
other provisions of this Section 6.04), provided that the Net Cash Proceeds
thereof are used to prepay the Advances to the extent required by Section
2.04(b);

     (h) sales or transfers of new equipment by the Borrower or any
Subsidiary in the ordinary course of business consistent with historical
practice to any Person whereby the Borrower or any Subsidiary shall then or
thereafter rent or lease as lessee such new equipment or any part thereof to
use for substantially the same purpose or purposes as such new equipment
sold or transferred; and

     (i) relatively contemporaneous like-kind exchanges in the ordinary
course of business and consistent with historical practice not to exceed
$10,000,000 in the aggregate in any fiscal year.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 25

 

 

     (cc) Section 6.06 of the Credit Agreement is hereby restated in its entirety as
follows:

     Section 6.06. Distributions, Etc. The Borrower will not pay
any management fee or similar fee of any sort to any Affiliate thereof or to
any other Person, declare or pay any dividends or distributions, purchase,
redeem, retire, defease or otherwise acquire for value any of its equity
interests or any warrants, rights or options to acquire such equity
interests, now or hereafter outstanding, return any capital to its
equity-holders as such, or make any distribution of Property, equity
interests, warrants, rights, options, obligations or securities to its
equity-holders as such, or permit any Subsidiary to purchase, redeem,
retire, defease or otherwise acquire for value any equity interests in the
Borrower or any warrants, rights or options to acquire such equity interests
or to pay any such fee, except for the following:

     (a) the Borrower and any Subsidiary may pay any management fee or
similar fee of any sort to any Affiliate of the Borrower or its Subsidiaries
pursuant to the Borrower Partnership Agreement, the CESL Partnership
Agreement or the Omnibus Agreement;

     (b) provided that no PIK Notes are outstanding and no Default has
occurred and is continuing or would be caused thereby (i) so long as the
Leverage Ratio is less than 4.25:1.00 but greater than or equal to 4.00:1.00
(after giving pro forma effect to such Minimum Quarterly Distributions
described hereunder), the Borrower may declare and pay Minimum Quarterly
Distributions and (ii) so long as the Leverage Ratio is less than 4.00:1.00
(after giving pro forma effect to such Quarterly Distributions described
hereunder), the Borrower may declare and pay Quarterly Distributions;

     (c) the Borrower may pay Minimum Quarterly Distributions and Quarterly
Distributions within 60 days after the date of declaration thereof if, at
the date of declaration, such payment would comply with clause (b) of this
Section 6.06;

     (d) the Borrower and its Subsidiaries may declare and pay dividends and
other distributions payable solely in Equity Interests; and

     (e) any Subsidiary may pay dividends, or make other distributions, to
the Borrower or to any wholly-owned Subsidiary of the Borrower.

     (dd) Section 6.12 of the Credit Agreement is hereby restated in its entirety as
follows:

     Section 6.12. Capital Expenditures. The Borrower will not, or
permit any Subsidiary to, make or become legally obligated to make any

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 26

 

 

Capital Expenditure, except for Capital Expenditures in the ordinary
course of business not exceeding, in the aggregate for the Borrower and its
Subsidiaries during each fiscal year set forth below, the amount set forth
opposite such fiscal year;

	 	 	 
	Fiscal Year	 	Amount
	 
	2009
	 	$120,000,000
	2010
	 	$75,000,000

provided, however; that (i) any amounts of permitted Capital
Expenditures not made during any fiscal year may be carried forward and
expended during the subsequent fiscal year, (ii) Capital Expenditures in the
amount of $18,400,000 that, in accordance with GAAP, have been accrued by
the Borrower on its financial statements for the fiscal year ended December
31, 2008 but made in 2009 shall be excluded when calculating the Capital
Expenditures made in 2009, and (iii) the limitation on Capital Expenditures
set forth above for fiscal year 2010 shall not apply after the Leverage
Ratio as of the end of each fiscal quarter for four consecutive four fiscal
quarters for the Borrower and its Subsidiaries on a Consolidated basis is
less than 4.25 to 1.00. Notwithstanding anything to the contrary contained
herein, Capital Expenditures made with Excess Proceeds shall be excluded
from the calculation of aggregate Capital Expenditures permitted hereunder
for any fiscal year.

