Document:

Exhibit 10.2

FORM OF
EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”)
is made and entered into as of this 5th day of September 2007 by and between MarkWest
Hydrocarbon, Inc., a Delaware corporation, having its principal executive
offices in Denver, Colorado (the “Company”) and                              ,
residing in                    ,
Colorado (the “Executive”).

WHEREAS, the Company derives its revenue
and value through its natural gas liquids and gas marketing activities and
through its ownership in MarkWest Energy Partners, L.P. (the “Partnership”),
a publicly traded Delaware master limited partnership engaged in the gathering,
transportation and processing of natural gas, the transportation and
fractionation and storage of NGLs, and the gathering and transportation of
crude oil;

WHEREAS, the Company’s ownership interest
in the Partnership consists of ownership of an approximately 17% limited
partner interest in MarkWest Energy Partners, L.P., and ownership of
approximately 89.7% of MarkWest Energy GP, L.L.C. (the “GP”), the
Partnership’s general partner;

WHEREAS, the Company and GP have entered
into a services agreement (the “Services Agreement”) pursuant to which
the Company acts in a management capacity providing day-to-day operational,
business and asset management, accounting, information services, personnel, and
related administrative services to the Partnership;

WHEREAS, the Executive is currently serving
as                               
of the Company, and in such capacity provides services to or on behalf of the
Company and its affiliates, and to the Partnership and its affiliates pursuant
to the Services Agreement; and

WHEREAS, the Company and the Executive
mutually desire to formalize the employment arrangement of the Executive and to
agree upon the terms of the Executive’s employment as the                               
of the Company and, in addition, to agree as to certain benefits of said
employment.

NOW, THEREFORE, in consideration of the
mutual promises and agreements set forth below, the Company and the Executive
hereby agree as follows:

 

1.             TERM OF EMPLOYMENT: 
Subject to the terms of this Agreement, the Company hereby continues the
employment of the Executive, and the Executive hereby accepts such continuing
employment, effective September 5, 2007 (the “Effective Date”), for a
period of three years, subject to earlier termination as provided in Paragraph
4, herein (the “Term”); provided, however, that the Term will
automatically be extended by twelve months on the third anniversary of the
Effective Date and on each anniversary of the Effective Date thereafter, unless
one party to this Agreement provides written notice of non-renewal to the other
party at least 30 days prior to the effective date of such automatic extension.  The consequences of termination of employment
to each party are as set forth in this Agreement.  Portions of this Agreement that by their
terms provide or imply that they survive the end of the Term shall survive the
end of the Term.

2.             POSITION AND DUTIES:

a.             Position:  During
the Term, the Executive shall serve as                               
of the Company and shall have such duties, responsibilities, and authority as
are customarily required of and given to the                               
of a public mid-stream energy company. 
The Executive shall report directly to the Company’s Chief Executive
Officer and shall perform his or her duties and responsibilities primarily at
the Company’s offices in Denver, Colorado.

b.             Commitment of the Executive:  During the Term, the Executive shall devote
substantially Executive’s full business time, energy, and ability to the
business of the Company, the Partnership, and their respective affiliates.  As used in this Agreement, the term “Affiliate”
means, with respect to any entity, any other entity that directly or indirectly
controls, is controlled by, or is under common control with such first entity.

c.             Other Positions and Services:  The Executive may (i) with the prior written
approval of the Company’s Board of Directors (the “Board”), which
approval shall not be unreasonably withheld or delayed, serve as a director or
trustee of other for profit corporations or businesses, provided, that
if a directorship is approved and the Board later determines (A) that the
directorship would violate Paragraph 7 of this Agreement, or (B) that that the
Board no longer approves of the directorship, which approval shall not be
unreasonably withdrawn, it shall notify the Executive in writing and the
Executive shall resign such directorship within a reasonable period of time,
(ii) serve on civic or charitable boards or committees, and (iii) deliver
lectures, fulfill speaking engagements, or teach at educational institutions
(and retain any fees therefrom); provided, however, that the
Executive may not engage in any of the activities described in this Paragraph
2(c) to the extent such activities interfere materially with the performance of
the Executive’s duties and responsibilities to the Company.

d.             Investments:  Except
as may otherwise be permitted by this Agreement, without the prior express
authorization of the Board, the Executive shall not, during the Term, directly
or indirectly render services of a business, professional, or commercial nature
to any other person or firm, whether for compensation or otherwise.  Notwithstanding the foregoing, the Executive
may be an investor, shareholder, joint venturer, or partner in any such
business (hereinafter referred to as “Investor”); provided, that
Executive’s status as an Investor shall not 

(i) pose a
conflict of interest with regard to Executive’s employment, (ii) require the
Executive’s active involvement in the management or operation of such
Investment (recognizing that the Executive shall be permitted to monitor and
oversee the Investment), or (iii) interfere materially with the performance of
the Executive’s duties and obligations hereunder.  For the purposes of clause (i) of the
preceding sentence, the Executive shall not be deemed to be subject to a
conflict of interest merely by reason of the ownership of less than five
percent (5%) of (i) the outstanding stock of any entity whose stock is traded
on an established stock exchange or on the National Association of Securities
Dealers Automated Quotation System, or (ii) the outstanding stock, partnership
interests or other form of equity interest of any venture fund, investment pool
or similar investment vehicle.

e.             No Conflict:  The
Executive represents and warrants that, to the best of Executive’s knowledge
after the review of Executive’s personal files, he has the full right and
authority to enter into this Agreement and to render the services as required
under this Agreement, and that by signing this Agreement and rendering such
services he is not breaching any contract or legal obligation he owes to any
third party.

3.             COMPENSATION AND BENEFITS: 
During the Term, while the Executive is employed by the Company, the
Company shall compensate the Executive for his or her services as set forth in
this Paragraph 3.  The Executive recognizes
that during the Term of the Agreement, the Company reserves the right to change
from time to time the terms and benefits of any retirement, welfare or fringe
benefit plan of the Company, including the right to change any service
provider, so long as such changes are also applicable generally to all
executives of the Company.

a.             Salary:  During the
Term, the Company shall pay the Executive a base salary at an annual rate of                               
(the “Base Salary”).  Base Salary
shall be earned and shall be payable in periodic installments in accordance
with the Company’s payroll practices. 
Amounts payable shall be reduced by standard withholding and other
authorized deductions.  The Compensation
Committee of the Board (the “Compensation Committee”) will review the
Executive’s salary at least annually and may adjust the Executive’s Base Salary
in its sole discretion.  Executive’s
salary as so adjusted shall thereafter be treated as Executive’s Base Salary
hereunder.

b.             Cash Bonus / Short-Term Incentives: The Executive shall be
eligible to receive bonuses/short-term cash incentives in accordance with the
Company’s cash bonus/short-term incentive program(s) for senior management, as
such program(s) may be modified from time to time.  All bonuses/short-term cash incentives shall
be paid in a manner that complies with the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”).

c.             Equity Compensation
Programs:

(i)            General.  The Executive shall be entitled to participate
in all equity compensation programs sponsored by the Company, the Partnership,
or their Affiliates (the “Equity Plans”).  The size and terms of any grants to be made
to Executive shall be established 

 

by the Compensation Committee, or the Compensation
Committee of the Partnership, in their sole discretion.

(ii)           Change of Control.  All grants made under the Equity Plans
(including those made prior to the effective date of this Agreement) shall vest
in full immediately prior to the occurrence of a Change of Control.  For
purposes of this Agreement, a Change of Control shall mean the first to occur
of:

(A)          any “person” (as defined in Section
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) other than (1) the Company or any Affiliate of the Company as of the
date of this Agreement, (2) any employee benefit plan of the Company or any
Affiliate of the Company, or (3) any person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan which
acquires beneficial ownership of voting securities of the Company, is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company’s
then outstanding securities.

(B)           the individual directors of the Board
on the effective date of this Agreement (“Incumbent Directors”) cease to
constitute at least two-thirds of the Board within any three (3) year
period.  For purposes of this paragraph, any new director whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the Incumbent Directors shall be considered an
Incumbent Director.  However, no director
whose initial election to the Board occurs as a result of an actual or
threatened election contest with respect to the election or removal of director
or other actual or threatened solicitation of proxies or consents by or on
behalf or a person other than the Board shall be considered a Incumbent
Director;

(C)           consummation
of a reorganization, merger or consolidation of the Company (a “Business
Combination”), in each case, unless, following such Business Combination,
the individuals and entities who were the beneficial owners of outstanding
voting securities of the Company immediately prior to such Business Combination
beneficially own, by reason of such ownership of the Company’s voting
securities immediately before the Business Combination, directly or indirectly,
more than 50% of the combined voting
power of the then outstanding voting securities entitled to vote generally in
the election of directors of the company resulting from such Business
Combination (including, without limitation, a company which as a result of such
transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership of the outstanding voting securities of
the Company immediately prior to such Business Combination; or

(D)          approval by the
stockholders of the Company of a complete liquidation or dissolution of the
Company.

(E)           any sale, lease,
exchange, or other transfer or disposition of all or substantially all of the
assets of the Partnership or the GP;

 

(F)           consummation of any
Business Combination with respect to the GP, unless, following such Business
Combination, the individuals and entities who were the beneficial owners of
outstanding voting securities of the GP as of the initial public offering of
securities in the Partnership, beneficially own, by reason of such ownership of
the GP’s voting securities, directly or indirectly, more than 50% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of
the company resulting from such Business Combination (including, without
limitation, a company which as a result of such transaction owns the GP or all
or substantially all of the GP’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership of the
outstanding voting securities of the GP as of the initial public offering of
securities in the Partnership; or

(G)           the general partner of
the Partnership (whether it be the GP or another entity) ceases to be an
Affiliate of the Company.

