Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

  Exhibit 10.3    
    

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPERATELY FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**).

 
 

EXECUTION COPY    
    

AMENDED
AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT 

of

MARKWEST
LIBERTY MIDSTREAM & RESOURCES, L.L.C. 

Dated
as of February 27th, 2009 

 

 TABLE OF CONTENTS 

						
	 
	 	 
	 	Page 
	  ARTICLE 1 DEFINED TERMS
	 	1
	 	 Section 1.1
	 	 Definitions
	 	1
	  ARTICLE 2 FORMATION AND TERM
	 	

13
	 	 Section 2.1
	 	 Formation
	 	13
	 	 Section 2.2
	 	 Name
	 	13
	 	 Section 2.3
	 	 Term
	 	13
	 	 Section 2.4
	 	 Registered Agent and Office
	 	13
	 	 Section 2.5
	 	 Principal Place of Business
	 	13
	 	 Section 2.6
	 	 Qualification in Other Jurisdictions
	 	13
	  ARTICLE 3 PURPOSE AND POWERS OF THE COMPANY
	 	

14
	 	 Section 3.1
	 	 Purpose
	 	14
	 	 Section 3.2
	 	 Powers of the Company
	 	14
	 	 Section 3.3
	 	 Projects, Restricted Projects, Exempted Projects and Out of Scope Projects
	 	14
	  ARTICLE 4 CAPITAL CONTRIBUTIONS, MEMBER INTERESTS, CAPITAL ACCOUNTS

AND FUTURE CAPITAL REQUIREMENTS
	 	

16
	 	 Section 4.1
	 	 Capital Contributions
	 	16
	 	 Section 4.2
	 	 Capital Contribution Defaults
	 	19
	 	 Section 4.3
	 	 Member's Interest
	 	19
	 	 Section 4.4
	 	 Status of Capital Contributions
	 	19
	 	 Section 4.5
	 	 Capital Accounts
	 	19
	 	 Section 4.6
	 	 Capital Accounts Generally
	 	20
	 	 Section 4.7
	 	 Preferred Return
	 	20
	 	 Section 4.8
	 	 Investment Accounts
	 	20
	 	 Section 4.9
	 	 Equalization Target Date
	 	21
	  ARTICLE 5 MEMBERS, MEETINGS AND AMENDMENTS
	 	

22
	 	 Section 5.1
	 	 Powers of Members
	 	22
	 	 Section 5.2
	 	 No Resignation or Expulsion
	 	22
	 	 Section 5.3
	 	 Additional Members
	 	22
	 	 Section 5.4
	 	 Confidentiality Obligations of Members
	 	23
	 	 Section 5.5
	 	 Initial Budget
	 	24
	 	 Section 5.6
	 	 Incentive Interests to MWE Liberty Upon Transfer of NGPMR's Interest
	 	24
	 	 Section 5.7
	 	 Preemptive Rights
	 	24
	 	 Section 5.8
	 	 Registration Rights
	 	25
	  ARTICLE 6 MANAGEMENT
	 	

25
	 	 Section 6.1
	 	 Management Under Direction of the Board
	 	25
	 	 Section 6.2
	 	 Number, Tenure and Qualifications
	 	26
	 	 Section 6.3
	 	 Votes Per Manager; Quorum; Required Vote for Board Action; Meetings of the Board
	 	27
	 	 Section 6.4
	 	 Power to Bind Company
	 	28
	 	 Section 6.5
	 	 Liability for Certain Acts
	 	28
	 	 Section 6.6
	 	 Manager Has No Exclusive Duty to Company
	 	29
	 	 Section 6.7
	 	 Resignation and Withdrawal
	 	29
	 	 Section 6.8
	 	 Removal
	 	29
	 	 Section 6.9
	 	 Vacancies
	 	29
	 	 Section 6.10
	 	 Delegation of Authority; Officers
	 	29

i

 

						
	 
	 	 
	 	Page 
	 	 Section 6.11
	 	 Designation of Operator
	 	29
	 	 Section 6.12
	 	 Approval of Members
	 	31
	 	 Section 6.13
	 	 Reliance by Third Parties
	 	33
	 	 Section 6.14
	 	 Fees and Expenses of the Managers
	 	33
	 	 Section 6.15
	 	 Budgets
	 	33
	  ARTICLE 7 ASSIGNABILITY OF MEMBER INTERESTS
	 	

35
	 	 Section 7.1
	 	 Prohibition on Assignment During Project Period
	 	35
	 	 Section 7.2
	 	 Transfers After the Project Period
	 	35
	 	 Section 7.3
	 	 Recognition of Assignment by Company or Other Members
	 	38
	 	 Section 7.4
	 	 Effective Date of Assignment
	 	38
	 	 Section 7.5
	 	 Limitations on Transfer
	 	39
	 	 Section 7.6
	 	 Transferee Not a Substitute Member
	 	39
	  ARTICLE 8 DISTRIBUTIONS TO MEMBERS
	 	

39
	 	 Section 8.1
	 	 Available Cash
	 	39
	 	 Section 8.2
	 	 Incentive Interest Percentage Distributions
	 	39
	 	 Section 8.3
	 	 Withholding
	 	40
	 	 Section 8.4
	 	 Limitations on Distribution
	 	40
	 	 Section 8.5
	 	 Tax Distributions
	 	40
	  ARTICLE 9 ALLOCATIONS
	 	

40
	 	 Section 9.1
	 	 Profits and Losses
	 	40
	 	 Section 9.2
	 	 Special Allocations
	 	41
	 	 Section 9.3
	 	 Curative Allocations
	 	42
	 	 Section 9.4
	 	 Income Tax Allocations
	 	42
	 	 Section 9.5
	 	 Allocation and Other Rules
	 	43
	  ARTICLE 10 BOOKS AND RECORDS
	 	

43
	 	 Section 10.1
	 	 Inspection Rights Pursuant to Law
	 	43
	 	 Section 10.2
	 	 Books and Records
	 	43
	 	 Section 10.3
	 	 Financial Statements and Reports
	 	44
	 	 Section 10.4
	 	 Accounting Method
	 	44
	 	 Section 10.5
	 	 Bank Accounts; Investments
	 	44
	  ARTICLE 11 TAX MATTERS
	 	

45
	 	 Section 11.1
	 	 Taxation of Company
	 	45
	 	 Section 11.2
	 	 Tax Returns
	 	45
	 	 Section 11.3
	 	 Member Tax Return Information
	 	45
	 	 Section 11.4
	 	 Tax Matters Representative
	 	46
	 	 Section 11.5
	 	 Right to Make Section 754 Election
	 	46
	 	 Section 11.6
	 	 Tax Elections
	 	46
	 	 Section 11.7
	 	 Tax Reimbursement
	 	46
	  ARTICLE 12 LIABILITY, EXCULPATION AND INDEMNIFICATION
	 	

47
	 	 Section 12.1
	 	 Liability
	 	47
	 	 Section 12.2
	 	 Exculpation
	 	47
	 	 Section 12.3
	 	 Indemnification
	 	47
	 	 Section 12.4
	 	 Expenses
	 	47
	 	 Section 12.5
	 	 Insurance
	 	48
	 	 Section 12.6
	 	 Certain Liabilities
	 	48
	 	 Section 12.7
	 	 Acts Performed Outside the Scope of the Company
	 	48
	 	 Section 12.8
	 	 Liability of Members to Company or Other Members
	 	48

ii

 

						
	 
	 	 
	 	Page 
	 	 Section 12.9
	 	 Attorneys' Fees
	 	48
	 	 Section 12.10
	 	 Subordination of Other Rights to Indemnity
	 	48
	 	 Section 12.11
	 	 Survival of Indemnity Provisions
	 	48
	  ARTICLE 13 DISSOLUTION, LIQUIDATION AND TERMINATION
	 	

49
	 	 Section 13.1
	 	 No Dissolution
	 	49
	 	 Section 13.2
	 	 Events Causing Dissolution
	 	49
	 	 Section 13.3
	 	 Notice of Dissolution
	 	49
	 	 Section 13.4
	 	 Liquidation
	 	49
	 	 Section 13.5
	 	 Termination
	 	50
	 	 Section 13.6
	 	 Claims of the Members or Third Parties
	 	50
	 	 Section 13.7
	 	 Distributions In-Kind
	 	50
	  ARTICLE 14 REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	

51
	 	 Section 14.1
	 	 Representations, Warranties and Covenants
	 	51
	  ARTICLE 15 MISCELLANEOUS
	 	

52
	 	 Section 15.1
	 	 Notices
	 	52
	 	 Section 15.2
	 	 Failure to Pursue Remedies
	 	52
	 	 Section 15.3
	 	 Cumulative Remedies
	 	52
	 	 Section 15.4
	 	 Binding Effect
	 	52
	 	 Section 15.5
	 	 Interpretation
	 	53
	 	 Section 15.6
	 	 Severability
	 	53
	 	 Section 15.7
	 	 Counterparts
	 	53
	 	 Section 15.8
	 	 Integration
	 	53
	 	 Section 15.9
	 	 Amendment or Restatement
	 	53
	 	 Section 15.10
	 	 Governing Law
	 	53
	 	 Section 15.11
	 	 Dealings in Good Faith
	 	53
	 	 Section 15.12
	 	 Partition of the Property
	 	54
	 	 Section 15.13
	 	 Third Party Beneficiaries
	 	54
	 	 Section 15.14
	 	 Tax Disclosure Authorization
	 	54
	 	 Section 15.15
	 	 Waivers and Consents
	 	54

iii

 

EXHIBITS: 

			
	Exhibit A	 	Area of Mutual Interest
	Exhibit B	 	Members and Capital Contributions
	Exhibit C	 	Base Project
	Exhibit D	 	Initial Budget
	Exhibit E	 	Illustrative Example Calculation of Incentive Interests
	Exhibit F	 	Services Agreement
	Exhibit G	 	Capital Expenditures for Agreements
	Exhibit H	 	Pre-Approved Affiliated Transactions
	Exhibit I	 	Bring Down Certificate
	Exhibit J	 	Escrow Agreement
	Exhibit K	 	Fractionation and NGL Purchase Agreement

iv

 

 
 

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT
  
    OF
  
    MARKWEST LIBERTY MIDSTREAM & RESOURCES, L.L.C.    

        THIS
AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT ("Agreement") of MarkWest Liberty Midstream & Resources, L.L.C., a Delaware limited
liability company (the "Company"), is executed and agreed to as of February 27th, 2009, by and among MarkWest Liberty Gas Gathering, L.L.C., a Delaware limited liability company ("MWE
Liberty"), M&R MWE Liberty, LLC, a Delaware limited liability company ("NGPMR"), and such other Persons who may become Members of the Company from time to time pursuant hereto. 

        WHEREAS,
MWE Liberty, as the then sole member of the Company, entered into that certain Limited Liability Company Agreement (the "Original Agreement") of the Company, dated as of
January 20, 2009; 

        WHEREAS,
in order to initially capitalize the Company, at or before the Closing, the Members shall make the Initial Capital Contributions and from time to time thereafter, certain of the
Members shall make additional Capital Contributions in accordance with Article 4; 

        WHEREAS,
in order to effect the contribution of the cash consideration comprising NGPMR's Initial Capital Contribution and the assets comprising MWE Liberty's Initial Capital
Contribution, the Company, MWE Liberty and NGPMR entered into that certain Contribution Agreement, dated January 22, 2009 (the "Contribution Agreement"), pursuant to which MWE Liberty agreed to
contribute, convey, assign and transfer to the Company all of MWE Liberty's right, title and interest in and to the assets referenced thereunder; 

        WHEREAS,
contemporaneously with the execution of this Agreement and in order to provide for the provision of certain services to the Company, the Company, MWE Liberty and MarkWest
Hydrocarbon, Inc., a Delaware corporation ("MWE Hydrocarbon") shall enter into that certain Services Agreement in the form attached hereto as Exhibit F (the
"Services Agreement"), pursuant to which MWE Hydrocarbon shall provide certain services, or cause such services to be provided, to the Company; 

        WHEREAS,
upon the Closing, the parties to the Contribution Agreement shall consummate the transactions contemplated by the Contribution Agreement and this Agreement shall become
effective; and 

        WHEREAS,
the Company and the Members desire to amend and restate the Original Agreement in its entirety to reflect the agreement of the Company and the Members as set forth herein; 

        NOW
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, effective as of the Closing the
Original Agreement is hereby amended and restated in its entirety to read as follows: 

 
 

  ARTICLE 1
  DEFINED TERMS    
    

        Section 1.1    Definitions.    

        Unless
the context otherwise requires, the terms defined in this Article I shall, for the purposes of this Agreement, have the meanings herein specified. 

        "AAA"
shall have the meaning set forth in Section 6.15(e). 

        "Accountants
shall have the meaning set forth in Section 4.1(a)(iii). 

        "Act"
means the Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101 et seq., as it may be amended from
time to time, and any successor statute thereto. 

        "Additional
Member" shall have the meaning set forth in Section 5.3(a). 

 

        "Additional
Projects" shall have the meaning set forth in Section 3.3(a). 

        "Adjusted
Capital Account" means the Capital Account maintained for each Member (a) increased by any amounts the Member is obligated to contribute or restore to the Company
pursuant to the penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), and (b) decreased by any amounts described in Treasury
Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5), or (6) with respect to such Member. 

        "Adjusted
Capital Account Deficit" means a deficit balance in the Adjusted Capital Account of a Member. 

        "Affiliate"
means with respect to a Person, any other Person that, directly or indirectly, Controls, is Controlled by, or is under Common Control with, the specified Person. 

        "Affiliate
Contract" means any contract between the Company or any Subsidiary of the Company, on the one hand, and a Member or an Affiliate of a Member, on the other hand. 

        "Affiliated
Member Group" means (a) the MWE Liberty Group, (b) the NGPMR Group and (c) any other Member and transferee of Interests directly or indirectly (in the
chain of title) from such Member that is an Affiliate of such transferee Member; provided, however, that once a Person is designated as a
member of any Affiliated Member Group, such Person shall, as long as it owns any Interests, at all times be a member of such Affiliated Member Group and not a member of any other
Affiliated Member Group, and provided, further, that for purposes of this clause (c) of this definition, an Affiliate shall not include a member of the MWE Liberty Group or the NGPMR Group. 

        "Agreement"
means this Amended and Restated Limited Liability Company Agreement, as amended, modified, supplemented or restated from time to time. 

        "Annual
Financial Statements" shall have the meaning set forth in Section 10.3(a). 

        "Approved
Budget" shall have the meaning set forth in Section 6.15(b). 

        "Arbitration
Panel" shall have the meaning set forth in Section 6.15(e). 

        "Area
of Mutual Interest" means the area ** identified ** as
Exhibit A. 

        "Assumed
Tax Liability" shall have the meaning set forth in Section 8.5(a). 

        "Available
Cash" means, with respect to any period prior to the dissolution of the Company, all cash and cash equivalents of the Company on hand at the end of such period less the amount
of any cash reserves established by the Operator to provide for the proper conduct of the business of the Company, including reserves for: future capital expenditures; current, future or contingent
liabilities; anticipated future credit needs of the Company; and debt service and repayments; provided that such reserves shall not equal less
than ** as authorized in the Approved Budget nor more than ** in the Approved Budget, without the
approval of the Board and Requisite Member Approval. 

        "Base
Project" shall have the meaning set forth in Section 3.3(a). 

        "Board"
shall have the meaning set forth in Section 6.1. 

        "Bring
Down Certificate" means a certificate, in the form attached hereto as Exhibit I, to be delivered by the Company to the Class A Members
in respect of the Capital Contributions set forth in Section 4.1(b)(i) stating that the Company has spent or committed to spend all previous Capital Contributions by the Class A Members
in accordance with an Approved Budget, and will spend the Capital Contribution to which the Bring Down Certificate relates in accordance with an Approved Budget. 

        "Budget
Rejection Notice" shall have the meaning set forth in Section 6.15(b). 

2

 

        "Business
Day" means any day that is not a Saturday, Sunday or other day on which commercial banks are required or authorized by law to be closed in the State of Texas or the State of
Colorado. 

        "Capital
Account" means, with respect to any Member, the capital account maintained for such Member in accordance with the provisions of Section 4.5. 

        "Capital
Call" means a call or request for additional capital in writing (which may include electronic mail) by or on behalf of the Company, specifying the amount of capital requested to
be contributed by each Member receiving such notice in accordance with the terms of this Agreement. 

        "Capital
Contribution" means, with respect to any Member, the aggregate amount of cash and the initial Gross Asset Value of any property other than cash contributed to the Company
pursuant to Article 4 hereof by such Member. Any reference in this Agreement to a Capital Contribution of a Member shall include a Capital Contribution contributed by its predecessors in
interest. 

        "Certificate"
means the Certificate of Formation of the Company filed on behalf of the Company with the office of the Secretary of State of the State of Delaware pursuant to the Act on
January 20, 2009, and any and all amendments thereto and restatements thereof. 

        "Claims"
shall have the meaning set forth in Section 6.5. 

        "Class A
Interest" means an Interest in the Company which is classified on Exhibit B as a Class A Interest and which has the rights,
powers and privileges enjoyed by a Member holding a Class A Percentage Interest (under the Act, the Certificate, this Agreement or otherwise) in its capacity as a Member, and all obligations,
duties and liabilities imposed on such a Member (under the Act, the Certificate, this Agreement or otherwise) in its capacity as a Member. 

        "Class A
Manager" shall have the meaning set forth in Section 6.2. 

        "Class A
Member" means a Member who is designated on Exhibit B as a Class A Member, in its capacity as a holder of a Class A
Percentage Interest. 

        "Class A
Percentage Interest" means, with respect to a Class A Member, the quotient (expressed as a percentage) obtained by dividing such Class A Member's Investment
Balance by the aggregate Investment Balances of all Class A Members. 

        "Class B
Interest" means an Interest in the Company which is classified on Exhibit B as a Class B Interest and which has the rights,
powers and privileges enjoyed by a Member holding a Class B Percentage Interest (under the Act, the Certificate, this Agreement or otherwise) in its capacity as a Member, and all obligations,
duties and liabilities imposed on such a Member (under the Act, the Certificate, this Agreement or otherwise) in its capacity as a Member. 

        "Class B
Manager" shall have the meaning set forth in Section 6.2. 

        "Class B
Member" means a Member who is designated on Exhibit B as a Class B Member, in its capacity as a holder of a Class B
Percentage Interest. 

        "Class B
Percentage Interest" means, with respect to a Class B Member, the quotient (expressed as a percentage) obtained by dividing such Class B Member's Investment
Balance by the aggregate Investment Balances of all Class B Members. 

        "Class B
Seller" shall have the meaning set forth in Section 7.2(b). 

        "Closing"
has the meaning ascribed to such term in the Contribution Agreement. 

        "Code"
means the Internal Revenue Code of 1986, as amended from time to time, or any corresponding federal tax statute enacted after the date of this Agreement. 

        "Company"
shall have the meaning set forth in the preamble. 

3

 

        "Company
Minimum Gain" shall have the meaning assigned to the term "partnership minimum gain" in Treasury Regulations Sections 1.704-2(b)(2) and
1.704-2(d). 

        "Company
Nonrecourse Liability" shall have the meaning assigned to the term "nonrecourse liability" in Treasury Regulations Section 1.704-2(b)(3) 

        **
shall have the meaning set forth in Section 4.9(b). 

        **
shall have the meaning set forth in Section 4.9(c). 

        "Confidential
Information" shall mean all information provided or made available by or on behalf of the Company or its Representatives to a Member or its Representatives, including all
information, data, reports, interpretations, contract terms and conditions, forecasts and records containing or otherwise reflecting information concerning the Company or its Affiliates, potential
counterparties or customers or their Affiliates, potential projects, business plans or proposals, market or economic data, identities of actual or potential counterparties or customers, designs,
concepts, trade secrets and other business, operational or technical information (irrespective of the form of communication of such information) and together with analyses, compilations, studies or
other documents, whether prepared by or on behalf of a Member or its Representatives, which contain or otherwise reflect such information (irrespective of the form of communication of such
information). "Confidential Information" also includes information of third parties, including such information as may be subject to any Third Party Confidentiality Agreements. Notwithstanding the
foregoing, Confidential Information shall not include the following: (a) information which at the time of disclosure by or on behalf of the Company is publicly available or which later becomes
publicly available through no act or omission of the disclosing Member or its Representatives; (b) information which a Member can demonstrate was in its possession on a
non-confidential basis prior to disclosure by or on behalf of the Company hereunder; (c) information received by a Member from a third party who is not prohibited from transmitting
the information by a contractual, legal or fiduciary obligation; or (d) information which a Member can demonstrate was independently developed by it or for it and which was not derived or
obtained, in whole or in part, from Confidential Information or from the Company or its Representatives hereunder. 

        "Contributing
Member" shall mean a Class A Member who makes a Quarterly Budgeted Funding Election in accordance with Section 4.1(c). 

        "Contribution
Agreement" shall have the meaning set forth in the recitals. 

        "Control,"
including the correlative terms "Controlling," "Controlled by" and "Under Common Control with" means possession, directly or indirectly (through one or more intermediaries),
of the power to direct or cause the direction of the management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a
Person. For the purposes of this definition, ownership of more than 50% of the voting interests of any entity shall be conclusive evidence that Control exists. 

        "Covered
Person" means, in each case, whether or not a Person continues to have the applicable status referred to in the following list: a Member; a Manager; the Operator; any Affiliate
of a Member or a Manager or of the Operator; any officers of the Company, whether or not such officers are employees of the Company; any officers, directors, members, managers, stockholders, partners,
employees, representatives or agents of any Manager or Member or of the Operator, or of any of their respective Affiliates; any employee or agent of the Company or its Affiliates; and any Tax Matters
Member of the Company. 

        "CP
Index" means the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index—All Urban Consumers, U.S. City Average, Not Seasonally Adjusted, or,
if such index is 

4

 

discontinued,
any successor or substitute index, which, in the Board's reasonable opinion, is most nearly equivalent to such index. 

        "Debt"
for any Person means, without duplication: (a) indebtedness of such Person for borrowed money, including obligations under letters of credit and agreements relating to the
issuance of letters of credit or acceptance financing; (b) obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations of such Person
to pay the deferred purchase price of property or services (including, without limitation, obligations that are non-recourse to the credit of such Person but are secured by the assets of
such Person, but excluding trade accounts payable); (d) obligations of such Person under capital leases; and (e) obligations of such Person under guarantees in respect of indebtedness or
obligations of others of the kinds referred to in clauses (a) through (d) above; provided that "Debt" shall not include the
incurrence of trade debt in the ordinary course of business. 

        "Default
Rate" means a per annum rate of interest equal to the lower of ** and the maximum rate of interest then permitted by law. 

        "Defaulting
Member" shall have the meaning set forth in Section 4.2. 

        "Depreciation"
means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization or other cost recovery deduction allowable for federal income tax purposes
with respect to an asset for such Fiscal Year or other period and in a manner consistent with the methodologies employed by MWE or otherwise determined by the Board;
provided, however, that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning
of such Fiscal Year or other period, Depreciation for such Fiscal Year or other period shall equal to the amount of book basis recovered for such Fiscal Year or other period under the rules prescribed
by Treasury Regulation Section 1.704-3(d)(2) and provided further, that if the federal income tax depreciation,
amortization or other cost recovery deduction for such Fiscal Year or other period is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable
method selected by the Board. 

        "Designated
MWE Employees" has the meaning ascribed to such term in the Services Agreement. 

        "Economic
Risk of Loss" shall have the meaning assigned to that term in Treasury Regulation Section 1.752-2(a). 

        "Effective
Time" means 12:01 a.m. on January 1, 2009. 

        "Election
Period" shall have the meaning set forth in Section 5.7(b). 

        "Electing
Member" shall have the meaning set forth in Section 5.7(b). 

        "Eligible
Member" shall have the meaning set forth in Section 5.7(a). 

        "Enforcement
Activities" shall have the meaning set forth in Section 6.3(a). 

        "Equalization
Date" shall mean the first date after ** on which the quotient (expressed as a percentage) obtained by dividing the
aggregate Investment Balances of all members of the MWE Liberty Group by the aggregate Investment Balances of all members of the MWE Liberty Group plus all members of the NGPMR Group is equal to or
greater than 60%. 

        "Equalization
Target Date" shall have the meaning set forth in Section 4.9(a). 