     (ee) Section 6.13 of the Credit Agreement is hereby restated in its entirety as
follows:

     Section 6.13. Interest Charge Coverage Ratio. The Borrower
shall not, as of the end of any fiscal quarter, permit the Interest Charge
Coverage Ratio for the Borrower and its Subsidiaries on a Consolidated basis
to be less than the ratio set forth below opposite such period:

	 	 	 
	 	 	Minimum Interest
	Period Ending	 	Charge Coverage Ratio
	March 31, 2009

	 	1.75 to 1.00
	June 30, 2009

	 	1.50 to 1.00
	September 30, 2009

	 	1.30 to 1.00
	December 31, 2009

	 	1.15 to 1.00
	March 31, 2010

	 	1.25 to 1.00
	June 30, 2010

	 	1.50 to 1.00
	September 30, 2010 and December 31, 2010

	 	1.75 to 1.00
	March 31, 2011 and thereafter

	 	2.50 to 1.00

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

     Section 6.14. Leverage Ratio. The Borrower shall not, as of
the end of any fiscal quarter, permit the Leverage Ratio for the Borrower
and

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 27

 

 

its Subsidiaries on a Consolidated basis to be greater than the ratio
set forth below opposite such period:

	 	 	 
	Period Ending	 	Maximum Leverage Ratio
	March 31, 2009

	 	7.25 to 1.00
	June 30, 2009 and September 30, 2009

	 	8.25 to 1.00
	December 31, 2009

	 	8.50 to 1.00
	March 31, 2010

	 	8.00 to 1.00
	June 30, 2010

	 	6.65 to 1.00
	September 30, 2010

	 	5.25 to 1.00
	December 31, 2010

	 	5.00 to 1.00
	March 31, 2011 and thereafter

	 	4.50 to 1.00

     (gg) Section 6.17 of the Credit Agreement is hereby restated in its entirety as
follows:

     The Borrower may not make any optional or scheduled payments or
prepayments on account of principal (whether by redemption, purchase,
retirement, defeasance, set-off or otherwise) in respect of the Private
Notes prior to the Termination Date, other than scheduled principal payments
(including, but not limited to, mandatory prepayments) and optional
prepayments made in connection with the Noteholder Leverage Fee. The
Borrower will not amend, supplement or otherwise modify any term of the Note
Agreement without the prior written consent of the Majority Banks, which
consent will not be unreasonably withheld, which amendment, supplement or
modification would have the effect of (i) increasing the outstanding
principal amount of the Note Obligations over $480,000,000, (ii) increasing
the rate of interest except with respect to imposing the default rate as
provided for in the Note Agreement on the date hereof or any fees charged on
the Note Obligations, (iii) adding any affirmative covenant, negative
covenant or event of default; (iv) changing any affirmative covenant,
negative covenant or event of default, or any definition used therein, if
such change is adverse to the Borrower; or (v) making any other change
materially adverse to the interests of the Banks.

     (hh) Section 6.21 of the Credit Agreement is hereby added in its entirety to read as
follows:

     Section 6.21. Hydrocarbon Hedge Agreements and Interest Rate
Contracts. The Borrower shall not and will not permit any Subsidiary to
be a party to or in any manner liable on any Hydrocarbon Hedge Agreement or
Interest Rate Contract except:

     (a) Hydrocarbon Hedge Agreements with the purpose and effect of hedging
prices on Hydrocarbons that are (i) consistent in all material respects with
the Borrower’s risk management policies and historical practices and (ii)
not speculative in nature.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 28

 

 

     (b) Interest Rate Contracts with the purpose and effect of fixing
interest rates on a principal amount of indebtedness of the Borrower that is
accruing interest at a variable rate that are (i) consistent with the
Borrower’s risk management policies and historical practices and (ii) not
speculative in nature; and

     (c) Except for the Collateral under the Security Documents with respect
to the Obligations, no Hydrocarbon Hedge Agreement or Interest Rate Contract
maintained with any Bank or any Affiliate of a Bank shall require the
Borrower or any Subsidiary to put up money, assets or other security
against the event of its nonperformance prior to actual default by the
Borrower or any Subsidiary in performing its obligations. No documents
evidencing a Hydrocarbon Hedge Agreement or Interest Rate Contract
maintained with any Bank or any Affiliate of a Bank shall be amended or
modified in any way to advantage a counterparty thereto without amending or
modifying all Hydrocarbon Hedge Agreements or Interest Rate Contracts (as
applicable) maintained with any Bank or any Affiliate of a Bank to equally
advantage such other counterparties.