Notwithstanding
the foregoing subparagraphs (A) through (G), in no event shall any
transaction or series of transactions entered into between the Company, the
Partnership, the GP, or their respective Affiliates as of the date of this
Agreement or entities wholly owned by the forgoing, or changes associated
therewith, be considered a Change in Control.

d.             Retirement Plans: 
The Executive shall be entitled to participate in all retirement plans
applicable generally to other senior executives of the Company, in accordance
with the terms of such plans, as they may be amended from time to time.

e.             Welfare Benefit Plans: 
The Executive and Executive’s family, as the case may be, shall be eligible
to participate in and shall receive all benefits under the Company’s welfare
benefit plans and programs applicable generally to other senior executives of
the Company (collectively, as amended from time to time, the “Company Plans”),
in accordance with the terms of the Company Plans.

f.              Vacation and Sick Leave: 
Executive shall be entitled to paid vacation, sick leave, and paid time
off in accordance with the plans, policies, and programs in effect generally
with respect to other senior executives of the Company, including the
limitations, if any, on the carry-over of accrued but unused time.

g.             Expenses:  The
Company shall reimburse the Executive for reasonable expenses for cellular
telephone usage, entertainment, travel, meals, lodging, and similar items
incurred in the conduct of the Company’s business.  Such expenses shall be reimbursed in
accordance with the Company’s expense reimbursement policies and guidelines.

h.             Fringe Benefits and Perquisites.  Executive and Executive’s family, as the case
may be, shall be eligible for all other fringe benefits or perquisites offered
generally to senior executives of the Company (and their families, as
applicable).

i.              Officers and Directors Liability Insurance; Indemnification:  During
Executive’s employment with the Company and thereafter so long as Executive may
have 

 

liability arising out of Executive’s service as an officer or director of
the Company or any Affiliate, the Company agrees to continue and maintain a
director’s and officer’s liability insurance policy (“D&O Insurance”)
covering Executive in an amount that is reasonable and customary based on the
size and business activities of the Company, the Partnership, and their
Affiliates, and the authorities, power, responsibilities, and duties of Executive.  To the fullest extent permitted by the
indemnification provisions of the Company’s governing instruments in effect as
of the date of this Agreement and the indemnification provisions of the
governing laws of the jurisdiction of the Company’s formation in effect from
time to time (collectively, the “Indemnification Provisions”), and in
each case subject to the conditions thereof, the Company shall (i) indemnify
the Executive, as a director (if applicable) and officer of the Company or an
Affiliate of the Company or a trustee or fiduciary of an employee benefit plan
of the Company or an Affiliate of the Company, or, if the Executive shall be
serving in such capacity at the Company’s request, as a director or officer of
any other entity (other than an Affiliate of the Company) or as a trustee or
fiduciary of an employee benefit plan not sponsored by the Company or an
Affiliate of the Company, against all liabilities and reasonable expenses that
may be incurred by the Executive in any threatened, pending, or completed
action, suit or proceeding, whether civil, criminal or administrative, or
investigative and whether formal or informal, because the Executive is or was a
director or officer of the Company or any Affiliate, a director or officer of
such other entity or a trustee or fiduciary of such employee benefit plan, and
against which the Executive may be indemnified by the Company, and (ii) pay for
or advance to Executive the reasonable expenses incurred by the Executive in
the defense of any proceeding to which the Executive is a party because the
Executive is or was a director or officer of the Company or an Affiliate, a
director or officer of such other entity or a trustee or fiduciary of such
employee benefit plan.  The rights of the
Executive under the Indemnification Provisions shall survive the termination of
the employment of the Executive by the Company.

4.             TERMINATION:  The
Executive’s employment with the Company during the Term may be terminated by
the Company or the Executive pursuant to this Paragraph 4, subject to the
provisions of Paragraph 5:

a.             Death
or Disability:  If the
Executive has a Disability (as defined below), the Company may give to the
Executive written notice of its intention to terminate the Executive’s
employment.  In such event, the Executive’s
employment with the Company shall terminate effective on the 30th day after
receipt of such notice by the Executive, provided that, within the 30-day
period after such receipt, the Executive shall not have returned to full-time
performance of the Executive’s material duties. 
For purposes of this Agreement, “Disability” shall mean any
physical or mental condition which prevents the Executive, for a period of 90
consecutive days, from performing and carrying out Executive’s material duties
and responsibilities with the Company, as determined under the Company’s
long-term disability plan.  The Executive’s
employment hereunder shall terminate automatically upon the Executive’s death.

b.             Cause:  The Company
may terminate this Agreement immediately upon written notice to the Executive
if, after the Executive is given an opportunity
to be heard by the Board and to present evidence on Executive’s behalf, a
formal determination is made by a majority of the directors on the Board and at
least two-thirds of the Board’s non-employee 

 

directors, that the Executive should be terminated for “Cause”.  Any one or more of the following events shall
constitute “Cause”:

(i)            conviction of (or
pleading nolo contendere to) a
felony that is injurious to the business or reputation of the Company, the
Partnership, or their Affiliates;

(ii)           engaging in
intentional wrongdoing (including without limitation, theft, fraud,
embezzlement, or willful misappropriation of the funds or property of the
Company, the Partnership, or their Affiliates), or failure by Executive to
substantially adhere to the Company work rules, policies or procedures, that is
injurious to the business or reputation of the Company, the Partnership, or
their Affiliates, or breach of fiduciary duties for enrichment of the
Executive;

(iii)          illegal or prohibited treatment of or
relations with any employee, agent or consultant of the Company, the
Partnership, or their Affiliates or of any person with whom the Company, the
Partnership, or their Affiliates have a business relationship, in the form of
illegal or prohibited discrimination, harassment, abuse, assault or other
actions of a similar nature;

(iv)          Executive
has failed to perform substantially Executive’s material duties as contemplated
by Paragraph 2 above (other than such failure resulting from incapacity due to
physical or mental illness), which, for avoidance of doubt, shall include
Executive’s insubordination to his or her direct or indirect reports or to the
Board, after (i) a written demand for corrected performance is delivered to
Executive by the Board which identifies specifically the manners in which the
Board believes Executive has not performed substantially Executive’s material
duties, and (ii) Executive’s failure to cure such items identified in the Board’s
letter within 30 days.

(v)           any
material breach of Executive’s obligations under this Agreement including, but
not limited to, a breach of Executive’s obligations under Paragraph 7;
provided, however, that in the event such breach is curable and is actually
cured within ten (10) days after written notice detailing the nature and facts
of such breach is delivered to Executive, the breach shall not be considered “Cause”
for Executive’s termination.

(vi)          engaging
in actions or behavior that bring Executive into public hatred, disrepute,
scorn, or ridicule, or shock, insult, or offend the community or public morals
or decency, in each case resulting in injury to the business or reputation of
the Company or inhibiting the ability of Executive to effectively represent
publicly the Company, the Partnership, or their Affiliates.

c.             Other than Death or Disability or Cause:  The Company may terminate the Executive’s
employment upon thirty (30) days written notice to the Executive at any time
and for any reason other than Death, Disability, or Cause.

d.             Termination by Executive: 
The Executive may terminate Executive’s employment upon thirty (30) days
written notice to the Company at any time and for any reason.

 

5.             OBLIGATIONS OF THE COMPANY AND THE EXECUTIVE UPON TERMINATION:

a.             Death
or Disability:  If the
Executive’s employment is terminated by reason of the Executive’s death or
Disability during the Term, the Term shall end and the Company shall provide to
Executive or Executive’s legal representatives:

(i)
           payment of the sum of (A) any
Base Salary and bonus earned but not yet paid to the Executive through the date
of termination, and (B) any other compensation earned through the date of
termination but not yet paid or delivered to the Executive (“Accrued
Obligations”),

(ii)           the payments and benefits provided in
Paragraph 5(g),

(iii)
         payment to the Executive of a
lump sum equal to (A) 24 months of the Executive’s then current Base Salary,
(B) two (2) times the average annual bonus earned by the Executive for the two
most recently completed fiscal years, and (C) a pro-rata portion of the target
amount of the annual bonus for the fiscal year of termination, calculated based
on the portion of such fiscal year the Executive is employed.  The lump sum payment shall be made within
thirty (30) days of termination or, if the payment, or any portion thereof,
must be delayed to comply with Code Section 409A because the individual is a “specified
employee” as defined in Code Section 409A(a)(2)(B)(i), the payment, or the
portion so delayed, shall be made on the soonest date permissible without
triggering the additional tax due under Code Section 409A;

(iv)
         subject to Paragraph 3(c), the
accelerated vesting of each stock option or unit option, phantom unit, restricted
stock or restricted unit, or other equity incentive award granted under the
Equity Plans (or portion thereof) that would have otherwise vested solely upon
the Executive remaining in the continuous employment of the Company for a
period of twelve (12) months after the date of termination, and

(v)
          payment of all premiums for
properly elected group health plan continuation coverage for Executive and his
or her spouse and dependents pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) for the lesser of (A) the number of
months of Base Salary to be paid to Executive under subparagraph (iii)(A),
above, or (B) the duration of such COBRA coverage.  All such premiums shall be paid on the first
day of the month.  In addition, in the
event that payment of such premiums is taxable to executive, the Company shall
pay to Executive an amount, as and when such premiums are paid, such that after
taking into account all taxes due on the premiums and on the additional
payment, the Executive will be in the same economic position as he would have
been in had such premiums been non-taxable.

The
Company shall be obligated to make the foregoing payments and to provide the
foregoing benefits upon the Executive (or, if applicable, the Executive’s legal
representative) and the Company signing a mutual release (the “Release”)
of all claims (including claims by, on behalf of, or against the Partnership,
any Affiliates of the Partnership or the Company, and their 

 

respective
directors, agents, employees, and assigns) in a form provided by the Company,
which release shall, if applicable, give the Executive appropriate
notifications under the Age Discrimination in Employment Act, as amended by the
Older Workers Benefit Protection Act, and which shall not affect (x) rights
under COBRA and (y) conversion rights under any applicable life insurance
policies.

b.             Termination for Cause: 
If the Executive’s employment is terminated by the Company for Cause,
the Term shall terminate without further obligations to the Executive under
this Agreement after the date of such termination, other than for (i) payment
of the Accrued Obligations, and (ii) the payments and benefits provided in
Paragraph 5(h).

c.             Other than Death or Disability or Cause:  If the Company terminates the Executive’s
employment during the Term for any reason other than Death, Disability, or
Cause, the Term shall end on the date of such termination and the Executive
shall, upon signing of a Release, be entitled to the payments, benefits and
other compensation provided above in Paragraph 5(a).

d.             Voluntary Termination by Executive:  If the Executive terminates his or her
employment without Good Reason, as defined below, the Term shall end and the
Company shall provide to Executive:

(i)            the Accrued Obligations

(ii)           the payments and benefits provided in
Paragraph 5(h)

(iii)          if the Executive’s total, aggregate
term of employment with the Company (notwithstanding any breaks in service)
exceeds one (1) year, then upon signing a Release, the Executive shall also
receive:

(A)          a lump sum payment equal to three (3)
months of the Executive’s then current Base Salary, which amount shall be paid
within ten (10) days of termination or, if the payment, or any portion thereof,
must be delayed to comply with Code Section 409A because the individual is a “specified
employee” as defined in Code Section 409A(a)(2)(B)(i), the payment, or the
portion so delayed, shall be made on the soonest date permissible without
triggering the additional tax due under Code Section 409A;

(B)           payment of all premiums for properly
elected COBRA coverage for Executive and his or her spouse and dependents for
the lesser of (A) the number of months of Base Salary to be paid to Executive
under subsection (d)(iii)(A), above, or (B) the duration of such COBRA
coverage.

e.             Termination by Executive for Good Reason:

 

(i)            In General.  If the Executive terminates his or her
employment for Good Reason, as defined below, the Term shall terminate on the
date of such termination and the Executive shall, upon signing a Release, be
entitled to the payments, benefits and other compensation provided above in
Paragraph 5(a).