        "Escrow
Account" shall have the meaning set forth in Section 10.5. 

        "Escrow
Agent" means Wells Fargo Bank, N.A. 

        "Escrow
Agreement" means that certain Escrow Agreement to be entered into among the Company, NGPMR and the Escrow Agent in substantially the form attached hereto as
Exhibit J. 

5

 

        "Escrow
Letter" shall have the meaning set forth in Section 10.5. 

        "Exchange
Act" means the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder, as amended and any successor statutes thereto. 

        "Exempted
Project" shall have the meaning set forth in Section 3.3(b). 

        "Final
Calculations" shall have the meaning set forth in Section 4.1(a)(ii). 

        "Final
Cost" shall have the meaning set forth in Section 4.1(a)(iv). 

        "First
Notice" shall have the meaning set forth in Section 5.7(b). 

        "Fiscal
Year" means (i) the period commencing at the Effective Time and ending on December 31, 2010 and (ii) any subsequent 12 month period commencing on
January 1 and ending on December 31. 

        "Fractionation
and NGL Purchase Agreement" shall have the meaning set forth in Section 3.3(b)(ii). 

        "G&A
Services" has the meaning ascribed to such term in the Services Agreement. 

        "GAAP"
means generally accepted accounting principles in the United States. 

        **
means that certain ** by and between MarkWest Liberty Gas Gathering, L.L.C. and **. 

        "Gross
Asset Value" means, with respect to any asset, such asset's adjusted basis for federal income tax purposes, except as follows: 

        (a)   the
initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as agreed to by the contributing
Member and the Board, except that MWE Liberty's Initial Capital Contribution shall have the gross asset value determined in accordance with Section 4.1(a); 

        (b)   the
Gross Asset Value of all Company assets shall be adjusted to equal their respective gross fair market values, as determined by the Board, in connection with:
(i) the acquisition of an additional interest in the Company by any new or existing Member in exchange for more than a de minimis Capital Contribution or in
exchange for the performance of services to or for the benefit of the Company; (ii) the distribution by the Company to a Member of more than a de minimis amount of
Company assets as consideration for an interest in the Company; and (iii) the liquidation of the Company within the meaning of Treasury Regulations
Section 1.704-1(b)(2)(ii)(g) (other than pursuant to Section 708(b)(1)(B) of the Code) or any other event to the extent determined by the Board to be necessary to properly
reflect the Gross Asset Values in accordance with the standards set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(q); provided,
however, that adjustments pursuant to clause (i) and clause (ii) of this sentence shall be made only if the Board reasonably determines that such adjustments
are necessary or appropriate to reflect the relative economic interests of the Members in the Company; 

        (c)   the
Gross Asset Value of any Company asset distributed to any Member shall be the gross fair market value of such asset on the date of distribution, as determined by the
Board and the distributee Member; and 

        (d)   the
Gross Asset Values of Company assets shall be adjusted to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code
Section 743(b), but only to the
extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m). 

6

 

If
the Gross Asset Value of an asset has been determined or adjusted pursuant to paragraph (a) or paragraph (b) above, such Gross Asset Value shall thereafter be adjusted by the
Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses. 

        "Incentive
Interest Transaction" shall have the meaning set forth in Section 5.6. 

        "Indentures"
has the meaning ascribed to such term in the Contribution Agreement. 

        "Indemnitee"
shall have the meaning set forth in Section 12.7. 

        "Indemnitor"
shall have the meaning set forth in Section 12.7. 

        "Initial
Budget" shall have the meaning set forth in Section 5.5. 

        "Initial
Capital Contribution" shall have the meaning set forth in Section 4.1(a)(i). 

        "Interest"
means the interest of a Member in the Company, including both Class A Percentage Interests and Class B Percentage Interests, including rights to distributions
(liquidating or otherwise), allocations, notices and information, rights to approve of or consent to certain matters (if applicable) and all other rights, benefits and privileges enjoyed by that
Member (under the Act, the Certificate, this Agreement, or otherwise) in its capacity as a Member; and all obligations, duties and liabilities imposed on that Member (under the Act, the Certificate,
this Agreement, or otherwise) in its capacity as a Member. 

        "Investment
Account" shall have the meaning set forth in Section 4.8. 

        "Investment
Balance" shall have the meaning set forth in Section 4.8. 

        "Investment
Balance Costs" shall have the meaning set forth in Section 4.1(a)(ii). 

        "IPO
Issuer" means (a) the Company or (b) an Affiliate of the Company which will be a successor to the Company and the issuer in a Qualified Public Offering. 

        "Lien"
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset. 

        "Liquidating
Trustee" shall have the meaning set forth in Section 13.4(a). 

        "Manager"
shall have the meaning set forth in Section 6.1. 

        "Member"
means any Person (but not any Affiliate or entity in which such Person has an equity interest) executing this Agreement and any Person admitted as an Additional Member or a
Substitute Member pursuant to the provisions of this Agreement, in such Person's capacity as a Member of the Company, and "Members" means two or more of such Persons, in their capacities as Members of
the Company. Such terms do not include any Person or Persons who have ceased to be Members in the Company. 

        "Member
Nonrecourse Debt" has the meaning assigned to the term "partner nonrecourse debt" in Treasury Regulation Section 1.704-2(b)(4). 

        "Member
Nonrecourse Debt Minimum Gain" shall have the meaning assigned to the term "partner nonrecourse debt minimum gain" in Treasury Regulation
Section 1.704-2(i)(2). 

        "Member
Nonrecourse Deductions" shall have the meaning assigned to the term "partner nonrecourse deductions" in Treasury Regulation Section 1.704-2(i)(1). 

        "Minimum
Gain" shall have the meaning assigned to that term in Treasury Regulation Section 1.704-2(d). 

        "Minimum
Price" shall have the meaning set forth in Section 7.2(b)(ii). 

7

 

  
        "Monthly Reports" shall have the meaning set forth in Section 10.3(c). 

        "MWE"
means MarkWest Energy Partners, L.P., a Delaware limited partnership. 

        "MWE
Hydrocarbon" shall have the meaning set forth in the recitals. 

        "MWE
Liberty" shall have the meaning set forth in the preamble. 

        "MWE
Liberty Group" means MWE Liberty and each transferee of Interests directly or indirectly (in the chain of title) from MWE Liberty that is an Affiliate of MWE Liberty;
provided, however, that once a Person is designated as a member of the MWE Liberty Group such Person shall, as long as it owns any Interests,
at all times be a member of the MWE Liberty Group and not a member of any other Affiliated Member Group; provided further, that for purposes of this definition, an Affiliate shall not include a member
of any other Affiliated Member Group. 

        "New
Interests" shall have the meaning set forth in Section 5.7(a). 

        "NGPMR"
shall have the meaning set forth in the preamble. 

        "NGPMR
Covered Persons" has the meaning ascribed to such term in the Contribution Agreement. 

        "NGPMR
Exit Transaction" means ** involving the Company in which ** in which the  ** prior to the ** of the Company ** or a  ** of the Company**. For the avoidance of doubt,
any **

        "NGPMR
Group" means NGPMR and each transferee of Interests directly or indirectly (in chain of title) from NGPMR that is an Affiliate of NGPMR; provided,
however, that once a Person is designated as a member of the NGPMR Group such Person shall, as long as it owns any Interests, at all times be a member of the NGPMR Group
and not a member of any other Affiliated Member Group, and, provided further, that for purposes of this definition, an Affiliate shall not include a member of any other Affiliated Member Group. 

        "NGPMR
Portfolio Companies" shall have the meaning set forth in Section 3.3(c). 

        "NGPMR
Representatives" shall mean the members, managers and employees of NGPMR or any Affiliate thereof, together with all other persons serving as representatives of NGPMR, including
those Persons who are serving as Managers at the request of NGPMR pursuant to this Agreement. 

        "Non-Contributing
Member" shall mean a Class A Member who does not elect to make a Quarterly Budgeted Funding Election in accordance with Section 4.1(c). 

        "Nonrecourse
Deductions" shall have the meaning assigned to that term in Treasury Regulation Section 1.704-2(b). 

        "Objection
Notice" shall have the meaning set forth in Section 4.1(a)(iii). 

        "Operator"
means the Person designated as the "Operator" of the Company in accordance with Section 6.11. 

        "Original
Agreement" shall have the meaning set forth in the recitals. 

        "Out
of Scope Project" means any project, activity, or business venture (a) outside the Area of Mutual Interest or (b) not within the scope of the Primary Business of the
Company (whether inside or outside the Area of Mutual Interest). 

        "Over-Allotment
Amount" shall have the meaning set forth in Section 5.7(b). 

        "Overfunded
Capital" means, as of any determination date, the difference (expressed as a dollar amount) between **. 

        "Partial
NGPMR Exit Transaction" means ** after which the ** in the  ** after which the **

8

 

        "Percentage
Interest" means: 

        (a)   at
any time prior to the earlier to occur of the Equalization Date and **: 

          (i)  with
respect to a Class A Member, the product (expressed as a percentage) of (1) 40% and (2) such Member's Class A Percentage Interest; and 

         (ii)  with
respect to a Class B Member, the product (expressed as a percentage) of (1) 60% and (2) such Member's Class B Percentage Interest. 

        (b)   at
any time on or after the earlier to occur of the Equalization Date and **, with respect to any Member (including any
Class A Member or Class B Member), the quotient (expressed as a percentage) obtained by dividing the Investment Balance of such Member by the Investment Balances of all Members. 

        "Permitted
Liens" means (a) statutory liens for current taxes or assessments not yet due and delinquent or the validity of which is being contested in good faith by appropriate
proceedings and for which adequate reserves have been established; (b) mechanics', carriers', workers', repairers' and other similar liens arising or incurred in the ordinary course of
business; and (c) all applicable zoning ordinances and land use restrictions. 

        "Permitted
Transfers" shall have the meaning set forth in Section 7.1. 

        "Personnel
Services" has the meaning ascribed to such term in the Services Agreement. 

        "Person"
means any natural person, corporation, limited partnership, general partnership, limited liability company, joint stock company, joint venture, association, company, estate,
trust, bank trust company, land trust, business trust, or other organization, whether or not a legal entity, custodian, trustee-executor, administrator, nominee or entity in a representative capacity
and any government or agency or political subdivision thereof. 

        "Post-Effective
Date Capital Expenditures" shall have the meaning ascribed to such term in the Contribution Agreement. 

        "Preference
Amount" means an amount calculated on the last day of each calendar quarter following the Effective Time and prior to the Equalization Date by determining the difference
between (a) the amount of Overfunded Capital as of the last day of such quarter multiplied by the Preference Rate and (b) the amount of all distributions made during such calendar
quarter pursuant to Section 8.1(b)(i)(A). The Preference Amount for the prior calendar quarter shall be added to the Investment Balance as of the first day of the following calendar quarter. 

        "Preference
Rate" means a quarterly rate expressed as a percentage equal to ** per annum, divided by four. 

        "Primary
Business" shall have the meaning set forth in Section 3.1(a). 

        "Profits"
or "Losses" means, for each Fiscal Year, an amount equal to the Company's taxable income or loss for such Fiscal Year, determined in accordance with Section 703(a) of
the Code (but including in taxable income or loss, for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code),
with the following adjustments: 

        (a)   any
income of the Company exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this definition shall be added
to such taxable income or loss; 

        (b)   any
expenditures of the Company described in Section 705(a)(2)(B) of the Code (or treated as expenditures described in Section 705(a)(2)(B) of the Code
pursuant to Treasury 

9

 

Regulations
Section 1.704-1(b)(2)(iv)(i)) and not otherwise taken into account in computing Profits or Losses pursuant to this definition shall be subtracted from such taxable
income or loss; 

        (c)   in
the event the Gross Asset Value of any Company asset is adjusted in accordance with paragraph (b) or paragraph (c) of the definition of "Gross Asset
Value", the amount of such adjustment shall be taken into account as gain (if the adjustment increases the Gross Asset Value of the Company asset) or loss (if the adjustment decreases the Gross Asset
Value of the Company asset) from the disposition of such asset for purposes of computing Profits or Losses; 

        (d)   gain
or loss resulting from any disposition of any Company asset with respect to which gain or loss is recognized for federal income tax purposes shall be computed by
reference to the Gross Asset Value of the asset disposed of, notwithstanding that the adjusted tax basis of such asset differs from its Gross Asset Value; 

        (e)   in
lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into
account Depreciation for such Fiscal Year or other period, computed in accordance with the definition of "Depreciation"; 

        (f)    to
the extent an adjustment to the adjusted tax basis of any asset pursuant to Code Section 734(b) is required, pursuant to Treasury Regulation
Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Account balances as a result of a distribution other than in liquidation of a Member's interest in
the Company, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or an item of loss (if the adjustment decreases such basis) from the
disposition of such asset and shall be taken into account for purposes of computing Profits or Losses; and 

        (g)   notwithstanding
any other provisions of this definition, any items which are specially allocated pursuant to Section 9.2 or 9.3 shall not be taken into account in
computing Profits or Losses. 

        "Project
Period" shall have the meaning set forth in Section 7.1. 

        "Projects"
shall have the meaning set forth in Section 3.3(a). 

        "Property"
means all of the assets and property now owned or hereafter acquired by the Company. 

        "Proposed
Budget" shall have the meaning set forth in Section 6.15(a). 

        "Proposed
Purchaser" shall have the meaning set forth in Section 5.7(a). 

        "Prudent
Industry Practices" means, at a particular time, any of the practices, methods and acts which, ** based upon the  **, and the **, at such time, is ** operation and
maintenance of the Company assets and shall include, without limitation, the practices, methods and acts engaged in or approved by ** at such time with
respect to the assets of the same or similar types as the Company assets. Prudent Industry Practices are not intended to be limited to ** to the
exclusion of all others, but rather is ** practices, methods and acts which ** at a  ** as well as with the
**. Prudent Industry Practices are intended to entail the  **, in the **, use from time to time. 

        "Qualified
Public Offering" means any underwritten initial public offering by the IPO Issuer of equity securities pursuant to an effective registration statement under the Securities Act
and for which aggregate cash proceeds to be received by the IPO Issuer from such offering (without deducting underwriting discounts, expenses and commissions) are at least $50,000,000. 

        "Qualifying
Third Party Offer" shall have the meaning set forth in Section 7.2(a)(ii). 

        "Quarterly
Budgeted Funding Election" shall have the meaning set forth in Section 4.1(c). 

10

 

        "Quarterly
Financial Statements" shall have the meaning set forth in Section 10.3(b). 

        "Regulatory
Allocations" shall have the meaning set forth in Section 9.3. 

        "Remaining
Members" shall have the meaning set forth in Section 7.2(a). 

        "Representatives"
means (a) with respect to the Company, any of: (i) the Company's Affiliates; and (ii) directors, officers, managers, employees, members, partners,
agents and authorized representatives (including attorneys, accountants, consultants, bankers, lenders and financial advisors) of the Company and the Company's Affiliates and (b) with respect
to a Member, any of: (i) such Member's Affiliates; (ii) directors, officers, managers, employees, members, stockholders, partners, agents and authorized representatives (including
attorneys, accountants, consultants, bankers, lenders and financial advisors) of the Member and the Member's Affiliates; and (iii) Persons who are (or who are prospective) beneficial owners of
equity interests in such Member. 

        "Requisite
Member Approval" means the approval of each Affiliated Member Group holding Interests with (i) an aggregate Percentage Interest equal to or exceeding  ** or (ii) an **. 

        "Restricted
Project" has the meaning set forth in Section 3.3(b). 

        "ROFO
Interest" shall have the meaning set forth in Section 7.2(a). 

        "ROFO
Offer" shall have the meaning set forth in Section 7.2(a). 

        "Rules"
shall have the meaning set forth in Section 6.15(e). 

        "Sale
Proposal" shall have the meaning set forth in Section 7.2(b)(i). 

        "Securities
Act" means the Securities Act of 1933, and the rules and regulations promulgated thereunder, as amended and any successor statutes thereto. 

        "Services
Agreement" shall have the meaning set forth in the recitals. 

        "Solicitation
Notice" shall have the meaning set forth in Section 7.2(b)(ii). 

        "Solicitation
Period" shall have the meaning set forth in Section 7.2(a)(ii). 

        "Solicitation
Response" shall have the meaning set forth in Section 7.2(b)(ii). 

        "Subsidiary"
means, with respect to any Person, (a) any corporation, of which a majority of the total voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote generally in the election of directors thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof or (b) any limited liability company, partnership, association or other business entity, of which a majority of the partnership or other similar ownership
interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes of this definition, a
Person or Persons will be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons will be allocated a
majority of limited liability company, partnership, association or other business entity gains or losses, or is or controls the managing member or general partner of such limited liability company,
partnership, association or other business entity. 

        "Substitute
Member" means a Person who is admitted to the Company as a Member pursuant to Article 7, and then designated as a "Member" on an amended
Exhibit B to this Agreement. 

        "Tag-Along
Members" shall have the meaning set forth in Section 7.2(b). 

        "Tag-Along
Notice" shall have the meaning set forth in Section 7.2(b)(i). 

        "Tag-Along
Notice Period" shall have the meaning set forth in Section 7.2(b)(i). 

11

 

        "Tag-Along
Rights" shall have the meaning set forth in Section 7.2(b). 

        "Tax
Distribution Date" shall have the meaning set forth in Section 8.5(a). 

        "Tax
Matters Member" shall have the meaning set forth in Section 11.4(a). 

        "Third
Party Confidentiality Agreements" means that certain ** among MWE Liberty, **, the  **, that certain
** between ** and MWE Liberty, that
certain ** between ** and MWE Liberty ** and that
certain ** between ** and MWE Liberty ** or any other
third party agreement entered into by or on behalf of the Company and delivered to a Member. 

        "Third
Party Offer" shall have the meaning set forth in Section 7.2(a)(ii). 

        "** Payout" shall mean the dollar threshold, if any, at which the NGPMR Group has received a cumulative cash amount in respect of the
NGPMR Group's Interests (whether as distributions from the Company or as cash payment in an Incentive Interest Transaction) equal to the ** as of the
date of such cash payment ** where ** is equal to the **
determined as of the date of such cash payment or distribution. 

        "** Payout Threshold" shall mean the receipt by the NGPMR Group of a cumulative cash amount in respect of the NGPMR Group's Interests
(whether as distributions from the Company or as cash payment in an Incentive Interest Transaction) equal to the ** where  ** is equal to the ** determined as of the date of such distribution or cash payment. 

        "** Percentage" shall mean **. 

        **

        "Transaction
Documents" shall have the meaning set forth in Section 5.1(b). 

        "Transfer"
means any direct or indirect transfer, assignment, sale, conveyance, license, lease, or partition of any Interest, and includes any "involuntary transfer" such as a sale of
any part of the Interest therein in connection with any bankruptcy or similar insolvency proceedings, or any other disposition of any Interest. A Transfer shall not include any pledge, hypothecation
or encumbrance of any Interest. 

        "Transferring
Member" shall have the meaning set forth in Section 7.2(a). 

        "Treasury
Regulations" means the income tax regulations, including temporary regulations, promulgated under the Code, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations). 

        "True-Up
Contribution" shall have the meaning set forth in Section 4.9(a). 

        ** means that certain ** by and between MWE Liberty and  ** as amended by Amendment No. 1 to ** by and between MWE Liberty and  **. 

        "Unrelated
Information" shall have the meaning set forth in Section 10.2. 

        "Weighted
Average Capital Contribution Factor" shall mean as of any date of calculation, a weighted average ** the amounts determined for
each date on which NGPMR has made Capital Contributions (including without limitation the Capital Contributions funded on the date hereof) calculated as  ** of the total ** years from the date of each Capital Contribution until the date of such calculation
(with a partial year being expressed as a decimal determined by dividing the number of days which have passed since the most recent anniversary by 365). Solely for purposes of determining Capital
Contributions under this definition, (i) ** shall be treated as a Capital Contribution made by the NGPMR Group as of the date  **, and (ii) any
other amounts ** shall be treated as Capital Contributions made by the NGPMR
Group as of the date **. 

12

 
 ARTICLE 2

FORMATION AND TERM  

        Section 2.1    Formation.    

        (a)   The
Company was organized as a Delaware limited liability company under and pursuant to the Act by the filing of the Certificate by an authorized person and is being
continued pursuant to the terms of this Agreement. 

        (b)   The
name and mailing address of each Member and the total amount which shall be contributed to the capital of the Company through the Closing is listed on
Exhibit B. The Board shall cause Exhibit B to be updated, from time to time, as may be necessary to accurately reflect the
information therein. Any amendment or revision to Exhibit B made in accordance with this Agreement shall not be deemed an amendment to this Agreement. Any reference
in this Agreement to Exhibit B shall be deemed to be a reference to Exhibit B, as amended, revised and in effect from time to
time. 

        Section 2.2    Name.    

        The
business and affairs of the Company shall be conducted under the name "MarkWest Liberty Midstream & Resources, L.L.C." and such name shall be used at all times in connection
with the Company's business and affairs, except to the extent the Board agrees to the use by the Company of assumed names or other trade names or fictitious names. The Company's Managers or officers
or the Operator shall execute such assumed or fictitious name certificates as may be desirable or required by law to be filed in connection with the business and affairs of the Company and shall cause
such certificates to be filed in all appropriate public records. 

        Section 2.3    Term.    

        The
term of the Company commenced upon the effectiveness of the Certificate and shall continue perpetually, unless the Company is dissolved in accordance with the provisions of this
Agreement. 

        Section 2.4    Registered Agent and Office.    

        The
registered office of the Company required by the Act to be maintained in Delaware shall be the office of the initial registered agent named in the Certificate or such other office
(which need not be a place of business of the Company) as the Board may designate in the manner provided by law. The registered agent of the Company in Delaware shall be the initial registered agent
named in the Certificate or such other Person or Persons as the Board may designate in the manner provided by law. 

        Section 2.5    Principal Place of Business.    

        The
principal place of business of the Company shall be 1515 Arapahoe Street, Tower 2, Suite 700, Denver, CO 80202. At any time, the Board may change the location of the Company's
principal place of business. The Company may have such other places of business as the Board or the Operator may designate. 

        Section 2.6    Qualification in Other Jurisdictions.    

        The
Managers, the officers of the Company or the Operator shall cause the Company to be qualified, formed or registered under assumed or fictitious name statutes or similar laws in any
jurisdiction in which the Company transacts business. The Managers, the officers of the Company or the Operator shall execute, deliver and file any certificates (and any amendments and/or restatements
thereof) necessary or appropriate for the Company to qualify and continue to do business in a jurisdiction in which the Company may wish to conduct business. At the request of the Board or the
Operator, each Member shall execute, acknowledge, swear to and deliver all certificates and other instruments conforming with this Agreement that are necessary or appropriate to qualify, continue and
terminate the Company as a foreign limited liability company in all such jurisdictions in which the Company may conduct business, provided
that no Member shall be required to file any general consent to service of process or to qualify as a foreign corporation, limited liability company, partnership or other
entity in any jurisdiction in which it is not already so qualified. 

13

 

 

 
 

  ARTICLE 3
  PURPOSE AND POWERS OF THE COMPANY    
    

        Section 3.1    Purpose.    

        (a)   The
purpose of the Company is to engage in the natural gas midstream business, including but not limited to natural gas gathering and processing, and the natural gas
liquids processing, fractionation, transportation, storage and marketing businesses in the Area of Mutual Interest and to fulfill the obligations of the Company pursuant to any contract entered into
by the Company or under which the Company has assumed obligations of any Person (the "Primary Business"), and to engage in any other business or activity that now or in the future may be necessary,
incidental, proper, advisable or convenient to accomplish the foregoing purpose and that is not forbidden by the law of the jurisdiction in which the Company engages in such business or activity. 

        (b)   In
no event shall this Agreement be held or construed to imply the existence of a partnership (including a limited partnership) or joint venture among the Members and no
Member shall be held or construed to be a partner or joint venturer of any other Member, for any purposes other than federal and state tax purposes. No Member shall have any power or authority under
this Agreement to act as the agent or representative of the Company or any other Member with regard to any matter beyond the scope of this Company. 

        Section 3.2    Powers of the Company.    

        The
Company shall have all powers and privileges granted by the Act, any other law, or by this Agreement, including incidental powers thereto, to the extent that such powers and
privileges are necessary, customary, convenient or incidental to the attainment of the Company's purpose. 