     (ii) A new paragraph is added to the end of Section 7.06 of the Credit Agreement to
read in its entirety as follows:

     Following the application of proceeds pursuant to the first five
clauses contained in this Section 7.06, but before any surplus is paid over
to the Borrower, the Administrative Agent shall apply proceeds to the
ratable payment of all other Obligations which relate to any Cash Management
Agreement between the Borrower or any Subsidiary and a Cash Management Bank
and which are owing to the Administrative Agent, the Collateral Agent, the
Banks and their Affiliates.

     (jj) Section 8.12 of the Credit Agreement is hereby added in its entirety to read as
follows:

     Section 8.12. Cash Management Agreements. The benefit of the
Security Documents and of the provisions of this Agreement relating to any
collateral securing the Obligations shall also extend to and be available to
those Banks or their Affiliates which are counterparties to any Cash
Management Agreement with the Borrower or any of its Subsidiaries and are
parties to the Intercreditor Agreement on a pro rata basis in respect of any
obligations of the Borrower or any of its Subsidiaries which arise under any
such Cash Management Agreement that is in effect while such
Person or its Affiliate is a Bank, but only while such Person or its
Affiliate is a Bank, including any Cash Management Agreements between such
Persons in existence prior to the Sixth Amendment Effective Date. No Bank
or any Affiliate of a Bank shall have any voting rights under any

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 29

 

 

Credit
Document as a result of the existence of obligations owed to it under any
such Cash Management Agreements.

     (kk) Section 9.18 of the Credit Agreement is hereby restated in its entirety as
follows:

     Section 9.18. [Intentionally Omitted]

     (ll) Exhibit B to the Credit Agreement is hereby substituted with the Exhibit B
attached hereto for all purposes under the Credit Agreement and any reference to Exhibit B
in the Credit Documents shall refer to the Exhibit B attached hereto.

     Section 2. Consent. The Banks executing this Amendment hereby consent to the
execution of the Letter Amendment No. 4 to Amended and Restated Note Purchase Agreement among the
Borrower, the Guarantors and the holders of the Note Obligations party thereto in substantially the
form of Exhibit A attached hereto. Such consent is limited to the extent described herein and
shall not be construed as a consent to any other amendment or modification of the Note Agreement or
any document otherwise related thereto that is otherwise prohibited by the terms of the Credit
Agreement, the Intercreditor Agreement or any other Credit Document.

     Section 3. Conditions Precedent. This Amendment shall become effective as of the date
first set forth above upon the satisfaction of the following conditions precedent:

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

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

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

     (3) an executed copy of the Letter Amendment No. 4 to Amended and Restated Note
Purchase Agreement on terms and conditions reasonably satisfactory to the Majority
Banks, including but not limited to the consent of the Required Holders of this
Amendment (as such term is defined in the Note Agreement);

     (4) an executed copy of an amendment to the Intercreditor Agreement;

     (5) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of the Borrower and each Guarantor
as the Administrative Agent may reasonably require evidencing the identity,
authority and capacity of each Responsible Officer thereof authorized to act as a
Responsible Officer in connection with this Amendment and the other
Credit Documents to which the Borrower and such Guarantor is a party or is to
be a party;

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 30

 

 

     (6) such documents and certifications as the Administrative Agent may
reasonably require to evidence that the Borrower and each Guarantor is duly
organized or formed, and that the Borrower and each Guarantor is validly existing,
in good standing and qualified to engage in business;

     (7) the Administrative Agent shall have received payment or evidence of payment
of (i) all reasonable fees and expenses owed by the Borrower to the Administrative
Agent including, without limitation, the reasonable fees and expenses of Winstead
PC, counsel to the Administrative Agent and FTI Consulting, Inc., advisor to the
Administrative Agent; and (ii) all other fees agreed to be paid by the Borrower;

     (8) the Administrative Agent shall have received for the account of each Bank
executing this Amendment an amendment fee equal to 0.50% multiplied by such Bank’s
Commitment;

     (9) the Administrative Agent shall have received a completed and duly executed
Perfection Certificate (the “Perfection Certificate”) in form and substance
reasonably satisfactory to the Administrative Agent; and

     (10) the Administrative Agent shall have received such other documents,
instruments and certificates as reasonably requested by the Administrative Agent and
the Banks.