(ii)           “Good Reason”.  For purposes of this Agreement, the Executive’s
termination of employment with the Company shall be on account of “Good Reason”
if it occurs for any of the following reasons: 
(A) any failure by the Company to comply with any of the provisions of
Paragraph 3 of this Agreement, including but not limited to the failure by the
Company to pay to the Executive any portion of his or her compensation in
violation of the provisions of Paragraph 3, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive; (B) a material diminution in Base Salary or bonus opportunity not
related to performance or market conditions, other than which is remedied by
the Company within thirty (30) days after receipt of notice thereof given by
the Executive; (C) a material diminution in responsibility or authority other
than which is remedied by the Company within thirty (30) days after receipt of
notice thereof given by the Executive; (D) the forced relocation of Executive’s
principal place of employment to a location more than 50 miles from the
Executive’s then-current principal place of employment; or (E) the occurrence
of a Change of Control, provided that Executive voluntarily terminates his or
her employment within  twelve (12)
months of the Change of Control.

f.              Expiration of Term. 
In the event that the Term expires following the giving of notice of
non-renewal pursuant to Paragraph 2, above, then (i) if such notice was given
by the Company, the termination shall be deemed to be for “Other than Death or
Disability or Cause” and Executive shall, upon signing a Release, be entitled
to the payments, benefits, and other compensation provided in Paragraph 5(a)
above, and (ii) if such notice was given by the Executive, the termination
shall be deemed a “Voluntary Termination by Executive” and Executive shall,
upon signing a Release, be entitled to the payments, benefits, and other
compensation provided in Paragraph 5(d) above.

g.             General
Partner Membership Interest:

(i)            Limited Application.  The
provisions of Paragraph 5(g)(ii) below shall apply solely in the event that the
Company and the Partnership announce formally to the public (whether through a
press release or the filing of a current report on Form 8-K) that they no
longer intend to pursue the proposed acquisition/business combination/restructuring
transaction that was announced formally to the public on February 21, 2007.

(ii)           Repurchase of General Partner Membership Interest. Executive is hereby granted the option to elect at
any time, by written notice to the Company, to cause the Company to purchase
all, but not less than all of Executive’s Class B membership interest in
MarkWest Energy GP, L.L.C. at the price established pursuant to the formula set
forth in the GP LLC Agreement as of the delivery date of Executive’s election
notice (“Election Date”). If the Executive makes such election, the
Company shall purchase the Executive’s Class B membership interest within
thirty (30) days following the Election Date, such purchase price to 

 

be
paid, at Company’s election, either (i) in full in cash by wire transfer of
immediately available funds; or (ii) by a combination of cash and of common units of the Partnership, with a value for the common
units as of the Election Date based on the closing price of the Partnership’s common units for the twenty trading
days preceding the Election Date, with the combination of cash and Partnership
common units being equal to the price established pursuant to the formula set
forth in the GP LLC Agreement, provided that the value of the Partnership
common units cannot comprise more than 50% of the purchase price established
pursuant to the formula set forth in the GP LLC Agreement.

h.             Exclusive Remedy: 
Except for the payments and benefits provided in this Paragraph 5, and
under Paragraph 3(c), the Executive acknowledges and agrees that upon
termination of the Term, he shall have no other claims against, and shall be
entitled to no other payments or benefits from the Company under this Agreement
or pursuant to the Company’s policies and plans, other than (A) the Executive’s
rights under COBRA, (B) any conversion rights under any applicable life
insurance policies, (C) payment of any amounts due pursuant to the terms of any
equity-based plan of the Company or any welfare or retirement plan of the Company
as of the date of termination or which by their specific terms extend beyond
such date of termination, and (D) rights with respect to D&O Insurance
and/or the Indemnification Provisions. 
The Executive and the Company have agreed that Executive will not
participate in either the MarkWest Hydrocarbon Inc. 1997 Severance Plan or the
MarkWest Hydrocarbon, Inc. 2007 Severance Plan. 
In lieu of participation in such Severance Plans, the parties have
agreed that the Executive will receive certain other payments and benefits as
set forth in this Agreement.  In no event
shall the Executive be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to the Executive under any
of the provisions of this Agreement and such amounts shall not be reduced
whether or not the Executive obtains other employment.

i.              Resignations:  On
and as of the date that the employment of the Executive by the Company shall
terminate for any reason, the Executive shall, if applicable, resign from his
or her position as a director and officer of the Company or the Partnership,
resign from all other positions he or she holds as a director, officer or
employee of any subsidiary or Affiliate of the Company or the Partnership, and
resign as a named fiduciary of any employee benefit plans sponsored by the
Company or the Partnership or their subsidiaries or Affiliates.

6.             280G
Provisions.

a.             Determination; Efficient Gross-Up:  If it is determined that any payment or
benefit provided to or for the benefit of the Executive (a “Payment”),
whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise, would be subject to the excise tax imposed by
Code section 4999 or any interest or penalties with respect to such excise tax
(such excise tax together with any such interest and penalties, shall be
referred to as the “Excise Tax”), then a calculation shall first be made
under which such payments or benefits provided to the Executive are reduced to
the extent necessary so that no portion thereof shall be subject to the Excise
Tax (the “4999 Limit”).  The Company
shall then compare (a) the Executive’s Net After-Tax Benefit (as defined below)
assuming application of the 4999 Limit with (b) the Executive’s Net After-Tax
Benefit without application of the 4999 Limit. 
“Net

 

 

After-Tax Benefit”
shall mean the sum of (i) all payments that Executive receives or is entitled
to receive that are contingent on a change in the ownership or effective
control of the Company or in the ownership of a substantial portion of the
assets of the Company within the meaning of Code section 280G(b)(2), less (ii)
the amount of federal, state, local, employment, and Excise Tax (if any)
imposed with respect to such payments. 
In the event (a) is greater than (b), Executive shall receive Payments
solely up to the 4999 Limit and Executive shall choose which payments shall be
reduced and the amount of the reduction of each payment.  In the event (b) is greater than (a), then
the Executive shall be entitled to receive all such Payments along with an additional
payment (a “Gross-Up Payment”) in an amount such that after
payment by the Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with respect thereto) and Excise
Tax imposed upon the Gross-Up Payment, the Executive retains an amount of
the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

b.             Calculations:  All determinations required under
this Paragraph 6, including the determination of whether a Payment is subject
to the Excise Tax or the amount of any required Gross-Up Payment, shall be made
by tax counsel, a nationally recognized certified public accounting firm not
serving as auditor for the Company, or another tax professional with experience
in such calculations, as selected by the Company and reasonably acceptable to
the Executive (the “Tax Professional”). 
The Tax Professional shall provide detailed supporting calculations for
its determinations both to the Company and the Executive within fifteen days of
receipt of any Payment, or such sooner period as may be requested by the
Company.  All costs relating to the Tax
Professional shall be borne exclusively by the Company.  Subject to Paragraph 6(d), below, any
determination by the Tax Professional shall be binding upon the Company and the
Executive.

c.             Payment of Gross-Up: 
Any Gross-Up Payment, as determined pursuant to this
Paragraph 6, shall be paid by the Company to the Executive within five
business days of the receipt of the Tax Professional’s determination, but in no
event later than the end of Executive’s taxable year next following the taxable
year in which the original Excise Tax on the Payments is remitted to the
Internal Revenue Service.  As a result of
the uncertainty in the application of Section 4999 of the Code at the time
of the initial determination by the Tax Professional hereunder, it is possible
that a Gross-Up Payment which will not have been made by the Company
should have been made (“Underpayment”). 
In the event that the Company exhausts its remedies pursuant to
Paragraph 6(d) and the Executive thereafter is required to make a payment
of any Excise Tax, the Tax Professional shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid
by the Company to or for the benefit of the Executive, but in no event shall
such payment be made later than the end of Executive’s tax year following the
tax year in which the Excise Tax is remitted to the Internal Revenue Service.

d.             Tax Controversy: 
The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of an Underpayment.  Such
notification shall be given as soon as practicable but no later than ten
business days after the Executive is informed in writing of such claim and
shall apprise the Company of the nature of such claim and the date on which
such claim is requested to be paid.  The
Executive shall not pay such claim prior to the expiration of the thirty-day
period 

 

following the date
on which it gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due).  If the Company notifies the Executive in
writing prior to the expiration of such period that it desires to contest such
claim, the Executive shall:

(i)            give the Company any information
reasonably requested by the Company relating to such claim,

(ii)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

(iii)          cooperate with the Company in good
faith in order effectively to contest such claim, and

(iv)          permit the Company to participate in
any proceedings relating to such claim;

provided, however,
that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Executive harmless, on an after-tax basis,
for any Excise Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the
foregoing provisions of this Paragraph 6(d), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or to contest the claim in any permissible manner, and the Executive
agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to the Executive, on an interest-free
basis and shall indemnify and hold the Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties with
respect thereto) imposed with respect to such advance or with respect to any
imputed income with respect to such advance; and further provided that any
extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount.  Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder and the Executive shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

e.             Refunds; Etc.: If, after the receipt by the Executive of
an amount advanced by the Company pursuant to Section 6(d), the Executive
becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying 

 

with the
requirements of Section 6(d)) promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after taxes
applicable thereto).  If, after the
receipt by the Executive of an amount advanced by the Company pursuant to
Section 6(d), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not
notify the Executive in writing of its intent to contest such denial of refund
prior to the expiration of thirty days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the amount
of such advance shall offset, to the extent thereof, the amount of Underpayment
required to be paid.

7.             CONFIDENTIAL INFORMATION; NON-COMPETITION, NON-SOLICITATION:

a.             Confidential
Information:  Except as
permitted or directed by the Board, during the Term or at any time thereafter,
Executive shall not divulge, furnish, make accessible to anyone, lay claim to,
attempt to lay claim to or use, or attempt to use, in any way (other than in
the ordinary course of the business of the Company) any confidential or secret
knowledge or information of the Company, the Partnership, or their respective
Affiliates (collectively the “MarkWest Parties”) that Executive has
acquired or become acquainted with or will acquire or become acquainted with
during the period of Executive’s employment by the Company, whether developed
by himself or by others, concerning any pricing information, trade secrets,
confidential or secret plans or material (whether or not patented or
patentable) directly or indirectly useful in any aspect of the business of the
MarkWest Parties, any customer or dealer lists of the MarkWest Parties, any
confidential or secret development of the MarkWest Parties, or any other
confidential information or secret aspects of the business of the MarkWest
Parties (collectively, “Confidential Information”).  Executive acknowledges that the Confidential
Information constitutes a unique and valuable asset of the MarkWest Parties and
represents a substantial investment of time and expense by the MarkWest
Parties, and that any disclosure or other use of the Confidential Information
other than for the sole benefit of the MarkWest Parties would be wrongful and
would cause irreparable harm to the MarkWest Parties.  Both during and after the Term, Executive
shall refrain from any acts or omissions that would reduce the value of the
Confidential Information.  The foregoing
obligations of confidentiality shall not apply to any knowledge or information
that is now published or that subsequently becomes generally publicly known in
the form in which it was obtained from the MarkWest Parties, other than as a
direct or indirect result of the breach of this Agreement by Executive; is
lawfully obtained by Executive from a third party, provided that Recipient did
not have actual knowledge that such third party was restricted or prohibited
from disclosing such information to Executive; or was independently developed
by Executive, without use of any information obtained from Company.  At the time of the termination of Executive’s
employment, or at such other time as the Company may request, Employee shall
return all memoranda, notes, plans, records, computer tapes and software and
other documents and data (and copies thereof) relating to Confidential
Information that Executive may then possess or have under his or her control.

b.             Non-competition;
Non-solicitation: 
Executive understands and agrees that, in addition to Employee’s
exposure to Confidential Information, Executive may, in his or her capacity as
an employee, at times meet with the MarkWest Parties’ current or prospective
customers, suppliers, partners, licensees or other business relations
(collectively, “Business 

 

