Exhibit 10.2
FIRST AMENDMENT
     THIS FIRST AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into as of the 24th day of February, 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”).
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 (the “Credit Agreement”). Terms defined in the Credit Agreement and not otherwise defined herein have the same respective meanings when used herein.
     B. The Borrower intends to amend the Note Agreement in order to increase the outstanding principal amount of the Note Obligations by $60,000,000.
     C. The Borrower has requested, and the Majority Banks have agreed, to (1) consent to the issuance of Debt under the Note Agreement in an aggregate principal amount not to exceed $260,000,000, and (2) make certain other amendments to the Credit Agreement.
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 Majority Banks (which are all of the Banks required under the Credit Agreement to make the amendments and give the consents contemplated hereunder) hereto covenant and agree as follows:
Section 1. Amendments. The Credit Agreement is hereby amended as follows:
     (a) 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 $260,000,000; and
     (b) Section 6.17(a) of the Credit Agreement is hereby amended by replacing “$200,000,000” with “$260,000,000”.
Section 2. Consent and Waiver. The Majority Banks hereby consent to the Letter Amendment No. 3 to the Note Agreement to permit the increase of the outstanding principal amount of Note Obligations by $60,000,000 for a total of $260,000,000. This consent 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.

 


 

Section 3. Conditions Precedent. This Amendment shall become effective as of the date first set forth above when the Administrative Agent 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:
     (a) this Amendment, duly executed by the Borrower, the Guarantors, the Majority Banks and the Administrative Agent; and
     (b) an executed copy of the Letter Amendment No. 3 to Note Agreement, certified by a Responsible Officer as being a true and correct copy of such document, in form and substance reasonably acceptable to the Administrative Agent.
Section 4. 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 Majority 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, 2004, 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) No event has occurred and is continuing, or would result from the effectiveness of this Amendment, which constitutes a Default.
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.
     (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, 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.
     Executed as of the 24th day of February, 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    
 
               
    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/ Dustin Gaspari    
             
 
  Name:   Dustin Gaspari    
 
  Title:   Vice President    
 
               
    SUNTRUST BANK    
 
               
    By:   /s/ Peter Panos    
             
    Name:   Peter Panos    
    Title:   Vice President    

 


 

             
    HARRIS NESBITT FINANCING, INC.,
 
           
 
  By:   /s/ James V. Ducote    
 
  Name:  
 
James V. Ducote
   
 
  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/ Shannon Batchman    
 
  Name:  
 
Shannon Batchman
   
 
  Title:   Director    
 
           
    BNP PARIBAS
 
           
 
  By:   /s/ Matthieu Milandri    
 
  Name:  
 
Matthieu Milandri
   
 
  Title:   Vice President    
 
           
 
  By:   /s/ Larry Robinson    
 
  Name:  
 
Larry Robinson
   
 
  Title:   Director    
 
           
    CITIBANK, N.A.    
 
           
 
  By:        
 
  Name:  
 
   
 
  Title:  
 
   
 
     
 
   
 
           
    SCOTIABANC INC.    
 
           
 
  By:        
 
  Name:  
 
   
 
  Title:  
 
   
 
     
 
   

 


 

             
    WESTLB AG, NEW YORK BRANCH    
 
           
 
  By:   /s/ Duncan Robertson    
 
  Name:  
 
Duncan Robertson
   
 
  Title:   Executive Director    
 
           
 
  By:   /s/ James McPartlan    
 
  Name:  
 
James McPartlan
   
 
  Title:   Managing Director    
 
           
    ROYAL BANK OF CANADA    
 
           
 
  By:   /s/ Lorne Gartner    
 
  Name:  
 
Lorne Gartner
   
 
  Title:   Authorized Signatory    
 
           
    U.S. BANK NATIONAL ASSOCIATION    
 
           
 
  By:   /s/ Mark E. Thompson    
 
  Name:  
 
Mark E. Thompson
   
 
  Title:   Vice President    
 
           
    THE BANK OF TOKYO-MISTUBISHI UFJ LTD.,    
    New York Branch    
    (successor by merger to UFJ Bank Limited)    
 
           
 
  By:   /s/ Takeshi Takahashi    
 
  Name:  
 
Takeshi Takahashi
   
 
  Title:   Senior Vice President & Group Head    
 
           
    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/ Daniel Payer    
 
  Name:  
 
Daniel Payer
   
 
  Title:   Vice President    
 
           
 
  By:   /s/ Louis P. Laville, III    
 
  Name:  
 
Louis P. Laville, III
   
 
  Title:   Group Manager    
 
           
    WELLS FARGO BANK, N.A.    
 
           
 
  By:        
 
  Name:  
 
   
 
  Title:  
 
   
 
     
 
   
 
           
    KEY BANK, N.A.    
 
           
 
  By:   /s/ Thomas Rajan    
 
  Name:  
 
Thomas Rajan
   
 
  Title:   Vice President    
 
           
    COMERICA BANK    
 
           
 
  By:   /s/ Peter L. Sefzik    
 
  Name:  
 
Peter L. Sefzik
   
 
  Title:   Vice President    
 
           
    SUMITOMO MITSUI BANKING    
    CORPORATION    
 
           
 
  By:   /s/ William M. Ginn    
 
  Name:  
 
William M. Ginn
   
 
  Title:   General Manager    
 
           
    SOCIÉTÉ GÉNÉRALE    
 
           
 
  By:   /s/ Graeme R. Bullen    
 
  Name:  
 
Graeme R. Bullen
   
 
  Title:   Director    

 


 

             
    STERLING BANK    
 
           
 
  By:   /s/ Jeff A. Forbis    
 
  Name:  
 
Jeff A. Forbis
   
 
  Title:   Senior Vice President    
 
           
    COMPASS BANK    
 
           
 
  By:   /s/ Dorothy Marchand    
 
  Name:  
 
Dorothy Marchand
   
 
  Title:   Senior Vice President    
 
           
    BANK OF SCOTLAND    
 
           
 
  By:   /s/ Karen Weich    
 
  Name:  
 
Karen Weich
   
 
  Title:   Assistant Vice President    
 
           
    MIZUHO CORPORATE BANK, LTD.    
 
           
 
  By:        
 
  Name:  
 
   
 
  Title:  
 
   
 
     
 
   
 
           
    NATIONAL CITY CORPORATION    
 
           
 
  By:   /s/ Stephen Monto
 
   
 
  Name:   Stephen Monto    
 
  Title:   Vice President    

 


 

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