     (b) The representations and warranties set forth in Section 4 of this Amendment shall
be true and correct on and as of the date hereof.

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

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

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

     (c) Assuming due execution and delivery by the Majority Banks, the Administrative Agent
and the Collateral Agent, this Amendment constitutes legal, valid and binding obligations of
the Borrower, enforceable against the Borrower in accordance

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 31

 

 

with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium, reorganization
or other similar laws affecting creditors’ rights generally or by general principles of
equity (regardless of whether such enforceability is considered in any proceeding in law or
in equity).

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

     (e) The quarterly and annual financial statements most recently delivered to the Banks
pursuant to Sections 5.01(c) and (d) of the Credit Agreement fairly present in all material
respects the Consolidated financial condition of the Borrower and its Subsidiaries as of the
respective dates thereof and the Consolidated results of the operations of the Borrower and
its Subsidiaries for the respective fiscal periods ended on such dates, all in accordance
with GAAP applied on a consistent basis (subject to normal year-end audit adjustments and
the absence of footnotes in the case of the quarterly financial statements). Since
September 30, 2008, no Material Adverse Effect has occurred. The Borrower and its
Subsidiaries have no material contingent liabilities except as disclosed in such financial
statements or the notes thereto.

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

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

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

     (i) As of the date hereof, the Borrower has no (a) Material Subsidiaries other than
those listed on Schedule 6(a) and (b) non-Material Subsidiaries other than those listed on
Schedule 6(b).

     Section 5. Reference to and Effect on the Credit Agreement.

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

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 32

 

 

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

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

     Section 6. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each which when so executed and
delivered shall be deemed to be an original and all of which when taken together shall constitute
but one and the same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of an originally executed counterpart of
this Amendment.

     Section 7. Governing Law; Binding Effect. This Amendment shall be governed by, and
construed and enforced in accordance with, the laws of the State of Texas, and shall be binding
upon the Borrower, the Administrative Agent, the Collateral Agent, each Bank and their respective
successors and assigns.

     Section 8. Costs and Expenses. The Borrower agrees to pay on demand all costs and
expenses of the Administrative Agent in connection with the preparation, execution and delivery of
this Amendment and the other instruments and documents to be delivered hereunder, including the
reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect
thereto and with respect to advising the Administrative Agent as to its rights and responsibilities
hereunder and thereunder.

     Section 9. Release. As a material part of the consideration for the Administrative
Agent and the Banks entering into this Amendment, the Borrower and each Guarantor executing this
Amendment (collectively “Releasor”) agree as follows (the “Release Provision”):

     (a) Releasor hereby releases and forever discharges the Administrative Agent and each
Bank and the Administrative Agent’s and each Bank’s predecessors, successors, assigns,
officers, managers, directors, shareholders, employees, agents, attorneys, representatives,
parent corporations, subsidiaries, and affiliates (hereinafter all of the above collectively
referred to as “Bank Group”) jointly and severally from any and all claims,
counterclaims, demands, damages, suits, actions, and causes of action of any nature
whatsoever occurring prior to the date hereof, including, without limitation, all claims,
demands, and causes of action for contribution and indemnity, whether arising at law or in
equity, presently possessed, whether known or unknown, whether liability be direct or
indirect, liquidated or unliquidated, presently accrued, whether absolute or
contingent, foreseen or unforeseen, and whether or not heretofore asserted
(“Claims”), which Releasor may have or claim to have against any of Bank Group, in
each case to the extent such Claims arose out of or relate to the Credit Agreement or the
transactions

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 33

 

 

contemplated thereby; except, as to any member of the Bank Group, to the extent
that any such Claims results from any of gross negligence or willful misconduct of that
member.

     (b) Releasor agrees not to sue any of Bank Group or in any way assist any other person
or entity in suing Bank Group with respect to any claim released herein. The Release
Provision may be pleaded as a full and complete defense to, and may be used as the basis for
an injunction against, any action, suit, or other proceeding which may be instituted,
prosecuted, or attempted in breach of the release contained herein.

