Document:

exv10w1

 

Exhibit 10.1

Execution Copy

SECOND AMENDMENT

     THIS SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is entered into as of the 29th day of June, 2006 by and among each
of the persons listed on the signature pages hereof as banks (the “Banks”), Crosstex
Energy, L.P., a Delaware limited partnership (the “Borrower”), and Bank of America, N.A.,
as administrative agent (the “Administrative 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 “Credit Agreement”). Terms defined in the
Credit Agreement and not otherwise defined herein have the same respective meanings when used
herein.

     B. Crosstex Energy Services, L.P., a Delaware limited partnership and Subsidiary of the
Borrower (“CESL”), intends to acquire all of the membership interests of Chief Midstream
Holdings LLC, a Texas limited liability company (“Holdings”), (the “Chief
Acquisition”) pursuant to the Membership Interest Purchase and Sale Agreement dated as of May
1, 2006 among the various parties listed therein as “sellers” (collectively, the “Seller”),
Holdings, Chief Resources LLC and CESL (the “Chief Purchase and Sale Agreement”), and all
other agreements, instruments or documents executed in connection therewith or otherwise related to
the Chief Acquisition (collectively, the “Chief Acquisition Documents”). Holdings, Chief
Midstream LLC, a Texas limited liability company, Eagle Mountain Gas Partners LLC, a Texas limited
liability company, and Eagle Mountain Pipeline Company, L.P., a Texas limited partnership, are
referred to herein as the “Chief Acquired Companies”).

     C. The Borrower has requested, and the Banks have agreed, to (1) consent to the Chief
Acquisition, (2) increase the aggregate amount of the Commitments to $1,000,000,000 and (3) make
certain other amendments to the Credit Agreement.

ARTICLE II

AGREEMENT

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

     Section 2.01. Amendments. The Credit Agreement is hereby amended as follows:

     (a) Schedule 1 to the Credit Agreement is hereby deleted in its entirety and Schedule 1
attached hereto is hereby substituted therefor.

 

 

     (b) The definition of “Acquisition Adjustment Period” is hereby amended in its
entirety as follows:

     “Acquisition Adjustment Period” means at any time after the Second
Amendment Effective Date, any period of three consecutive fiscal quarters
commencing on the first day of the fiscal quarter during which the Borrower or any
of its Subsidiaries consummates any Acquisition (other than the Chief Acquisition)
in which the purchase price therefor exceeds $50,000,000 (whether such purchase
price is paid in cash, by the assumption of Debt of the Person or assets so
acquired, or otherwise) and ending on the last day of the third fiscal quarter
following such date.

     (c) The definition of “Applicable Margin” is hereby amended in its 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:

	 	 	 	 	 	 	 	 	 
	 	 	Eurodollar Rate	 	Reference Rate	 	Commitment	 	Letter of
	Leverage Ratio	 	Advances	 	Advances	 	Fees	 	Credit Fees
	 
	3 3.25
	 	1.75%	 	0.25%	 	0.375%	 	1.75%
	3 2.75 and
< 3.25
	 	1.50%	 	0.00%	 	0.300%	 	1.50%
	3 2.25 and
< 2.75
	 	1.25%	 	0.00%	 	0.250%	 	1.25%
	< 2.25
	 	1.00%	 	0.00%	 	0.200%	 	1.00%

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. Notwithstanding the foregoing, if at any time during an
Acquisition Adjustment Period, the Leverage Ratio is greater than 4.25 to 1.00,
then the Applicable Margin shall be, with respect to Eurodollar Rate Advances,
2.00% and with respect to Reference Rate Advances, 0.50%.

	 	(d)	 	The definition of “Closing Leverage Period” is hereby deleted.
	 
	 	(e)	 	The definition of “Termination Date” is hereby amended in its entirety as follows:

     “Termination Date” means the earlier of (a) June 29, 2011, (b) the
acceleration of the maturity of the Advances and the termination of the Banks’
obligations to provide Advances pursuant to Article VII and (c) the termination of
all of the Commitments pursuant to Section 2.03.

2

 

     (f) The following new definitions are hereby added to Section 1.01 of the Credit Agreement in
appropriate alphabetical order:

     “Chief Acquisition” means the acquisition of Chief Midstream Holdings
LLC, a Texas limited liability company, pursuant to the Chief Purchase and Sale
Agreement.

     “Chief Acquisition Documents” means the Chief Purchase and Sale
Agreement and all other agreements, instruments or documents executed in
connection therewith or otherwise related to the Chief Acquisition.

     “Chief Purchase and Sale Agreement” means the Membership Interest
Purchase and Sale Agreement dated as of May 1, 2006 among the various parties
listed therein as “sellers”, Chief Midstream Holdings LLC, Chief Resources LLC
and Crosstex Energy Services, L.P.

     “Second Amendment” means the Second Amendment dated as of June 29,
2006 among the Borrower, the Banks and the Administrative Agent.

     “Second Amendment Effective Date” means the date on which the Second
Amendment to this Agreement becomes effective.

     (g) Section 5.01(d) of the Credit Agreement is hereby amended by replacing the “and” before
subsection (i)(B) thereof with “, “ and adding after “6.13 and 6.14” the following:

     and (C) a representation and warranty that the Borrower is in compliance
with Section 5.14 to be included in the certificate described in subsection (A)
above

     (h) Section 5.15(a) of the Credit Agreement is hereby amended in its entirety as follows:

     (a) Within 90 days following the Second Amendment Effective Date, the
Borrower and the Guarantors shall execute such Mortgages and other Security
Documents as the Collateral Agent may reasonably require to perfect Liens on all
material pipeline, gas gathering and processing assets of the Borrower and the
Guarantors acquired in connection with the Chief Acquisition. In connection with
the execution and delivery of such Mortgages and other Security Documents, the
Borrower and the Guarantors shall deliver to the Collateral Agent such other
documents, certificates, opinions and agreements as the Collateral Agent may
reasonably request.

     (i) Section 6.02(j) of the Credit Agreement is hereby amended in its entirety as follows:

     (j) Debt under the Note Agreement in an aggregate principal amount not to
exceed $510,000,000; and

3

 

     (j) Section 6.14 of the Credit Agreement is hereby amended 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 its
Subsidiaries on a Consolidated basis to be greater than (i) 5.25 to 1.00 for any
fiscal quarter ending during the period commencing on the Second Amendment
Effective Date and ending June 30, 2007, (ii) 4.75 to 1.00 for any fiscal quarter
ending during the period commencing on July 1, 2007 and ending on December 31,
2007 and (iii) 4.25 to 1.00 for any fiscal quarter ending thereafter; provided,
however, that during an Acquisition Adjustment Period, the Leverage Ratio shall
not be greater than 5.25 to 1.00.