Relations”) on behalf of the
MarkWest Parties, and that, as a consequence of using or associating himself
with the MarkWest Parties’ name, goodwill, and professional reputation,
Executive’s employment shall place him or her in a position where Executive can
develop personal and professional relationships with the MarkWest Parties’
current and prospective customers. 
Executive further acknowledges that, during the course and as a result
of Executive’s employment, Executive has been or may be provided certain
specialized training or know-how. 
Executive understands and agrees that this goodwill and reputation, as
well as Executive’s knowledge of Confidential Information and specialized
training and know-how, could be used unfairly in competition against the
MarkWest Parties.  Accordingly, in
consideration of the employment of Executive by the Company pursuant to this
Agreement, Employee agrees that:

(i)            during the time period commencing on
the date hereof and terminating six (6) months after the end of the Term,
Executive shall not directly or indirectly, individually or collectively in
conjunction with others, engage in activities that compete with the business
that the MarkWest Parties is engaged in at the time of the termination of
Executive’s employment in whatever geographic regions the MarkWest Parties
engages in such business at such time (currently natural gas and refinery
off-gas gathering and transportation, natural gas and refinery off-gas
processing, off-gas and NGL fractionation, NGL, natural gas and derived
products marketing, and related services, conducted in the southern Appalachian
region of Kentucky, West Virginia, and southern Ohio, in the southwest and
mid-continent regions of Oklahoma, Texas, Louisiana, Mississippi, and New Mexico,
on the Gulf Coast, and in western Colorado/eastern Utah area); or

(ii)           during the time period commencing on
the date hereof and terminating eighteen (18) months after the end of the Term,
Executive shall not directly or indirectly through another entity or person (i)
induce or attempt to induce any employee of the MarkWest Parties to leave the
employ of the MarkWest Parties, (ii) solicit to hire any person who was
employed by the MarkWest Parties at any time during the one-year period
immediately preceding the termination of Executive’s employment with the
MarkWest Parties, or (iii) induce or attempt to induce any current or
prospective Business Relation of the MarkWest Parties (including, without
limitation, any business entity that the MarkWest Parties have contacted in
order to make a proposal to enter into a business relationship) to withdraw,
curtail or cease doing business with the MarkWest Parties; provided,
however, that Executive shall not be in breach of this paragraph in
the event that any entity with whom Executive is employed or otherwise
affiliated solicits or hires any person so long as Executive is not consulted
concerning or otherwise involved, directly or indirectly, in such solicitation
and/or hiring (except for involvement in a general administrative or other
perfunctory manner), nor shall Executive be in breach of this paragraph in the
event that any person applies for or inquires concerning employment in response
to any advertisement or other job posting directed to the public in general, so
long as Executive is not consulted concerning or otherwise involved, directly
or indirectly, in any aspect of the recruitment, evaluation or hiring of the
person(s) in question (except for involvement in a general administrative or
other perfunctory manner).

Executive acknowledges
that as an executive of a public company he falls within the exception to C.R.S
8-2-113(2)(d), which exempts executive and management personnel and officers
from the prohibitions of non-compete provisions.  Executive further agrees, during the 

 

period for which Executive has continuing obligations
under this Paragraph 7(b), to inform any new employer or other person or entity
with whom Executive enters into a business relationship, before accepting
employment or entering into a business relationship, of the existence of this
Agreement and give such employer, person other entity a copy of this Paragraph
7(b).

c.             Third-Party
Beneficiaries:  It is the
express intent of the parties that the provisions of this Paragraph 7 may be
enforced by any of the MarkWest Parties, and that the protections afforded
herein shall inure to such MarkWest Parties as intended third-party
beneficiaries.

d.             Severability:  To the extent that any provision of this
Paragraph shall be determined to be invalid or unenforceable, the invalid or
unenforceable portion of such provision shall be deleted from this Agreement,
and the validity and enforceability of the remainder of such provision and of
this Paragraph shall be unaffected. In furtherance of and not in limitation of
the foregoing, it is expressly agreed that, should the duration of or
geographical extent of, or business activities covered by, the noncompetition
and non-solicitation agreements contained in Paragraph 7(b) be determined to be
in excess of that which is valid or enforceable under applicable law, then such
provision shall be construed to cover only that duration, extent, or those
activities which may validly or enforceably be covered. Executive acknowledges
the uncertainty of the law in this respect and expressly stipulates that this
Paragraph shall be construed in a manner which renders its provisions valid and
enforceable to the maximum extent (not exceeding its express terms) possible
under applicable law.

e.             Injunctive Relief:  Executive agrees that it would be difficult
to compensate the MarkWest Parties fully for damages for any violation of the
provisions of this Paragraph 7. 
Accordingly, Executive specifically agrees that the MarkWest Parties
shall be entitled to temporary and permanent injunctive relief to enforce the
provisions of this Paragraph and that such relief may be granted without the
necessity of proving actual damages. 
This provision with respect to injunctive relief shall not, however,
diminish the right of the MarkWest Parties to claim and recover damages in
addition to injunctive relief.

8.             SUCCESSORSHIP:  This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and permitted assigns and any such successor or permitted assignee
shall be deemed substituted for the Company under the terms of this Agreement
for all purposes.  As used herein, “successor”
and “assignee” shall be limited to any person, firm, corporation, or other
business entity which at any time, whether by purchase, merger, reorganization,
or otherwise, directly or indirectly acquires the stock of the Company or to
which the Company assigns this Agreement by operation of law or otherwise in
connection with any sale of all or substantially all of the assets of the Company,
provided that any successor or permitted assignee promptly assumes in a
writing delivered to the Executive this Agreement and, in no event, shall any
such succession or assignment release the Company from its obligations
thereunder.  The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. 
As used in this Agreement, “Company” shall mean the Company as herein
before 

 

defined and any
successor to its business and/or assets as aforesaid which assumes and agrees
to perform this Agreement by operation of law or otherwise.

9.             DISPUTE RESOLUTION: 
Any claim arising out of or in any way relating to this Agreement or the
termination thereof shall be initiated in the federal or state courts for Denver,
Colorado and both Executive and the Company (and the MarkWest Parties, as
applicable) hereby submit to the jurisdiction of such courts.  Each party shall be responsible for the
payment of its own attorneys’ fees; provided, however, that, the Company
shall reimburse the Executive for all reasonable legal fees incurred by
Executive for any claim arising out of or in any way relating to events
occurring on and after a Change in Control, except any such claim initiated by
Executive that is found to be frivolous or vexatious.

10.           GOVERNING
LAW:  The provisions of
this Agreement shall be construed in accordance with, and governed by, the laws
of the State of Colorado without regard to principles of conflict of laws.

11.           SAVINGS
CLAUSE:  If any provision
of this Agreement or the application thereof is held invalid, the invalidity
shall not affect other provisions or applications of the Agreement which can be
given effect without the invalid provisions or applications and to this end the
provisions of this Agreement are declared to be severable.

12.           WAIVER
OF BREACH:  No waiver of
any breach of any term or provision of this Agreement shall be construed to be,
nor shall be, a waiver of any other breach of this Agreement.  No waiver shall be binding unless in writing
and signed by the party waiving the breach.

13.           MODIFICATION:  No provision of this Agreement may be
amended, modified, or waived except by written agreement signed by the parties
hereto.

14.           ASSIGNMENT
OF AGREEMENT:  The
Executive acknowledges that Executive’s services are unique and personal.  Accordingly, the Executive may not assign
Executive’s rights or delegate Executive’s duties or obligations under this
Agreement to any person or entity; provided, however, that
payments may be made to the Executive’s estate or beneficiaries as expressly
set forth herein.

15.           ENTIRE
AGREEMENT:  This Agreement
is an integrated document and constitutes and contains the complete
understanding and agreement of the parties with respect to the subject matter
addressed herein, and supersedes and replaces all prior negotiations and
agreements, whether written or oral, concerning the subject matter hereof.

16.           CONSTRUCTION:  Each party has cooperated in the drafting and
preparation of this Agreement.  Hence, in
any construction to be made of this Agreement, the same shall not be construed
against any party on the basis that the party was the drafter.  The captions of this Agreement are not part
of the provisions and shall have no force or effect.

 

17.           NOTICES:  Notices and all other communications provided
for in this Agreement shall be in writing and shall be delivered personally or
sent by registered or certified mail, return receipt requested, postage
prepaid, or sent by facsimile or prepaid overnight courier to the parties at
the addresses set forth below (or at such other addresses as shall be specified
by the parties by like notice).  Such
notices, demands, claims, and other communications shall be deemed given:

a.             in the case of delivery by
overnight service with guaranteed next day delivery, such next day or the day
designated for delivery;

b.             in the case of certified or
registered United States mail, five days after deposit in the United States
mail; or

c.             in the case of facsimile, the date
upon which the transmitting party received confirmation of receipt by
facsimile, telephone, or otherwise; and

d.             in the case of personal delivery,
when received.

Communications
that are to be delivered by the United States mail or by overnight service are
to be delivered to the addresses set forth below:

(i)            To the Company:

                MarkWest Hydrocarbon, Inc.

                Attn:  General Counsel

                1515 Arapahoe Street, Tower 2,
Suite 700

                Denver, CO  80202

(ii)           To the Executive:

                [                               ]

                [                               ]

Each party, by
written notice furnished to the other party, may modify the acceptable delivery
address, except that notice of change of address shall be effective only upon
receipt.  In the event that the Company
is aware that the Executive is not at the location when notice is being given,
notice shall be deemed given when received by the Executive, whether at the
aforementioned location or at another location.

18.           TAX
WITHHOLDING:  The Company
may withhold from any amounts payable under this Agreement such federal, state,
or local taxes as shall be required to be withheld pursuant to any applicable
law or regulation.

19.           REPRESENTATION:  The Executive represents that he is
knowledgeable and sophisticated as to business matters, including the subject
matter of this Agreement, that he has 

 

read this
Agreement and that he understands its terms. 
The Executive acknowledges that, prior to assenting to the terms of this
Agreement, he has been given a reasonable time to review it, to consult with
counsel of Executive’s choice, and to negotiate at arm’s-length with the
Company as to its contents.  The
Executive and the Company agree that the language used in this Agreement is the
language chosen by the parties to express their mutual intent, and that they
have entered into this Agreement freely and voluntarily and without pressure or
coercion from anyone.

20.           409A
SAVINGS CLAUSE:  It is the
intention of the parties that payments or benefits payable under this Agreement
not be subject to the additional tax imposed pursuant to Section 409A of the
Code, and the provisions of this Agreement shall be construed and administered
in accordance with such intent. To the extent such potential payments or
benefits could become subject to Code Section 409A, the parties shall cooperate
to amend this Agreement with the goal of giving Executive the economic benefits
described herein in a manner that does not result in such tax being
imposed.  If the parties are
unable to agree on a mutually acceptable amendment, the Company may, without
the Executive’s consent and in such manner as it deems appropriate or
desirable, amend or modify this Agreement or delay the payment of any amounts
hereunder to the minimum extent necessary to meet the requirements of Code
Section 409A.

IN WITNESS
WHEREOF, the Company and the Executive, intending to be legally bound, have
executed this Agreement on the day and year first above written.

 

	
  

  	
   

  	
  MARKWEST HYDROCARBON, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVEExhibit 10.1

EMPLOYMENT
AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”)
is made and entered into as of this 5th day of September 2007 by and between MarkWest
Hydrocarbon, Inc., a Delaware corporation, having its principal executive
offices in Denver, Colorado (the “Company”) and Frank M. Semple,
residing in Denver, Colorado (the “Executive”).