     (c) Releasor acknowledges, warrants, and represents to Bank Group that:

     (1) Releasor has read and understands the effect of the Release Provision.
Releasor has had the assistance of independent counsel of its own choice, or has had
the opportunity to retain such independent counsel, in reviewing, discussing, and
considering all the terms of the Release Provision; and if counsel was retained,
counsel for Releasor has read and discussed the Release Provision with Releasor.
Before execution of this Amendment, Releasor has had adequate opportunity to make
whatever investigation or inquiry it may deem necessary or desirable in connection
with the subject matter of the Release Provision.

     (2) Releasor is not acting in reliance on any representation, understanding, or
agreement not expressly set forth herein. Releasor acknowledges that Bank Group has
not made any representation with respect to the Release Provision except as
expressly set forth herein.

     (3) Releasor has executed the Release Provision with the understanding that the
Banks are relying on it in agreeing to enter into this Agreement and that the Banks
would not execute this Amendment unless Releasor executed the Release Provision.

     (4) Releasor is the sole owner of the claims released by the Release Provision,
and Releasor has not heretofore conveyed or assigned any interest in any such claims
to any other person or entity (other than the conveyance pursuant to the Security
Documents)..

     (d) Releasor understands that the Release Provision was a material consideration in the
agreement of the Administrative Agent and each Bank to enter into this Amendment.

     (e) It is the express intent of Releasor that the release and discharge set forth in
the Release Provision be construed strictly in accordance with its terms.

     (f) If any term, provision, covenant, or condition of the Release Provision is held by
a court of competent jurisdiction to be invalid, illegal, or unenforceable, the remainder of
the provisions shall remain in full force and effect.

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 34

 

 

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

     THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Remainder of this page blank; signature pages follow]

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 35

 

 

     Executed as of the date first set forth above.

	 	 	 	 	 
	 	CROSSTEX ENERGY, L.P.

 	 
	 	By:  	Crosstex Energy GP, L.P.,
its general partner
 	 
	 	 	 	 
	 	By:  	Crosstex Energy GP, LLC,
its general partner
 	 
	 	 	 	 
	 	 	 
	 	By:  	
/s/ Michael Garberding
 	 
	 	 	Name:  	MICHAEL GARBERDING	 
	 	 	Title:  	VICE PRESIDENT — FINANCE 	 
	 

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Page 1

 

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

	 	 	 	 	 
	 	CROSSTEX ENERGY SERVICES, L.P.

 	 
	 	By:  	Crosstex Operating GP, LLC,
its general partner
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	/s/ Michael Garberding
 	 
	 	 	Name:  	Michael Garberding 	 
	 	 	Title:  	Vice President — Finance 	 
	 

	 	 	 	 	 
	 	
CROSSTEX OPERATING GP, LLC

CROSSTEX ENERGY SERVICES GP, LLC

CROSSTEX LIG, LLC

CROSSTEX TUSCALOOSA, LLC

CROSSTEX LIG LIQUIDS, LLC

CROSSTEX PROCESSING SERVICES, LLC

CROSSTEX PELICAN, LLC

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

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Signature Page

 

	 	 	 	 	 
	 	 	 
	 	CROSSTEX ACQUISITION MANAGEMENT, L.P.

CROSSTEX MISSISSIPPI PIPELINE, L.P.

CROSSTEX ALABAMA GATHERING SYSTEM, L.P.

CROSSTEX MISSISSIPPI INDUSTRIAL GAS SALES, L.P.

CROSSTEX GULF COAST TRANSMISSION LTD.

CROSSTEX GULF COAST MARKETING LTD.

CROSSTEX CCNG GATHERING LTD.

CROSSTEX CCNG PROCESSING LTD.

CROSSTEX CCNG TRANSMISSION LTD.

CROSSTEX TREATING SERVICES, L.P.

CROSSTEX NORTH TEXAS PIPELINE, L.P.

CROSSTEX NORTH TEXAS GATHERING, L.P.

CROSSTEX NGL MARKETING, L.P.

CROSSTEX NGL PIPELINE, L.P. 	 
	 	 	 