        Section 3.3    Projects, Restricted Projects, Exempted Projects and Out of Scope
Projects.    

        (a)   As
part of the Primary Business, the Company shall use commercially reasonable efforts to pursue the acquisition, development, construction and operation of natural gas
gathering and processing, and natural gas liquids fractionation, transportation, storage and marketing assets described on Exhibit C (such activities, the "Base
Project"). From time to time, the Company may also pursue the acquisition, development, construction and operation of additional midstream assets in the Area of Mutual Interest in accordance with this
Agreement (such activities, the "Additional Projects" and, collectively with the Base Project, the "Projects"). 

        (b)   No
Class B Member (either directly or indirectly through one or more Affiliates) shall, own, operate, manage, control, engage in, participate in, invest in,
finance, render services for, assist others in, or otherwise carry out any Primary Business (a "Restricted Project") other than through the Company, without Requisite Member Approval, except as
follows (any Restricted Project engaged in pursuant to one of the following exceptions is an "Exempted Project"): 

          (i)  MWE
Liberty or its Affiliates may engage in a Restricted Project outside the Company without Requisite Member Approval if the pursuit of such Restricted Project by the
Company does not receive approval of the Board pursuant to Section 6.1 and Requisite Member Approval pursuant to Section 6.12, and the Company therefore is unable to pursue the
Restricted Project; 

         (ii)  MWE
Hydrocarbon may perform its obligations under that certain Fractionation and NGL Purchase Agreement, dated as of the date hereof, by and between MWE Hydrocarbon and
the Company in the form attached hereto as Exhibit K (the "Fractionation and NGL Purchase Agreement"); and 

14

 

        (iii)  A
Class B Member or its Affiliates may ** as part of **
Restricted Projects, provided that ** such Class B Member ** the
Company ** of ** as ** the Class B Member. In
connection with ** the
Company and the other Members **. Members holding Interests with an aggregate Percentage Interest **
Class B Member ** shall have the ** this Section 3.3(b)(iii) (which, for clarity purposes,
shall not **). Such Members may, by written notice to the Company ** the Class B Member  ** the
Class B Member ** the Class B Member  **. For the avoidance of doubt, ** the Restricted Project
shall have  ** prior to **. In the event that ** the Restricted
Project, the ** the Class B Member ** the Class B Member or  ** the Class B Member.
** Class B Member  ** the Company. 

        Each
Member recognizes and affirms that in the event of breach by such Member of any of the provisions of this Section 3.3(b), money damages may be inadequate and the
non-breaching Members may have no adequate remedy at law. Accordingly, each Member agrees that the non-breaching Members shall have the right, in addition to any other rights
and remedies existing in their favor, to enforce their rights and each of the Members' obligations under this Section 3.3(b) not only by an action or actions for damages, but also by an action
or actions for specific performance, injunctive and/or other equitable relief in order to enforce or prevent any violations (whether anticipatory, continuing or future) of the provisions of this
Section 3.3(b). 

        (c)   The
Company and the Members recognize that: (i) NGPMR and its Affiliates own and will own substantial equity interests in other companies (existing and future)
that participate in the energy industry ("NGPMR Portfolio Companies") and have in the past and will in the future enter into advisory service agreements with such NGPMR Portfolio Companies;
(ii) the NGPMR Representatives who serve as Managers also serve as principals of other NGPMR Portfolio Companies; and (iii) at any time, other NGPMR Portfolio Companies may be in direct
or indirect competition with the Company and/or its Subsidiaries. The Company and the Members acknowledge and agree that NGPMR, its Affiliates and NGPMR Representatives: (A) shall not be
prohibited or otherwise restricted by their relationship with the Company and its Subsidiaries from engaging in the business of investing in NGPMR Portfolio Companies, entering into agreements to
provide services to such NGPMR Portfolio Companies or acting as directors or advisors to, or other principals of, such NGPMR Portfolio Companies, regardless of whether such activities are in direct or
indirect competition with the Company or the Primary Business, (B) shall not have any obligation to offer the Company or its Subsidiaries any business opportunity resulting from NGPMR and its
Affiliates' ownership in the NGPMR Portfolio Companies, and (C) the Company and the Members hereby renounce any interest or expectancy in any such business opportunity pursued by NGPMR, its
Affiliates, the NGPMR Representatives or another NGPMR Portfolio Company and waive any claim that any such business opportunity constitutes a corporate, partnership or other business opportunity of
the Company or any of its Subsidiaries; provided, however, that nothing contained in this Section 3.3(c) is intended to limit the confidentiality obligations in
Section 5.4 and NGPMR, its Affiliates, the NGPMR Portfolio Companies and the NGPMR Representatives are expressly prohibited from using any Confidential Information (i) to pursue any such
business opportunity, (ii) in providing services to the NGPMR Portfolio Companies or (iii) in acting as directors or advisors to, or other principals of, such companies. 

        (d)   No
Member or its Affiliates shall have any obligation to communicate or offer any Out of Scope Projects to the Company or the other Members. The Members acknowledge and
agree that each Member, and their respective Affiliates, may presently or in the future engage in and/or possess an interest in other business ventures of every nature and description, independently
or with others, outside of the Area of Mutual Interest, whether or not such business ventures are within the scope of the Primary Business, or within the Area of Mutual Interest, so long as such
ventures constitute Out of Scope Projects or Exempted Projects, and neither the Company nor any 

15

 

other
Members shall have any right by virtue of this Agreement in and to any Out of Scope Projects or Exempted Projects, or to the income or profits derived therefrom. 

 
 

  ARTICLE 4
  CAPITAL CONTRIBUTIONS, MEMBER INTERESTS,
  CAPITAL ACCOUNTS AND FUTURE CAPITAL REQUIREMENTS    
    

        Section 4.1    Capital Contributions.    

        (a)    Initial Capital Contributions.    

          (i)  At
Closing, MWE Liberty and NGPMR shall have made the respective Capital Contributions (each, an "Initial Capital Contribution") to the Company in the amounts set forth
on Exhibit B in exchange for the initial Percentage Interest and the type of Interest set forth on Exhibit B. In connection with
such contributions, the Company, MWE Liberty and NGPMR shall execute the Contribution Agreement in order to effect the contribution to the Company of the cash consideration comprising NGPMR's Initial
Capital Contribution and the assets comprising MWE Liberty's Initial Capital Contribution. The Members hereby acknowledge and agree that the gross fair market value of MWE Liberty's Initial Capital
Contribution shall equal the actual out-of-pocket costs incurred by MWE Liberty and its Affiliates that specifically relate to developing the assets to be contributed and the
established value of other property to be contributed by MWE Liberty to the Company pursuant to the Contribution Agreement, but that such actual cost will not be finally determinable as of the date
hereof and is subject to adjustment as set forth in Section 4.1(a)(ii) below. 

         (ii)  As
soon as reasonably practicable following the Closing, and in any event within ninety (90) days thereafter, MWE Liberty shall prepare and deliver to NGPMR a
schedule, prepared by MWE Liberty
in good faith that describes in reasonable detail the actual out-of-pocket costs incurred by MWE Liberty that specifically relate to the assets contributed by MWE Liberty
pursuant to the Contribution Agreement (the "Final Calculations"). The Final Calculations shall separately identify (A) actual out-of-pocket costs incurred by MWE
Liberty and its Affiliates through December 31, 2008 that specifically relate to developing assets contributed, plus the established value of other property contributed, by MWE Liberty to the
Company pursuant to the Contribution Agreement, which collectively correspond to MWE Liberty's initial Investment Balance after taking into account the adjustment provisions in Section 4.8 (the
"Investment Balance Costs") and (ii) the **. 

        (iii)  NGPMR
shall have the right to review and verify the Final Calculations. MWE Liberty shall provide NGPMR reasonable access to its records and employees and shall
cooperate and cause the Company to cooperate in all reasonable respects with NGPMR in connection with its review of such work papers and other documents and information relating to the Final
Calculations. If within thirty (30) days after NGPMR's receipt of the Final Calculations, NGPMR shall not have given written notice to MWE Liberty of objection thereto, then NGPMR shall be
deemed to have accepted the Final Calculations, which shall then be final, binding and conclusive for all purposes hereunder. In the event that NGPMR gives written notice of any objection to the Final
Calculations (an "Objection Notice") within such thirty (30) day period, then NGPMR and MWE Liberty will use all commercially reasonable efforts to resolve the disputed matter(s) within the
thirty (30) day period following the delivery of such Objection Notice. If, at the end of the thirty (30) day resolution period, the parties are unable to resolve any disagreement
between them with respect to the preparation of the Final Calculations, then each party shall deliver simultaneously to a nationally recognized accounting firm mutually agreed on by the parties (the
"Accountants") (i) the Objection Notice and such work papers, invoices and other reports and information 

16

 

relating
to the disputed matter(s) as the Accountants may request and (ii) such party's proposed resolution of the disputed matter(s) and any materials it wishes to present to justify the
resolution it so presents. MWE Liberty and NGPMR shall each be afforded the opportunity to discuss the disputed matter(s) with the Accountants. The Accountants, acting as experts and not as
arbitrators, shall have thirty (30) days to carry out a review and prepare a written statement of its determination regarding the disputed matter(s) (including a statement regarding the
Accountants' determination of the prevailing party in any such disputed matter) which determination shall be final and binding upon NGPMR and MWE Liberty. Any fees and expenses of the Accountants
incurred in resolving the disputed matter(s) shall be borne equally by NGPMR, on the one hand, and by MWE Liberty, on the other hand. 

        (iv)  The
aggregate amount of MWE Liberty's Initial Capital Contribution finally determined pursuant to this Section 4.1(a) shall be referred to as the "Final Cost."
Upon determination of the Final Cost, MWE Liberty's Initial Capital Contribution and Investment Balance (pursuant to Section 4.8) shall be adjusted to reflect such Final Cost;
provided that in no event shall **. 

         (v)  In
the event that the Final Cost reflects that the Investment Balance Costs are greater or less than the Investment Balance of MWE Liberty initially specified on
Exhibit B, a corresponding adjustment
shall be made to MWE Liberty's Investment Balance to reflect such amount determined as part of the Final Cost. 

        (vi)  In
the event that the Final Cost reflects that the **, MWE Liberty shall within two Business Days pay to the Company in
immediately available funds an amount equal to such difference; in the event that the Final Cost reflects that the **, the Company shall within two
Business Days pay to MWE Liberty in immediately available funds an amount equal to such difference. 

        (b)    Additional Capital Contributions Prior to the Equalization Date.    

          (i)  The
Class A Members hereby collectively agree to make additional cash Capital Contributions of $** to the Company
on ** upon receipt by each Class A Member, at least ten Business Days prior to each of such dates, of a Bring Down Certificate from the Company
and a Capital Call properly made by the Board to such Class A Members for such amount. In the event that any of these Capital Contributions are made by the Class A Members prior to the
respective dates set forth in the preceding sentence, such Capital Contributions shall be deemed to be made as of such dates. No Class A Member shall have an obligation to make a Capital
Contribution pursuant to this Section 4.1(b)(i) unless the Company has issued a Bring Down Certificate to such Class A Member and the Board has issued a Capital Call to such
Class A Member. Upon contribution of the Class A Member's Initial Capital Contribution and each of the additional Capital Contributions pursuant to this Section 4.1(b)(i), the
Class A Members shall have no obligation to contribute any additional capital to the Company other than pursuant to Section 4.1(b)(iii). 

         (ii)  The
Class B Members hereby agree to make additional Capital Contributions to the Company, on an as needed basis, until the occurrence of the Equalization Date.
Prior to the occurrence of the Equalization Date, at each time when the Company requires additional capital, the Board shall issue a Capital Call to the Class B Members, and the Class B
Members shall contribute to the Company the amount of capital so requested, in accordance with their respective Class B Percentage Interests, within ten days after receipt of such Capital Call.
Notwithstanding the foregoing, the Class B Members shall not make any Capital Contributions pursuant to this Section 4.1(b)(ii) and the Company shall not issue any Capital Calls for any
such Capital Contributions unless and until each of the Capital Contributions by 

17

 

the
Class A Members set forth in Section 4.1(b)(i) have been spent by the Company or committed to be spent in accordance with an Approved Budget. 

        (iii)  The
Class B Members hereby agree that, any distributions of Available Cash payable to a Class B Member pursuant to Section 8.1(a) prior to the
earlier to occur of (i) December 31, 2010 and (ii) the Equalization Date shall be distributed and automatically reinvested by each Class B Member as additional Capital
Contributions, without the issuance of any Capital Call. In accordance with
Section 8.1(a), the Class A Members acknowledge and agree that they shall not receive any distributions of Available Cash prior to the earlier to occur of (i) December 31,
2010 and (ii) the Equalization Date; provided, however that the amount that each Class A Member would have received if Available Cash were distributed prior to the earlier of
(i) December 31, 2010 and (ii) the Equalization Date, shall increase the Investment Balance of such Class A Member on a dollar-for-dollar basis.
Once the Equalization Date has occurred, Available Cash shall be distributed in accordance with Section 8.1(b)(ii). 

        (c)   Capital
Contributions After the Equalization Date. Upon contribution of the Class A Member's Initial Capital Contribution and each of the additional Capital
Contributions pursuant to Section 4.1(b)(i), no Class A Member shall be obligated to contribute additional capital to the Company except as agreed upon by such Class A Member
pursuant to this Section 4.1(c). If the Company requires additional capital to pursue any Project or in connection with the operation of the Primary Business after the Equalization Date, then,
with respect to funding for Projects or operations within the then current Approved Budget, the Class A Members shall elect (such election, a "Quarterly Budgeted Funding Election") on a
quarterly basis whether to contribute additional capital that may be required to fund such Projects or operations for the upcoming calendar quarter based on their respective Percentage Interests. Such
Quarterly Budgeted Funding Election shall be irrevocable, and shall be made in writing (which may include electronic mail) to the Company no less than 30 days prior to the commencement of the
upcoming calendar quarter. If one or more Class A Members elect not to participate, or fail to make any election (which shall be deemed to be an election not to contribute), then such
Non-Contributing Member(s) shall have no obligation to contribute additional capital to fund Projects or operations within the then current Approved Budget for such upcoming calendar
quarter. With respect to each Contributing Member, at least ten days prior to the beginning of such calendar quarter, the Board shall issue to such Contributing Member a Capital Call that identifies
the amount of capital that the Company needs in connection with such Projects or operations for such quarter. Each Contributing Member shall contribute such requested capital to the Company within ten
days after the issuance of each such quarterly Capital Call. 

        After
the Equalization Date, the Class B Member(s) may contribute on a quarterly basis all additional capital (less any capital to be contributed by the Contributing Members for
such upcoming calendar quarter) required to fund Projects or operations within the then current Approved Budget for the upcoming calendar quarter, including any capital required to reduce any capital
shortfall that may result from Non-Contributing Member elections during such calendar quarter; provided, that the Class B Member(s) shall provide written notice to the other Members
on a quarterly basis regarding their decision to fund additional capital and the amount of such Capital Contribution. 

        For
the avoidance of doubt, the Percentage Interests of the Members shall be subject to adjustment (upward and downward) pursuant to this Section 4.1(c), based upon the Members'
respective Investment Balances giving effect to such additional Capital Contributions. If elections to contribute capital by the Contributing Members and the Class B Member(s) are less than the
total amount of capital required by the Company pursuant to this Section 4.1(c), then the Company may seek to obtain the requested capital from third parties, which may include issuing
additional Interests in the Company pursuant to Sections 5.3 and subject to Section 5.7, if applicable. 

18

 

        Section 4.2    Capital Contribution Defaults.    

        If
a Member fails to contribute any capital to the Company that is required to be so contributed pursuant to Section 4.1, such Member shall be considered in default (a "Defaulting
Member"), but shall remain fully obligated to contribute such capital to the Company. The Company shall be entitled to pursue all remedies available at law or in equity against the Defaulting Member,
including any one or more of the following: 

        (a)   the
Company may take all actions, including court proceedings, as the other Members may deem appropriate, to obtain payment by the Defaulting Member of the required
amount of the Capital Contribution remaining unpaid, together with interest thereon at the Default Rate from the date that the required Capital Contribution was required to be contributed to the
Company until the date it is so contributed, at the cost and expense of the Defaulting Member; and 

        (b)   the
non-defaulting Members may advance the portion of the Defaulting Member's Capital Contribution that is in default, in accordance with the
non-defaulting Members' respective Percentage Interests, and, at the option of the non-defaulting Members, the non-defaulting Members making such advance may be
deemed to have made a loan to the Defaulting Member in the amount of the Capital Contribution so advanced, which loan shall bear interest at the Default Rate from the date that such advance is made
until the loan is repaid in full, and until such loan is repaid in full, the non-defaulting Members making such loan to the Defaulting Member shall be entitled to receive all distributions
of Available Cash that would otherwise be payable to the Defaulting Member hereunder, in accordance with the non-defaulting Members' respective Percentage Interests. 

        Section 4.3    Member's Interest.    

        A
Member's Interest shall for all purposes be personal property. Title to the Company's assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be
owned by the Company as an entity, and no Member, Manager, Operator or officer of the Company shall have any ownership interest in such Company assets. 

        Section 4.4    Status of Capital Contributions.    

        (a)   Except
as otherwise provided in this Agreement, no Member, or the successor or assign of a Member, may demand a return of its Capital Contributions, in whole or in part.
An unrepaid Capital Contribution is not a liability of the Company or of any Member. 

        (b)   No
Member or Affiliate of any Member shall receive any interest, return, compensation or drawing with respect to its Capital Contributions or its Capital Account, except
as otherwise specifically provided in this Agreement. 

        (c)   Except
as otherwise provided in this Agreement, no Member shall be required to lend any funds or make any additional Capital Contributions to the Company. No Member
shall have any personal liability for the repayment of any other Member's Capital Contribution or be required to contribute or lend any cash or property to the Company to enable the Company to repay
any Member's Capital Contributions. 

        Section 4.5    Capital Accounts.    

        (a)   A
separate Capital Account shall be established and maintained for each Member in accordance with the requirements of Treasury Regulations
Section 1.704-1(b)(2)(iv). The original Capital Account established for any Member who acquires an Interest by virtue of an assignment in accordance with the terms of this Agreement
shall be in the same amount as and shall replace the Capital Account of the assignor of such Interest. To the extent such Member acquires less than 

19

 

all
of the Interest of the assignor of the Interest so acquired by such Member, the original Capital Account of such Member and its Capital Contributions shall be in proportion to the Interest it
acquires, and the Capital Account of the assignor who retains an Interest shall be reduced in proportion to the Interest it retains. 

        (b)   The
Capital Account of each Member shall be maintained in accordance with the following provisions: 

          (i)  to
such Member's Capital Account there shall be credited such Member's Capital Contributions, such Member's distributive share of Profits, special allocations of income
and gain, and the net amount of any Company liabilities that are assumed by such Member or that are secured by any Company assets distributed to such Member; 

         (ii)  to
such Member's Capital Account there shall be debited the amount of cash and the Gross Asset Value of any Company assets distributed to such Member pursuant to any
provision of this Agreement, such Member's distributive share of Losses, special allocations of loss and deduction, and the net amount of any liabilities of such Member that are assumed by the Company
or that are secured by any property contributed by such Member to the Company; 

        (iii)  in
determining the amount of any liability for purposes of this Section 4.5(b), there shall be taken into account Section 752(c) of the Code and any
other applicable provisions of the Code and the Treasury Regulations; and 

        (iv)  the
Capital Accounts shall be increased or decreased upon a revaluation of Company property pursuant to clause (b) of the definition of Gross Asset Value in the
manner prescribed in Treasury Regulation Section 1.704-1(b)(2)(iv)(f). 

        Section 4.6    Capital Accounts Generally.    

        (a)   Except
as otherwise provided in this Agreement, whenever it is necessary to determine the Capital Account of any Member for any purpose hereunder, the Capital Account of
such Member shall be determined after giving effect to all adjustments provided for in Section 4.5 for the current Fiscal Year in respect of transactions effected prior to the date such
determination is to be made. 

        (b)   No
Member shall be entitled to withdraw any part of its Capital Account, or to receive any distribution from the Company except as specifically provided in this
Agreement. 

        Section 4.7    Preferred Return.    

        For
the avoidance of doubt, the Class A Interests shall accrue the Preference Amount until the Equalization Date, after which time the Preference Amount shall no longer accrue. 

        Section 4.8    Investment Accounts.    

        The
Company shall maintain an investment account (an "Investment Account") for each Member, the balance of which (the "Investment Balance") shall represent the sum of a Member's Initial
Capital Contribution, any additional Capital Contributions made by a Member pursuant to Sections 4.1(b), 4.1(c) and 4.9, and with respect to each Class A Member, (i) the
Preference Amount and (ii) the amount that is retained by the Company in accordance with Section 4.1(b)(iii) and which such Class A Member would have otherwise received if
Available Cash were distributed prior to the earlier to occur of (i) December 31, 2010 and (ii) the Equalization Date. The Investment Balance for each Class A Member shall
be reduced by any actual distributions to such member of Available Cash pursuant to Section 8.1(b)(i)(A) and Sections 13.4(a)(i)(A) and (B). The Investment Balance of the Class B
Members shall be reduced by the amount of any **, subject to adjustment pursuant to Section 4.1(a). For the avoidance of doubt, the Investment
Balance of each Member immediately following the 

20

 

Closing,
after giving effect to Capital Contributions and reimbursements, shall be as set forth on Exhibit B. An assignee of all or any portion of an Interest shall
succeed to a portion of the assignor Member's Investment Account in proportion to the Interest acquired. 

        Section 4.9    Equalization Target Date.    

        (a)   In
the event that the Equalization Date has not occurred on or before **, then all distributions of Available Cash
received by the MWE Liberty Group after ** pursuant to any provision of this Agreement shall automatically be contributed to the Company as additional
Capital Contributions until the Equalization Date occurs. If the Equalization Date has not occurred on or before December 31, 2011 (the "Equalization Target Date"), then the Class A
Members holding at least a majority of the Class A Percentage Interests may elect by written notice to require MWE Liberty to make an additional cash Capital Contribution (the
"True-Up Contribution") sufficient to result in the Equalization Date occurring within ** after the Equalization Target Date. MWE Liberty
shall cause such True-Up Contribution to be made and the Equalization Date to occur within ** of the requesting notice of the requisite
Class A Members. To the extent that the Company does not have commitments to spend the True-Up Contribution in accordance with the Approved Budget (and any amendments or
modifications to such Approved Budget approved prior to the date of the True-up Contribution) in effect at the time MWE Liberty is required to make the True-Up Contribution,
then, at the end of the first full fiscal quarter following the date of the True-Up Contribution, the Company shall distribute any amount of the True-Up Contribution not spent
or committed to be spent in accordance with such Approved Budget, and any approved amendments thereto, to the Members in accordance with their Percentage Interests. For clarification purposes, it is
the intent of the Members that the True-Up Contribution be an amount such that after payment of the True-Up Contribution is made by MWE Liberty, the Percentage Interest of the
MWE Liberty Group is 60% and the Percentage Interest of the NGPMR Group is 40%. 

        (b)   If
MWE Liberty fails to make the True-Up Contribution in accordance with Section 4.9(a) above, then the Interests held by the MWE Liberty Group shall
not be ** of the Company; provided, however, that the then controlling Members shall not  ** to the MWE Liberty Group in any material respect
** of the MWE Liberty Group. Additionally, NGPMR
shall have the **
subject to the provisions of ** to any Person, other than an Affiliate or partner of any member of the NGPMR Group or any NGPMR Portfolio Company,  **,
(B) all Members ** any Person, other than an Affiliate or partner of any member of the NGPMR
Group or any NGPMR Portfolio Company, of all of ** or (C) the Company to ** other than an
Affiliate or partner of any member of the NGPMR Group or any NGPMR Portfolio Company, **. 