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

     Section 6.17. Note Agreement. 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. The Borrower shall not amend, supplement or otherwise modify the terms
of the Note Agreement without the prior written consent of the Majority Banks,
which consent will not be unreasonably withheld, which has the effect of (a)
increasing the outstanding principal amount of the Note Obligations above
$510,000,000, (b) 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 or (c) any other provision of the Note
Agreement if such amendment, modification or supplement would be materially
adverse to the interests of the Banks without the prior written consent of the
Majority Banks.

     Section 2.02. Consent and Waiver. The Banks hereby consent to the Chief Acquisition,
and waive any and all Defaults or Events of Default arising as a result of, or which may have
heretofore arisen under the Credit Agreement or any of the Credit Documents resulting from, the
execution and/or delivery of any agreements relating to, or performance or consummation of any of
the transactions contemplated in connection with, the Chief Acquisition. This waiver is limited to
the extent described herein and shall not be construed to be a consent to or a waiver of any other
actions prohibited by the Credit Agreement or any other Credit Document. The Administrative Agent
and each of the Banks reserves the right to exercise any rights and remedies available to it in
connection with any future defaults with respect to the Credit Agreement or any other provision of
any Credit Document, including, without limitation, Sections 6.03 and 6.06 of the Credit Agreement.

     Section 2.03. Conditions Precedent. This Amendment shall become effective as of the
date first set forth above when:

     (a) the Administrative Agent (or the Collateral Agent, as appropriate) shall have received all
of the following, each dated the date hereof, in form and substance satisfactory to the
Administrative Agent and in the number of originals requested by the Administrative Agent:

4

 

     (i) this Amendment, duly executed by the Borrower, the Guarantors, the Banks and the
Administrative Agent;

     (ii) a Note executed by the Borrower payable to the order of each Bank requesting a
Note in the amount of its Commitment;

     (iii) an executed copy of an amendment to the Note Agreement in form and substance
satisfactory to the Administrative Agent, permitting the transactions contemplated hereby
and by the other Credit Documents (the “Amendment to Note Agreement”);

     (iv) a certificate dated as of the Second Amendment Effective Date from a Responsible
Officer stating that after giving effect to the consent and waiver set forth in Section
2.02 hereof (A) all representations and warranties of the Borrower set forth in this
Agreement and each of the other Credit Documents to which it is a party are true and
correct in all material respects; (B) no Default has occurred and is continuing; and (C)
the conditions in this Section 2.03 have been met or waived;

     (v) a certificate dated as of the Second Amendment Effective Date from the Chief
Financial Officer of the Borrower as to Solvency of the Borrower
and its Subsidiaries on a consolidated basis after giving effect to the Chief
Acquisition;

     (vi) a certificate of the secretary or assistant secretary of the Ultimate General
Partner certifying as of the Second Amendment Effective Date to (A) the existence of the
Borrower and the General Partner, (B) the Borrower Partnership Agreement, (C) the General
Partner’s organizational documents, (D) the Ultimate General Partner’s organizational
documents, (E) the resolutions of the Ultimate General Partner approving the Chief
Acquisition, this Amendment and the other Credit Documents executed and delivered on or
before the date of such certificate, and (F) all documents evidencing other necessary
corporate, partnership or limited liability company action and governmental approvals, if
any, with respect to this Amendment and the other Credit Documents executed and delivered
on or before the date of such certificate;

     (vii) certificates of good standing and existence for the Borrower, the General
Partner and the Ultimate General Partner from the applicable state in which the Borrower,
the General Partner and the Ultimate General Partner is organized;

     (viii) a favorable opinion of Baker Botts L.L.P., outside Texas counsel to the
Borrower and the Guarantors;

     (ix) copies of the Chief Purchase and Sale Agreement together with the exhibits and
schedules thereto certified by a Responsible Officer as being true and correct copies of
such documents as of the date hereof; and

     (x) such other documents, governmental certificates, agreements and lien searches as
the Administrative Agent may reasonably request.

5

 

          (b) No Material Adverse Effect. Since December 31, 2005, there shall not have
occurred (i) any event, development, or circumstance that has caused or could reasonably be
expected to cause a material adverse effect on (x) the condition (financial or otherwise), results
of operation, assets, liabilities, management, prospects or value of the Borrower and its
Subsidiaries, taken as a whole, (y) the validity or enforceability of this Agreement or any of the
Credit Documents or (z) the rights and remedies of the Administrative Agent or the Banks under this
Agreement or any of the Credit Documents, (ii) any event, development, or circumstance that has
caused or could reasonably be expected to cause a material adverse condition or material adverse
change that calls into question in any material respect the Projections (as defined below) or any
of the material assumptions on which such Projections were prepared, or (iii) any change, effect,
event or occurrence with respect to the financial condition, properties, assets or operations of
the Chief Acquired Companies that is material and adverse to the Chief Acquired Companies, taken as
a whole, provided that in determining whether such a change, effect, event or occurrence has
occurred, the following shall not be considered: changes, effects, events and occurrences relating
to (A) the natural gas pipeline, treating and processing industry generally (including the price of
natural gas and the costs
associated with the drilling and/or production of natural gas), (B) any general market,
economic, financial or political conditions, or outbreak or hostilities or war, in the United
States, or (C) the transactions contemplated by the Chief Purchase and Sale Agreement; provided,
however, that to be excluded under subsection (B) above, such condition may not disproportionately
affect, as compared to others in such industry, any of the Chief Acquired Companies, or their
respective businesses, assets, properties, results of operation or condition (financial or
otherwise). Neither the Administrative Agent nor the Banks shall have become aware after April 28,
2006 of any information or other matter affecting the Borrower, the Chief Acquisition or the
transactions contemplated by this Agreement that is inconsistent in a material and adverse manner
with any such information or other matter disclosed in writing to the Banks prior to the date
hereof.

          (c) No Default. No Default shall have occurred and be continuing or would result from
the making of the Borrowing in connection with the Chief Acquisition or application of the proceeds
therefrom.

          (d) Representations and Warranties. The representations and warranties of the
Borrower and the Guarantors contained in Section 2.04 hereof and in each of the other Credit
Documents executed and delivered on or before the Second Amendment Effective Date and after giving
effect to the consent and waiver set forth in Section 2.02 hereof shall be true and correct in all
material respects on and as of the Second Amendment Effective Date both before and after giving
effect to the Borrowing in connection with the Chief Acquisition and to the application of the
proceeds from the Borrowing in connection with the Chief Acquisition, as though made on and as of
such date, other than any such representations or warranties that, by their terms refer to a
specific date.

          (e) No Material Litigation. No action, suit, investigation or proceeding shall be
pending or, to the knowledge of the Borrower, threatened in any court or before any arbitrator or
governmental authority that (i) could reasonably be expected to have a Material Adverse Effect or
(ii) relates to the Chief Acquisition.