WHEREAS, the Company derives its revenue
and value through its natural gas liquids and gas marketing activities and
through its ownership in MarkWest Energy Partners, L.P. (the “Partnership”),
a publicly traded Delaware master limited partnership engaged in the gathering,
transportation and processing of natural gas, the transportation and
fractionation and storage of NGLs, and the gathering and transportation of
crude oil;

WHEREAS, the Company’s ownership interest
in the Partnership consists of ownership of an approximately 17% limited
partner interest in MarkWest Energy Partners, L.P., and ownership of
approximately 89.7% of MarkWest Energy GP, L.L.C. (the “GP”), the
Partnership’s general partner;

WHEREAS, the Company and GP have entered
into a services agreement (the “Services Agreement”) pursuant to which
the Company acts in a management capacity providing day-to-day operational,
business and asset management, accounting, information services, personnel, and
related administrative services to the Partnership;

WHEREAS, the Executive is currently serving
as President and Chief Executive Officer of the Company, and in such capacity
provides services to or on behalf of the Company and its affiliates, and to the
Partnership and its affiliates pursuant to the Services Agreement; and

WHEREAS, the Company and the Executive
mutually desire to formalize the employment arrangement of the Executive and to
agree upon the terms of the Executive’s employment as the President and Chief
Executive Officer of the Company and, in addition, to agree as to certain
benefits of said employment.

NOW, THEREFORE, in consideration of the
mutual promises and agreements set forth below, the Company and the Executive
hereby agree as follows:

1.             TERM OF EMPLOYMENT: 
Subject to the terms of this Agreement, the Company hereby continues the
employment of the Executive, and the Executive hereby accepts such continuing
employment, effective September 5, 2007 (the “Effective Date”), for a
period of three years, subject to earlier termination as provided in Paragraph
4, herein (the “Term”);

 

provided, however,
that the Term will automatically be extended by twelve months on the third
anniversary of the Effective Date and on each anniversary of the Effective Date
thereafter, unless one party to this Agreement provides written notice of
non-renewal to the other party at least 30 days prior to the effective date of
such automatic extension.  The
consequences of termination of employment to each party are as set forth in
this Agreement.  Portions of this
Agreement that by their terms provide or imply that they survive the end of the
Term shall survive the end of the Term.

2.             POSITION AND DUTIES:

a.             Position:  During
the Term, the Executive shall serve as President and Chief Executive Officer of
the Company and shall have such duties, responsibilities, and authority as are
customarily required of and given to the President and Chief Executive Officer
of a public mid-stream energy company. 
The Executive shall report directly to the Company’s Board of Directors
and shall perform his or her duties and responsibilities primarily at the
Company’s offices in Denver, Colorado.

b.             Commitment of the Executive:  During the Term, the Executive shall devote
substantially Executive’s full business time, energy, and ability to the
business of the Company, the Partnership, and their respective affiliates.  As used in this Agreement, the term “Affiliate”
means, with respect to any entity, any other entity that directly or indirectly
controls, is controlled by, or is under common control with such first entity.

c.             Other Positions and Services:  The Executive may (i) with the prior written
approval of the Company’s Board of Directors (the “Board”), which
approval shall not be unreasonably withheld or delayed, serve as a director or
trustee of other for profit corporations or businesses, provided, that
if a directorship is approved and the Board later determines (A) that the
directorship would violate Paragraph 7 of this Agreement, or (B) that that the
Board no longer approves of the directorship, which approval shall not be
unreasonably withdrawn, it shall notify the Executive in writing and the
Executive shall resign such directorship within a reasonable period of time,
(ii) serve on civic or charitable boards or committees, and (iii) deliver
lectures, fulfill speaking engagements, or teach at educational institutions
(and retain any fees therefrom); provided, however, that the Executive
may not engage in any of the activities described in this Paragraph 2(c) to the
extent such activities interfere materially with the performance of the
Executive’s duties and responsibilities to the Company.

d.             Investments:  Except
as may otherwise be permitted by this Agreement, without the prior express
authorization of the Board, the Executive shall not, during the Term, directly
or indirectly render services of a business, professional, or commercial nature
to any other person or firm, whether for compensation or otherwise.  Notwithstanding the foregoing, the Executive
may be an investor, shareholder, joint venturer, or partner in any such
business (hereinafter referred to as “Investor”); provided, that
Executive’s status as an Investor shall not (i) pose a conflict of interest
with regard to Executive’s employment, (ii) require the Executive’s active
involvement in the management or operation of such Investment (recognizing that
the Executive shall be permitted to monitor and oversee the Investment), or
(iii) interfere materially with the performance of the Executive’s duties and
obligations hereunder.  For the purposes
of

 

clause (i) of the
preceding sentence, the Executive shall not be deemed to be subject to a
conflict of interest merely by reason of the ownership of less than five
percent (5%) of (i) the outstanding stock of any entity whose stock is traded
on an established stock exchange or on the National Association of Securities
Dealers Automated Quotation System, or (ii) the outstanding stock, partnership
interests or other form of equity interest of any venture fund, investment pool
or similar investment vehicle.

e.             No Conflict:  The
Executive represents and warrants that, to the best of Executive’s knowledge
after the review of Executive’s personal files, he has the full right and
authority to enter into this Agreement and to render the services as required
under this Agreement, and that by signing this Agreement and rendering such
services he is not breaching any contract or legal obligation he owes to any
third party.

3.             COMPENSATION AND BENEFITS: 
During the Term, while the Executive is employed by the Company, the
Company shall compensate the Executive for his or her services as set forth in
this Paragraph 3.  The Executive
recognizes that during the Term of the Agreement, the Company reserves the
right to change from time to time the terms and benefits of any retirement,
welfare or fringe benefit plan of the Company, including the right to change
any service provider, so long as such changes are also applicable generally to
all executives of the Company.

a.             Salary:  During the
Term, the Company shall pay the Executive a base salary at an annual rate of
$420,000.00 (the “Base Salary”). 
Base Salary shall be earned and shall be payable in periodic
installments in accordance with the Company’s payroll practices.  Amounts payable shall be reduced by standard
withholding and other authorized deductions. 
The Compensation Committee of the Board (the “Compensation Committee”)
will review the Executive’s salary at least annually and may adjust the
Executive’s Base Salary in its sole discretion. 
Executive’s salary as so adjusted shall thereafter be treated as
Executive’s Base Salary hereunder.

b.             Cash Bonus / Short-Term Incentives: The Executive shall be
eligible to receive bonuses/short-term cash incentives in accordance with the
Company’s cash bonus/short-term incentive program(s) for senior management, as
such program(s) may be modified from time to time.  All bonuses/short-term cash incentives shall
be paid in a manner that complies with the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”).

c.             Equity Compensation
Programs:

(i)            General.  The Executive shall be entitled to
participate in all equity compensation programs sponsored by the Company, the
Partnership, or their Affiliates (the “Equity Plans”).  The size and terms of any grants to be made
to Executive shall be established by the Compensation Committee, or the
Compensation Committee of the Partnership, in their sole discretion.

(ii)           Change of Control.  All grants made under the Equity Plans
(including those made prior to the effective date of this Agreement) shall vest
in full immediately

 

prior to the occurrence of a Change of Control.  For
purposes of this Agreement, a Change of Control shall mean the first to occur
of:

(A)          any “person” (as defined in Section
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) other than (1) the Company or any Affiliate of the Company as of the
date of this Agreement, (2) any employee benefit plan of the Company or any
Affiliate of the Company, or (3) any person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan which
acquires beneficial ownership of voting securities of the Company, is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company’s
then outstanding securities.

(B)           the individual directors of the Board
on the effective date of this Agreement (“Incumbent Directors”) cease to
constitute at least two-thirds of the Board within any three (3) year
period.  For purposes of this paragraph, any new director whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the Incumbent Directors shall be considered an
Incumbent Director.  However, no director
whose initial election to the Board occurs as a result of an actual or
threatened election contest with respect to the election or removal of director
or other actual or threatened solicitation of proxies or consents by or on
behalf or a person other than the Board shall be considered a Incumbent
Director;

(C)           consummation
of a reorganization, merger or consolidation of the Company (a “Business
Combination”), in each case, unless, following such Business Combination,
the individuals and entities who were the beneficial owners of outstanding
voting securities of the Company immediately prior to such Business Combination
beneficially own, by reason of such ownership of the Company’s voting
securities immediately before the Business Combination, directly or indirectly,
more than 50% of the combined voting
power of the then outstanding voting securities entitled to vote generally in
the election of directors of the company resulting from such Business
Combination (including, without limitation, a company which as a result of such
transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership of the outstanding voting securities of
the Company immediately prior to such Business Combination; or

(D)          approval by the
stockholders of the Company of a complete liquidation or dissolution of the
Company.

(E)           any sale, lease,
exchange, or other transfer or disposition of all or substantially all of the
assets of the Partnership or the GP;

(F)           consummation of any
Business Combination with respect to the GP, unless, following such Business
Combination, the individuals and entities who were the beneficial owners of
outstanding voting securities of the GP as of the initial public offering of
securities in the Partnership, beneficially own, by reason of such ownership of
the GP’s voting securities, directly or indirectly, more than 50% of the combined voting power of the then

 

outstanding voting securities entitled to vote generally in the election of
directors of the company resulting from such Business Combination (including,
without limitation, a company which as a result of such transaction owns the GP
or all or substantially all of the GP’s assets either directly or through one
or more subsidiaries) in substantially the same proportions as their ownership
of the outstanding voting securities of the GP as of the initial public
offering of securities in the Partnership; or

(G)           the general partner of
the Partnership (whether it be the GP or another entity) ceases to be an
Affiliate of the Company.