        (c)   Within
five days after receipt of any notice of **, the Board shall notify each Member, in writing,  ** shall identify the **, including the form of the **
and provide a copy of **. Each Member agrees that ** it will (i) take such action as may
reasonably be required, including **, (ii) cause its designated Managers to take such action required, to  **, (iii) provide for the execution of
such agreements and such instruments and other actions reasonably necessary to provide, to the extent
necessary, ** relating to such **, in each case only to the extent that  **; provided that, no
Affiliated Member Group shall be obligated in respect of any  ** and referred to in the immediately preceding clause in such ** for an  ** to such Affiliated Member Group in **. The Member proposing  ** shall have the right in connection with ** (or in connection with the  **) to require the Company to cooperate fully with ** by taking all customary and other
actions
reasonably requested by the Member **, including making the ** reasonably available  **, establishing a
** in connection with such processes and making  ** activities, in each case subject to **. The Company and
each Member shall provide assistance with
respect to these actions as reasonably requested by the Member **. In addition, once ** under this
Section 4.9, the Board 

21

 

shall
be entitled to take all steps reasonably necessary to carry out **, including **;
provided, however, that the rights granted the Board in this sentence shall not permit the Board to **. 

 
 

  ARTICLE 5
  MEMBERS, MEETINGS AND AMENDMENTS    
    

        Section 5.1    Powers of Members.    

        (a)   Except
for the right to consent to or approve certain matters as expressly provided in this Agreement, the Members in their capacity as Members shall not have any other
power or authority to manage the business or affairs of the Company or to bind the Company or enter into agreements on behalf of the Company. 

        (b)   To
the fullest extent permitted by law and notwithstanding any provision of this Agreement or any other document executed in connection with this Agreement (a
"Transaction Document") to the contrary, no Member in its capacity as a Member shall have any duty, fiduciary or otherwise, to the Company or any other Member in connection with the business and
affairs of the Company or any consent or approval given or withheld pursuant to this Agreement or any other Transaction Document. 

        (c)   Any
matter requiring the consent or approval of the Members pursuant to this Agreement may be taken without a meeting, without prior notice and without a vote, by a
consent in writing, setting forth such consent or approval, and signed by Members holding Interests not less than the requisite Interests necessary to consent to or approve such action; provided that
at least one Class A Member shall be required to sign such consent or approval in order for such consent to be effective in the event that the Class A Members did not receive prior
written notice of the action to be so taken. Prompt notice of such consent or approval shall be given by the Company to those Members who have not joined in such consent or approval. 

        Section 5.2    No Resignation or Expulsion.    

        A
Member may not take any action to resign, withdraw or retire as a Member voluntarily, and a Member may not be expelled or otherwise removed involuntarily as a Member, prior to the
dissolution and winding up of the Company, other than as a result of a Permitted Transfer of all of such Member's Interests in accordance with Article 7 and each of the transferees of such
Interests being admitted as a Substitute Member. 

        Section 5.3    Additional Members.    

        (a)   After
the Board makes a Capital Call pursuant to Section 4.1(c) that was not fully funded by the Members and subject to the preemptive rights set forth in
Section 5.7 to the extent applicable, the Company is authorized to issue additional Interests and to admit any Person as an additional member of the Company (each, an "Additional Member" and
collectively, the "Additional Members"). Upon receipt of requisite approval of the Board and the Members, the Company is authorized to issue additional Interests and to admit any Person as an
additional member of the Company (each, an "Additional Member" and collectively, the "Additional Members"). Each such Person receiving additional Interests shall be admitted as an Additional Member at
the time such Person (i) executes a counterpart signature page agreeing to be bound hereby and such other documents or instruments as may be required in the Board's reasonable judgment to
effect the admission, and (ii) is designated as a Member (with a corresponding Percentage Interest) on an amended or supplemental Exhibit B. The Company may
issue additional Interests or additional classes of membership interests to existing Members or to new or Additional Members in exchange for such Capital Contributions, including cash, property or
services or any combination thereof. 

22

 

 

        (b)   Additional
Members shall not be entitled to any retroactive allocation of the Company's income, gains, losses, deductions, credits or other items; provided
that, subject to the restrictions of Section 706(d) of the Code, Additional Members shall be entitled to their respective share of the Company's income, gains, losses,
deductions, credits and other items arising under contracts entered into before the effective date of the admission of any Additional Members to the extent that such income, gains, losses, deductions,
credits and other items arise after such effective date. To the extent consistent with Section 706(d) of the Code and Treasury Regulations promulgated thereunder, the Company's books may be
closed at the time Additional Members are admitted (as though the Company's tax year had ended) or the Company may credit to the Additional Members pro rata allocations of the Company's income, gains,
losses, deductions, credits and items for that portion of the Company's Fiscal Year after the effective date of the admission of the Additional Members. 

        Section 5.4    Confidentiality Obligations of Members.    

        (a)   Each
Member agrees that all Confidential Information shall be kept confidential by the Member, shall only be used for the purpose of reviewing and evaluating the
performance of the Company and the Member's Interest therein, and shall not be disclosed in any manner, except to such of the Member's Representatives who have a need to know and who agree to be, or
are otherwise, bound by the Member's obligations hereunder and except as otherwise expressly permitted in this Section 5.4. Each Member shall be responsible for any breach of this
Section 5.4 by itself or any of its Representatives, and each Member covenants and agrees that it shall promptly notify the Company of any actual, potential or threatened breach of this
Section 5.4 and shall, at its own expense, enforce, and assist the Company in its enforcement of, the provisions of this Section 5.4, including, to the extent reasonably necessary,
seeking specific enforcement through court proceedings. Subject to Section 5.4(b), if a Member or any of its Representatives is requested or required by applicable law, rule or regulation,
regulatory authority, subpoena, civil investigation, court order, demand or similar legal process to disclose any Confidential Information, the Member shall, to the maximum extent permitted by
applicable law, provide the Company with prompt written notice thereof and will use reasonable efforts to resist disclosure, until an appropriate protective order or motion to quash may be sought or a
waiver of compliance with this Section may be granted. If, in the absence of a protective order or the receipt of a waiver hereunder, such Member or any of its Representatives is, in the opinion of
its legal counsel, legally required to disclose Confidential Information, then such Member or its Representatives may disclose only that portion of the Confidential Information legally required to be
disclosed, without liability hereunder, provided that such Member or its Representatives uses reasonable efforts to obtain reliable assurance that confidential treatment will be accorded the
Confidential Information. Each Member acknowledges and agrees that the Company and the other Members may be irreparably harmed by disclosure of the Confidential Information, that money damages would
not be a sufficient remedy for any breach of this Section 5.4 by such Member or its Representatives and that, in addition to any other remedies available at law or in equity, specific
performance and injunctive or other equitable remedies shall be available to the Company and the Members as a remedy for any such breach or threatened breach, without the requirement of posting bond
or other security. The Company and the other Members shall be entitled to recover their costs and expenses, including attorneys' fees, incurred in connection with any successful action brought by them
to enforce the terms of this Agreement. With respect to Confidential Information that is subject to confidentiality agreements under any Third Party Confidentiality Agreements, each Member covenants
and agrees to, and shall cause its Representatives to, treat such Confidential Information confidentially in accordance with, and to comply with the terms of, the confidentiality provisions contained
in those Third Party Confidentiality Agreements that have been disclosed to such Member, including, any provisions thereof that impose more stringent or additional obligations than those set forth
herein (provided such has been disclosed to such Member). The 

23

 

obligations
of a Member pursuant to this Section 5.4 shall continue following the time such Person ceases to be a Member, but thereafter such Person shall not have the right to enforce the
provisions hereof. Notwithstanding anything set forth herein, all covenants made herein by a Member are for the sole benefit of the Company and the other Members and there shall be no third party
beneficiaries of any of such covenants. 

        (b)   Notwithstanding
anything to the contrary in this Agreement, each Member may disclose any information about the Company, including any Confidential Information, without
any liability to the Company or to any other Member or to their respective Affiliates and without any notice to any Member, to the extent that such disclosing Member believes that such disclosure is
necessary or
appropriate to satisfy its public disclosure obligations under the Securities Act, the Exchange Act, the rules of any stock exchange, or any similar public disclosure obligations. 

        Section 5.5    Initial Budget.    

        By
execution of this Agreement, the Members hereby approve and consent to the initial budget attached hereto as Exhibit D (the "Initial Budget") and
acknowledge and agree that such Initial Budget shall be deemed to be an Approved Budget for all purposes of this Agreement. 

        Section 5.6    Incentive Interests to MWE Liberty Upon Transfer of NGPMR's
Interest.    

        In
the event NGPMR receives cash from any NGPMR Exit Transaction or Partial NGPMR Exit Transaction (for the purposes of this section, such transaction an "Incentive Interest
Transaction") that would result in ** Payout**, simultaneously with the consummation of any such
transaction, NGPMR shall pay to MWE Liberty as a fee the following amount**, to the extent applicable: 

        **    Following ** Payout Threshold, if any, an amount equal to the  ** of (i) the cash proceeds
of all Incentive Interest Transactions plus cumulative cash distributions to NGPMR in respect of its Interest,
**

**  

Exhibit E contains illustrative examples of the calculation and operation of amount**
payable pursuant to Section 5.6** based upon hypothetical Incentive Interest Transactions. This Section 5.6 shall be interpreted and
applied in a manner consistent with the examples set forth in Exhibit E. The obligations of NGPMR to make payment**
to MWE Liberty pursuant to this Section 5.6 shall survive the closing of any NGPMR Exit Transaction or Partial NGPMR Exit Transaction and any liquidation, dissolution or winding up of the
Company until such payment to MWE Liberty has been made. 

        Section 5.7    Preemptive Rights.    

        (a)   After
the Equalization Date, prior to the Company issuing any Interests or options or rights to acquire Interests (other than (i) any equity issuance associated
with an acquisition previously approved by NGPMR, (ii) Interests issued in connection with any split, distribution or recapitalization of the
Company, (iii) Interests issued in any initial public offering registration statement filed under the Securities Act, or (iv) in connection with any capital raising or financing efforts
by the Company the purpose of which is to fund any activities of the Company which were the subject of a Capital Call made pursuant to Section 4.1(c) that was not fully funded by the Members;
provided, however, that any Interests to be issued in such capital raising or financing efforts, and the pricing of such Interests, are equivalent to the terms of such
Capital Call), whether through exchange, conversion or otherwise (the "New Interests"), to a proposed third party purchaser (the "Proposed Purchaser"), each Member who is not in default of this
Agreement and which certifies to the Company's reasonable satisfaction that it is an "accredited investor" within the meaning of Rule 501 under the Securities Act (an "Eligible Member") shall
have the right to purchase a portion of the New Interests in accordance with this Section 5.7. 

24

 

        (b)   The
Company shall give each Eligible Member prior written notice (the "First Notice") of any proposed issuance of New Interests, which shall set forth in reasonable
detail the proposed terms and conditions thereof (as determined by the Board in good faith) and shall offer to each Eligible Member the opportunity to purchase its Percentage Interest (as of the date
of such notice) of the New Interests, on the same terms and conditions and at the same time as the New Interests are proposed to be issued by the Company. If any Eligible Member desires to exercise
its preemptive rights under this Section 5.7, it must deliver an irrevocable written notice within 30 days after the Eligible Member's receipt of the First Notice (the "Election Period")
setting forth the dollar amount of the New Interests the Eligible Member (the "Electing Member") is electing to purchase, up to its Percentage Interest plus any additional amount of New Interests it
desires to purchase in excess of its Percentage Interest (the "Over-Allotment Amount") if other Eligible Members do not exercise their preemptive rights hereunder. The right of each
Electing Member to purchase New Interests in excess of its Percentage Interest shall be based on the relative Percentage Interests of the Electing Members desiring to purchase
Over-Allotment Amounts. 

        (c)   If
the Eligible Members do not subscribe for all of the New Interests, the Company shall have the right, but not the obligation, to issue and sell the unsubscribed
portion of the New Interests to the Proposed Purchaser at any time during the 90 days following the end of the Election Period, at the same price and pursuant to the terms and conditions set
forth in the First Notice. The Board may, in its reasonable discretion, impose such other reasonable and customary terms and procedures such as setting a closing date and requiring customary closing
deliveries in connection with any preemptive rights offering. In the event any Electing Member refuses to purchase the New Interests for which it subscribed pursuant to this Section 5.7, then
in addition to any other rights the Company may have at law or in equity, such Electing Member and any transferee thereof shall not be considered an Eligible Member for any future rights granted under
this Section 5.7 unless the Board expressly designates otherwise (which the Board may, in its sole discretion, do on an offer-by-offer basis or not at all) and shall be
deemed a Defaulting Member under Section 4.2. 

        Section 5.8    Registration Rights.    

        If
the Board with Requisite Member Approval determines to effect a Qualified Public Offering, each of the Members shall be granted customary registration rights, including piggyback
registration rights, with respect to such Qualified Public Offering. 

 
 

  ARTICLE 6
  MANAGEMENT    
    

        Section 6.1    Management Under Direction of the Board.    

        Except
as otherwise expressly provided in this Agreement or required under the Act, the business and affairs of the Company shall be managed by a board of managers (the "Board" and each
member of the Board, a "Manager"), and the Board shall have full and complete authority, power, and discretion to manage and control the business, affairs, and properties of the Company, to make all
decisions regarding those matters and to perform any and all other acts or activities customary or incidental to the management of the Company's business. Without limiting the generality of the
foregoing the approval of the Board shall be required for all matters not delegated by the Board to the Operator, the officers of the Company or to other authorized persons in accordance with
Section 6.10, including approval of the following matters, which the Board shall not have the power to delegate to any Person, in each case except as otherwise approved in any Approved Budget: 

        (a)   Proposed
Budgets for the Company, other than the Initial Budget; 

25

 

        (b)   distributions
of Available Cash (including Tax Distributions); 

        (c)   efforts
by the Company to raise additional capital, including the issuance of additional Interests or any options to acquire Interests and the issuance of additional
equity interests or options to acquire equity interests in the Company's subsidiaries; 

        (d)   incurrence
or guarantee of Debt by the Company in excess of $**; 

        (e)   acquisitions
or dispositions of assets by the Company in excess of $**; 

        (f)    commencing
or resolving litigation; 

        (g)   election
or removal of officers of the Company; 

        (h)   material
contracts to which the Company (or a subsidiary of the Company) is a party or by which it is bound; and 

        (i)    the
registration of any equity or debt securities of the Company or its subsidiaries under applicable United States federal or foreign securities laws or any public
offering of equity or debt securities of the Company or its subsidiaries (including any Qualified Public Offering). 

        Section 6.2    Number, Tenure and Qualifications.    

        (a)   Prior
to the Equalization Date, the Board shall be comprised of five Managers, designated as follows: 

          (i)  two
Managers (each, a "Class A Manager") designated by Class A Members with an aggregate Class A Percentage Interest of at least 50%; and 

         (ii)  three
Managers (each, a "Class B Manager") designated by Class B Members with an aggregate Class B Percentage Interest of at least 50%. 

        The
initial Managers of the Company shall be: **, who are the Class A Managers, and  **, who are the Class B Managers. 

        (b)   On
and after the Equalization Date, each Affiliated Member Group shall be entitled to designate the number of Managers determined by their Percentage Interests as
follows: 

          (i)  Each
Affiliated Member Group with a Percentage Interest less than or equal to ** shall not be allowed to designate any
Managers; 

         (ii)  Each
Affiliated Member Group with a Percentage Interest greater than ** but less than or equal to  **, shall be allowed to designate one Manager; 

        (iii)  Each
Affiliated Member Group with a Percentage Interest greater than ** but less than or equal to  **, shall be allowed to designate two Managers; 

        (iv)  Each
Affiliated Member Group with a Percentage Interest greater than ** but less than or equal to  **, shall be allowed to designate three Managers; 

         (v)  Each
Affiliated Member Group with a Percentage Interest greater than ** but less than or equal to  **, shall be allowed to designate four Managers; and

        (vi)  Each
Affiliated Member Group with a Percentage Interest greater than **, shall be allowed to designate five Managers. 

        Any
Manager designated in accordance with this section shall be immediately removed from the Board at any time that the Affiliated Member Group that designated such Manager ceases to own
aggregate Percentage Interests that would permit such Affiliated Member Group to designate such Manager in accordance with the first sentence of this section. Notwithstanding the foregoing, so long as
the Class A Members have **, such Class A Members shall be entitled to appoint no less than one 

26

 

Manager
to the Board and the size of the Board shall be, if necessary, increased by one to enable the Class A Members to make such appointment. The Board shall be comprised of the total number
of Managers that all Affiliated Member Groups are entitled to so designate pursuant to the first sentence of this Section 6.2(b), plus any additional Manager whom the Class A Members are
entitled to designate pursuant to the immediately preceding sentence. At any time that any Affiliated Member Group acquires aggregate Percentage Interests sufficient to permit such Affiliated Member
Group to designate one or more additional Managers in accordance with the first sentence of this Section, then a new
Manager position shall be created and such Affiliated Member Group shall be entitled to fill such the vacancy in such position in accordance with Section 6.9. 

        (c)   A
Manager need not be a resident of the State of Delaware. A Manager shall hold office until the Manager's successor shall be duly elected and shall qualify or until the
earlier of such Manager's withdrawal, death, removal or resignation. 

        Section 6.3    Votes Per Manager; Quorum; Required Vote for Board Action; Meetings of the
Board.    

        (a)   Each
Manager shall have one vote. Except as provided below, Managers comprising at least a majority of the total number of Managers entitled to be designated in
accordance with Section 6.2 shall constitute a quorum for the transaction of business at a meeting of the Board. Except as otherwise expressly provided in this Agreement, any action or event
shall be deemed approved by the Board of Managers comprising at least a majority of the total number of Managers then entitled to be designated at the time of such approval in accordance with
Section 6.2 vote in favor of or approve such action or event at a meeting at which a quorum is present. Any actions by the Company in response to a breach of or default (or alleged breach or
default) under an Affiliate Contract or other transaction with an Affiliate of a Member (such as a waiver of the breach or default, notice of breach or event of default or notice of termination for
breach or default in accordance with the terms of the Affiliate Contract) or enforcement or exercise of any of the Company's rights or remedies in respect to such breach or default (or alleged breach
or default) (collectively, "Enforcement Activities") shall be conducted by or under the direction of the Board, provided that any Manager designated by a Member that is a
party to, or has an Affiliate (other than the Company) that is a party to, such Affiliate Contract or transaction ** at any meeting of the Board and  ** of
the Board; provided further that the foregoing proviso shall not apply to  **, which shall be **. 

        (b)   Except
as otherwise required by applicable law, the Board may hold meetings in such place or places, within or outside of the State of Delaware, as the Board may
determine from time to time. Business shall be conducted at such meetings in such order as the Board shall determine from time to time. 

        (c)   Regular
meetings of the Board shall be held at least quarterly and at such times and places as shall be designated from time to time by the Board. Notice of such regular
meetings shall not be required if held at the times and places as previously determined by the Board and provided to each Manager. Special meetings of the Board may be called by any Manager upon at
least 24 hours prior notice, which may be given via electronic mail, and which notice must include dial-in or other information so as to permit each Manager to participate in such
meeting by telephone conference or other electronic means. Such notice must state the purpose of such meeting. 

        (d)   Any
action required or permitted to be taken at any meeting of the Board may be taken without a meeting if a consent in writing, setting forth the action so taken, shall
be signed by a majority of the Managers then entitled to be designated in accordance with Section 6.2; provided that at least one Manager designated by the NGPMR
Group (if there is such a Manager) and at least one Manager designated by the MWE Liberty Group (if there is such a Manager) shall be 

27

 

required
to sign such consent or approval, solely for purposes of providing an acknowledgement of receipt of notice of the action to be taken rather than approval or rejection thereof, in order for
such consent or approval to be effective in the event that at least one Manager designated by the NGPMR Group (if there is such a Manager) or at least one Manager designated by the MWE Liberty Group
(if there is such a Manager), as applicable, did not receive prior written notice of the action to be so taken. 

        (e)   Members
of the Board may participate in any meeting by means of conference telephone or similar communications equipment by means of which all persons participating in
the meeting can hear each other and participation in such a meeting such constitute presence in person at such meeting, except as provided in clause (f). 

        (f)    Attendance
of a Manager at any meeting of the Board (including by telephone) shall constitute a waiver of notice of such meeting, except where such Manager attends the
meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened and notifies the other Managers at such meeting of
such purpose. 

        Section 6.4    Power to Bind Company.    

        Unless
authorized to do so by this Agreement or by the Board, no Member of the Company shall have any power or authority to bind the Company in any way, to pledge the Company's credit or
to render it liable pecuniarily for any purpose. However, a Person may act by a duly authorized attorney-in-fact executed in writing by the Board. 

        Section 6.5    Liability for Certain Acts.    

        No
Manager or officer of the Company (solely in such individual's capacity as a Manager or officer of the Company), nor any of their Affiliates or their respective successors or assigns,
shall be liable to the Company or to any Member for any claims, losses, expenses, costs, obligations, liabilities, actions, suits, proceedings, judgments, or settlements (including attorneys' fees)
(whether civil, criminal, administrative or investigative) (collectively, "Claims") arising or resulting from or relating to the performance of any of such Manager's or officer's obligations or duties
under this Agreement in its
capacity as Manager or officer, or otherwise attributable to any breach of duty owed by such Manager or officer (by virtue of being a Manager or officer) to the Company or the Members, except to the
extent such Claims or breach of duty is based upon such person's fraud, bad faith or willful misconduct as established by a non-appealable court order, judgment, decree or decision by a
court of competent jurisdiction. Without limiting the generality of the foregoing, the doing of any act or the failure to do any act by any Manager or officer, which shall not constitute fraud, bad
faith or willful misconduct (as established by a non-appealable court order, judgment, decree or decision by a court of competent jurisdiction), the effect of which may cause or result in
loss or damage to the Company, shall not subject any Manager or officer to any liability. Each Manager and officer shall be fully protected in relying in good faith upon the records of the Company and
upon such information, opinions, reports or statements presented to the Company by any Person as to matters such Manager or officer reasonably believes are within such other Person's professional or
expert competence, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and
amount of assets from which distributions to Members might properly be paid. The Managers do not, in any way, guarantee the return of the Members' Capital Contributions or a profit for the Members
from the operations of the Company. No Manager shall be responsible to any Members because of a loss of their investments or a loss in operations, unless the loss shall have been the result of fraud,
bad faith or willful misconduct established as set forth in this Section 6.5. 

28

 

        Section 6.6    Manager Has No Exclusive Duty to Company.    

        A
Manager shall not be required to manage the Company as the Manager's sole and exclusive occupation, and a Manager may have other business interests and may engage in other investments,
occupations and activities in addition to those relating to the Company. Neither the Company nor any Member shall have any right, by virtue of this Agreement, to share or participate in such other
investments or activities of a Manager or to the income or proceeds derived therefrom. 

        Section 6.7    Resignation and Withdrawal.    

        A
Manager of the Company may resign from the position of Manager at any time by giving written notice to the Members of the Company. The resignation of a Manager shall take effect upon
receipt of notice thereof or at such later time as shall be specified in such notice; and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it
effective. Upon the withdrawal of a Manager, such Manager shall be treated as having resigned as of the date of withdrawal and shall automatically cease to be a Manager as of the date of such
withdrawal. Except in the case of resignation by reason of withdrawal, the resignation of a Manager who is also a Member pursuant to this Section 6.7 shall not affect such Manager's rights as a
Member and shall not constitute a withdrawal of such Member. 

        Section 6.8    Removal.    

        Subject
to Section 6.2(b), a Manager may only be removed by the consent of the Member or Members then entitled to designate such Manager in accordance with Section 6.2. The
removal of a Manager who is also a Member shall not affect such Manager's rights as a Member and shall not constitute a withdrawal of such Member. 

        Section 6.9    Vacancies.    

        Any
vacancy in the position of a Manager that is created by the withdrawal, death, resignation or removal of a Manager or by the creation of a new Manager position pursuant to
Section 6.2(b) shall be filled only by consent of the Member or Members then entitled to designate such Manager in accordance with Section 6.2. A Manager elected to fill a vacancy shall
hold office until a successor shall be elected and shall qualify, or until the Manager's earlier death, resignation, withdrawal or removal. 

        Section 6.10    Delegation of Authority; Officers.    

        The
Board shall have the power to elect, delegate authority to, and remove such officers, employees, agents and representatives of the Company as the Board may from time to time deem
appropriate. Any delegation of authority to take any action must be approved in the same manner as would be required for the Board to approve such action directly. The salaries of all officers,
employees and agents of the Company shall be fixed by the Board in accordance with the Approved Budget. 

        Section 6.11    Designation of Operator.    