6

 

          (f) Payment of Fees and Expenses. The Borrower shall have paid the fees required by
the letter dated as of April 28, 2006 from Bank of America and the Lead Arranger to the Borrower
and all costs and expenses that have been invoiced and are payable pursuant to Section 9.04 of the
Credit Agreement.

          (g) Financial Information. The Administrative Agent shall have received financial
projections of the Borrower and its Subsidiaries for the fiscal years 2006 through 2010 and
incorporating the Advances provided for herein and the Chief Acquisition (the
“Projections”).

          (h) Note Agreement. All of the conditions precedent to the effectiveness of the
Amendment to Note Agreement shall have been met or waived on or prior to the Second Amendment
Effective Date.

          (i) Due Diligence. The Administrative Agent shall have received such financial,
business and other information regarding the Chief Acquisition as the Administrative Agent shall
have reasonably requested, including, without limitation, information as to possible contingent
liabilities, tax matters, collective bargaining agreements and other arrangements with employees,
and the financial statements and Projections referred to in Section 2.03(k).

          (j) Equity Issuance Proceeds. The Borrower shall have received Equity Issuance
Proceeds in immediately available funds in amount equal to at least $250,000,000.

          (k) Chief Acquisition.

          (i) The terms and conditions of the Chief Acquisition Documents shall be in form and substance
satisfactory to the Administrative Agent and the Banks (it being agreed that the Chief Acquisition
Documents that have been delivered to the Administrative Agent are satisfactory).

          (ii) Except as otherwise disclosed in writing and acceptable to the Administrative Agent, the
Chief Acquisition Documents shall be in full force and effect and no material term or condition
thereof shall have been amended, modified or waived in writing after the execution thereof, unless
such amendment, modification or waiver could not reasonably be expected to be materially adverse to
the interests of the Borrower or the Banks.

          (iii) The Chief Acquisition shall, substantially concurrently with the effectiveness of this
Amendment have been consummated by the Borrower, and all other conditions to the Chief Acquisition
as set forth in the Chief Acquisition Documents shall have been satisfied or waived in form and
substance satisfactory to the Administrative Agent, unless such waiver could not reasonably be
expected to be materially adverse to the interests of the Borrower or the Banks.

          (l) Consents. The Borrower shall have received all necessary or, in the discretion of
the Arranger, advisable, third-party consents or agreements required for the consummation of the
Chief Acquisition.

7

 

     For purposes of determining compliance with the conditions specified in this Section 2.03,
each Bank that has signed this Amendment shall be deemed to have consented to, approved or accepted
or to be satisfied with, each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to a Bank unless the Administrative Agent shall have
received notice from such Bank prior to the proposed Second Amendment Effective Date specifying its
objection thereto.

     Section 2.04. Representations and Warranties. The Borrower represents and warrants to
the Banks and the Administrative 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 Banks and the Administrative Agent, this
Amendment constitutes legal, valid and binding obligations of the Borrower, enforceable against the
Borrower in accordance with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors’
rights generally or by general principles of equity (regardless of whether such enforceability is
considered in any proceeding in law or in equity).

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

     (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 the Consolidated
financial condition of the Borrower and its Subsidiaries as of the respective dates thereof and the
Consolidated results of the operations of the Borrower and its Subsidiaries for the respective
fiscal periods ended on such dates, all in accordance with GAAP applied on a consistent basis
(subject to normal year-end audit adjustments and the absence of footnotes in the case of the
quarterly financial statements). Since December 31, 2005, 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.

8

 

     (g) After giving effect to the consent and waiver in Section 2.02 hereof, no event has
occurred and is continuing, or would result from the effectiveness of this Amendment, which
constitutes a Default.

     Section 2.05. Reference to and Effect on the Credit Agreement.

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

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

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

     Section 2.06. 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 2.07. 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, each Bank and their respective successors and assigns.

     Section 2.08. 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.

[Remainder of this page blank; signature page follows]

9

 

     Executed as of the 29th day of June, 2006.

	 	 	 	 	 
	 	CROSSTEX ENERGY, L.P.

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

	 	 	 	 	 
	 	By:  	                       Crosstex Energy GP, LLC,
General Partner
 	 

	 	 	 	 	 
	 	By:  	                                                  /s/ Gysle R. Shellum
 	 
	 	 	Gysle R. Shellum 	 
	 	 	Vice President - Finance 	 
	 

 

 

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/ Gysle R. Shellum
 	 
	 	 	Gysle R. Shellum 	 
	 	 	Vice President - Finance 	 

	 	 	 	 	 
	 	CROSSTEX OPERATING GP, LLC

CROSSTEX ENERGY SERVICES GP, LLC

CROSSTEX LIG, LLC

CROSSTEX TUSCALOOSA, LLC

CROSSTEX LIG LIQUIDS, LLC

CROSSTEX PIPELINE, LLC 

CROSSTEX PROCESSING SERVICES, LLC

CROSSTEX PELICAN, LLC

 	 
	 	By:  	/s/ Gysle R. Shellum
 	 
	 	 	Gysle R. Shellum 	 
	 	 	Vice President - Finance 	 

 

 

	 	 	 	 	 
	 	 CROSSTEX ACQUISITION MANAGEMENT, L.P.

CROSSTEX MISSISSIPPI PIPELINE, L.P.

CROSSTEX SEMINOLE GAS, L.P.

CROSSTEX ALABAMA GATHERING SYSTEM, L.P.

CROSSTEX MISSISSIPPI INDUSTRIAL GAS SALES, L.P.

CROSSTEX GULF COAST TRANSMISSION LTD.

CROSSTEX GULF COAST MARKETING LTD.

CROSSTEX CCNG GATHERING LTD.

CROSSTEX CCNG PROCESSING LTD.

CROSSTEX CCNG TRANSMISSION LTD.

CROSSTEX TREATING SERVICES, L.P.

CROSSTEX NORTH TEXAS PIPELINE, L.P.

CROSSTEX NORTH TEXAS GATHERING, L.P.

CROSSTEX NGL MARKETING, L.P.

CROSSTEX NGL PIPELINE, L.P.

 	 

	 	 	 	 	 
	 	By:  	                                              Crosstex Energy Services GP, LLC, general partner of each above limited partnership
 	 

	 	 	 	 	 
	 	By:  	                                              /s/ Gysle R. Shellum
 	 
	 	 	Gysle R. Shellum 	 
	 	 	Vice President - Finance 	 

	 	 	 	 	 
	 	CROSSTEX PIPELINE PARTNERS, LTD.
 	 