	 	By:  	Crosstex Energy Services GP, LLC,

general partner of each above limited partnership
 	 
	 	 	 	 
	 	By:  	/s/ Michael Garberding
 	 
	 	 	Name:  	Michael Garberding 	 
	 	 	Title:  	Vice President — Finance 	 
	 

	 	 	 	 	 
	 	SABINE PASS PLANT FACILITY JOINT VENTURE

 	 
	 	By:  	Crosstex Processing Services, LLC,
as general partner, and
 	 
	 	 	 	 
	 	By:  	Crosstex Pelican, LLC, as general partner
 	 
	 	 	 	 
	 	 	 
	 	By:  	/s/ Michael Garberding
 	 
	 	 	Name:  	Michael Garberding 	 
	 	 	Title:  	Vice President — Finance 	 
	 

SIXTH AMENDMENT TO FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT AND CONSENT — Signature Page

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,
as Administrative Agent, Collateral Agent,
a Bank and an Issuing Bank

 	 
	 	By:  	/s/ Tyler D. Levings
 	 
	 	 	Name:  	Tyler D. Levings	 
	 	 	Title:  	Senior Vice President 	 
	 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	/s/ David G. Mills
 	 
	 	 	Name:  	David G. Mills 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF SCOTLAND plc, New York Branch

 	 
	 	By:  	/s/ Karen Weich
 	 
	 	 	Name:  	Karen Weich 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BAYERISCHE HYPO-UND VEREINSBANK AG, NEW YORK BRANCH

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

 

 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS FINANCING, INC.

 	 
	 	By:  	/s/ Tom McGraw
 	 
	 	 	Name:  	Tom McGraw 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

	 	 	 	 	 
	 	BNP PARIBAS

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

 

 

	 	 	 	 	 
	 	CITIBANK, N.A.

 	 
	 	By:  	/s/ Amy Pincu
 	 
	 	 	Name:  	Amy Pincu 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Peter L. Sefzik
 	 
	 	 	Name:  	PETER L. SEFZIK 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 
	 

 

 

	 	 	 	 	 
	 	COMPASS BANK

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

 

 

	 	 	 	 	 
	 	COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK BA
“RABOBANK NEDERLAND” NEW YORK BRANCH

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP.

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTY BANK

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ John Runger
 	 
	 	 	Name:  	John Runger 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	KEY BANK, N.A.

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD.

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	NATIONAL CITY BANK

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	NATIXIS

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SCOTIABANC INC.

 	 
	 	By:  	/s/ J. F. Todd
 	 
	 	 	Name:  	J. F. Todd 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SOCIETE GENERALE

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	STERLING BANK

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

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORPORATION

 	 
	 	By:  	/s/ William Ginn
 	 
	 	 	Name:  	William Ginn 	 
	 	 	Title:  	General Manager 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Janet R. Naifeh
 	 
	 	 	Name:  	Janet R. Naifeh 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

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

 

 

SCHEDULE 6(a)

Material Subsidiaries

Crosstex Energy Services, L.P. (DE domestic)

Crosstex Operating GP, LLC (DE domestic)

Crosstex Energy Services GP, LLC (DE domestic)

Crosstex LIG, LLC (LA domestic)

Crosstex Tuscaloosa, LLC (LA domestic)

Crosstex LIG Liquids, LLC (LA domestic)

Crosstex Acquisition Management, L.P. (DE domestic)

Crosstex Mississippi Pipeline, L.P. (DE domestic)

Crosstex Alabama Gathering System, L.P. (DE domestic)

Crosstex Mississippi Industrial Gas Sales, L.P. (DE domestic)

Crosstex Gulf Coast Transmission Ltd. (TX domestic)

Crosstex Gulf Coast Marketing Ltd. (TX domestic)

Crosstex CCNG Gathering Ltd. (TX domestic)

Crosstex CCNG Processing Ltd. (TX domestic)

Crosstex CCNG Transmission Ltd. (TX domestic)

Crosstex Treating Services, L.P. (DE domestic)

Crosstex North Texas Pipeline, L.P. (TX domestic)

Crosstex North Texas Gathering, L.P. (TX domestic)

Crosstex NGL Pipeline, L.P. (TX domestic)

Crosstex NGL Marketing, L.P. (TX domestic)

Crosstex Processing Services, LLC (DE domestic)