Notwithstanding
the foregoing subparagraphs (A) through (G), in no event shall any
transaction or series of transactions entered into between the Company, the
Partnership, the GP, or their respective Affiliates as of the date of this
Agreement or entities wholly owned by the forgoing, or changes associated
therewith, be considered a Change in Control.

d.             Retirement Plans: 
The Executive shall be entitled to participate in all retirement plans
applicable generally to other senior executives of the Company, in accordance
with the terms of such plans, as they may be amended from time to time.

e.             Welfare Benefit Plans: 
The Executive and Executive’s family, as the case may be, shall be
eligible to participate in and shall receive all benefits under the Company’s
welfare benefit plans and programs applicable generally to other senior
executives of the Company (collectively, as amended from time to time, the “Company
Plans”), in accordance with the terms of the Company Plans.

f.              Vacation and Sick Leave: 
Executive shall be entitled to paid vacation, sick leave, and paid time
off in accordance with the plans, policies, and programs in effect generally
with respect to other senior executives of the Company, including the limitations,
if any, on the carry-over of accrued but unused time.

g.             Expenses:  The
Company shall reimburse the Executive for reasonable expenses for cellular
telephone usage, entertainment, travel, meals, lodging, and similar items
incurred in the conduct of the Company’s business.  Such expenses shall be reimbursed in
accordance with the Company’s expense reimbursement policies and guidelines.

h.             Fringe Benefits and Perquisites.  Executive and Executive’s family, as the case
may be, shall be eligible for all other fringe benefits or perquisites offered
generally to senior executives of the Company (and their families, as
applicable).

i.              Officers and Directors Liability Insurance; Indemnification:  During
Executive’s employment with the Company and thereafter so long as Executive may
have liability arising out of Executive’s service as an officer or director of
the Company or any Affiliate, the Company agrees to continue and maintain a
director’s and officer’s liability insurance policy (“D&O Insurance”)
covering Executive in an amount that is reasonable and customary based on the
size and business activities of the Company, the Partnership, and their
Affiliates, and the authorities, power, responsibilities, and duties of
Executive.  To the fullest

 

 

extent permitted
by the indemnification provisions of the Company’s governing instruments in
effect as of the date of this Agreement and the indemnification provisions of
the governing laws of the jurisdiction of the Company’s formation in effect
from time to time (collectively, the “Indemnification Provisions”), and
in each case subject to the conditions thereof, the Company shall (i) indemnify
the Executive, as a director (if applicable) and officer of the Company or an
Affiliate of the Company or a trustee or fiduciary of an employee benefit plan
of the Company or an Affiliate of the Company, or, if the Executive shall be
serving in such capacity at the Company’s request, as a director or officer of
any other entity (other than an Affiliate of the Company) or as a trustee or
fiduciary of an employee benefit plan not sponsored by the Company or an
Affiliate of the Company, against all liabilities and reasonable expenses that
may be incurred by the Executive in any threatened, pending, or completed
action, suit or proceeding, whether civil, criminal or administrative, or
investigative and whether formal or informal, because the Executive is or was a
director or officer of the Company or any Affiliate, a director or officer of
such other entity or a trustee or fiduciary of such employee benefit plan, and
against which the Executive may be indemnified by the Company, and (ii) pay for
or advance to Executive the reasonable expenses incurred by the Executive in
the defense of any proceeding to which the Executive is a party because the
Executive is or was a director or officer of the Company or an Affiliate, a
director or officer of such other entity or a trustee or fiduciary of such
employee benefit plan.  The rights of the
Executive under the Indemnification Provisions shall survive the termination of
the employment of the Executive by the Company.

4.             TERMINATION:  The
Executive’s employment with the Company during the Term may be terminated by
the Company or the Executive pursuant to this Paragraph 4, subject to the
provisions of Paragraph 5:

a.             Death
or Disability:  If the
Executive has a Disability (as defined below), the Company may give to the
Executive written notice of its intention to terminate the Executive’s
employment.  In such event, the Executive’s
employment with the Company shall terminate effective on the 30th day after
receipt of such notice by the Executive, provided that, within the 30-day
period after such receipt, the Executive shall not have returned to full-time
performance of the Executive’s material duties. 
For purposes of this Agreement, “Disability” shall mean any
physical or mental condition which prevents the Executive, for a period of 90
consecutive days, from performing and carrying out Executive’s material duties
and responsibilities with the Company, as determined under the Company’s
long-term disability plan.  The Executive’s
employment hereunder shall terminate automatically upon the Executive’s death.

b.             Cause:  The Company
may terminate this Agreement immediately upon written notice to the Executive
if, after the Executive is given an opportunity
to be heard by the Board and to present evidence on Executive’s behalf, a
formal determination is made by a majority of the directors on the Board and at
least two-thirds of the Board’s non-employee directors, that the Executive
should be terminated for “Cause”. 
Any one or more of the following events shall constitute “Cause”:

(i)            conviction of (or
pleading nolo contendere to) a
felony that is injurious to the business or reputation of the Company, the
Partnership, or their Affiliates;

 

(ii)           engaging in
intentional wrongdoing (including without limitation, theft, fraud,
embezzlement, or willful misappropriation of the funds or property of the
Company, the Partnership, or their Affiliates), or failure by Executive to
substantially adhere to the Company work rules, policies or procedures, that is
injurious to the business or reputation of the Company, the Partnership, or
their Affiliates, or breach of fiduciary duties for enrichment of the Executive;

(iii)          illegal or prohibited treatment of or
relations with any employee, agent or consultant of the Company, the
Partnership, or their Affiliates or of any person with whom the Company, the
Partnership, or their Affiliates have a business relationship, in the form of
illegal or prohibited discrimination, harassment, abuse, assault or other
actions of a similar nature;

(iv)          Executive
has failed to perform substantially Executive’s material duties as contemplated
by Paragraph 2 above (other than such failure resulting from incapacity due to
physical or mental illness), which, for avoidance of doubt, shall include
Executive’s insubordination to his or her direct or indirect reports or to the
Board, after (i) a written demand for corrected performance is delivered to
Executive by the Board which identifies specifically the manners in which the
Board believes Executive has not performed substantially Executive’s material
duties, and (ii) Executive’s failure to cure such items identified in the Board’s
letter within 30 days.

(v)           any
material breach of Executive’s obligations under this Agreement including, but
not limited to, a breach of Executive’s obligations under Paragraph 7;
provided, however, that in the event such breach is curable and is actually cured
within ten (10) days after written notice detailing the nature and facts of
such breach is delivered to Executive, the breach shall not be considered “Cause”
for Executive’s termination.

(vi)          engaging
in actions or behavior that bring Executive into public hatred, disrepute,
scorn, or ridicule, or shock, insult, or offend the community or public morals
or decency, in each case resulting in injury to the business or reputation of
the Company or inhibiting the ability of Executive to effectively represent
publicly the Company, the Partnership, or their Affiliates.

c.             Other than Death or Disability or Cause:  The Company may terminate the Executive’s
employment upon thirty (30) days written notice to the Executive at any time
and for any reason other than Death, Disability, or Cause.

d.             Termination by Executive: 
The Executive may terminate Executive’s employment upon thirty (30) days
written notice to the Company at any time and for any reason.

 

5.             OBLIGATIONS
OF THE COMPANY AND THE EXECUTIVE UPON TERMINATION:

a.             Death
or Disability:  If the
Executive’s employment is terminated by reason of the Executive’s death or
Disability during the Term, the Term shall end and the Company shall provide to
Executive or Executive’s legal representatives:

(i)
           payment of the sum of (A) any
Base Salary and bonus earned but not yet paid to the Executive through the date
of termination, and (B) any other compensation earned through the date of
termination but not yet paid or delivered to the Executive (“Accrued
Obligations”),

(ii)           the payments and benefits provided in
Paragraph 5(g),

(iii)
         payment to the Executive of a
lump sum equal to (A) 36 months of the Executive’s then current Base Salary,
(B) three (3) times the average annual bonus earned by the Executive for the
two most recently completed fiscal years, and (C) a pro-rata portion of the
target amount of the annual bonus for the fiscal year of termination,
calculated based on the portion of such fiscal year the Executive is
employed.  The lump sum payment shall be
made within thirty (30) days of termination or, if the payment, or any portion
thereof, must be delayed to comply with Code Section 409A because the
individual is a “specified employee” as defined in Code Section
409A(a)(2)(B)(i), the payment, or the portion so delayed, shall be made on the
soonest date permissible without triggering the additional tax due under Code
Section 409A;

(iv)          subject to Paragraph 3(c), the
accelerated vesting of each stock option or unit option, phantom unit,
restricted stock or restricted unit, or other equity incentive award granted
under the Equity Plans (or portion thereof) that would have otherwise vested
solely upon the Executive remaining in the continuous employment of the Company
for a period of twelve (12) months after the date of termination, and

(v)
          payment of all premiums for
properly elected group health plan continuation coverage for Executive and his
or her spouse and dependents pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) for the lesser of (A) the number of
months of Base Salary to be paid to Executive under subparagraph (iii)(A),
above, or (B) the duration of such COBRA coverage.  All such premiums shall be paid on the first
day of the month.  In addition, in the
event that payment of such premiums is taxable to executive, the Company shall
pay to Executive an amount, as and when such premiums are paid, such that after
taking into account all taxes due on the premiums and on the additional
payment, the Executive will be in the same economic position as he would have
been in had such premiums been non-taxable.

The
Company shall be obligated to make the foregoing payments and to provide the
foregoing benefits upon the Executive (or, if applicable, the Executive’s legal
representative) and the Company signing a mutual release (the “Release”)
of all claims (including claims by, on behalf of, or against the Partnership,
any Affiliates of the Partnership or the Company, and their respective
directors, agents, employees, and assigns) in a form provided by the Company,
which release shall, if applicable, give the Executive appropriate
notifications under the Age Discrimination in Employment Act, as amended by the
Older Workers Benefit Protection Act,

 

and which shall
not affect (x) rights under COBRA and (y) conversion rights under any
applicable life insurance policies.

b.             Termination for Cause: 
If the Executive’s employment is terminated by the Company for Cause,
the Term shall terminate without further obligations to the Executive under this
Agreement after the date of such termination, other than for (i) payment of the
Accrued Obligations, and (ii) the payments and benefits provided in Paragraph
5(h).

c.             Other than Death or Disability or Cause:  If the Company terminates the Executive’s employment
during the Term for any reason other than Death, Disability, or Cause, the Term
shall end on the date of such termination and the Executive shall, upon signing
of a Release, be entitled to the payments, benefits and other compensation
provided above in Paragraph 5(a).

d.             Voluntary Termination by Executive:  If the Executive terminates his or her
employment without Good Reason, as defined below, the Term shall end and the
Company shall provide to Executive:

(i)            the Accrued Obligations

(ii)           the payments and benefits provided in
Paragraph 5(h)

(iii)          if the Executive’s total, aggregate
term of employment with the Company (notwithstanding any breaks in service)
exceeds one (1) year, then upon signing a Release, the Executive shall also
receive:

(A)          a lump sum payment equal to three (3)
months (six (6) months in the case of the CEO) of the Executive’s then current
Base Salary, which amount shall be paid within ten (10) days of termination or,
if the payment, or any portion thereof, must be delayed to comply with Code
Section 409A because the individual is a “specified employee” as defined in
Code Section 409A(a)(2)(B)(i), the payment, or the portion so delayed, shall be
made on the soonest date permissible without triggering the additional tax due
under Code Section 409A;

(B)           payment of all premiums for properly
elected COBRA coverage for Executive and his or her spouse and dependents for
the lesser of (A) the number of months of Base Salary to be paid to Executive
under subsection (d)(iii)(A), above, or (B) the duration of such COBRA
coverage.

e.             Termination by Executive for Good Reason:

(i)            In General.  If the Executive terminates his or her
employment for Good Reason, as defined below, the Term shall terminate on the
date of such termination and the

 

Executive shall,
upon signing a Release, be entitled to the payments, benefits and other
compensation provided above in Paragraph 5(a).