	 	 	 	 	 
	 	By:  	Crosstex Pipeline, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	                                              /s/ Gysle R. Shellum
 	 
	 	 	Gysle R. Shellum 	 
	 	 	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/ Gysle R. Shellum
 	 
	 	 	Gysle R. Shellum 	 
	 	 	Vice President - Finance 	 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,
as Administrative Agent and Collateral Agent

 	 
	 	By:  	/s/ Matthew C. Correia
 	 
	 	 	Matthew C. Correia 	 
	 	 	Assistant Vice President 	 
	 

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

 	 
	 	By:  	/s/ Gregory B. Hanson
 	 
	 	 	Gregory B. Hanson 	 
	 	 	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.

 	 
	 	By:  	/s/ Kimberly Coll
 	 
	 	Name:  	Kimberly Coll 	 
	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Peter Panos
 	 
	 	Name:  	Peter Panos 	 
	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS

 	 
	 	By:  	/s/ Cahal Carmody
 	 
	 	Name:  	Cahal Carmody 	 
	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Dwight Battle
 	 
	 	Name:  	Dwight Battle 	 
	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BAYERISCHE HYPO-UND VEREINSBANK AG, NEW YORK BRANCH

 	 
	 	By:  	/s/ William W. Hunter
 	 
	 	Name:  	William W. Hunter 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ Martha Martinez
 	 
	 	Name:  	Martha Martinez 	 
	 	Title:  	Associate Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BNP PARIBAS

 	 
	 	By:  	/s/ J. Onichuk
 	 
	 	Name:  	J. Onischuk 	 
	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ Larry Robinson
 	 
	 	Name:  	Larry Robinson 	 
	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	CITIBANK, N.A.

 	 
	 	By:  	/s/ David E. Hunt
 	 
	 	Name:  	David E. Hunt 	 
	 	Title:  	Attorney-in-fact 	 
	 

 

 

	 	 	 	 	 
	 	BANK OF NOVA SCOTIA

 	 
	 	By:  	/s/ M. D. Smith
 	 
	 	Name:  	M. D. Smith 	 
	 	Title:  	Agent 	 
	 

 

 

	 	 	 	 	 
	 	SCOTIABANC INC.

 	 
	 	By:  	/s/ Jean Paul Purdy
 	 
	 	Name:  	Jean Paul Purdy 	 
	 	Title:  	Director 	 
	 

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA

 	 
	 	By:  	/s/ Don J. McKinnerney
 	 
	 	Name:  	Don J. McKinnerney 	 
	 	Title:  	Authorized Signatory 	 
	 

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

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

 

 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP.

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

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ Casey Lowary
 	 
	 	Name:  	Casey Lowary 	 
	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	GUARANTY BANK

 	 
	 	By:  	/s/ Jim R. Hamilton
 	 
	 	Name:  	Jim R. Hamilton 	 
	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK N.A.

 	 
	 	By:  	/s/ Tara Narasiman
 	 
	 	Name:  	Tara Narasiman 	 
	 	Title:  	Associate 	 
	 

 

 

	 	 	 	 	 
	 	NATEXIS BANQUES POPULAIRES

 	 
	 	By:  	/s/ Louis P. Laville, III
 	 
	 	Name:  	Louis P. Laville, III 	 
	 	Title:  	vice President / Manager 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ Daniel Payer
 	 
	 	Name:  	Daniel Payer 	 
	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/ David C. Brooks
 	 
	 	Name:  	David C. Brooks 	 
	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	KEY BANK, N.A.

 	 
	 	By:  	/s/ Thomas Rajan
 	 
	 	Name:  	Thomas Rajan 	 
	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Peter L. Sefzik
 	 
	 	Name:  	Peter L. Sefzik 	 
	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORPORATION

 	 
	 	By:  	/s/ David Buck
 	 
	 	Name:  	David Buck 	 
	 	Title:  	Senior Vice President 	 
	 

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE

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

 

 

	 	 	 	 	 
	 	STERLING BANK

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

 

 

	 	 	 	 	 
	 	COMPASS BANK

 	 
	 	By:  	/s/ Murray E. Brasseux
 	 
	 	Name:  	Murray E. Brasseux 	 
	 	Title:  	Executive Vice President 	 
	 

 

 

	 	 	 	 	 
	 	BANK OF SCOTLAND

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

 

 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD.

 	 
	 	By:  	/s/ Raymond Ventura
 	 
	 	Name:  	Raymond Ventura 	 
	 	Title:  	Deputy General Manager 	 
	 

 

 

	 	 	 	 	 
	 	NATIONAL CITY BANK

 	 
	 	By:  	/s/ Stephen Monto
 	 
	 	Name:  	Stephen Monto 	 
	 	Title:  	Vice President 	 
	 

 

 

SCHEDULE 1

COMMITMENTS

	 	 	 	 	 
	Bank	 	Commitment	 
	Bank of America, N.A.
	 	$	57,600,000	 
	Union Bank of California, N.A.
	 	$	57,600,000	 
	SunTrust Bank
	 	$	57,600,000	 
	Wachovia Bank, National Association
	 	$	57,600,000	 
	BMO Capital Markets
	 	$	57,600,000	 
	Bayerische Hypo- und Vereinsbank AG, New York Branch
	 	$	45,000,000	 
	Bank of Nova Scotia
	 	$	21,000,000	 
	ScotiaBanc Inc.
	 	$	24,000,000	 
	Royal Bank of Canada
	 	$	45,000,000	 
	Citibank, N.A.
	 	$	45,000,000	 
	Fortis Capital Corp.
	 	$	40,000,000	 
	JPMorgan Chase Bank, N.A.
	 	$	40,000,000	 
	BNP Paribas
	 	$	40,000,000	 
	Sumitomo Mitsui Banking Corporation
	 	$	36,000,000	 
	Wells Fargo Bank, N.A.
	 	$	36,000,000	 
	Key Bank, N.A.
	 	$	36,000,000	 
	Bank of Scotland
	 	$	36,000,000	 
	Mizuho Corporate Bank, Ltd.
	 	$	36,000,000	 
	Guaranty Bank
	 	$	36,000,000	 
	Natexis Banques Populaires
	 	$	36,000,000	 
	U.S. Bank National Association
	 	$	30,000,000	 
	Comerica Bank
	 	$	30,000,000	 
	Société Générale
	 	$	30,000,000	 
	Sterling Bank
	 	$	25,000,000	 
	Compass Bank
	 	$	25,000,000	 
	National City Bank
	 	$	20,000,000	 
	 
	 	 	 
	 
	 	$	1,000,000,000exv10w2

 

Exhibit 10.2

EXECUTION VERSION

LETTER AMENDMENT NO. 4

to

AMENDED AND RESTATED

MASTER SHELF AGREEMENT

As of June 29, 2006

Prudential Investment Management, Inc.

