Exhibit 10.2

 

2004 INCENTIVE COMPENSATION PLAN

PERFORMANCE TARGETS

 

Intent:  To provide a reward for achieving budget targets.

 

Measurement Criteria:  The incentive award for each executive under the 2004
incentive compensation plan was derived from three measurement criteria 1)
MarkWest Hydrocarbon, Inc. (“MarkWest Hydrocarbon”) operating cash flow
(weighted 40% of the total bonus award) 2) MarkWest Energy Partner’s, L.P.
(“MarkWest Energy”) distributed cash flow (weighted 40% of the total bonus
award), and 3) department/individual goals (weighted 20% of the total bonus
award).

 

Threshold:  The payout of incentive awards was contingent upon EBITDA (earnings
before interest, taxes, depreciation, depletion and amortization) being 90% to
100% of target for both MarkWest Energy and MarkWest Hydrocarbon.

 

Incentive Award Range:  The incentive award range was set from 20% to 35% of
base salary for officers and executives if budget targets are achieved, with
opportunity of percentages to be increased to up to 35% to 65% of base salary
for achieving stretch performance.

 

Payout:  Base incentive award 50% cash and 50% equity (restricted stock or
phantom units).

 

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