(ii)           “Good Reason”.  For purposes of this Agreement, the Executive’s
termination of employment with the Company shall be on account of “Good Reason”
if it occurs for any of the following reasons: 
(A) any failure by the Company to comply with any of the provisions of
Paragraph 3 of this Agreement, including but not limited to the failure by the
Company to pay to the Executive any portion of his or her compensation in
violation of the provisions of Paragraph 3, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive; (B) a material diminution in Base Salary or bonus opportunity not
related to performance or market conditions, other than which is remedied by
the Company within thirty (30) days after receipt of notice thereof given by
the Executive; (C) a material diminution in responsibility or authority other
than which is remedied by the Company within thirty (30) days after receipt of
notice thereof given by the Executive; (D) the forced relocation of Executive’s
principal place of employment to a location more than 50 miles from the
Executive’s then-current principal place of employment; or (E) the occurrence
of a Change of Control, provided that Executive voluntarily terminates his or
her employment within  twelve (12)
months of the Change of Control.

f.              Expiration of Term. 
In the event that the Term expires following the giving of notice of
non-renewal pursuant to Paragraph 2, above, then (i) if such notice was given
by the Company, the termination shall be deemed to be for “Other than Death or Disability
or Cause” and Executive shall, upon signing a Release, be entitled to the
payments, benefits, and other compensation provided in Paragraph 5(a) above,
and (ii) if such notice was given by the Executive, the termination shall be
deemed a “Voluntary Termination by Executive” and Executive shall, upon signing
a Release, be entitled to the payments, benefits, and other compensation
provided in Paragraph 5(d) above.

g.             General
Partner Membership Interest:

(i)            Limited Application.  The provisions of Paragraph 5(g)(ii) below
shall apply solely in the event that the Company and the Partnership announce
formally to the public (whether through a press release or the filing of a
current report on Form 8-K) that they no longer intend to pursue the proposed acquisition/business
combination/restructuring transaction that was announced formally to the public
on February 21, 2007.

(ii)           Repurchase of General Partner
Membership Interest. Executive is hereby granted the option to elect at any
time, by written notice to the Company, to cause the Company to purchase all,
but not less than all of Executive’s Class B membership interest in MarkWest
Energy GP, L.L.C. at the price established pursuant to the formula set forth in
the GP LLC Agreement as of the delivery date of Executive’s election notice (“Election
Date”). If the Executive makes such election, the Company shall purchase
the Executive’s Class B membership interest within thirty (30) days following
the Election Date, such purchase price to be paid, at Company’s election,
either (i) in full in cash by wire transfer of immediately available funds; or
(ii) by a combination of cash and of common units of the Partnership, with a
value for

 

 

the common units
as of the Election Date based on the closing price of the Partnership’s common
units for the twenty trading days preceding the Election Date, with the
combination of cash and Partnership common units being equal to the price
established pursuant to the formula set forth in the GP LLC Agreement, provided
that the value of the Partnership common units cannot comprise more than 50% of
the purchase price established pursuant to the formula set forth in the GP LLC
Agreement.

h.             Exclusive Remedy: 
Except for the payments and benefits provided in this Paragraph 5, and
under Paragraph 3(c), the Executive acknowledges and agrees that upon
termination of the Term, he shall have no other claims against, and shall be
entitled to no other payments or benefits from the Company under this Agreement
or pursuant to the Company’s policies and plans, other than (A) the Executive’s
rights under COBRA, (B) any conversion rights under any applicable life
insurance policies, (C) payment of any amounts due pursuant to the terms of any
equity-based plan of the Company or any welfare or retirement plan of the
Company as of the date of termination or which by their specific terms extend
beyond such date of termination, and (D) rights with respect to D&O
Insurance and/or the Indemnification Provisions.  The Executive and the Company have agreed
that Executive will not participate in either the MarkWest Hydrocarbon Inc.
1997 Severance Plan or the MarkWest Hydrocarbon, Inc. 2007 Severance Plan.  In lieu of participation in such Severance
Plans, the parties have agreed that the Executive will receive certain other
payments and benefits as set forth in this Agreement.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not the Executive obtains
other employment.

i.              Resignations:  On
and as of the date that the employment of the Executive by the Company shall
terminate for any reason, the Executive shall, if applicable, resign from his
or her position as a director and officer of the Company or the Partnership,
resign from all other positions he or she holds as a director, officer or
employee of any subsidiary or Affiliate of the Company or the Partnership, and
resign as a named fiduciary of any employee benefit plans sponsored by the
Company or the Partnership or their subsidiaries or Affiliates.

6.             280G
Provisions.

a.             Determination; Efficient Gross-Up:  If it is determined that any payment or
benefit provided to or for the benefit of the Executive (a “Payment”),
whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise, would be subject to the excise tax imposed by
Code section 4999 or any interest or penalties with respect to such excise tax
(such excise tax together with any such interest and penalties, shall be
referred to as the “Excise Tax”), then a calculation shall first be made
under which such payments or benefits provided to the Executive are reduced to
the extent necessary so that no portion thereof shall be subject to the Excise
Tax (the “4999 Limit”).  The Company
shall then compare (a) the Executive’s Net After-Tax Benefit (as defined below)
assuming application of the 4999 Limit with (b) the Executive’s Net After-Tax
Benefit without application of the 4999 Limit. 
“Net After-Tax Benefit” shall mean the sum of (i) all payments that
Executive receives or is entitled to receive that are contingent on a change in
the ownership or effective control of the Company or

 

in the ownership
of a substantial portion of the assets of the Company within the meaning of
Code section 280G(b)(2), less (ii) the amount of federal, state, local,
employment, and Excise Tax (if any) imposed with respect to such payments.  In the event (a) is greater than (b),
Executive shall receive Payments solely up to the 4999 Limit and Executive
shall choose which payments shall be reduced and the amount of the reduction of
each payment.  In the event (b) is
greater than (a), then the Executive shall be entitled to receive all such
Payments along with an additional payment (a “Gross-Up Payment”)
in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including,
without limitation, any income taxes (and any interest and penalties imposed
with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments.

b.             Calculations:  All
determinations required under this Paragraph 6, including the determination of
whether a Payment is subject to the Excise Tax or the amount of any required
Gross-Up Payment, shall be made by tax counsel, a nationally recognized
certified public accounting firm not serving as auditor for the Company, or
another tax professional with experience in such calculations, as selected by
the Company and reasonably acceptable to the Executive (the “Tax
Professional”).  The Tax Professional
shall provide detailed supporting calculations for its determinations both to
the Company and the Executive within fifteen days of receipt of any Payment, or
such sooner period as may be requested by the Company.  All costs relating to the Tax Professional
shall be borne exclusively by the Company. 
Subject to Paragraph 6(d), below, any determination by the Tax
Professional shall be binding upon the Company and the Executive.

c.             Payment of Gross-Up: 
Any Gross-Up Payment, as determined pursuant to this
Paragraph 6, shall be paid by the Company to the Executive within five
business days of the receipt of the Tax Professional’s determination, but in no
event later than the end of Executive’s taxable year next following the taxable
year in which the original Excise Tax on the Payments is remitted to the
Internal Revenue Service.  As a result of
the uncertainty in the application of Section 4999 of the Code at the time
of the initial determination by the Tax Professional hereunder, it is possible
that a Gross-Up Payment which will not have been made by the Company
should have been made (“Underpayment”). 
In the event that the Company exhausts its remedies pursuant to
Paragraph 6(d) and the Executive thereafter is required to make a payment
of any Excise Tax, the Tax Professional shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid
by the Company to or for the benefit of the Executive, but in no event shall
such payment be made later than the end of Executive’s tax year following the
tax year in which the Excise Tax is remitted to the Internal Revenue Service.

d.             Tax Controversy: 
The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of an Underpayment.  Such
notification shall be given as soon as practicable but no later than ten business
days after the Executive is informed in writing of such claim and shall apprise
the Company of the nature of such claim and the date on which such claim is
requested to be paid.  The Executive
shall not pay such claim prior to the expiration of the thirty-day period
following the date on which it gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to
such claim is due).  If the Company
notifies

 

the Executive in
writing prior to the expiration of such period that it desires to contest such
claim, the Executive shall:

(i)            give the Company any information
reasonably requested by the Company relating to such claim,

(ii)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from time
to time, including, without limitation, accepting legal representation with
respect to such claim by an attorney reasonably selected by the Company,

(iii)          cooperate with the Company in good
faith in order effectively to contest such claim, and

(iv)          permit the Company to participate in
any proceedings relating to such claim;

provided, however,
that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Executive harmless, on an after-tax basis,
for any Excise Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the
foregoing provisions of this Paragraph 6(d), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or to contest the claim in any permissible manner, and the Executive
agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to the Executive, on an interest-free
basis and shall indemnify and hold the Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties with
respect thereto) imposed with respect to such advance or with respect to any
imputed income with respect to such advance; and further provided that any
extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount.  Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder and the Executive shall be entitled to
settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

e.             Refunds; Etc.: If, after the receipt by the Executive of
an amount advanced by the Company pursuant to Section 6(d), the Executive
becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of
Section 6(d)) promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon after taxes applicable
thereto).  If, after the

 

receipt by the
Executive of an amount advanced by the Company pursuant to Section 6(d), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of thirty days after such determination, then such advance shall be forgiven
and shall not be required to be repaid and the amount of such advance shall
offset, to the extent thereof, the amount of Underpayment required to be paid.

7.             CONFIDENTIAL INFORMATION; NON-COMPETITION, NON-SOLICITATION:

a.             Confidential
Information:  Except as
permitted or directed by the Board, during the Term or at any time thereafter,
Executive shall not divulge, furnish, make accessible to anyone, lay claim to,
attempt to lay claim to or use, or attempt to use, in any way (other than in
the ordinary course of the business of the Company) any confidential or secret
knowledge or information of the Company, the Partnership, or their respective
Affiliates (collectively the “MarkWest Parties”) that Executive has
acquired or become acquainted with or will acquire or become acquainted with
during the period of Executive’s employment by the Company, whether developed
by himself or by others, concerning any pricing information, trade secrets,
confidential or secret plans or material (whether or not patented or
patentable) directly or indirectly useful in any aspect of the business of the
MarkWest Parties, any customer or dealer lists of the MarkWest Parties, any
confidential or secret development of the MarkWest Parties, or any other
confidential information or secret aspects of the business of the MarkWest
Parties (collectively, “Confidential Information”).  Executive acknowledges that the Confidential
Information constitutes a unique and valuable asset of the MarkWest Parties and
represents a substantial investment of time and expense by the MarkWest
Parties, and that any disclosure or other use of the Confidential Information
other than for the sole benefit of the MarkWest Parties would be wrongful and
would cause irreparable harm to the MarkWest Parties.  Both during and after the Term, Executive
shall refrain from any acts or omissions that would reduce the value of the
Confidential Information.  The foregoing
obligations of confidentiality shall not apply to any knowledge or information
that is now published or that subsequently becomes generally publicly known in
the form in which it was obtained from the MarkWest Parties, other than as a
direct or indirect result of the breach of this Agreement by Executive; is
lawfully obtained by Executive from a third party, provided that Recipient did
not have actual knowledge that such third party was restricted or prohibited
from disclosing such information to Executive; or was independently developed
by Executive, without use of any information obtained from Company.  At the time of the termination of Executive’s
employment, or at such other time as the Company may request, Employee shall
return all memoranda, notes, plans, records, computer tapes and software and
other documents and data (and copies thereof) relating to Confidential
Information that Executive may then possess or have under his or her control.

b.             Non-competition;
Non-solicitation: 
Executive understands and agrees that, in addition to Employee’s
exposure to Confidential Information, Executive may, in his or her capacity as
an employee, at times meet with the MarkWest Parties’ current or prospective
customers, suppliers, partners, licensees or other business relations
(collectively, “Business Relations”) on behalf of the MarkWest Parties,
and that, as a consequence of using or associating himself with the MarkWest
Parties’ name, goodwill, and professional reputation, Executive’s