        (a)   The
Company hereby designates MWE Liberty as the initial "Operator" of the Company. Subject to any required Board or Member approvals rights set forth in this Agreement,
MWE Liberty shall be responsible for, shall make all decisions regarding and shall have full power and authority to manage the day-to-day operations of the Company's business,
including, the development, construction and operation of the Company's facilities and business development activities and the oversight of G&A Services and Personnel Services provided to the Company
by MWE Hydrocarbon pursuant to the Services Agreement, which includes the day-to-day management and supervision of all Designated MWE Employees. The appointment of MWE Liberty
as the Operator shall be exclusive to MWE Liberty, except to the extent that MWE Liberty elects to cause such duties to be provided by third parties (and, in any case MWE Hydrocarbon and MWE Liberty
remain fully responsible for compliance with the Services Agreement). MWE 

29

 

Liberty
shall have the power and authority to execute contracts, and to take such other actions, on behalf of the Company as may be necessary or appropriate to carry out the Company's business in
accordance with the Approved Budget. 

        (b)   For
the avoidance of doubt, the power and authority granted to MWE Liberty as the Operator pursuant to Section 6.11(a) shall specifically include the ability to
perform (or cause to be performed) the following services and activities (subject to compliance with any Board or Member approval rights with respect to such services and activities required pursuant
to this Agreement): 

          (i)  investigation,
analysis and selection of acquisition and business development opportunities; 

         (ii)  with
respect to prospective acquisitions or dispositions by the Company, conducting negotiations with sellers and purchasers and their respective agents,
representatives and advisors (including, without limitation, investment bankers); 

        (iii)  administering
the day-to-day operations of the Company and performing and supervising the performance of such other administrative functions
necessary in the management of the Company as may be agreed upon by MWE Liberty as Operator and the Board, including the collection of revenues and the payment of the Company's debts and obligations
and maintenance of appropriate computer services to perform such administrative functions; 

        (iv)  monitoring
the operating performance of the Company's assets and providing periodic reports with respect thereto to the Board, including comparative information with
respect to such operating and performance and budgeted or projected operating results; 

         (v)  assisting
the Company to retain qualified accountants and legal counsel, as applicable, to assist in developing appropriate accounting procedures and compliance
procedures; 

        (vi)  causing
the Company to qualify to do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses; 

       (vii)  negotiating,
executing, amending and terminating the Company's agreements with unaffiliated third parties, managing and administering the Company's rights and
obligations under all agreements with unaffiliated third parties to which the Company is a party or by which the Company is bound and monitoring compliance by the Company and by such unaffiliated
third parties to such agreements with the terms and conditions thereof; 

      (viii)  taking
all necessary actions to enable the Company to make required tax filings and reports; 

        (ix)  handling
and resolving all claims, disputes or controversies (including, without limitation, all litigation, arbitration, settlement or other proceedings or
negotiations) with unaffiliated third parties in which the Company may be involved or to which the Company may be subject arising out of the Company's day-to-day operations,
subject to such limitations or parameters as may be imposed from time to time by the Board; 

         (x)  purchasing,
selling, leasing, operating and maintaining the Company's assets; 

        (xi)  establishing
and maintaining the Company's bank accounts and banking arrangements, and to the extent of funds available, reinvesting Company funds as MWE Liberty as
Operator may deem appropriate and consistent with MWE Liberty's practices; 

30

 

 

       (xii)  performing
such other services as may be required from time to time for management and other activities relating to the assets of the Company as the Board shall
reasonably request or MWE Liberty shall deem appropriate under the particular circumstances; and 

      (xiii)  using
commercially reasonable efforts to cause the Company to comply with all applicable laws. 

        The
Operator shall operate the Company and perform the services and activities referred to in clauses (i) through (xiii) above in accordance with Prudent Industry
Practices. 

        (c)   As
of the date hereof, the Operator and the Company shall execute the Services Agreement with MWE Hydrocarbon, which is hereby approved by the Members. MWE Hydrocarbon
shall receive the fees and reimbursement for its services as set forth in the Services Agreement. The Company and the Members hereby acknowledge and agree that the liability of Operator and MWE
Hydrocarbon to the Company and the Members, and the Operator's obligation to satisfy any claim for indemnification in connection with any such liability, shall be limited in the manner and to the
extent set forth in the Services Agreement, and the Members hereby consent to, approve, and agree to be bound by the terms thereof with regard to such limitations of the liability of the Operator and
MWE Hydrocarbon to the Company and the Members, in the same manner and to the same extent as though such provisions were set forth herein. The Operator shall serve as the Operator until the
termination of the Services Agreement. Upon the termination of the Services Agreement, the Board with the Requisite Member Approval may cause the Company to designate a new operator and enter into a
new services agreement. 

        (d)   MWE
Liberty hereby agrees to notify NGPMR of any notice of default or other material notices received by MWE Liberty in connection with the agreements listed on
Exhibit H. 

        Section 6.12    Approval of Members.    

        The
following matters shall require Requisite Member Approval (provided that an explicit approval of such matter in the Approved Budget or related Member resolution shall constitute a
Requisite Member Approval if such approval is explicitly identified as a Requisite Member Approval): 

        (a)   Prior
to the Equalization Date to the extent not in accordance with Section 8.1, any distributions of Available Cash (including Tax Distributions); 

        (b)   The
approval of the Proposed Budgets for the Company, other than (i) the Initial Budget, which shall be deemed approved upon the execution of this Agreement and
(ii) budget items associated with capital expenditures relating to the agreements set forth on Exhibit G; provided
that the Company may not without the Requisite Member Approval (i) enter into any additional **, (ii) enter
into any agreements or transactions referred to in ** or **, or (iii) extend the term of any of
the agreements set forth on Exhibit G. In connection with any such approval, the Members having the authority to approve the Proposed Budget shall give the notice
required by Section 6.15(d) below; 

        (c)   Material
deviations from Approved Budgets, including (i) with respect to any Approved Budget, any modification or amendment of any  ** or other ** contained
therein, the satisfaction of which results in the  ** pursuant to such budget, (ii) with respect to the capital expenditure budget, changes of more than  ** to the **, but excluding any items prior to the Equalization Date requiring aggregate capital
expenditures of less than $** associated with a Project **, and excluding any items after the
Equalization Date requiring aggregate capital expenditures of less than $** associated with a Project **
and (iii) with respect to the operating expenditure budget, increases of more than $** to the **
or increases of more than $** to the ** calculated on a  **; provided that, in any case, a
Project, operation, venture, agreement or activity that has
received 

31

 

Requisite
Member Approval shall automatically be incorporated within the Approved Budget and any changes or deviations required to incorporate such Project, operation, venture, agreement or activity
into the then current Approved Budget shall not require additional Requisite Member Approval; provided further that any additional changes or deviations associated with
such Project, operation, venture, agreement or activity shall be subject to Requisite Member Approval to the extent they involve material deviations to the Approved Budget, as modified to include such
new Project, operation, venture, agreement or activity, under this clause (c); provided, further, that changes in budget items listed in Section 6.15(a)(iii) through (vi) shall
not be considered material deviations for purposes of this Section 6.12(c); 

        (d)   Any
material change in the Primary Business or in the Company's purpose; 

        (e)   The
incurrence of Debt and the granting of Liens on the Company's Property in an aggregate amount in excess of
(A) $** prior to the Equalization Date and (B) $** after the Equalization Date, in each
case excluding the Permitted Liens; 

        (f)    Any
interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement, or other interest, currency or commodity hedging
arrangement entered into by the Company, including any forward sales, calls, puts, swaps and other derivative transactions, whether financially or physically settled;
provided that transactions to be settled (i) within ** based on  ** or (ii) ** based
on the **, shall not require
Requisite Member Approval; 

        (g)   The
acquisition or sale of any assets of the Company or its subsidiaries for consideration in excess of (i) $**
prior to the Equalization Date and (ii) $** after the Equalization Date; 

        (h)   Entry
into, termination or renewal of, or material modification or amendment of, (i) any commercial contractual commitment reasonably expected to
(A) result in expenditures or liabilities in excess of $**, which $** threshold shall be subject
to increase by ** per year, (B) generate annual revenues in excess of $**, which
$** threshold shall be subject to increase by ** per year, or (C) result in the commitment of
more than ** of the capacity of any Company facility **, (ii) any joint venture, partnership or
other similar arrangement involving the sharing of profits of the Company or any of its subsidiaries with any third-party, (iii) any contractual commitment that limits the freedom of the
Company or any of its subsidiaries to compete within the Area of Mutual Interest, (iv) any contract for the lease of real property for ** and
(v) settlement agreements or other agreements related to or proposing to resolve actual or threatened litigation, which involves (A) payment of greater than
$** or (B) provides for restrictions or limitations on the Company's ability to operate in the form of an equitable remedy; 

        (i)    The
formation of any subsidiary of the Company; 

        (j)    Transactions
or agreements (including amendments, terminations and renewals thereof) between the Company on the one hand, and a Member or an Affiliate of a Member on the
other hand, unless such transaction or agreements (including amendments, terminations and renewals thereof) (i) has been approved by the other Members that are not a party to, or Affiliates of
a Party to, such transaction or agreement and whose consent is required pursuant to this Section or (ii) is identified on Exhibit H, all of which are hereby
approved by the Members; 

        (k)   The
sale, exchange or other disposition of all, or substantially all, of the Company's assets in one transaction or a series of related transactions, 

        (l)    Any
merger into or with or consolidation with any other entity (i) in which the interests in the Company will be exchanged for a security with different rights,
preferences or privileges or (ii) pursuant to which the Members will own less than 50% of the voting securities of the surviving entity; 

32

 

        (m)  Any
repurchase by the Company of Interests in the Company or any equity interests in any of its subsidiaries; 

        (n)   Prior
to the Equalization Date, other than in accordance with the obligations of the Members pursuant to Section 4.1, any efforts by the Company to raise
additional capital, including the issuance of additional Interests or options to acquire Interests or any equity interests or options to acquire equity interests in any of the Company's subsidiaries; 

        (o)   The
registration of any equity or debt securities of the Company or its subsidiaries under applicable United States federal or foreign securities laws or any public
offering of equity or debt securities of the Company or its subsidiaries (including any Qualified Public Offering). 

        (p)   Any
declaration of bankruptcy, or the filing of a petition, or seeking protection, under any federal or state bankruptcy, insolvency or reorganization law; 

        (q)   The
dissolution of the Company or the voluntary liquidation of the Company's assets; 

        (r)   Designating
a new Operator of the Company; 

        (s)   Approval
of the maintenance of reserves less than the ** as authorized in the Approved Budget or more than the  ** in the Approved Budget; 

        (t)    Permit
the Company to create any Debt in favor of any Person; 

        (u)   Distributions
in-kind of any assets of the Company pursuant to Section 13.7; 

        (v)   Hiring
any employees of the Company or accepting secondments of employees; 

        (w)  After
the ** in ** becomes operational, and thereafter to the extent
there is available **, elections by the Company to ** to MWE Hydrocarbon under the Fractionation and NGL
Purchase Agreement; 

        (x)   Any
action by the Company that would cause it to be ** under the **; and 

        (y)   The
entry into any agreement to effect any of the foregoing. 

        Section 6.13    Reliance by Third Parties.    Any Person dealing with the Company,
a Manager or the Operator may rely upon a certificate signed by a Manager or an appropriate officer as to: 

        (a)   the
identity of the Managers; 

        (b)   the
existence or non-existence of any fact or facts which constitute a condition precedent to acts by the Board or in any other manner germane to the affairs
of the Company; 

        (c)   the
Persons who are authorized to execute and deliver any instrument or document of or on behalf of the Company; and 

        (d)   any
act or failure to act by the Company or as to any other matter whatsoever involving the Company or any Member. 

        Section 6.14    Fees and Expenses of the Managers.    

        A
Class A Manager shall receive an annual amount of $** for serving as a Manager. A Class B Manager shall not be entitled to
any fees for serving as a Manager. A Manager shall be entitled to reimbursement for all reasonable out-of-pocket costs and expenses incurred by such Manager in the capacity as
a Manager. 

        Section 6.15    Budgets.    

        By
** of each calendar year following the Effective Time, the Operator shall prepare and submit the following budgets and forecasts for
the upcoming year (to the extent such budgets or forecasts are 

33

 

applicable
to such upcoming year) to the Board for approval and to the appropriate Members for Requisite Member Approval in accordance with Section 6.12: 

        (a)   (i)
an operating expenditure oversight budget, which shall consist of the operating expenditure budget broken down by general categories of expenses for categories
exceeding an aggregate **; (ii) a capital expenditure budget which shall include, to the extent applicable, maintenance capital expenditures and
growth capital expenditures; (iii) a cost of goods sold budget or forecast; (iv) a volume budget or forecast; (v) a revenue budget or forecast; and (vi) a forecast of
distributions or capital contributions (collectively, the "Proposed Budget"). 

        (b)   The
Board and the Members with Requisite Member Approval Rights shall have 15 days to review and to either approve or to reject the Proposed Budget, in whole or
in part. Any rejection of the Proposed Budget in whole or in part must be made in good faith, based on commercially reasonable standards and submitted in writing to the Board, the other Members with
Requisite Member Approval rights and the Operator and must describe proposed modifications in reasonable detail (a "Budget Rejection Notice"). If a Budget Rejection Notice is not received within the
requisite 15 day period, then the Proposed Budget will be deemed to be approved in all respects. If a Budget Rejection Notice is received within the requisite 15 day period, the
Operator, the Board and the Members with Requisite Member Approval rights to approve the Proposed Budget will work together in good faith to promptly resolve the issues identified in a mutually
agreeable manner and, if such dispute is not resolved prior to the commencement of the calendar year to which the Proposed Budget relates, the Approved Budget for the prior calendar year, increased by
the percentage increase in the CP Index since the first day of the previous calendar year, shall be in effect until such dispute is resolved. If such dispute is not resolved by
January 30th of the calendar year to which the Proposed Budget relates, such dispute shall be submitted to arbitration pursuant to Section 6.15(e) below. The
Proposed Budget as approved, or as deemed approved, by the Board and Requisite Member Approval in accordance with Section 6.12, and as modified in accordance with Section 6.15(c) below,
is referred to herein as an "Approved Budget." 

        (c)   Subject
to the remaining provisions of this clause (c), the Operator shall update the Approved Budget from time to time to reflect amendments or modifications
that the Operator deems necessary or appropriate, and shall promptly provide such updates to the Board; provided that any material deviations
which require the consent of the Board or Requisite Member Approval in accordance with Section 6.12(c) shall not become part of the Approved Budget unless approved by the Board and Requisite
Member Approval. 

        (d)   Once
a Proposed Budget or material deviations from an Approved Budget pursuant to Section 6.12(c) have been approved by the Board and have received Requisite
Member Approval pursuant to Section 6.12, each Member that has the right to approve such Proposed Budget (or deviations from an Approved Budget) shall at the time of the approval, give notice
to the Board of their intent to fund any budget item to the extent that such item would require the Board to make a Capital Call in order to fund such budget item. 

        (e)   The
binding arbitration shall be administered by the American Arbitration Association ("AAA") in accordance with its Commercial Arbitration Rules (the "Rules"). The
"Arbitration Panel" shall consist of three members. The Class A Members and the Class B Members, acting by the vote of Members holding Class A Interests or Class B
Interests with an aggregate Class A Percentage Interest or Class B Percentage Interest, respectively, equal to or exceeding 50% shall appoint one member of the Arbitration Panel. The
third member of the Arbitration Panel shall be chosen by the appointed members and shall act as chairman of the Arbitration Panel. Should any arbitrator fail to be appointed in accordance with the
foregoing, then such arbitrator shall be appointed by the AAA in accordance with the Rules. The arbitration shall be held in Houston, 

34

 

Texas,
and the proceeding shall be conducted and concluded as soon as reasonably practicable, based upon the schedule established by the Arbitration Panel, but in any event the decision of the
Arbitration Panel shall be rendered within 90 days following the selection of the chairman of the Arbitration Panel. The decision of the Arbitration Panel shall be final and binding upon the
Company and the Members. Judgment upon the award rendered by the Arbitration Panel may be entered in, and enforced by, any court of competent jurisdiction. Each class of Members shall bear its own
expenses related to the arbitration, including its attorneys' fees and the fees and expenses of the arbitrator it appointed. Each class of Members shall pay 50% of the fees and expenses of the
chairman of the Arbitration Panel. 

 ARTICLE 7

ASSIGNABILITY OF MEMBER INTERESTS  

        Section 7.1    Prohibition on Assignment During Project Period.    

        Prior
to ** (the "Project Period"), no Member may, directly or indirectly, Transfer its Interest or any portion thereof without the prior
written consent of the other Members except for Permitted Transfers. For purposes of this Agreement, "Permitted Transfers" shall include the following: (a) a Member may Transfer all or a
portion of its Interest to any of its Affiliates, (b) Interests held by any member of the MWE Liberty Group may be (i) Transferred, in whole or in part, in connection with any sale of
all or substantially all of the assets of MWE, or (ii) indirectly Transferred by way of a sale of Control of MWE, or any merger of MWE with or into, or any consolidation of MWE into, any other
entity and
(c) Interests held by NGPMR may be transferred to the limited partners of NGPMR, if and to the extent required by the governance documents of NGPMR. In the event of a Transfer pursuant to the
foregoing clause (c), the NGPMR Group shall designate a single representative to exercise all of the NGPMR Group's rights hereunder. If a Member Transfers an Interest during the Project Period
in accordance with this Section 7.1, such Transfer shall entitle the assignee to become a Substitute Member and to exercise or receive the rights, powers or benefits of a Member if the
assigning Member designates, in a written instrument delivered to the Board and the other Members, its assignee to become a Substitute Member and such assignee executes an instrument reasonably
satisfactory to the Board, which shall include an acceptance and agreement by the Substitute Member to abide by all of the terms and conditions of this Agreement. A Member may not Transfer Interests
in a Permitted Transfer if such Permitted Transfer has as a purpose the avoidance of the restrictions on Transfers in this Agreement (it being understood that the purpose of this sentence is to
prohibit the Transfer of Interests to a transferee in a Permitted Transfer followed by a change in the relationship between the transferor and the transferee (or a change of Control of such transferor
or transferee) after the Permitted Transfer with the result and effect that the transferor has indirectly Transferred Interests to a transferee in a Transfer which would not have been directly
permitted as a Permitted Transfer under this Section 7.1 had such change in such relationship occurred prior to such Transfer). 

        Section 7.2    Transfers After the Project Period.    

        After
the Project Period, a Member may Transfer its Interest, or any portion thereof, without the consent of any other Member or the Board, provided
that such Member complies with the requirements of this Section 7.2 in all instances except in connection with Permitted Transfers: 

        (a)   In
the event that a Member (the "Transferring Member") desires to Transfer, directly or indirectly, all or any portion of its Interest (the "ROFO Interest") and such
Transfer is not a Permitted Transfer, then the Transferring Member shall give written notice thereof to the other Members (the "Remaining Members"). For a period of 30 days thereafter, all or a
portion of the Remaining Members shall have the right, but not the obligation, to submit a written offer to purchase the ROFO Interest (with each offering Remaining Member to purchase its pro rata
portion of the ROFO Interest as is determined in accordance with the respective Percentage 

35

 

Interests
of the Remaining Members, or such other portion as the Remaining Members may mutually agree upon) (the "ROFO Offer"), on such terms and conditions as the offering Remaining Members may
determine and which terms and conditions shall be described in the ROFO Offer. Upon receipt of the ROFO Offer, the Transferring Member may elect in its sole discretion to accept or reject the ROFO
Offer. 

          (i)  In
the event that the Transferring Member elects to accept the ROFO Offer, then the Transferring Member shall be bound to Transfer to the offering Remaining Members,
and the offering Remaining Members shall be bound to purchase from the Transferring Member, the ROFO Interest on the terms and conditions set forth in the ROFO Offer (with such modifications as may be
mutually agreed upon
by the offering Remaining Members and the Transferring Member), and the closing of such Transfer of the ROFO Interest shall occur within 30 days of the Transferring Member's acceptance of the
ROFO Offer or on such other date as may be set forth in the ROFO Offer (subject to extension to the extent necessary to pursue any required regulatory approvals, including to allow for the expiration
or termination of all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976). 

         (ii)  In
the event that the Transferring Member rejects the ROFO Offer, then for a 60-day period after the date on which the Transferring Member rejects the ROFO
Offer (the "Solicitation Period"), the Transferring Member may solicit an offer to purchase the ROFO Interest from one or more third parties as the Transferring Member may determine in its discretion.
If the Transferring Member receives a third party offer (a "Third Party Offer") to purchase the ROFO Interest within the Solicitation Period, and the consideration payable for the ROFO Interest
pursuant to such Third Party Offer exceeds the consideration payable for the ROFO Interest pursuant the ROFO Offer (such Third Party Offer is referred to as a "Qualifying Third Party Offer"), the
Transferring Member may elect to Transfer the ROFO Interest to such third party in accordance with the Qualifying Third Party Offer within 30 days after the end of the Solicitation Period,
subject to the Transferring Member's compliance with the provisions of Section 7.2(b). Any noncash consideration set forth in the ROFO Offer or a Third Party Offer shall be valued at its fair
market value, as agreed by the Transferring Member and the offering Remaining Members, and failing such agreement, as determined by an independent third party appraiser selected by the Transferring
Member and reasonably acceptable to the offering Remaining Members (the costs for which third party appraiser shall be shared equally by the Transferring Member, on the one hand, and the offering
Remaining Members, on the other hand). The Transferring Member may not Transfer the ROFO Interest to any third party pursuant to a Third Party Offer that is not a Qualifying Third Party Offer without
the offering Remaining Members' prior written consent, which may be withheld in their sole discretion. Such transferee shall become a Substitute Member if the Transferring Member designates, in a
written instrument delivered to the Board and the other Members, the transferee to become a Substitute Member and such transferee executes an instrument reasonably satisfactory to the Board, which
shall include an acceptance and agreement by the Substitute Member to abide by all of the terms and conditions of this Agreement. If such closing does not occur within the required 30-day
period, then the ROFO Interest in question shall once again become subject to the restrictions of this Section 7.2, and the Transferring Member shall no longer be permitted to Transfer such
ROFO Interest without again fully complying with the provisions of this Section 7.2 

        (b)   Except
for any Transfer to another Member and except for Permitted Transfers, each Class B Member hereby agrees, whether in one transaction or in a series of
related transactions, not to Transfer for value, all or any portion of its Interest, directly or indirectly, without first complying with Section 7.2(a) and then permitting each of the
Remaining Members (the "Tag-Along Members") to participate as sellers in such transaction (the "Tag-Along Rights"), such 

36

 

that
each Tag-Along Member shall be entitled to sell, on the same terms as the Class B Member proposing to sell its Interest (the "Class B Seller"), a portion of such
Tag-Along
Member's Interest, determined by multiplying the Interest that the purchaser is willing to acquire by the Percentage Interest of each such Tag-Along Member desiring to participate. 