The Prudential Insurance Company of America

Pruco Life Insurance Company

Pruco Life Insurance Company of New Jersey

Gibraltar Life Insurance Co., Ltd.

RGA Reinsurance Company

Connecticut General Life Insurance Company

Zurich American Insurance Company

The Prudential Life Insurance Company, Ltd.

Prudential Retirement Insurance and Annuity Company

MTL Insurance Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4200E

Dallas, Texas 75201

Ladies and Gentlemen:

     We refer to the Amended and Restated Master Shelf Agreement, dated as of March 31, 2005, as
amended by Letter Amendment No. 1 dated as of June 22, 2005, by Letter Amendment No. 2 dated as of
November 1, 2005 and by Letter Agreement No. 3 dated as of March 13, 2006 (as so amended, the
“Agreement”), among Crosstex Energy, L.P., a Delaware limited partnership (the “Company”), and
Crosstex Energy Services, L.P., a Delaware limited partnership, on one hand, and each of you (the
“Purchasers”), on the other hand. Unless otherwise defined in this Letter Amendment No. 4 to
Amended and Restated Master Shelf Agreement (this “Amendment”), the terms defined in the Agreement
shall be used herein as therein defined.

     Crosstex Energy Services, L.P., a Delaware limited partnership and Subsidiary of the Company
(“CESL”), intends to acquire (the “Chief Acquisition”) all of the membership interests of Chief
Midstream Holdings LLC, a Texas limited liability company (“Holdings”), pursuant to the Membership
Interest Purchase and Sale Agreement dated as of May 1, 2006 among the various parties listed
therein as “sellers” (collectively, the “Seller”), Holdings, Chief Resources LLC and CESL (the
“Chief Purchase and Sale Agreement”), and all other agreements, instruments or documents executed
in connection therewith or otherwise related to the Chief Acquisition (collectively, the “Chief
Acquisition Documents”). Holdings, Chief

 

 

Midstream LLC, a Texas limited liability company, Eagle Mountain Gas Partners LLC, a Texas
limited liability company, and Eagle Mountain Pipeline Company, L.P., a Texas limited partnership,
are referred to herein as the “Chief Acquired Companies”).

     The Company desires make certain amendments to the Agreement as hereinafter provided and to
obtain the Purchasers’ consent to the Chief Acquisition. Subject to the terms and conditions
specified herein, the Purchasers have indicated their willingness to make such amendments and to
provide such consent, all as more particularly set forth herein.

     Accordingly, subject to satisfaction of the conditions set forth in paragraph 8 hereof, and in
reliance on the representations and warranties of the Company set forth in paragraph 7 hereof, the
Purchasers hereby agree with the Company to amend the Agreement as provided in paragraphs 1 through
5 below and to consent to the Chief Acquisition as provided in paragraph 6 below, effective in each
case as of the Amendment No. 4 Effective Date (as defined in paragraph 8 below).

     1. Amendment to Paragraph 5P(a). Post-Closing Requirements. Paragraph 5P(a) of the Agreement
is amended in its entirety to read as follows:

(a) Within 90 days following the Amendment No. 4 Effective Date, the Company and the
Guarantors shall execute such Mortgages and other Security Documents as the Required
Holder(a) may reasonably require to perfect Liens on all material pipeline, gas
gathering and processing assets of the Company and the Guarantors acquired in
connection with the Chief Acquisition. In connection with the execution and
delivery of such Mortgages and other Security Documents, the Company and the
Guarantors shall deliver to the Collateral Agent such other documents, certificates,
opinions and agreements as the Required Holder(s) may reasonably request.

     2. Amendment to Paragraph 5R. Excess Leverage Fee. Paragraph 5R of the Agreement is amended
in its entirety to read as follows:

     5R. Excess Leverage Fee. If the Leverage Ratio as of the end of any fiscal
quarter set forth below is within a range specified for such fiscal quarter, then
for such fiscal quarter the Company agrees to pay to the holders of the Notes, in
addition to the interest accruing on the Notes, a fee (the
“Excess Leverage Fee”),
payable in arrears on or before the 45th day after the end of such fiscal
quarter, equal to the product of (i) the percentage set forth below for such fiscal
quarter and range, multiplied by (ii) the daily average outstanding principal
balance of the Notes during such fiscal quarter. The payment of the Excess Leverage
Fee shall not constitute a waiver of any Default or Event of Default.

2

 

	 	 	 	 	 	 	 
	 	 	Leverage Ratio Range	 	Excess Leverage Fee
	Fiscal Quarter
ending September 30, 2006:

	 	Greater than 4.90 to
1.00 but less than
or equal to 5.00 to
1.00
	 	 	0.08	%
	 
	 	 	 	 	 	 
	 

	 	Greater than 5.00 to
1.00 but less than
or equal to 5.25 to
1.00
	 	 	0.15	%
	 
	 	 	 	 	 	 
	Fiscal Quarters
ending December 31, 2006
and March 31, 2007:

	 	Greater than 4.75 to
1.00 but less than
or equal to 5.00 to
1.00
	 	 	0.08	%
	 
	 	 	 	 	 	 
	 

	 	Greater than 5.00 to
1.00 but less than
or equal to 5.25 to
1.00
	 	 	0.15	%
	 
	 	 	 	 	 	 
	Fiscal Quarter
ending June 30, 2007:

	 	Greater than 4.55 to
1.00 but less than
or equal to 4.90 to
1.00
	 	 	0.08	%
	 
	 	 	 	 	 	 
	 

	 	Greater than 4.90 to
1.00 but less than
or equal to 5.25 to
1.00
	 	 	0.15	%
	 
	 	 	 	 	 	 
	Fiscal Quarters
ending September 30, 2007
and December 31, 2007:

	 	Greater than 4.30 to
1.00 but less than
or equal to 4.55 to
1.00
	 	 	0.08	%
	 
	 	 	 	 	 	 
	 

	 	Greater than 4.55 to
1.00 but less than
or equal to 4.75 to
1.00
	 	 	0.15	%

     3. Amendment to Paragraph 6A(3). Leverage Ratio. Paragraph 6A(3) of the Agreement is amended
in its entirety to read as follows:

     6A(3). Leverage Ratio. The Company shall not, as of the end of any fiscal
quarter, permit the Leverage Ratio for the Company and its Subsidiaries on a
Consolidated basis to be greater than (i) 5.25 to 1.00 for any fiscal quarter ending
during the period commencing on the Amendment No. 4 Effective Date and ending June
30, 2007, (ii) 4.75 to 1.00 for any fiscal quarter ending during the period
commencing on July 1, 2007 and ending on December 31, 2007 and (iii) 4.25 to 1.00
for any fiscal quarter ending thereafter; provided, however, that during an
Acquisition Adjustment Period, the Leverage Ratio shall not be greater than 5.25 to
1.00.