Crosstex Pelican, LLC (DE domestic)

Sabine Pass Plant Facility Joint Venture (a TX general partnership)

Schedule 6(a) to Sixth Amendment to Fourth Amended and

Restated Credit Agreement and Consent

 

SCHEDULE 6(b)

Non-Material
Subsidiaries

Crosstex Louisiana Energy, L.P. (Delaware domestic)

LIG Chemical GP, LLC (Delaware domestic)

LIG Chemical, L.P. (Delaware domestic)

LIG Liquids Holdings, L.P. (Delaware domestic)

Crosstex Midstream Services, L.P. (Delaware domestic)

Crosstex Mississippi Gathering, L.P. (Delaware domestic)

Crosstex Louisiana Gathering, LLC (Louisiana domestic)

Schedule 6(b) to Sixth Amendment to Fourth Amended and

Restated Credit Agreement and Consent

 

EXHIBIT A

Letter
Amendment No. 4 to Amended and Restated Note Purchase
Agreement

Filed separately with the Commission.

Exhibit A to Sixth Amendment to Fourth Amended and

Restated Credit Agreement and Consent

 

EXHIBIT B

EXHIBIT B

NOTICE OF BORROWING

____________, 20__

Bank of America, N.A., as Administrative Agent

Mail Code: NC1-001-15-04

One Independence Center

101 N. Tryon St.

Charlotte, NC 28255-0001

Attn: Edwina Champion, Credit Services

	 	Re:  	 	Crosstex Energy

Ladies and Gentlemen:

     The undersigned, Crosstex Energy, L.P., a Delaware limited partnership, refers to the Fourth
Amended and Restated Credit Agreement dated as of November 1, 2005 (the “Credit Agreement”)
among the undersigned, the Banks referred to therein, Bank of America, N.A., as administrative
agent (the “Administrative Agent”) for said Banks, Union Bank of California, N.A. and
SunTrust Bank, as co-syndication agents, and Bank of Montreal d/b/a Harris Nesbitt and Wachovia
Bank, National Association, as co-documentation agents. Terms defined in the Credit Agreement and
not otherwise defined herein have the same respective meanings when used herein.

     Pursuant to Section 2.02(a) of the Credit Agreement, the undersigned hereby requests a
Borrowing under the Credit Agreement and in that connection sets forth below the information
relating to such Borrowing (the “Proposed Borrowing”), as required by Section 2.02(a) of
the Credit Agreement.

     The Business Day of the Proposed Borrowing is ___, 20_.

     The Proposed Borrowing will be composed of [Reference Rate Advances] [Eurodollar Rate
Advances].

     The aggregate amount of the Proposed Borrowing is $_______.

     [The initial Interest Period for the Eurodollar Rate Advances is ___________month[s].]

     The officer of Crosstex Energy GP, LLC, the general partner of the General Partner signing
this notice on behalf of the General Partner and the Borrower hereby certifies (as an officer of
Crosstex Energy GP, LLC and not in his/her individual capacity) that the following statements are
true on the date hereof and will be true on the date of the Proposed Borrowing:

     the representations and warranties contained in each Credit Document are correct in all
material respects, before and after giving effect to the Proposed Borrowing and to

Exhibit B to Sixth Amendment to Fourth Amended and

Restated Credit Agreement and Consent

 

 

the application of the proceeds thereof, as though made on and as of such date (other than
any such representations and warranties that, by their terms, refer to a specific date, in
which case as of such specific date);

     no event has occurred and is continuing, or would result from the Proposed Borrowing or
from the application of the proceeds thereof, that constitutes a Default; and

     after giving effect to the receipt of the proceeds of the requested Borrowing, and the
anticipated cash receipts and cash uses of the Borrower and its Subsidiaries on the date of
the applicable Borrowing and the next Business Day, the aggregate balances in the Cash
Management Accounts on the next Business Day shall not be in excess of $25,000,000.

	 	 	 	 	 
	 	Very truly yours,

CROSSTEX ENERGY, L.P.

 	 
	 	By:  	Crosstex Energy GP, L.P.,

its general partner
 	 
	 	By:  	Crosstex Energy GP, LLC,

its general partner
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit B to Sixth Amendment to Fourth Amended and

Restated Credit Agreement and Consent

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]