          (i)  Before
accomplishing or entering into a binding contract for any Transfer for value of any Interest that would be covered by the Tag-Along Rights, the
Class B Seller agrees to give each Tag-Along Member written notice (the "Tag-Along Notice") of any such proposed sale (the "Sale Proposal"). The Tag-Along
Notice shall state that such Tag-Along Member shall be entitled to exercise its Tag-Along Rights. Each Tag-Along Member shall notify the Class B Seller in
writing within 10 days after receipt of the Tag-Along Notice as to whether or not such Tag-Along Member wishes to exercise Tag-Along Rights and participate
in the proposed Transfer (the "Tag-Along Notice Period"). Failure by any Tag-Along Member to respond within such period shall be deemed to be a declination of such
Tag-Along Member's Tag-Along Rights with respect to such proposed transfer. The Class B Seller shall use its commercially reasonable efforts to obtain the agreement of
the prospective transferee(s) to the participation of the Tag-Along Members in any contemplated Sale Proposal and to the inclusion of the Tag-Along Members' Interests in such
transaction, and no Class B Seller shall transfer any portion of the Interest to any prospective transferee if such prospective transferee(s) declines to allow the participation of the
Tag-Along Members or the inclusion of their Interests as contemplated herein. Each Tag-Along Member that elects to participate pursuant to this paragraph shall pay its pro rata
share (based on the Interests to be Transferred) of the expenses incurred by the Class B Seller in connection with such Sale Proposal and shall be obligated to join on a pro rata basis (based
on the Interests to be Transferred) in any indemnification or other obligations that Class B Seller agrees to provide in connection with such Sale Proposal (other than any such obligations that
relate specifically to a particular Member such as indemnification with respect to representations and warranties given by a Member regarding such Member's title to and ownership of its Interest);
provided that no Tag-Along Member shall be obligated in connection with such Sale Proposal to agree to indemnify or hold harmless
the transferee with respect to an amount in excess of the net cash proceeds paid to such Tag-Along Member in connection with such Sale Proposal. If the Tag-Along Members
decline, or are deemed to decline, their Tag-Along Rights for any proposed transfer, the Class B Seller may sell its offered Interest; provided,
however, that (i) such Sale Proposal is consummated within 90 days after the end of the Tag-Along Notice Period and (ii) the terms of the
actual transaction involve exactly the same consideration and other terms and conditions set forth in the Tag-Along Notice. Any transferee pursuant to the Sale Proposal shall become a
Substitute Member if the Class B Seller designates, in a written instrument delivered to the Board and the other Members, the transferee to become a Substitute Member and such transferee
executes an instrument reasonably satisfactory to the Board, which shall include an acceptance and agreement by the Substitute Member to abide by all of the terms and conditions of this Agreement.
Failure to close the Sale Proposal within the required 90-day period shall again subject the offered Interest to the Tag-Along Rights set forth in this Section 7.2(b),
whereupon the Class B Seller shall be required to give each Tag-Along Member a new written notice with respect to the proposed transfer, and each Tag-Along Member shall
again have the right to exercise Tag-Along Rights in respect of such proposed transfer. 

         (ii)  If
a Class B Seller wishes to solicit Sale Proposals from third parties involving a Company Sale, it shall first notify the other Members of its desire to
solicit a Company Sale ("Solicitation Notice"). The other Members shall notify the Class B Seller in writing within 10 days after receipt of the Solicitation Notice as to whether or not
such Members wish to participate in a Company Sale and shall specify a minimum price ("Minimum Price") at which 

37

 

such
Members are willing to sell their Interest thereunder ("Solicitation Response"). If the Class B Seller obtains Solicitation Responses from all of the Members indicating each Member's
desire to enter into a Company Sale and a Minimum Price with respect to each Member, then the Class B Seller may solicit offers for a Company Sale. If the Class B Seller obtains an offer
within 90 days of its receipt of the Solicitation Responses for a Company Sale in excess of each of the Minimum Prices set forth in the Solicitation Responses, it may cause a Company Sale  **. If
the Class B Seller does not obtain an offer for a Company Sale in excess of the minimum prices set forth in the Solicitation Responses
within 90 days of its receipt of the Solicitation Responses, then the Class B Seller may not pursue a Company Sale. For the avoidance of doubt, this Section 7.2(b)(ii) shall only
apply to a Company Sale to be solicited by a Class B Member. Any sale of the Interest of a Class B Seller that is not a Company Sale shall remain subject to the provisions of
Section 7.2(b)(i) above. 

        (c)   The
consideration or value allocated to the Members under this Section 7.2 shall be allocated among the Transferring Member and other Members (whether
Tag-Along Members or otherwise) in accordance with their respective rights to distributions from the Company as if the Company had been liquidated pursuant to Section 13.4 and the
Company had sold all of its Property for an Appraised Value using the implied valuation of such Property that may be derived from the sales process described in Section 7.2, provided, that, for
purposes of determining whether the ** Payout, ** has been met, only the actual cash proceeds from the
sale received by NGPMR shall be considered rather than the proceeds allocable to NGPMR from an implied valuation based upon a sale of all of the Company's Property and, except for such consideration,
no Member will receive any payments of any nature whatsoever from the transferee in connection with or arising from such sale transaction. 

        Section 7.3    Recognition of Assignment by Company or Other Members.    

        No
Transfer of an Interest that is in violation of this Article 7 shall be valid or effective, and neither the Company nor the Board nor any Member shall recognize the same for
any purpose of this Agreement, including the purpose of making distributions of Available Cash pursuant to this Agreement with respect to such Interest or part thereof. Neither the Company nor the
Board shall incur any liability as a result of refusing to make any such distributions to the assignee of any such invalid assignment. 

        Section 7.4    Effective Date of Assignment.    

        Any
valid Transfer of a Member's Interest, or part thereof, pursuant to the provisions of this Article 7 shall be effective as of the later of (i) the date of Transfer set
forth on the written instrument of Transfer, (ii) the date on which the Company has received the written instrument of Transfer and such other documents as may be required by the Company
pursuant to this Agreement and such Transfer has been recorded on the books of the Company, and (iii) the date on which the requirements of this Article 7 have been satisfied. The
Company shall, from the effective date of such Transfer, thereafter pay all further distributions on account of the Interest (or part thereof) so assigned to the assignee of such Interest, or part
thereof. As between any Member and its assignee, Profits and Losses for the Fiscal Year of the Company in which such assignment occurs shall be apportioned for federal income tax purposes in
accordance with any convention permitted under Section 706(d) of the Code and selected by the Board. 

38

 

 

        Section 7.5    Limitations on Transfer.    

        No
Transfer of an Interest may be effectuated unless in the opinion of counsel satisfactory to the Board, the Transfer (a) would comply with the Securities Act and applicable
securities laws of any other jurisdiction; (b) would not cause the Company to be terminated for purposes of Code Section 708; or (c) would not violate any other applicable laws,
provided that the provisions of this Section 7.5 may be waived by the Board. 

        Section 7.6    Transferee Not a Substitute Member.    

        In
the event that a transferee is not designated, or does not become, a Substitute Member pursuant to this Article 7, then such transferee shall not be entitled to exercise or
receive any of the rights, powers or benefits of a Member other than the right to receive distributions to which the assigning Member would be entitled. 

 
 

  ARTICLE 8
  DISTRIBUTIONS TO MEMBERS    
    

        Section 8.1    Available Cash.    

        Available
Cash shall be determined by the Board on a quarterly basis within 30 days after the end of each calendar quarter. Subject to the remaining provisions of this
Article 8 and any preferential or disproportionate distributions to the extent expressly provided for in this Agreement, and other than upon a liquidation of the Company pursuant to
Section 13.4, the Company shall distribute such Available Cash within 45 days following the end of each calendar quarter to the Members of record, as follows. 

        (a)   Following
the end of each calendar quarter prior to the earlier to occur of (i) December 31, 2010 and (ii) the Equalization Date, Available Cash
shall be retained by the Company for reinvestment, and with respect to the Class B Members such Available Cash shall be distributed and automatically reinvested (pursuant to
Section 4.1(b)(iii)) in accordance with their Class B Percentage Interests. 

        (b)   Following
the end of each calendar quarter ending on or after the earlier to occur of (i) December 31, 2010 and (ii) the Equalization Date,
Available Cash shall be distributed to the Members as follows: 

          (i)  If
the Equalization Date has not yet occurred, then: 

        (A)  First,
100% to the Class A Members in accordance with their Class A Percentage Interests, until the Preference Amount accruing for such calendar quarter is
reduced to zero; and 

        (B)  Thereafter,
to the Members in accordance with their respective Percentage Interests. 

         (ii)  If
the Equalization Date has occurred, then to the Members in accordance with their respective Percentage Interests. 

        Section 8.2    Incentive Interest Percentage Distributions.    

        Notwithstanding
the preceding provisions in Sections 8.1(a) and (b), any Available Cash remaining after a **
Payout** has occurred shall be distributed as follows: 

        **    Following
the ** Payout, if any, (x) first calculated in accordance with their respective Percentage Interests,
then (y) adjusted by reducing NGPMR's pro rata amount of Available Cash as determined in (x) by the ** and (z) increasing MWE
Liberty's pro rata amount of Available Cash as determined in (x) by the amount determined in (y) **

39

 

        Exhibit E
contains illustrative examples of the determination of the amounts to be distributed to NGPMR and MWE Liberty pursuant to
Section** 8.2** based on hypothetical distributions of Available Cash. This Section 8.2 shall be
interpreted and applied in a manner consistent with the examples set forth in Exhibit E. 

        Section 8.3    Withholding.    

        All
amounts withheld pursuant to the Code or any provision of any foreign, state or local tax law or treaty with respect to any payment, distribution or allocation to the Company or the
Members shall be treated as amounts distributed to the Members pursuant to this Article 8 for all purposes of this Agreement. The Board is authorized to withhold from distributions, or with
respect to allocations, to the Members and to pay over to any federal, foreign, state or local government any amounts required to be so withheld pursuant to the Code or any provision of any other
federal, foreign, state or local law or treaty and shall allocate such amounts to those Members with respect to which such amounts were withheld. 

        Section 8.4    Limitations on Distribution.    

        Except
as provided in this Agreement, no Member shall be entitled to any distribution of cash or other property from the Company. Notwithstanding any provision to the contrary contained
in this Agreement, the Company shall not make a distribution to any Member on account of its Interest in the Company if such distribution would violate the Act or other applicable law. 

        Section 8.5    Tax Distributions.    

        (a)   Each
Member shall be entitled to receive, on the date which is two Business Days prior to each date on which estimated income tax payments are required to be made by an
individual calendar year taxpayer and each due date for the income tax return of an individual calendar year taxpayer (each a "Tax Distribution Date"), cumulative cash distributions in an amount equal
to such Member's Assumed Tax Liability, if any. The "Assumed Tax Liability" of each Member means an amount equal to (i) the cumulative amount of federal income taxes (including any applicable
estimated taxes), determined taking into account the character of income and loss allocated to such Member as it affects the applicable tax rate, that the Board estimates would be due from such Member
as of such Tax
Distribution Date, assuming such Member were an individual that earned solely the items of income, gain, deduction, loss and/or credit allocated to such Member pursuant to Section 9.4 (after
reflecting any adjustments thereto by reason of Code Sections 732(d), 734, or 743), reduced by (ii) all previous distributions made to such Member pursuant to this Article 8
(other than distributions distributed and reinvested pursuant to Section 8.1(a)). 

        (b)   Distributions
under this Section shall be treated as an advance distribution under and shall offset future distributions that such Member would otherwise be entitled to
receive pursuant to Section 8.1 or, if not previously offset, Section 13.4. 

        (c)   If
on a Tax Distribution Date there are not sufficient funds on hand to distribute to each Member the full amount of such Member's Assumed Tax Liability, distributions
pursuant to this Section 8.5 shall be made to the Members to the extent of the available funds in proportion to each Member's Assumed Tax Liability. 

 
 

  ARTICLE 9
  ALLOCATIONS    
    

        Section 9.1    Profits and Losses.    

        (a)   After
giving effect to the special allocations set forth in Section 9.2 and 9.3 and subject to the allocations contained in Section 13.4(b), all Profits
and Losses from operations for each Fiscal 

40

 

Year
(or part thereof) shall be allocated to the Class A Members and the Class B Members in accordance with their Percentage Interests; provided, no Losses
shall be allocated to any Member to the extent that such Losses would result in a Member having an Adjusted Capital Account Deficit. 

        Section 9.2    Special Allocations.    

        Notwithstanding
anything in this Agreement to the contrary, the following special allocations shall be made: 

        (a)    Nonrecourse Deductions.    Nonrecourse Deductions for any taxable year shall be
allocated to the Members in accordance with their Percentage Interests. 

        (b)    Member Nonrecourse Deductions.    Member Nonrecourse Deductions for any taxable
year shall be allocated 100% to the Member that bears the Economic Risk of Loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance
with Treasury Regulation Section 1.704-2(i). If more than one Member bears the Economic Risk of Loss with respect to a Member Nonrecourse Debt, Member Nonrecourse Deductions
attributable thereto shall be allocated between or among such Members in accordance with the ratios in which they share such Economic Risk of Loss. This Section 9.2(b) is intended to comply
with the provisions of Treasury Regulation Section 1.704-2(i) and shall be interpreted consistently therewith. 

        (c)    Company Minimum Gain Chargeback.    Notwithstanding any other provision of this
Agreement, if there is a net decrease in Minimum Gain during any taxable year, each Member shall be allocated items of Company income and gain for such year (and, if necessary, subsequent taxable
years) in the manner and amounts provided in Treasury Regulation Sections 1.704-2(f)(6), (g)(2) and (j)(2)(i). For purposes of this Section 9.2, each Member's Capital Account
shall be determined, and the allocation of income or gain required hereunder shall be effected, prior to the application of any other allocations pursuant to this Article 9 with respect to such
taxable year. This Section 9.2(c) is intended to comply with the partner minimum gain chargeback requirement in Treasury Regulation Section 1.704-2(f) and shall be
interpreted consistently therewith. 

        (d)    Member Nonrecourse Debt Minimum Gain Chargeback.    Notwithstanding the other
provisions of this Agreement (other than Section 9.2(c) above), if there is a net decrease in Member Nonrecourse Debt Minimum Gain during any taxable year, any Member with a share of Member
Nonrecourse Debt Minimum Gain at the beginning of such taxable year shall be allocated items of Company income and gain for such year (and, if necessary, subsequent taxable years) in the manner and
amounts provided in Treasury Regulation Section 1.704-2(i)(4) and (j)(2)(ii). For purposes of this Section 9.2, each Member's Adjusted Capital Account balance shall be
determined, and the allocation of income and gain required hereunder shall be effected, prior to the application of any other allocations pursuant to this Article 9, other than
Section 9.2(c) above, with respect to such taxable year. This Section 9.2(d) is intended to comply with the partner nonrecourse debt minimum gain chargeback requirement in Treasury
Regulation Section 1.704-2(i)(4) and shall be interpreted consistently therewith. 

        (e)    Qualified Income Offset.    Except as provided in Sections 9.2(c) and
9.2(d) above, in the event any Member unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulation Sections 1.704-1(b)(2)(ii)(d)(4),
(5) or (6), items of Company income and gain shall be allocated to such Member in an amount and manner sufficient to eliminate, to the extent required by such Treasury Regulation, the deficit
balance, if any, in its Adjusted Capital Account created by such adjustment, allocation or distribution as quickly as possible unless such deficit balance is otherwise eliminated pursuant to
Sections 9.2(c), 9.2(d) or 9.2(f). This Section 9.2(e) is 

41

 

intended
to constitute a qualified income offset described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

        (f)    Priority Allocation.    

          (i)  Items
of Company gross income and gain shall be allocated to the Class A Members in accordance with their Class A Percentage Interests, until the
aggregate amounts of such items allocated to the Class A Members for such Fiscal Year equals the amount distributed to the Class A Members pursuant to Section 8.1(b)(i)(A) for all
Fiscal Years that have not been previously reflected by an allocation pursuant to this Section 9.2(f). 

         (ii)  After
giving effect to all preceding allocations in Section 9.2(f)(i), all or a portion of the remaining items of Company income or gain for the Fiscal Year, if
any, shall be allocated to MWE Liberty in an amount equal to the cumulative cash distributed to MWE Liberty pursuant to Sections 8.2(a), 8.2(b) or 8.2(c) (to the extent of such distributions in
excess of MWE Liberty's Percentage Interest), less the cumulative amount of income and gain previously allocated to MWE Liberty pursuant to this Section 9.2(f)(ii). 

        (g)    Gross Income Allocation.    In the event any Member has a deficit balance in its
Adjusted Capital Account at the end of any taxable year, such Member shall be allocated items of Company gross income and gain in the amount of such excess as quickly as possible;
provided, however, that an allocation pursuant to this Section 9.2(g) shall be made only if and to the extent that such Member would have a deficit balance in its
Adjusted Capital Account after all other allocations provided in this Section 9.2 (other than Section 9.2(e)) have been tentatively made as if Section 9.2(e) and this
Section 9.2(g) were not in this Agreement. 

        Section 9.3    Curative Allocations.    

        The
allocations set forth in Section 9.2 (other than Section 9.2(f)) (the "Regulatory Allocations") are intended to comply with certain requirements of the Treasury
Regulations. It is the intent of the
Members that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of Company income, gain, loss or
deduction pursuant to this Section 9.3. Therefore, notwithstanding any other provision of this Article 9 (other than the Regulatory Allocations), but subject to the Code and the Treasury
Regulations, the Board shall make such offsetting special allocations of Company income, gain, loss or deduction in whatever manner it determines appropriate so that, after such offsetting allocations
are made, each Member's Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory Allocations were not part of this
Agreement. In exercising its discretion under this Section 9.3, the Board shall take into account future Regulatory Allocations that, although not yet made, are likely to offset other
Regulatory Allocations previously made. 

        Section 9.4    Income Tax Allocations.    

        (a)   Except
as provided in this Section 9.4, each item of income, gain, loss and deduction of the Company for federal income tax purposes shall be allocated among the
Members in the same manner as such items are allocated for book purposes under Sections 9.1, 9.2, 9.3 and 13.4(b). 

        (b)   In
accordance with Code Section 704(c) and the applicable Treasury Regulations thereunder, income, gain, loss and deduction with respect to any property
contributed to the Company shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal
income tax purposes and its Gross Asset Value at the time of its contribution to the Company. If the Gross Asset Value of any Company property is adjusted in accordance with clause (c) or
(d) of the definition of Gross Asset Value, then subsequent allocations of income, gain, loss and deduction shall take into account any variation between the adjusted basis of such property for
federal 

42

 

income
tax purposes and its Gross Asset Value as provided in Code Section 704(c) and the related Treasury Regulations. For purposes of such allocations, the Company shall elect the remedial
allocation method described in Treasury Regulation Section 1.704-3(d). 

        (c)   All
items of income, gain, loss, deduction and credit allocated to the Members in accordance with the provisions hereof and basis allocations recognized by the Company
for federal income tax purposes shall be determined without regard to any election under Section 754 of the Code which may be made by the Company. 

        (d)   If
any deductions for depreciation or cost recovery are recaptured as ordinary income upon the Transfer of Company properties, the ordinary income character of the gain
from such Transfer shall be allocated among the Members in the same ratio as the deductions giving rise to such ordinary character were allocated. 

        Section 9.5    Allocation and Other Rules.    

        (a)   In
the event Members are admitted to the Company pursuant to this Agreement on different dates, the Profits (or Losses) allocated to the Members for each Fiscal Year
during which Members are so admitted shall be allocated among the Members in proportion to their Percentage Interests during such Fiscal Year in accordance with Section 706 of the Code, using
any convention permitted by law and selected by the Board that takes into account the varying interests of the Members during such Fiscal Year. 

        (b)   For
purposes of determining the Profits, Losses or any other items allocable to any period, Profits, Losses and any such other items shall be determined on a daily,
monthly or other basis, as determined by the Board using any method that is permissible under Section 706 of the Code and the Treasury Regulations thereunder. 

        (c)   The
Members are aware of the income tax consequences of the allocations made by this Article 9 and hereby agree to be bound by the provisions of this
Article 9 in reporting their shares of Company income and loss for income tax purposes. 

        (d)   Allocations
made by the Board under Section 9.2 in reliance upon the advice of the Company's accountants shall be deemed to be made pursuant to any fiduciary
obligation to the Company and the Members. 

        (e)   If
any Member makes a loan to the Company, or the Company makes a loan to any Member, and interest in excess of the amount actually payable is imputed under Code
Sections 7872, 483, or 1271 through 1288 or corresponding provisions of subsequent federal income tax law, then any item of income or expense attributable to any such imputed interest shall be
allocated solely to the Member who made or received the loan and shall be credited or charged to its Capital Account, as appropriate. 

 
 

  ARTICLE 10
  BOOKS AND RECORDS    
    

        Section 10.1    Inspection Rights Pursuant to Law.    

        The
Company shall have obligations to the Members as set forth in this Article 10 respecting books, records and financial statements of the Company. 

        Section 10.2    Books and Records.    

        At
all times during the continuance of the Company, the Company shall maintain at its principal place of business all records and materials the Company is required to maintain at such
location under the Act. The Company shall keep proper and complete books of account adequate for its purposes. The books of account relating to the Company shall be open to inspection and copying by
any of the 

43

 

Members
or by their authorized representatives upon reasonable notice and at any reasonable time during business hours, at the Member's expense; provided, however, that
the Members acknowledge and agree that, to the extent that the books of account include information relating to one or more Affiliates of the Operator (other than the Company) or any Out of Scope
Projects or Exempted Projects (the "Unrelated Information"), then the Company and Operator shall be entitled either to redact, or limit access to, the books of account such that the Members shall not
have access to Unrelated Information or to require such Member to designate an independent third party auditor to conduct such review, which auditor will be required to execute a confidentiality
agreement with the Operator under which such auditor may examine the Unrelated Information but may not disclose the Unrelated Information to such Member. 

        Section 10.3    Financial Statements and Reports.    

        The
Operator shall prepare, on behalf of the Company and at the Company's expense, and shall submit to the Members the following statements, reports and notices: 

        (a)   Annual
financial statements of the Company, consisting of a profit and loss statement, balance sheet and statement of cash flows, as of the end of and for the prior
Fiscal Year, which shall be prepared in accordance with generally accepted accounting principles consistently applied ("GAAP") and audited by the Operator's independent certified public accountants,
which shall be a nationally recognized accounting firm (the "Annual Financial Statements"). The Annual Financial Statements shall be delivered to each Member within 75 days after the end of
each Fiscal Year; 

        (b)   Unaudited
quarterly financial statements of the Company, consisting of a profit and loss statement, balance sheet and statement of cash flows, as of the end of and for
the prior calendar quarter, which shall be prepared in accordance with GAAP except for normal year end adjustments and the absence
of footnotes (the "Quarterly Financial Statements"). The Quarterly Financial Statements shall be delivered within 45 days after the end of each calendar quarter; 

        (c)   Monthly
financial and business reports, which shall consist of a profit and loss statement, balance sheet and statement of cash flows, as of the end of and for the prior
calendar month, which shall be prepared in accordance with GAAP except for normal year end adjustments and the absence of footnotes (the "Monthly Reports"). The Monthly Reports shall be delivered
within 30 days after the end of each calendar month; 

        (d)   Copies
of the Approved Budget in effect from time to time, within 30 days after the approval thereof in accordance with Section 6.15; 

        (e)   Such
other information as a Member may reasonably request to satisfy such Member's or its Affiliates' public disclosure obligations under the Exchange Act, the rules of
any stock exchange, or any similar public disclosure obligations; provided that public disclosure of any such information shall be subject to the provisions of
Section 5.4. 

        Section 10.4    Accounting Method.    

        For
both financial and tax reporting purposes and for purposes of determining Profits and Losses, the books and records of the Company shall be kept on such method of accounting as
determined by the Board and shall reflect all Company transactions and be appropriate and adequate for the Company's business. 

        Section 10.5    Bank Accounts; Investments.    

        The
Board shall establish one or more bank accounts in the name of the Company into which all Company funds shall be deposited. No other funds shall be deposited into these accounts. All
Capital Contributions made by the Class A Members pursuant to Section 4.1(b)(i) shall be held in a separate 

44

 

joint
banking account (the "Escrow Account") and invested in treasury bills, treasury notes or any other direct obligations issued by or guaranteed in full as to principal and interest by the United
States of America pursuant to the terms of the Escrow Agreement. The Escrow Agent shall release funds from the Escrow Account to the Company on at least a monthly basis upon receipt of a joint
instruction letter (an "Escrow Letter") from the Members and the Company; provided that the execution of the Escrow Letter by NGPMR is conditioned upon its receipt of a
certificate from the
Company that the Company has spent or committed to spend such funds in accordance with an Approved Budget, and will spend such funds to which such certificate relates in accordance with an Approved
Budget, and upon receipt of such certificate, NGPMR shall promptly execute the Escrow Letter. The Members hereby ** all of the Company's remedies,
powers, privileges, rights, titles and interests of every kind and character now owned or hereafter acquired, created or arising in and to the funds held in such joint account.  ** such funds held in the
Escrow Account in the event that (i) there is an event causing dissolution of the Company pursuant to
Section 13.2 or (ii) there is a declaration of bankruptcy of the Company, MWE or MWE Liberty, or the filing of a petition, or seeking protection, under any federal or state bankruptcy,
insolvency or reorganization law. 

 
 

  ARTICLE 11
  TAX MATTERS    
    

        Section 11.1    Taxation of Company.    