3

 

     4. Amendment to Paragraph 6J. Bank Agreement. Paragraph 6J of the Agreement is amended in
its entirety to read as follows:

     6J. Bank Agreement. The Company will not amend, supplement or otherwise modify
any term of the Bank Agreement without the prior written consent of the Required
Holders, which consent will not be unreasonably withheld, which amendment,
supplement or modification would have the effect of (i) increasing the aggregate
commitments under the Bank Agreement above $1,300,000,000, (ii) increasing the rate
of interest except with respect to imposing the default rate as provided for in the
Bank Agreement on the date hereof or any fees charged on the Bank Obligations or
(iii) being materially adverse to the interests of the Holders.

     5. Amendments to Paragraph 10B. Other Terms.

     (a) The definition of “Acquisition Adjustment Period” in paragraph 10B of the Agreement is
amended in its entirety to read as follows:

     “Acquisition Adjustment Period” means at any time after the Amendment No. 4
Effective Date, any period of three consecutive fiscal quarters commencing on the
first day of the fiscal quarter during which the Company or any of its Subsidiaries
consummates any Acquisition (other than the Chief Acquisition) in which the purchase
price therefor exceeds $50,000,000 (whether such purchase price is paid in cash, by
the assumption of Debt of the Person or assets so acquired, or otherwise) and ending
on the last day of the third fiscal quarter following such date.

     (b) Paragraph 10B of the Agreement is amended by adding the following definitions thereto in
appropriate alphabetical order:

     “Amendment No. 4 Effective Date” shall have the meaning given in Letter
Amendment No. 4 to this Agreement.

     “Chief Acquisition” means the acquisition of Chief Midstream Holdings LLC, a
Texas limited liability company, pursuant to the Chief Purchase and Sale Agreement.

     “Chief Acquisition Documents” means the Chief Purchase and Sale Agreement and
all other agreements, instruments or documents executed in connection therewith or
otherwise related to the Chief Acquisition.

     “Chief Purchase and Sale Agreement” means the Membership Interest Purchase and
Sale Agreement dated as of May 1, 2006 among the various parties listed therein as
“sellers”, Chief Midstream Holdings LLC, Chief Resources LLC and Crosstex Energy
Services, L.P.

     (c) The definition of “Closing Leverage Period” in paragraph 10B of the Agreement is deleted
in its entirety.

4

 

     6. Consent. Notwithstanding the provisions of paragraphs 6C(3) and 6C(4) of the Agreement,
the Purchasers hereby consent to the Chief Acquisition, the execution and/or delivery of the Chief
Acquisition Documents and the performance and consummation of the transactions contemplated by the
Chief Acquisition Documents.

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

     (a) The execution, delivery and performance by the Company and the Guarantors of this
Amendment, the Agreement, as amended hereby, and each of documents described in paragraph 8 hereof
to which each is a party, have in each case been duly authorized by all necessary limited liability
company, limited partnership or other organizational action and do not and will not (i) contravene
the terms of the Company Partnership Agreement or the partnership agreement or certificate of
formation (or other organizational documents) of the General Partner, the Company or any of their
Subsidiaries, (ii) conflict with or result in any breach or contravention of, or the creation of
any Lien under, any document evidencing any contractual obligation to which the General Partner,
the Company or any of their Subsidiaries is a party and which could subject any holder of Notes to
any liability, (iii) conflict with or result in any breach or contravention of any order,
injunction, writ or decree of any governmental authority binding on the General Partner, the
Company, any of their Subsidiaries or their respective properties, (iv) violate any applicable law
binding on or affecting the General Partner, the Company or any of their Subsidiaries, or (v)
adversely affect the enforceability of any Lien of the Security Documents.

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

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

     (d) No Governmental Action is required for the due execution, delivery or performance by the
Company or the Guarantors of this Amendment, the Agreement, as amended hereby or each of the
documents (other than the Chief Purchase and Sale Agreement) described in paragraph 8 hereof to be
executed by the Company or any Guarantor. All Governmental Action required for the due execution,
delivery or performance by the Company or the Guarantors of the Chief Purchase and Sale Agreement
have been obtained, except such Governmental Actions that the failure to obtain could not
reasonably be expected to have a Material Adverse Effect.

     (e) This Amendment, the Agreement, as amended hereby, and each of the documents described in
paragraph 8 hereof to be executed by the Company or any Guarantor, constitute legal, valid and
binding obligations of the Company or such Guarantor, as applicable, enforceable against the
Company or such Guarantor, as applicable, in accordance with their

5

 

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

     (f) The quarterly and annual financial statements most recently delivered to each Holder
pursuant to paragraphs 5A(i) and 5A(ii) of the Agreement fairly present the Consolidated financial
condition of the Company and its Subsidiaries as of the respective dates thereof and the
Consolidated results of the operations of the Company and its Subsidiaries for the respective
fiscal periods ended on such dates, all in accordance with GAAP applied on a consistent basis
(subject to normal year-end audit adjustments and the absence of footnotes in the case of the
quarterly financial statements). Since December 31, 2005, no Material Adverse Effect has occurred.
The Company and its Subsidiaries have no material contingent liabilities except as disclosed in
such financial statements or the notes thereto.

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

     (h) Neither the Company, the General Partner, the Ultimate General Partner nor any of their
Subsidiaries have paid, or agreed to pay, any fees or other compensation for or with respect to the
amendment to the Amendment to Bank Agreement (as defined below), except as expressly set forth
therein or in any fee letter executed in connection therewith, the contents of which have been
described to The Prudential Insurance Company of America.

     8. Conditions to Effectiveness. This Amendment shall become effective as of the date (the
“Amendment No. 4 Effective Date”) first above written when and if each of the conditions set forth
in this paragraph 8 shall have been satisfied (or waived in writing by Prudential and the Required
Holder(s)).