 

employment shall place him or her in a position where
Executive can develop personal and professional relationships with the MarkWest
Parties’ current and prospective customers. 
Executive further acknowledges that, during the course and as a result
of Executive’s employment, Executive has been or may be provided certain
specialized training or know-how. 
Executive understands and agrees that this goodwill and reputation, as
well as Executive’s knowledge of Confidential Information and specialized
training and know-how, could be used unfairly in competition against the
MarkWest Parties.  Accordingly, in
consideration of the employment of Executive by the Company pursuant to this
Agreement, Employee agrees that:

(i)            during the time period commencing on
the date hereof and terminating six (6) months after the end of the Term,
Executive shall not directly or indirectly, individually or collectively in
conjunction with others, engage in activities that compete with the business
that the MarkWest Parties is engaged in at the time of the termination of
Executive’s employment in whatever geographic regions the MarkWest Parties
engages in such business at such time (currently natural gas and refinery
off-gas gathering and transportation, natural gas and refinery off-gas
processing, off-gas and NGL fractionation, NGL, natural gas and derived
products marketing, and related services, conducted in the southern Appalachian
region of Kentucky, West Virginia, and southern Ohio, in the southwest and
mid-continent regions of Oklahoma, Texas, Louisiana, Mississippi, and New
Mexico, on the Gulf Coast, and in western Colorado/eastern Utah area); or

(ii)           during the time period commencing on
the date hereof and terminating eighteen (18) months after the end of the Term,
Executive shall not directly or indirectly through another entity or person (i)
induce or attempt to induce any employee of the MarkWest Parties to leave the
employ of the MarkWest Parties, (ii) solicit to hire any person who was
employed by the MarkWest Parties at any time during the one-year period
immediately preceding the termination of Executive’s employment with the
MarkWest Parties, or (iii) induce or attempt to induce any current or
prospective Business Relation of the MarkWest Parties (including, without
limitation, any business entity that the MarkWest Parties have contacted in
order to make a proposal to enter into a business relationship) to withdraw,
curtail or cease doing business with the MarkWest Parties; provided,
however, that Executive shall not be in breach of this paragraph in
the event that any entity with whom Executive is employed or otherwise
affiliated solicits or hires any person so long as Executive is not consulted
concerning or otherwise involved, directly or indirectly, in such solicitation
and/or hiring (except for involvement in a general administrative or other
perfunctory manner), nor shall Executive be in breach of this paragraph in the
event that any person applies for or inquires concerning employment in response
to any advertisement or other job posting directed to the public in general, so
long as Executive is not consulted concerning or otherwise involved, directly
or indirectly, in any aspect of the recruitment, evaluation or hiring of the
person(s) in question (except for involvement in a general administrative or
other perfunctory manner).

Executive acknowledges
that as an executive of a public company he falls within the exception to C.R.S
8-2-113(2)(d), which exempts executive and management personnel and officers
from the prohibitions of non-compete provisions.  Executive further agrees, during the  period for which Executive has continuing
obligations under this Paragraph 7(b), to inform any new employer or other
person or entity with whom Executive enters into a business relationship,

 

 

before accepting employment or entering into a
business relationship, of the existence of this Agreement and give such
employer, person other entity a copy of this Paragraph 7(b).

c.             Third-Party
Beneficiaries:  It is the
express intent of the parties that the provisions of this Paragraph 7 may be
enforced by any of the MarkWest Parties, and that the protections afforded
herein shall inure to such MarkWest Parties as intended third-party
beneficiaries.

d.             Severability:  To the extent that any provision of this
Paragraph shall be determined to be invalid or unenforceable, the invalid or
unenforceable portion of such provision shall be deleted from this Agreement,
and the validity and enforceability of the remainder of such provision and of
this Paragraph shall be unaffected. In furtherance of and not in limitation of
the foregoing, it is expressly agreed that, should the duration of or
geographical extent of, or business activities covered by, the noncompetition
and non-solicitation agreements contained in Paragraph 7(b) be determined to be
in excess of that which is valid or enforceable under applicable law, then such
provision shall be construed to cover only that duration, extent, or those
activities which may validly or enforceably be covered. Executive acknowledges
the uncertainty of the law in this respect and expressly stipulates that this
Paragraph shall be construed in a manner which renders its provisions valid and
enforceable to the maximum extent (not exceeding its express terms) possible
under applicable law.

e.             Injunctive Relief:  Executive agrees that it would be difficult
to compensate the MarkWest Parties fully for damages for any violation of the
provisions of this Paragraph 7. 
Accordingly, Executive specifically agrees that the MarkWest Parties
shall be entitled to temporary and permanent injunctive relief to enforce the
provisions of this Paragraph and that such relief may be granted without the
necessity of proving actual damages. 
This provision with respect to injunctive relief shall not, however,
diminish the right of the MarkWest Parties to claim and recover damages in
addition to injunctive relief.

8.             SUCCESSORSHIP:  This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and permitted assigns and any such successor or permitted assignee
shall be deemed substituted for the Company under the terms of this Agreement
for all purposes.  As used herein, “successor”
and “assignee” shall be limited to any person, firm, corporation, or other
business entity which at any time, whether by purchase, merger, reorganization,
or otherwise, directly or indirectly acquires the stock of the Company or to
which the Company assigns this Agreement by operation of law or otherwise in
connection with any sale of all or substantially all of the assets of the
Company, provided that any successor or permitted assignee promptly
assumes in a writing delivered to the Executive this Agreement and, in no
event, shall any such succession or assignment release the Company from its obligations
thereunder.  The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. 
As used in this Agreement, “Company” shall mean the Company as herein
before defined and any successor to its business and/or assets as aforesaid
which assumes and agrees to perform this Agreement by operation of law or
otherwise.

 

9.             DISPUTE RESOLUTION: 
Any claim arising out of or in any way relating to this Agreement or the
termination thereof shall be initiated in the federal or state courts for
Denver, Colorado and both Executive and the Company (and the MarkWest Parties,
as applicable) hereby submit to the jurisdiction of such courts.  Each party shall be responsible for the
payment of its own attorneys’ fees; provided, however, that, the Company
shall reimburse the Executive for all reasonable legal fees incurred by
Executive for any claim arising out of or in any way relating to events
occurring on and after a Change in Control, except any such claim initiated by
Executive that is found to be frivolous or vexatious.

10.           GOVERNING
LAW:  The provisions of
this Agreement shall be construed in accordance with, and governed by, the laws
of the State of Colorado without regard to principles of conflict of laws.

11.           SAVINGS
CLAUSE:  If any provision
of this Agreement or the application thereof is held invalid, the invalidity
shall not affect other provisions or applications of the Agreement which can be
given effect without the invalid provisions or applications and to this end the
provisions of this Agreement are declared to be severable.

12.           WAIVER
OF BREACH:  No waiver of
any breach of any term or provision of this Agreement shall be construed to be,
nor shall be, a waiver of any other breach of this Agreement.  No waiver shall be binding unless in writing
and signed by the party waiving the breach.

13.           MODIFICATION:  No provision of this Agreement may be
amended, modified, or waived except by written agreement signed by the parties
hereto.

14.           ASSIGNMENT
OF AGREEMENT:  The
Executive acknowledges that Executive’s services are unique and personal.  Accordingly, the Executive may not assign
Executive’s rights or delegate Executive’s duties or obligations under this
Agreement to any person or entity; provided, however, that
payments may be made to the Executive’s estate or beneficiaries as expressly
set forth herein.

15.           ENTIRE
AGREEMENT:  This Agreement
is an integrated document and constitutes and contains the complete
understanding and agreement of the parties with respect to the subject matter
addressed herein, and supersedes and replaces all prior negotiations and
agreements, whether written or oral, concerning the subject matter hereof.

16.           CONSTRUCTION:  Each party has cooperated in the drafting and
preparation of this Agreement.  Hence, in
any construction to be made of this Agreement, the same shall not be construed
against any party on the basis that the party was the drafter.  The captions of this Agreement are not part
of the provisions and shall have no force or effect.

 

17.           NOTICES:  Notices and all other communications provided
for in this Agreement shall be in writing and shall be delivered personally or
sent by registered or certified mail, return receipt requested, postage
prepaid, or sent by facsimile or prepaid overnight courier to the parties at
the addresses set forth below (or at such other addresses as shall be specified
by the parties by like notice).  Such
notices, demands, claims, and other communications shall be deemed given:

a.             in the case of delivery by
overnight service with guaranteed next day delivery, such next day or the day
designated for delivery;

b.             in the case of certified or
registered United States mail, five days after deposit in the United States
mail; or

c.             in the case of facsimile, the date
upon which the transmitting party received confirmation of receipt by
facsimile, telephone, or otherwise; and

d.             in the case of personal delivery,
when received.

Communications
that are to be delivered by the United States mail or by overnight service are
to be delivered to the addresses set forth below:

(i)            To the Company:

                MarkWest Hydrocarbon, Inc.

                Attn:  General Counsel

                1515 Arapahoe Street, Tower 2,
Suite 700

                Denver, CO  80202

(ii)           To the Executive:

                Frank M. Semple

                [                     ]

                [                     ]

Each party, by
written notice furnished to the other party, may modify the acceptable delivery
address, except that notice of change of address shall be effective only upon
receipt.  In the event that the Company
is aware that the Executive is not at the location when notice is being given,
notice shall be deemed given when received by the Executive, whether at the
aforementioned location or at another location.

18.           TAX
WITHHOLDING:  The Company
may withhold from any amounts payable under this Agreement such federal, state,
or local taxes as shall be required to be withheld pursuant to any applicable
law or regulation.

19.           REPRESENTATION:  The Executive represents that he is
knowledgeable and sophisticated as to business matters, including the subject
matter of this Agreement, that he has

 

read this
Agreement and that he understands its terms. 
The Executive acknowledges that, prior to assenting to the terms of this
Agreement, he has been given a reasonable time to review it, to consult with
counsel of Executive’s choice, and to negotiate at arm’s-length with the
Company as to its contents.  The
Executive and the Company agree that the language used in this Agreement is the
language chosen by the parties to express their mutual intent, and that they
have entered into this Agreement freely and voluntarily and without pressure or
coercion from anyone.

20.           409A
SAVINGS CLAUSE:  It is the
intention of the parties that payments or benefits payable under this Agreement
not be subject to the additional tax imposed pursuant to Section 409A of the
Code, and the provisions of this Agreement shall be construed and administered
in accordance with such intent. To the extent such potential payments or
benefits could become subject to Code Section 409A, the parties shall cooperate
to amend this Agreement with the goal of giving Executive the economic benefits
described herein in a manner that does not result in such tax being
imposed.  If the parties are
unable to agree on a mutually acceptable amendment, the Company may, without
the Executive’s consent and in such manner as it deems appropriate or
desirable, amend or modify this Agreement or delay the payment of any amounts
hereunder to the minimum extent necessary to meet the requirements of Code Section
409A.

IN WITNESS
WHEREOF, the Company and the Executive, intending to be legally bound, have
executed this Agreement on the day and year first above written.

	
  

  	
  MARKWEST HYDROCARBON, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ NANCY K. BUESE

  
	
   

  	
   

  	
  Name:

  	
  Nancy K. Buese

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and Chief

  
	
   

  	
   

  	
   

  	
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Frank M. Semple

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