        It
is the intent of the Members that the Company shall be treated as a partnership for U.S. federal income tax purposes. Neither the Company nor any Member shall make an election for the
Company to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar provisions of applicable state law or to be classified
as other than a partnership pursuant to Treasury Regulation Section 301.7701-3. 

        Section 11.2    Tax Returns.    

        The
Company shall cause the Operator to prepare, at the expense of the Company, for each Fiscal Year (or part thereof), federal tax returns in compliance with the provisions of the Code
and any required state and local tax returns. Each Member shall furnish to the Company all pertinent information in its possession relating to the Company's operations that is necessary to enable the
Company's tax returns to be timely prepared and filed. Not less than 60 days prior to the due date (as extended) of the Company's federal income tax return or any state income tax return, the
return proposed by the Board to be filed by the Company shall be furnished to the Members for review. In addition, not more than 10 days after the date on which the Company files its federal
income tax return or any state income tax return, a copy of the return so filed shall be furnished to the Members. 

        Section 11.3    Member Tax Return Information.    

        The
Company, at its expense, shall cause to be delivered to each Member within 60 calendar days after the end of the Company's taxable year an IRS Form K-1 or a good
faith estimate of the amounts to be included on such IRS Form K-1 for such Member and such other information as shall be necessary (including a statement for that year of each
Member's share of net income, net losses and other items allocated to such Member) for the preparation and timely filing by the Members of their federal, state and local income and other tax returns. 

45

 

 

        Section 11.4    Tax Matters Representative.    

        (a)   The
"tax matters partner" of the Company for purposes of Section 6231(a)(7) of the Code shall be MWE Liberty, so long as MWE Liberty or one of its Affiliates is a
Member, and shall have the power to manage and control, on behalf of the Company, any administrative proceeding at the Company level with the Internal Revenue Service relating to the determination of
any item of Company income, gain, loss, deduction or credit for federal income tax purposes. Any Member who is designated as the tax matters partner shall be referred to herein as the "Tax Matters
Member." 

        (b)   The
Tax Matters Member shall keep the Members informed as to the status of any audit of the Company's tax affairs, and shall take such action as may be necessary to
cause any Member so requesting to become a "notice partner" within the meaning of Section 6231(a)(8) of the Code. Without first obtaining the approval of the Board and Requisite Member
Approval, the Tax Matters Member shall not, with respect to Company tax matters: (i) enter into a settlement agreement with respect to any tax matter which purports to bind Members,
(ii) intervene in any action pursuant to Code Section 6226(b)(5), (iii) enter into an agreement extending the period of limitations for making assessments on behalf of Members, or
(iv) file a petition pursuant to Code Section 6226(a) or 6228. If an audit of any of the Company's tax returns shall occur, the Tax Matters Member shall not settle or otherwise
compromise assertions of the auditing agent which may be adverse to any Member as compared to the position taken on the Company's tax returns without the prior written consent of each such affected
Member. 

        (c)   No
Member shall file a request pursuant to Code Section 6227 for an administrative adjustment of Company items for any taxable year, or a petition under
Code Sections 6226 or 6228 or other Code sections with respect to any item involving the Company, without first notifying other Members. 

        Section 11.5    Right to Make Section 754 Election.    

        The
Board, in its sole discretion, may make or revoke, on behalf of the Company, an election in accordance with Section 754 of the Code, so as to adjust the basis of Company
property in the case of a distribution of property within the meaning of Section 734 of the Code, and in the case of a transfer of Interests within the meaning of Section 743 of the
Code. 

        Section 11.6    Tax Elections.    

        The
Company shall have the right to make any U.S. federal income tax elections it deems appropriate and in the best interests of the Members. 

        Section 11.7    Tax Reimbursement.    

        If
Texas law requires the Company and any Member both to participate in the filing of a Texas margin tax combined group report, and if such Member pays the margin tax liability due in
connection with such combined report, the parties agree that the Company shall promptly reimburse such Member for the margin tax paid on behalf of the Company as a combined group member. The margin
tax paid on behalf of the Company shall be equal to the margin tax that the Company would have paid if it had computed its margin tax liability for the report period on a separate entity basis rather
than as a member of the combined group. In such event, the parties agree that such Member shall be considered as paying such amount on behalf of the Company and the Company shall deduct for federal
income tax purposes 100% of the Texas margin tax attributable to the Company; provided that in the event that such deduction may not be properly taken by the Company, the
Company shall reimburse such Member for the after-tax cost of such payment of Texas margin tax paid on the Company's behalf. 

46

 
 
 

  ARTICLE 12
  LIABILITY, EXCULPATION AND INDEMNIFICATION    
    

        Section 12.1    Liability.    

        (a)   Except
as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the
debts, obligations and liabilities of the Company, and no Covered Person shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Covered
Person. 

        (b)   Except
as otherwise expressly required by law, a Member, in its capacity as Member, shall have no liability in excess of (i) the amount of its Capital
Contributions; (ii) its share of any assets and undistributed profits of the Company; (iii) its obligation to make other payments expressly provided for in this Agreement; and
(iv) the amount of any distributions wrongfully distributed to it. 

        Section 12.2    Exculpation.    

        (a)   No
Covered Person shall be liable to the Company or any other Covered Person for any loss, damage or claim incurred by reason of any act or omission performed or omitted
by such Covered Person on behalf of the Company and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement, except that a Covered Person
shall be liable for any such loss, damage or claim incurred by reason of such Covered Person's fraud, bad faith or willful misconduct as established by a non-appealable court order,
judgment, decree or decision. 

        (b)   A
Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented
to the Company by any Person as to matters the Covered Person reasonably believes are within such other Person's professional or expert competence and who has been selected with reasonable care by or
on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, Profits, Losses or Available Cash or any other facts pertinent
to the existence and amount of assets from which distributions to Members might properly be paid. 

        Section 12.3    Indemnification.    

        To
the fullest extent permitted by applicable law, the Company shall indemnify and hold harmless each Covered Person from and against all Claims arising from or related to any act or
omission performed or omitted by such Covered Person on behalf of the Company and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this
Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any Claim by reason of such Covered Person's fraud, bad faith, or willful misconduct as established by a
non-appealable court order, judgment, decree or decision. Any indemnity under this Section 12.3 shall be provided out of and to the extent of Company assets only (including the
proceeds of any insurance policy obtained pursuant
to Section 12.5), and no Covered Person shall have any personal liability on account thereof. Any amendment, modification or repeal of this Section 12.3 or any provision in this
Section 12.3 shall be prospective only and shall not in any way affect the rights of any Covered Person under this Section 12.3 as in effect immediately prior to such amendment,
modification or repeal with respect to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when claims relating to such matters may arise or be
asserted. 

        Section 12.4    Expenses.    

        To
the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from
time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or 

47

 

proceeding
upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified
as authorized in Section 12.3. 

        Section 12.5    Insurance.    

        The
Company may purchase and maintain insurance, to the extent and in such amounts as the Board shall, in its sole discretion, deem reasonable, on behalf of Covered Persons and such
other Persons as the Board shall determine, against any liability that may be asserted against or expenses that may be incurred by any such Person in connection with the activities of the Company or
such indemnities, regardless of whether the Company would have the power to indemnify such Person against such liability under the provisions of this Agreement. The Board and the Company may enter
into indemnity contracts with Covered Persons and such other Persons as the Board shall determine and adopt written procedures pursuant to which arrangements are made for the advancement of expenses
and the funding of obligations under Section 12.4 and containing such other procedures regarding indemnification as are appropriate. 

        Section 12.6    Certain Liabilities.    

        Each
Member agrees to be liable for the Capital Contributions required to be made by such Member, and subject to the other provisions of this Agreement, in the event a Member becomes
liable for any liabilities of the Company, the Members shall bear such liability in proportion to their then existing Percentage Interests. 

        Section 12.7    Acts Performed Outside the Scope of the Company.    

        Each
Member (each Member in such capacity, an "Indemnitor") shall indemnify, defend, save and hold harmless each other Member (an "Indemnitee") from any and all Claims that shall or may
arise by virtue of any act or thing done or omitted to be done by the Indemnitor (directly or through agents or employees) outside the scope of, or in breach of, the terms of this Agreement;
provided, however, that the Indemnitor shall be properly notified of the existence of the Claim, and shall be given reasonable opportunity to
cure any act or omission causing liability, and participate in the defense thereof. The Indemnitee's failure to give such notice shall not affect the Indemnitor's obligations hereunder, except to the
extent of any actual prejudice arising therefrom. 

        Section 12.8    Liability of Members to Company or Other Members.    

        Unless
otherwise provided in this Agreement, no Member shall be liable to any other Member or to the Company by reason of such Member's actions in connection with the Company, except in
the event of a violation of any provision of this Agreement, fraud, bad faith or willful misconduct. 

        Section 12.9    Attorneys' Fees.    

        All
of the indemnities provided in this Agreement shall include reasonable attorneys' fees, including appellate attorneys' fees and court costs. 

        Section 12.10    Subordination of Other Rights to Indemnity.    

        The
interests of the Members in any proceeds of the Company by way of repayment of loans, return of any Capital Contributions, or any distributions from the Company, shall be
subordinated to the right of Members to the indemnities provided by this Article 12. 

        Section 12.11    Survival of Indemnity Provisions.    

        Except
as otherwise specifically provided herein, all of the indemnity provisions contained in this Agreement shall survive a Member's ceasing to be a Member hereunder. 

48

 
 
 

  ARTICLE 13
  DISSOLUTION, LIQUIDATION AND TERMINATION    
    

        Section 13.1    No Dissolution.    

        The
Company shall not be dissolved by the admission of Additional Members or Substitute Members in accordance with the terms of this Agreement, or the withdrawal of a Member. 

        Section 13.2    Events Causing Dissolution.    

        The
Company shall be dissolved and its affairs shall be wound up upon the occurrence of any of the following events: 

        (a)   the
determination of the Members pursuant to Section 6.12(p); 

        (b)   at
such time as there are no Members; 

        (c)   the
entry of a decree of judicial dissolution under the Act; or 

        (d)   the
sale, exchange or disposition of all, or substantially all, of the Company's assets in one transaction or a series of related transactions. 

        Section 13.3    Notice of Dissolution.    

        Upon
the dissolution of the Company, the Board shall promptly notify the Members of such dissolution. 

        Section 13.4    Liquidation.    

        (a)   Upon
dissolution of the Company, the Board (in such capacity, the "Liquidating Trustee") shall carry out the winding up of the Company and shall immediately commence to
wind up the Company's affairs; provided, however, that a reasonable time shall be allowed for the orderly liquidation of the assets of the
Company and the satisfaction of liabilities to creditors so as to enable the Members to minimize the normal losses attendant upon a liquidation. The proceeds of liquidation shall be applied first to
payment of all expenses and debts of the Company and setting up of such reserves as the Board reasonably deems necessary to wind up the Company's affairs and to provide for any contingent liabilities
or obligations of the Company; provided that the unpaid principal of and interest on any loans made to the Company by Members (and their Affiliates) shall be distributed
pro rata to the Members (and their Affiliates) who made such loans, in proportion to the total amount of principal and interest payable on such loans, such distributions being treated first as a
payment of accrued interest on such loans and next as in payment of principal on such loans. Any remaining proceeds shall be distributed as follows: 

          (i)  If
the Equalization Date has not yet occurred, then: 

        (A)  First,
100% to the Class A Members in accordance with their Class A Percentage Interests until the ** is
reduced to zero; 

        (B)  Next,
100% to the Class A Members in accordance with their Class A Percentage Interests until the ** is
reduced to zero; and 

        (C)  Thereafter,
** to the holders to the Class A Membership Interests and  ** to the holders of the Class B Memberships Interests. 

         (ii)  If
the Equalization Date has occurred, then to the Members in accordance with their respective Percentage Interests. 

49

 

        (b)    Incentive Interest Percentage Distributions.    Notwithstanding the preceding
provisions in Section 13.4(a), in the event a **Payout** has occurred, Available Cash shall be
distributed as follows: 

          **  Following the ** Payout, if any, (x) first calculated in
accordance with their respective Percentage Interests, then (y) adjusted by reducing NGPMR's pro rata amount of Available Cash as determined in (x) by the  ** and (z) increasing MWE
Liberty's pro rata amount of Available Cash as determined in (x) by the amount determined in
(y) **

        (c)   The
Profits and Losses arising from liquidation of the Company shall be allocated to the Members so that, to the maximum extent possible, each Member's Capital Account
balance equals the amount of cash distributed to each such Member pursuant to Sections 13.4(a)(i) and (ii) and Section 13.4(b), to the extent applicable. 

        Section 13.5    Termination.    

        The
Company shall terminate when all of the assets of the Company, after payment of or due provision for all debts, liabilities and obligations of the Company, shall have been
distributed to the Members in the manner provided for in this Article 13 and the Certificate shall have been canceled, or such other documents required under the Act to be executed and filed
with the Secretary of State of the State of Delaware have been so executed and filed, in the manner required by the Act. 

        Section 13.6    Claims of the Members or Third Parties.    

        The
Members and former Members shall look solely to the Company's assets for the return of their Capital Contributions, and if the assets of the Company remaining after payment of or due
provision for all debts, liabilities and obligations of the Company are insufficient to return such Capital Contributions, the Members and former Members shall have no recourse against the Company or
any other Member; provided, however, that nothing contained herein shall be deemed to limit the rights of a Member under applicable law. In
the event any Member has a deficit balance in its Capital Account at the time of the Company's dissolution, it shall not be required to restore such account to a positive balance or otherwise make any
payments to the Company or its creditors or other third parties in respect of such deficiency. 

        Section 13.7    Distributions In-Kind.    

        If
any assets of the Company shall be distributed in kind, such assets shall be distributed to the Member(s) entitled thereto as tenants-in-common in the same
proportions as such Member(s) would have been entitled to cash distributions if (i) such assets had been sold for cash by the Company at the fair market value of such property (taking the Gross
Asset Value definition herein and Code Section 7701(g) into account) on the date of distribution; (ii) any unrealized income, gain, loss and deduction inherent in such property (that has
not been reflected in the Capital Accounts previously) that would be realized by the Company from such sale were allocated among the Member(s) as Profits or Losses in accordance with this Agreement;
and (iii) the cash proceeds were distributed to the Member(s) in accordance with this Article 13. The Capital Accounts of the Member(s) shall be increased by the amount of any unrealized
income or gain inherent in such property or decreased by the amount of any loss or deduction inherent in such property that would be allocable to them, and shall be reduced by the fair market value of
the assets distributed to them under the preceding sentence. Notwithstanding the foregoing, the Members shall have the right to assign their interest to such in-kind distribution to any
Person. 

50

 
 
 

  ARTICLE 14
  REPRESENTATIONS, WARRANTIES AND COVENANTS    
    

        Section 14.1    Representations, Warranties and Covenants.    

        Each
Member hereby represents, warrants and covenants to the Company as follows: 

        (a)   The
Member understands that the purpose of the Company is to engage in the Primary Business. The Member has read and is familiar with, and has been given full and
complete access to, information, financial or otherwise, regarding the Company and has utilized such access to the Member's satisfaction and has obtained any other relevant information the Member has
sought. The Member has been given the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of, and other matters pertaining to, this investment. 

        (b)   The
Member has read this Agreement and understands that the Interests being acquired by the Member will be governed hereby. The Member agrees to be bound, in all
respects, by the terms of this Agreement. 

        (c)   The
Member has sufficient knowledge and experience in financial and business matters in general, and investments in particular, to be capable of evaluating the merits
and risks of the investment in the Interests. The Member is able to bear the economic risk of this investment, including a total loss of the investment. The Member has adequate means of providing for
its currents needs and personal contingencies, has no need for liquidity in the investment in the Company and has no reason to anticipate any circumstances, financial or otherwise, which might cause
or require any sale or distribution of the Interests. The Member's overall commitment to investments that are not readily marketable is not disproportionate to the Member's net worth and the
investment in the Company will not cause the Member's overall commitment in such investments to become excessive. The Member can lose its entire investment in the Interests without producing a
material adverse change in the Member's net worth. 

        (d)   It
is the Member's intention to acquire the Interest for its own account, for investment purposes, and not with a view to, or for, resale in connection with any
distribution thereof. The Member understands that no federal or state agency has passed upon the Interests or made any findings or determination as to the fairness of this investment. The Member
understands and acknowledges that the Interests have not been registered under the Securities Act or under state securities laws and that the sale of the Interests is being made pursuant to exemptions
from registration that may depend upon the Member's investment intention. The Member also understands and acknowledges that the Interests may not be transferred unless they are registered under the
Securities Act or an exemption from such registration is available thereunder and under applicable state securities laws and established to the Company's satisfaction. In addition, the Member
acknowledges that the Interests are subject to additional restrictions on transferability in this Agreement that will make it difficult to Transfer or liquidate this investment. The Member
acknowledges that the Company will rely on these representations and that the Company is not required to recognize any Transfer of an Interest if, in the opinion of counsel, such Transfer would result
in a violation of any federal or state law, rule or regulation, regarding the offering or sale of securities. The Member further understands that any certificates representing the Interests may
contain legends restricting the Transfer of the Interests. 

        (e)   The
Member is fully authorized and qualified to become a Member of the Company and is authorized to make the initial Capital Contribution to the Company, and the person
executing this Agreement on the Member's behalf has been duly authorized to do so. 

        (f)    The
Member understands and acknowledges that (i) the Company may need to raise additional capital from time to time in order to engage in the Primary Business and
achieve any other objectives and goals that may be established for the Company by the Board, (ii) the 

51

 

Company
may raise additional capital by selling Interests to one or more Members or other Persons, (iii) the Member has no right to participate in any future offering, or to buy any additional
Interests that may be issued, by the Company except to the extent set forth herein, and (iv) the Member's Percentage Interest in the Company may be diluted as a result of any such sale of
additional Interests in the Company. 

        (g)   The
Member will indemnify and hold harmless the Company and its Managers, officers, Members and Affiliates, and any other Person who controls or is controlled by any of
them, against any and all loss, liability, claim, damage and expense whatsoever, including reasonable attorney's fees, arising out of or based upon any false representation or warranty or any breach
by the Member of any term or condition contained in this Article 14. 

        (h)   All
of the information provided to the Company by the Member and all of the Member's representations and warranties are true and correct as of the date of this
Agreement. The Member's representations, warranties and covenants shall survive the delivery of the Member's Capital Contribution. 

 
 

  ARTICLE 15
  MISCELLANEOUS    
    

        Section 15.1    Notices.    

        All
notices provided for in this Agreement shall be in writing, duly signed by the party giving such notice, and shall be delivered, telecopied, mailed by registered or certified mail,
sent by recognized overnight delivery or courier service (e.g., Federal Express) or, to the extent permitted by this Agreement, sent via electronic mail, and shall be deemed to have been given
upon delivery, if delivered personally or by facsimile or electronic mail, three days after mailing, if mailed, or one Business Day after delivery to the courier, if delivered by overnight courier
service, as follows: 

          (i)  if
given to the Company, in care of the Board at the principal place of business of the Company set forth in Section 2.5 or at such other address as the Company
may hereafter designate by 10 days' written notice to the Members. 

         (ii)  if
given to any Member, at such address designated on the signature page hereto or at such other address as such Member may hereafter designate by 10 days'
written notice to the Company. 

        Section 15.2    Failure to Pursue Remedies.    

        The
failure of any party to seek redress for violation of, or to insist upon the strict performance of, any provision of this Agreement shall not prevent a subsequent act, which would
have originally constituted a violation, from having the effect of an original violation. 

        Section 15.3    Cumulative Remedies.    

        The
rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its right to use any or all other
remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 

        Section 15.4    Binding Effect.    

        This
Agreement shall be binding upon and inure to the benefit of all of the parties and, to the extent permitted by this Agreement, their successors, legal representatives and assigns. 

52

 

        Section 15.5    Interpretation.    

        Throughout
this Agreement, nouns, pronouns and verbs shall be construed as masculine, feminine, neuter, singular or plural, whichever shall be applicable. All references herein to
"Articles," "Sections" and "Paragraphs" shall refer to corresponding provisions of this Agreement. 

        Section 15.6    Severability.    

        The
invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if
such invalid or unenforceable provision were omitted. 

        Section 15.7    Counterparts.    

        This
Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had signed the same document. All counterparts shall be construed together and
shall constitute one instrument. 

        Section 15.8    Integration.    

        This
Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining
thereto. 

        Section 15.9    Amendment or Restatement.    

        This
Agreement (including any Exhibit or Schedule hereto) and the Certificate may be amended, modified or supplemented, and any provisions of this Agreement or the Certificate be waived,
with a written instrument adopted, executed and agreed to by the Company and the Class B Members with an aggregate Class B Percentage Interest equal to or exceeding 50%;
provided, however, that (a) this Agreement shall be deemed automatically amended from time to time without further consent of any party
to reflect issuances and transfers of Interests made in compliance with this Agreement and (b) any amendment, modification, supplement or waiver to this Agreement or the Certificate that would
adversely affect the rights, or increase the obligations, of any Member in any material respect shall not be effective without the consent of such affected Member. Except as required by law, no
amendment, modification, supplement, discharge or waiver of or under this Agreement shall require the consent of any Person not a party to this Agreement. 

        Section 15.10    Governing Law.    

        This
Agreement and the rights of the parties hereunder shall be interpreted in accordance with the laws of the State of Delaware and all rights and remedies shall be governed by such
laws without regard to principles of conflict of laws. The parties further agree that any legal action or proceeding with respect to this Agreement or any document relating hereto may be brought only
in a federal or state court of competent jurisdiction in Houston, Texas. Each party hereby irrevocably waives any objection, including, without limitation, any objection to the laying of venue or
based on the grounds of forum non-convenience, which it may now or hereafter have to the bringing of such action or proceeding in any such respective jurisdiction. 

        Section 15.11    Dealings in Good Faith.    

        Except
as otherwise expressly set forth herein, each party hereto agrees to act in good faith with respect to the other party in exercising its rights and discharging its obligations
under this Agreement. Each party further agrees to use its reasonable efforts to ensure that the purposes of this Agreement are realized and to take all steps as are reasonable in order to implement
the operational provisions of this Agreement. 

53

 

        Section 15.12    Partition of the Property.    

        Each
Member agrees that it shall have no right to partition the Property, or any portion thereof, and each Member agrees that it shall not make application to any court or authority
having jurisdiction in the matter to commence or prosecute any action or proceeding for partition of the Property, or any portion thereof. Upon the breach of this Section by any Member, the other
Members, in addition to all other rights and remedies in law and equity, shall be entitled to a decree or order dismissing application, action or proceeding. 

        Section 15.13    Third Party Beneficiaries.    

        Except
as expressly set forth in this Agreement, nothing in this Agreement is intended or shall be construed, to confer upon or give any Person other than the parties hereto, any rights,
remedies,
obligations or liabilities under or by reason of this Agreement, or result in their being deemed a third party beneficiary of this Agreement. 

        Section 15.14    Tax Disclosure Authorization.    

        Notwithstanding
anything herein to the contrary, the Members (and each Affiliate and Person acting on behalf of any Member) agree that each Member (and each employee, representative, and
other agent of such Member) may disclose to any and all Persons, without limitation of any kind, the transaction's tax treatment and tax structure (as such terms are used in Sections 6011 and
6112 of the Code and the Treasury Regulations thereunder) contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) provided to such Member or such Person
relating to such tax treatment and tax structure, except to the extent necessary to comply with any applicable federal or state securities laws. 

        Section 15.15    Waivers and Consents.    

        A
waiver or consent, express or implied, to or of any breach or default by any Person in the performance of its obligations hereunder is not a consent or waiver to or of any other breach
or default in the performance by that Person of the same or any other obligation of such Person hereunder. Failure of a Person to assert the default or breach of any other Person hereunder shall not
constitute a waiver thereof until the applicable statute of limitations period has run. 