     (a) Execution and Delivery of Documents. Each Purchaser shall have received the following,
each to be dated the date of execution and delivery thereof unless otherwise indicated, and each to
be in form and substance satisfactory to such Purchaser and executed and delivered by each of the
parties thereto, as applicable:

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

     (ii) an executed copy of an amendment to the Bank Agreement in form and substance
satisfactory to the Required Holder(s), permitting the transactions contemplated hereby and
by the other Loan Documents (the “Amendment to Bank
Agreement”);

     (iii) a certificate dated as of the Amendment No. 4 Effective Date from a Responsible
Officer stating that after giving effect to the consent set forth in paragraph 6 hereof (A)
all representations and warranties of the Company set forth in this Amendment, the
Agreement, as amended hereby, and each of the other Loan Documents to which it is a party
are true and correct in all material respects; (B) no Event of Default

6

 

or Default has occurred and is continuing; and (C) the conditions in this paragraph 8
have been met or waived;

     (iv) a certificate dated as of the Amendment No. 4 Effective Date from the Chief
Financial Officer of the Company stating that the Company and its Subsidiaries are Solvent
on a Consolidated basis after giving effect to the Chief Acquisition, this Amendment and the
transactions contemplated hereby;

     (v) a certificate of the secretary or assistant secretary of the Ultimate General
Partner certifying as of the Amendment No. 4 Effective Date to (A) the existence of the
Company and the General Partner, (B) the Company Partnership Agreement, (C) the General
Partner’s organizational documents, (D) the Ultimate General Partner’s organizational
documents, (E) the resolutions of the Ultimate General Partner approving the Chief
Acquisition, this Amendment and the other Loan Documents executed and delivered on or before
the date of such certificate, and (F) all documents evidencing other necessary corporate,
partnership or limited liability company action and governmental approvals, if any, with
respect to this Amendment and the other Loan Documents executed and delivered on or before
the date of such certificate;

     (vi) certificates of good standing and existence for the Company, the General Partner
and the Ultimate General Partner from the applicable state in which the Company, the General
Partner and the Ultimate General Partner is organized;

     (vii) copies of the Chief Purchase and Sale Agreement together with the exhibits and
schedules thereto certified by a Responsible Officer as being true and correct copies of
such documents as of the date hereof; and

     (viii) such other documents, governmental certificates, agreements and lien searches as
such Purchaser may reasonably request.

          (b) No Material Adverse Effect. Since December 31, 2005, there shall not have occurred (i)
any event, development, or circumstance that has caused or could reasonably be expected to cause a
material adverse effect on (x) the condition (financial or otherwise), results of operation,
assets, liabilities, management, prospects or value of the Company and its Subsidiaries, taken as a
whole, (y) the validity or enforceability of this Amendment, the Agreement, as amended hereby, or
any of the Loan Documents or (z) the rights and remedies of the Purchasers under this Amendment,
the Agreement, as amended hereby, or any of the Loan Documents, (ii) any event, development, or
circumstance that has caused or could reasonably be expected to cause a material adverse condition
or material adverse change that calls into question in any material respect the Projections (as
defined below) or any of the material assumptions on which such Projections were prepared, or (iii)
any change, effect, event or occurrence with respect to the financial condition, properties, assets
or operations of the Chief Acquired Companies that is material and adverse to the Chief Acquired
Companies, taken as a whole, provided that in determining whether such a change, effect, event or
occurrence has occurred, the following shall not be considered: changes, effects, events and
occurrences relating to (A) the natural gas pipeline, treating and processing industry generally
(including the price of natural gas and the costs associated with the drilling and/or production of
natural gas), (B) any general

7

 

market, economic, financial or political conditions, or outbreak or hostilities or war, in the
United States, or (C) the transactions contemplated by the Chief Purchase and Sale Agreement;
provided, however, that to be excluded under subsection (B) above, such condition may not
disproportionately affect, as compared to others in such industry, any of the Chief Acquired
Companies, or their respective businesses, assets, properties, results of operation or condition
(financial or otherwise). No Purchaser shall have become aware after April 28, 2006 of any
information or other matter affecting the Company, the Chief Acquisition or the transactions
contemplated by this Amendment that is inconsistent in a material and adverse manner with any such
information or other matter disclosed in writing to any one or more of the Purchasers prior to the
date hereof.

          (c) No Default. No Event of Default or Default shall have occurred and be continuing or would
result in connection with the Chief Acquisition or application of the proceeds therefrom.

          (d) Representations and Warranties. The representations and warranties of the Company and the
Guarantors contained in paragraph 7 hereof, in paragraph 8 of the Agreement, as amended hereby, and
in each of the other Loan Documents executed and delivered on or before the Amendment No. 4
Effective Date and after giving effect to the consent set forth in paragraph 6 hereof shall be true
and correct in all material respects on and as of the Amendment No. 4 Effective Date both before
and after giving effect to the borrowing under the Bank Agreement in connection with the Chief
Acquisition and to the application of the proceeds from the borrowing under the Bank Agreement in
connection with the Chief Acquisition, as though made on and as of such date, other than any such
representations or warranties that, by their terms refer to a specific date.

          (e) No Material Litigation. No action, suit, investigation or proceeding shall be pending or,
to the knowledge of the Company, threatened in any court or before any arbitrator or governmental
authority that (i) could reasonably be expected to have a Material Adverse Effect or (ii) relates
to the Chief Acquisition.

          (f) Payment of Fees and Expenses. The Company shall have paid all costs and expenses that
have been invoiced and are payable pursuant to paragraph 11B of the Agreement.

          (g) Financial Information. Such Purchaser shall have received financial projections of the
Company and its Subsidiaries for the fiscal years 2006 through 2010 and incorporating the advances
provided for in the Amendment to Bank Agreement and the Chief Acquisition (the “Projections").

          (h) Bank Agreement. All of the conditions precedent to the effectiveness of the Amendment to
Bank Agreement shall have been met or waived on or prior to the Amendment No. 4 Effective Date.

          (i) Due Diligence. Such Purchaser shall have received such financial, business and other
information regarding the Chief Acquisition as such Purchaser shall have reasonably requested,
including, without limitation, information as to possible contingent

8

 

liabilities, tax matters, collective bargaining agreements and other arrangements with
employees, and the financial statements and Projections referred to in paragraph 8(g) hereof.

          (j) Equity Issuance Proceeds. The Company shall have received the proceeds of an Equity
Issuance in immediately available funds, after payment of, or provision for, all brokerage
commissions and other reasonable out-of-pocket fees and expenses, in amount equal to at least
$250,000,000.

          (k) Chief Acquisition.

               (i) The terms and conditions of the Chief Acquisition Documents shall be in form and substance
satisfactory to such Purchaser (it being agreed that the Chief Acquisition Documents that have been
delivered to such Purchaser are satisfactory).

               (ii) Except as otherwise disclosed in writing and acceptable to such Purchaser, the Chief
Acquisition Documents shall be in full force and effect and no material term or condition thereof
shall have been amended, modified or waived in writing after the execution thereof, unless such
amendment, modification or waiver could not reasonably be expected to be materially adverse to the
interests of the Company or the Purchasers.

               (iii) The Chief Acquisition shall, substantially concurrently with the effectiveness of this
Amendment have been consummated by the Company, and all other conditions to the Chief Acquisition
as set forth in the Chief Acquisition Documents shall have been satisfied or waived in form and
substance satisfactory to such Purchaser, unless such waiver could not reasonably be expected to be
materially adverse to the interests of the Company or the Purchasers.

          (l) Consents. The Company shall have received all necessary or, in the discretion of the
Required Holder(s), advisable, third-party consents or agreements required for the consummation of
the Chief Acquisition.

     9. Miscellaneous.

     (a) Effect on Agreement. On and after the Amendment No. 4 Effective Date, each reference in
the Agreement to “this Agreement”, “hereunder”, “hereof”, or words of like import referring to the
Agreement and each reference in the Notes and all other documents executed in connection with the
Agreement to “the Agreement”, “thereunder”, “thereof”, or words of like import referring to the
Agreement shall mean the Agreement as amended by this Amendment. The Agreement, as amended by this
Amendment, is and shall continue to be in full force and effect and is hereby in all respects
ratified and confirmed. Except as expressly set forth in paragraph 6 hereof, the execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or
remedy under the Agreement nor constitute a waiver of any provision of the Agreement. Without
limiting the generality of the foregoing, nothing in this Amendment shall be deemed to (i) except
as expressly set forth in paragraph 6 hereof, constitute a waiver of compliance or consent to
noncompliance by the Company or any other Person with respect to any term, provision, covenant or
condition of the Agreement or any other Loan Document or (ii) prejudice any right or remedy that
any holder of Notes may now have or may have in the future under or in connection with the
Agreement or any other Loan Document.

9

 

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

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

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

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

     (f) FINAL AGREEMENT. THIS AMENDMENT, TOGETHER WITH THE AGREEMENT AND THE OTHER TRANSACTION
DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN 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 page follows.}

10

 

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

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	CROSSTEX ENERGY, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Crosstex Energy GP, L.P.,
	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Crosstex Energy GP, LLC,	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gysle R. Shellum	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gysle R. Shellum	 	 
	 

	 	 	 	Vice President-Finance	 	 

Agreed to as of the Amendment No. 4 Effective Date:

PRUDENTIAL INVESTMENT MANAGEMENT, INC.

	 	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 
	 
	 	 	 	 
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory
	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 
	 
	 	 	 	 
	PRUCO

	 	LIFE INSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 

Signature Page to Letter Amendment No. 4

 

 

	 	 	 	 	 
	PRUCO LIFE INSURANCE
COMPANY OF 
    NEW JERSEY	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory
	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 
	 
	 	 	 	 
	GIBRALTAR LIFE INSURANCE CO., LTD.	 	 
	 
	 	 	 	 
	By:

	 	Prudential Investment Management (Japan), Inc.,	 	 
	 

	 	as Investment Manager	 	 
	 
	 	 	 	 
	By:

	 	Prudential Investment Management, Inc.,	 	 
	 

	 	as Sub-Adviser	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 
	 
	 	 	 	 
	RGA REINSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:

	 	Prudential Private Placement Investors,	 	 
	 

	 	L.P. (as Investment Advisor)	 	 
	 
	 	 	 	 
	By:

	 	Prudential Private Placement Investors, Inc.	 	 
	 

	 	(as its General Partner)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 
	 
	 	 	 	 
	CONNECTICUT GENERAL
LIFE INSURANCE 
    COMPANY	 	 
	 
	 	 	 	 
	By:

	 	Prudential Investment Management, Inc.,

as Investment Manager	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 

Signature Page to Letter Amendment No. 4

 

 

	 	 	 	 	 
	ZURICH AMERICAN INSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:

	 	Prudential Private Placement Investors,
	 	 
	 

	 	L.P. (as Investment Advisor)	 	 
	 
	 	 	 	 
	By:

	 	Prudential Private Placement Investors, Inc.	 	 
	 

	 	(as its General Partner)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 
	 
	 	 	 	 
	THE PRUDENTIAL LIFE
INSURANCE 
    COMPANY, LTD.	 	 
	 
	 	 	 	 
	By:

	 	Prudential Investment Management (Japan), Inc.,	 	 
	 

	 	as Investment Manager	 	 
	 
	 	 	 	 
	By:

	 	Prudential Investment Management, Inc.,	 	 
	 

	 	as Sub-Adviser	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 
	 
	 	 	 	 
	PRUDENTIAL RETIREMENT
INSURANCE 
     AND ANNUITY COMPANY	 	 
	 
	 	 	 	 
	By:

	 	Prudential Investment Management, Inc.,	 	 
	 

	 	as investment manager	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 

Signature Page to Letter Amendment No. 4

 

 

	 	 	 	 	 
	MTL INSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:

	 	Prudential Private Placement Investors, L.P.
	 	 
	 

	 	(as Investment Advisor)	 	 
	 
	 	 	 	 
	By:

	 	Prudential Private Placement Investors, Inc.	 	 
	 

	 	(as its General Partner)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Authorized Signatory	 	 
	 

	 	 	 	 
	 

	 	Vice President	 	 

Agreed to and acknowledged by each of the undersigned for the purposes set forth in paragraph 9(e)
hereof:

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

	 	By:
	 	Crosstex Energy Services GP, LLC
	 	 
	 

	 	 	 	Sole General Partner of each above limited
partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gysle R. Shellum	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gysle R. Shellum	 	 
	 

	 	 	 	Vice President-Finance	 	 

Signature Page to Letter Amendment No. 4

 

 

	 	 	 	 	 	 	 
	 	 	CROSSTEX ENERGY SERVICES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Crosstex Operating GP, LLC,
	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gysle R. Shellum	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gysle R. Shellum	 	 
	 

	 	 	 	Vice President-Finance	 	 
	 
	 	 	 	 	 	 
	 	 	CROSSTEX OPERATING GP, LLC	 	 
	 	 	CROSSTEX ENERGY SERVICES GP, LLC	 	 
	 	 	CROSSTEX LIG, LLC	 	 
	 	 	CROSSTEX TUSCALOOSA, LLC	 	 
	 	 	CROSSTEX LIG LIQUIDS, LLC	 	 
	 	 	CROSSTEX PIPELINE, LLC	 	 
	 	 	CROSSTEX PROCESSING SERVICES, LLC	 	 
	 	 	CROSSTEX PELICAN, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gysle R. Shellum	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gysle R. Shellum	 	 
	 

	 	 	 	Vice President-Finance	 	 
	 
	 	 	 	 	 	 
	 	 	CROSSTEX PIPELINE PARTNERS, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Crosstex Pipeline, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gysle R. Shellum	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gysle R. Shellum	 	 
	 

	 	 	 	Vice President-Finance	 	 

Signature Page to Letter Amendment No. 4

 

 

	 	 	 	 	 	 	 
	 	 	SABINE PASS PLANT FACILITY JOINT VENTURE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Crosstex Processing Services, LLC,
	 	 
	 

	 	 	 	as general partner	 	 
	 

	 	 	 	and	 	 
	 

	 	By:
	 	Crosstex Pelican, LLC, as general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gysle R. Shellum	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Gysle R. Shellum	 	 
	 

	 	 	 	Vice President-Finance	 	 

Signature Page to Letter Amendment No. 4

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