[Signature Page Follows]

54

 

 
        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 

					
	 	 	 MWE LIBERTY:
	

 	
 	
 MARKWEST LIBERTY GAS GATHERING, L.L.C.,

a Delaware limited liability company
	

 	
 	
By:	
 	
/s/ Frank M. Semple
	 	 	 	 	

  
	 	 	Name:	 	Frank M. Semple
	 	 	 	 	

  
	 	 	Title:	 	President and CEO
	 	 	 	 	

  
	

 	
 	
 Address for notice:

1515 Arapahoe Street

Tower 2, Suite 700

Denver, CO 80202-2126

Attention: Senior Vice President and Chief Operations Officer
	

 	
 	
NGPMR:
	

 	
 	
 M&R MWE LIBERTY, LLC
	

 	
 	
By:	
 	
/s/ **
	 	 	 	 	

  
	 	 	Name:	 	**
	 	 	 	 	

  
	 	 	Title:	 	Chief Executive Officer & Managing Partner
	 	 	 	 	

  
	

 	
 	
 Address for notice:

1401 McKinney, Suite 1025

Houston, TX 77010

Attention: **
	

 	
 	
 with a copy to:
	

 	
 	
 Locke Lord Bissell & Liddell, LLP

600 Travis Street, Suite 3400

Houston, Texas 77002

Fax (713) 229-2518

Attention: **

Signature Page 1

QuickLinks

Exhibit 10.3

EXECUTION COPY

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF MARKWEST LIBERTY MIDSTREAM & RESOURCES, L.L.C.

ARTICLE 1 DEFINED TERMS

ARTICLE 3 PURPOSE AND POWERS OF THE COMPANY

ARTICLE 4 CAPITAL CONTRIBUTIONS, MEMBER INTERESTS, CAPITAL ACCOUNTS AND FUTURE CAPITAL REQUIREMENTS

ARTICLE 5 MEMBERS, MEETINGS AND AMENDMENTS

ARTICLE 6 MANAGEMENT

ARTICLE 8 DISTRIBUTIONS TO MEMBERS

ARTICLE 9 ALLOCATIONS

ARTICLE 10 BOOKS AND RECORDS

ARTICLE 11 TAX MATTERS

ARTICLE 12 LIABILITY, EXCULPATION AND INDEMNIFICATION

ARTICLE 13 DISSOLUTION, LIQUIDATION AND TERMINATION

ARTICLE 14 REPRESENTATIONS, WARRANTIES AND COVENANTS

ARTICLE 15 MISCELLANEOUSExhibit 10.2

 

EXECUTION VERSION

 

 

EXCHANGE AGREEMENT

 

among

 

GKK CAPITAL LP

 

and

 

TABERNA PREFERRED
FUNDING II, LTD.,

 

TABERNA PREFERRED
FUNDING III, LTD.,

 

TABERNA PREFERRED
FUNDING IV, LTD.,

 

TABERNA PREFERRED
FUNDING V, LTD.,

 

TABERNA PREFERRED
FUNDING VII, LTD.

 

and

 

TABERNA PREFERRED
FUNDING VIII, LTD.

 

 

Dated
as of January 30, 2009

 

 

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT, dated as of January 30,
2009 (this “Agreement”),
is entered into by and among GKK
CAPITAL LP, a Delaware limited partnership (the “Company”) and TABERNA PREFERRED FUNDING II, LTD. (“Taberna II”), TABERNA PREFERRED FUNDING
III, LTD. (“Taberna III”), TABERNA
PREFERRED FUNDING IV, LTD. (“Taberna IV”),
TABERNA PREFERRED FUNDING V, LTD. (“Taberna V”),
TABERNA PREFERRED FUNDING VII, LTD. (“Taberna
VII”) and TABERNA PREFERRED FUNDING VIII, LTD. (“Taberna VIII”, and together with Taberna
II, Taberna III and Taberna IV, Taberna V, and Taberna VII, collectively, “Taberna”).

 

RECITAL:

 

A.            Reference
is made to (i) that certain Junior Subordinated Indenture dated as of May 20,
2005 (the “May Indenture”), (ii) that
certain Junior Subordinated Indenture dated as of August 9, 2005 (the “August Indenture”) and (iii) that certain Junior
Subordinated Indenture dated as of January 27, 2006 (the “January Indenture”; and together with the May Indenture
and the August Indenture, collectively, the “Existing Indentures”), each by and
between the Company and The Bank of New York Mellon Trust Company, National
Association (“BNYM”) (as successor to JPMorgan
Chase Bank, National Association, as trustee (the “Existing
Indenture Trustee”).

 

B.            Reference
is made to (i) that certain Amended and Restated Trust Agreement dated as
of May 20, 2005 (the “May Trust Agreement”),
(ii) that certain Amended and Restated Trust Agreement dated as of August 9,
2005 (the “August Trust Agreement”) and (iii) that
certain Amended and Restated Trust Agreement dated as of January 27, 2006
(the “January Trust Agreement”; and
together with the May Trust Agreement and the August Trust Agreement,
collectively, the “Trust Agreements”),
each by and among the Company, as depositor, BNYM (successor to JPMorgan Chase
Bank, National Association, as property trustee)(the “Property
Trustee”), BNY Mellon Trust of Delaware (as successor to Chase Bank
USA, National Association, as Delaware trustee)(the “Delaware
Trustee”), and the respective administrative trustees named therein.

 

C.            Gramercy
Capital Trust I (“Trust I”) is
the holder of the Junior Subordinated Note due 2035 in the original principal
amount of $51,550,000 issued by the Company pursuant to the May Indenture
(“Subordinated Note I”).

 

D.            Gramercy
Capital Trust II (“Trust II”) is
the holder of the Junior Subordinated Note due 2035 in the original principal
amount of $51,550,000 issued by the Company pursuant to the August Indenture
(“Subordinated Note II”).

 

E.             Gramercy
Capital Trust III (“Trust III”) is
the holder of the Junior Subordinated Note due 2036 in the original principal
amount of $51,550,000 issued by the Company pursuant to the January Indenture
(“Subordinated Note III”; and together
with Subordinated Note I and Subordinated Note II, collectively, the “Existing Subordinated Notes”)

 

F.             Taberna
II and Taberna III are the holders of Preferred Securities in the original
aggregate principal amount of $50,000,000 issued by Trust I pursuant to the May Trust

 

1

 

Agreement, copies of
which are attached hereto as Exhibit A-1 (the “Trust I Preferred Securities”).

 

G.            Taberna
III, Taberna IV and Taberna V are the holders of Preferred Securities in the
original aggregate principal amount of $50,000,000 issued by Trust II pursuant
to the August Trust Agreement, copies of which are attached hereto as Exhibit A-2
(the “Trust II Preferred Securities”).

 

H.            Taberna
IV, Taberna VII and Taberna VIII are the holders of Preferred Securities in the
original aggregate principal amount of $50,000,000 issued by Trust III pursuant
to the January Trust Agreement, copies of which are attached hereto as Exhibit A-3
(the “Trust III Preferred Securities;” and together with the Trust I
Preferred Securities and Trust II Preferred Securities, collectively, the “Original Preferred Securities”).

 

I.              Simultaneously
herewith, the Company and BNYM, as trustee (the “New Indenture
Trustee”) have entered into that certain Junior Subordinated
Indenture (the “New Indenture”) pursuant to which
Company proposes to issue One Hundred Fifty Million Dollars ($150,000,000) in
aggregate principal amount of the Junior Subordinated Notes due 2035 of the
Company as follows (collectively, the “Securities”):

 

(i)                                     Junior
Subordinated Note due 2035 in the original principal amount of $37,500,000
issued by the Company to Taberna II, a copy of which is attached hereto as Exhibit B-1
(“Note 1”);

 

(ii)                                  Junior
Subordinated Note due 2035 in the original principal amount of $28,125,000
issued by the Company to Taberna III, a copy of which is attached hereto as Exhibit B-2
(“Note 2”);

 

(iii)                               Junior
Subordinated Note due 2035 in the original principal amount of $24,375,000
issued by the Company to Taberna IV, a copy of which is attached hereto as Exhibit B-3
(“Note 3”);

 

(iv)                              Junior
Subordinated Note due 2035 in the original principal amount of $25,000,000
issued by the Company to Taberna V, a copy of which is attached hereto as Exhibit B-4
(“Note 4”);

 

(v)                                 Junior
Subordinated Note due 2035 in the original principal amount of $10,000,000
issued by the Company to Taberna VII, a copy of which is attached hereto as Exhibit B-5
(“Note 5”); and

 

(vi)                              Junior
Subordinated Note due 2035 in the original principal amount of $25,000,000
issued by the Company to Taberna VIII, a copy of which is attached hereto as Exhibit B-6
(“Note 6”).

 

J.             On
the terms and subject to the conditions set forth in this Agreement, the Company
and Taberna have agreed to exchange the Original Preferred Securities for the
Securities.

 

2

 

NOW, THEREFORE, in consideration of the mutual
agreements and subject to the terms and conditions herein set forth, the
parties hereto agree as follows:

 

1.                                       Definitions.           This Agreement, the New Indenture and
the Securities are collectively referred to herein as the “Operative Documents.” 
All other capitalized terms used but not defined in this Agreement shall
have the respective meanings ascribed thereto in the New Indenture.

 

“August Trust
Agreement” has the meaning set forth in the Recitals.

 

“August Indenture”
has the meaning set forth in the Recitals.

 

“Bankruptcy Code”
means the Bankruptcy Reform Act of 1978, 11 U.S.C. §§101 et seq., as amended.

 

“Benefit Plan”
means an “employee benefit plan” (as defined in ERISA) that is subject to Title
I of ERISA, a “plan” as defined in Section 4975 of the Code or any entity
whose assets include (for purposes of U.S. Department of Labor Regulations Section 2510.3-101
or otherwise for purposes of Title I of ERISA or Section 4975 of the Code)
the assets of any such “employee benefit plan” or “plan.”

 

“BNYM” has the
meaning set forth in the Recitals.

 

“CDO Trustee”
has the meaning set forth in Section 2(b)(i).

 

“Code” means the
Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated under it.

 

“Closing Date”
has the meaning set forth in Section 2(b).

 

“Closing Room”
has the meaning set forth in Section 2(b).

 

“Company” has
the meaning set forth in the introductory paragraph hereof.

 

“Company Counsel”
has the meaning set forth in Section 3(b).

 

“Commission” has
the meaning set forth in Section 4(v)

 

“Delaware Trustee”
has the meaning set forth in the Recitals.

 

“Environmental Law”
has the meaning set forth in Section 4(jj). “Environmental
Laws” shall have the correlative meaning.

 

“Equity Interests” means with
respect to any Person (a) if such Person is a partnership, the partnership
interests (general or limited) in a partnership, (b) if such Person is a
limited liability company, the membership interests in a limited liability
company and (c) if such Person is a corporation, the shares or stock
interests (both common stock and preferred stock) in a corporation.

 

3

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended, and the rules and
regulations promulgated under it.

 

“Exchange” has
the meaning set forth in Section 2(b).

 

“Exchange Act”
has the meaning set forth in Section 4(j).

 

“Existing Indentures”
has the meaning set forth in the Recitals.

 

“Existing Indenture Trustee”
has the meaning set forth in the Recitals.

 

“Existing Subordinated
Notes” has the meaning set forth in the Recitals.

 

“Financial Statements”
has the meaning set forth in Section 4(w).

 

“GAAP” has the
meaning set forth in Section 4(w).

 

“Governmental Entities”
has the meaning set forth in Section 4(o).

 

“Governmental Licenses”
has the meaning set forth in Section 4(r).

 

“Hazardous Materials”
has the meaning set forth in Section 4(jj).

 

“Holder” has the
meaning set forth in the New Indenture.

 

“Indemnified  Party” has the meaning set forth in Section 8(a).  “Indemnified Parties”
shall have the correlative meaning.

 

“Investment Company Act”
has the meaning set forth in Section 4(j).

 

“Interim Financial
Statements” has the meaning set forth in Section 4(w).

 

“January Indenture”
has the meaning set forth in the Recitals.

 

“January Trust
Agreement” has the meaning set forth in the Recitals.

 

“Lien” has the
meaning set forth in Section 4(o).

 

“Material Adverse Effect”
means a material adverse effect on the condition (financial or otherwise),
earnings, business, liabilities or assets of the Company and its Significant
Subsidiaries taken as a whole.

 

“Material Adverse Change”
has the meaning set forth in Section 3(e)(ii).

 

“May Indenture”
has the meaning set forth in the Recitals.

 

“May Trust Agreement”
has the meaning set forth in the Recitals.

 

4

 

“New Indenture”
has the meaning set forth in the Recitals.

 

“New Indenture Trustee”
has the meaning set forth in the Recitals.

 

“Note 1” has the
meaning set forth in the Recitals.

 

“Note 2” has the
meaning set forth in the Recitals.

 

“Note 3” has the
meaning set forth in the Recitals.

 

“Note 4” has the
meaning set forth in the Recitals.

 

“Note 5” has the
meaning set forth in the Recitals.

 

“Note 6” has the
meaning set forth in the Recitals.

 

“Original Preferred
Securities” has the meaning set forth in the Recitals.

 

“Properties” has
the meaning set forth in Section 4(ii).

 

“Property Trustee”
has the meaning set forth in the Recitals.

 

“Regulation D”
has the meaning set forth in Section 4(h).

 

“Repayment Event”
has the meaning set forth in Section 4(o).

 

“Rule 144A(d)(3)”
has the meaning set forth in Section 4(j).

 

“Securities” has
the meaning set forth in the Recitals.

 

“Securities Act”
means the Securities Act of 1933, 15 U.S.C. §§77a et seq.,
as amended, and the rules and regulations promulgated under it.

 

“Significant Subsidiary”
means any Person wherein at least ten percent (10%) of the Equity Interests is
owned, directly or indirectly, by the Company. 
“Significant Subsidiaries” means,
collectively, each and every Significant Subsidiary.

 

“Subordinated Note I”
has the meaning set forth in the Recitals.

 

“Subordinated Note II”
has the meaning set forth in the Recitals.

 

“Subordinated Note III”
has the meaning set forth in the Recitals.

 

“Taberna” has
the meaning set forth in the introductory paragraph hereof.

 

“Taberna II” has
the meaning set forth in the introductory paragraph hereof.

 

“Taberna III”
has the meaning set forth in the introductory paragraph hereof.

 

5

 

“Taberna IV” has
the meaning set forth in the introductory paragraph hereof.

 

“Taberna V” has
the meaning set forth in the introductory paragraph hereof.

 

“Taberna VII”
has the meaning set forth in the introductory paragraph hereof.

 

“Taberna VIII”
has the meaning set forth in the introductory paragraph hereof.

 

“Taberna Transferred Rights”
means any and all of Taberna’s right, title, and interest in, to and under the
Original Preferred Securities, together with the following:

 

(i)            the
Existing Indentures and Trust Agreement;

 

(ii)           all
amounts payable to Taberna under the Original Preferred Securities, the
Existing Indentures and/or the Trust Agreements, excluding, however, amounts
payable on account of interest for the period from October 30, 2008
through January 29, 2009;

 

(iii)          all
claims (including “claims” as defined in Bankruptcy Code §101(5)), suits,
causes of action, and any other right of Taberna, whether known or unknown,
against the Company or any of its affiliates (including the Trusts), agents,
representatives, contractors, advisors, or any other entity that in any way is
based upon, arises out of or is related to any of the foregoing, including all
claims (including contract claims, tort claims, malpractice claims, and claims
under any law governing the exchange of, purchase and sale of, or indentures
for, securities), suits, causes of action, and any other right of Taberna
against any attorney, accountant, financial advisor, or other entity arising
under or in connection with the Original Preferred Securities, the Existing
Indentures, the Trust Agreements or the transactions related thereto or
contemplated thereby;

 

(iv)          all
guarantees and all collateral and security of any kind for or in respect of the
foregoing;

 

(v)           all
cash, securities, or other property, and all setoffs and recoupments, to be
received, applied, or effected by or for the account of Taberna under the
Original Preferred Securities, other than fees, costs and expenses payable to
Taberna hereunder and all cash, securities, interest, dividends, and other
property that may be exchanged for, or distributed or collected with respect
to, any of the foregoing; and

 

(vi)          all
proceeds of the foregoing.

 

“Trust I”
has the meaning set forth in the Recitals.

 

“Trust II”
has the meaning set forth in the Recitals.

 

“Trust III”
has the meaning set forth in the Recitals.

 

“Trust I Preferred
Securities” has the meaning set forth in the Recitals.

 

6

 

“Trust II Preferred
Securities” has the meaning set forth in the Recitals.

 

“Trust III Preferred
Securities” has the meaning set forth in the Recitals.

 

“Trust
Agreements” has the meaning set forth in the Recitals.

 

2.                                       Exchange
of Original Preferred Securities for Securities.

 

(a)           The
Company agrees to issue the Securities in accordance with the New Indenture and
has requested that Taberna accept such Securities in exchange for the Original
Preferred Securities, and Taberna hereby accepts such Securities in exchange
for the Original Preferred Securities upon the terms and conditions set forth
herein.

 

(b)           The
closing of the exchange contemplated herein shall occur at the offices of Nixon
Peabody, LLP in New York, New York (the “Closing Room”),
or such other place as the parties hereto and BNYM shall agree, at 11:00 a.m.
New York time, on January 30, 2009 or such later date as the parties may
agree (such date and time of delivery the “Closing
Date”). The Company and Taberna hereby agree that the exchange (the “Exchange”) will occur in accordance with the following
requirements:

 

(i)            Taberna
Capital Management, LLC (as collateral manager for each of the Taberna
entities) shall have delivered an issuer order instructing each trustee (in
each such capacity, a “CDO Trustee”)
under the applicable indenture pursuant to which such CDO Trustee serves as
trustee for the holders of the Original Preferred Securities to exchange the
Original Preferred Securities for the Securities and to deliver the Original
Preferred Securities to the Property Trustee for cancellation and reissuance in
the name of the Company.

 

(ii)           The
Original Preferred Securities and the Securities shall have been delivered to
the Closing Room, copies of which Original Preferred Securities and Securities
shall have previously been made available for inspection, if so requested.

 

(iii)          Company
shall have directed the New Indenture Trustee to authenticate the Securities
and deliver them to the applicable CDO Trustee, as follows: (i) Note 1 to
Taberna II, (ii) Note 2 to Taberna III, (iii) Note 3 to Taberna IV, (iv) Note
4 to Taberna V, (v) Note 5 to Taberna VII and (vi) Note 6 to Taberna
VIII.

 

(iv)          New
Indenture Trustee shall have authenticated the Securities in accordance with
the terms of the New Indenture and delivered them as provided above.

 

(v)           Property
Trustee, on behalf of each of the Trusts, shall have obtained the Original
Preferred Securities and shall promptly thereafter, if requested by the
Company, cancel and reissue them in the name of the Company.

 

(vi)          Simultaneously
with the occurrence of the events described in subsections (iv) and (v) hereof,
(A) each Taberna entity holding the applicable Original Preferred
Securities irrevocably transfers, assigns, grants and conveys the related
Taberna Transferred Rights to the Company and the Company assumes all rights
and obligations 

 

7

 

of Taberna with respect to the Original Preferred Securities and the
Taberna Transferred Rights and (B) each Holder shall be entitled to all of
the rights, title and interest of a Holder of the Securities under the terms of
the Securities, the New Indenture and any other Operative Documents.

 

(vii)         the
Company shall have paid to the BNYM all of such party’s legal fees, costs and
other expenses in connection with the Exchange, as well as all other accrued
and unpaid fees, costs and expenses under the Existing Indentures and the Trust
Agreements, if any.

 

(viii)        The
Company shall have paid to the Trustee, for applications upon the Original
Preferred Securities and for distribution to the applicable Taberna entities
holding such Original Preferred Securities pursuant to the terms of the
Existing Indentures, all accrued interest for the period commencing on the most
recent interest payment date under the Original Preferred Securities and
continuing through and including January 29, 2009, provided,
that the Company and Taberna agree that the amount of interest payable for such
period with respect to the Original Preferred Securities shall be based upon an
interest rate of one half of one percent (0.5%) per annum.

 

3.             Conditions Precedent.  The obligations of the parties under this
Agreement are subject to the following conditions precedent:

 

(a)           The representations and warranties
contained herein shall be accurate as of the date of delivery of the Securities.

 

(b)           Clifford Chance US LLP, counsel for the Company (the “Company Counsel”), shall have
delivered an opinion, dated the Closing Date, addressed to each Holder and its
successors and assigns and to the New Indenture Trustee, in substantially the
form set out in Annex A-1 hereto and the Company shall have furnished to
the Holders of the Securities a certificate signed by the Company’s Chief
Executive Officer, President, an Executive Vice President, Chief Financial
Officer, Treasurer or Assistant Treasurer, dated the Closing Date, addressed to
the Holders of the Securities , in substantially the form set out in Annex D
hereto.  In rendering its opinion, the
Company Counsel may rely as to factual matters upon certificates or other
documents furnished by officers, directors and trustees of the Company or its
general partner and by government officials; provided,
however, that copies of any such
certificates or documents are delivered to the Holders) and by and upon such
other documents as such counsel may, in its reasonable opinion, deem
appropriate as a basis for the Company Counsel’s opinion.  The Company Counsel may specify the
jurisdictions in which it is admitted to practice and that they/it is not
admitted to practice in any other jurisdiction and is not an expert in the law
of any other jurisdiction.  Such Company
Counsel Opinion shall not state that it is to be governed or qualified by, or
that it is otherwise subject to, any treatise, written policy or other document
relating to legal opinions, including, without limitation, the Legal Opinion
Accord of the ABA Section of Business Law (1991).

 

(c)           Taberna shall have been furnished the
opinion of Nixon Peabody, LLP,
dated as of the Closing Date, addressed to the Holders of the Securities and
their respective 

 

8

 

successors and assigns and the New Indenture Trustee,
in substantially the form set out in Annex  B hereto.

 

(d)           The Holders of the Securities shall
have received the opinion of Gardere Wynne Sewell LLP, special counsel for the
New Indenture Trustee, dated as of the Closing Date, addressed to the Holders
of the Securities and their successors and assigns, in substantially the form
set out in Annex C hereto.

 

(e)           The Company shall have furnished to the
Holders of the Securities a certificate of the Company, signed by the Chief
Executive Officer, President or an Executive Vice President, and Chief
Financial Officer, Treasurer or Assistant Treasurer of the Company, dated as of
the Closing Date, as to (i) and (ii) below:

 

(i)            the
representations and warranties in this Agreement and the New Indenture are true
and correct on and as of the Closing Date, and the Company has complied with
all the agreements and satisfied all the conditions on its part to be performed
or satisfied at or prior to the Closing Date; and

 

(ii)           since
the date of the latest Interim Financial Statements, there has been no material
adverse change in the condition (financial or other), earnings, business or
assets of the Company and Significant Subsidiaries, taken as a whole, whether
or not arising from transactions occurring in the ordinary course of business
(a “Material Adverse Change”).

 

(f)            Intentionally omitted.

 

(g)           Prior to the Closing Date, the
Company shall have furnished to the Holders of the Securities and their counsel
such further information, certificates and documents as the Holders of the
Securities or such counsel may reasonably request.

 

If any of the conditions specified in this Section 3
shall not have been fulfilled when and as provided in this Agreement, or if any
of the opinions, certificates and documents mentioned above or elsewhere in
this Agreement shall not be reasonably satisfactory in form and substance to
the Holders of the Securities or their counsel, this Agreement and any
obligations of Taberna hereunder, whether as holders of the Original Preferred
Securities or as prospective Holders of the Securities, may be canceled at, or
at any time prior to, the Closing Date by Taberna.  Notice of such cancellation shall be given to
the Company in writing or by telephone and confirmed in writing, or by e-mail
or facsimile.

 

Each certificate signed by any officer of the Company
and delivered to the Holders of the Securities or the Holders’ counsel in
connection with the Operative Documents and the transactions contemplated
hereby and thereby shall be deemed to be a representation and warranty of the
Company and not by such officer in any individual capacity.

 

9

 

4.             Representations
and Warranties of the Company.  The Company represents and warrants to, and
agrees with the Taberna, as holders of the Original Preferred Securities and
with the Holders of the Securities, as follows:

 

(a)           It (i) is duly organized and validly
existing under the laws of its jurisdiction of organization or incorporation, (ii) is
in good standing under such laws and (iii) has full power and authority to
execute, deliver and perform its obligations under this Agreement and the other
Operative Documents.

 

(b)           It is an “accredited investor” as
defined in Rule 501 under the Securities Act. Without characterizing the
Original Preferred Securities or any of the Taberna Transferred Rights as a “security”
within the meaning of applicable securities laws, it is not acquiring the
Original Preferred Securities or the Taberna Transferred Rights with a view
towards the sale or distribution thereof in violation of the Securities Act.

 

(c)           Intentionally omitted.

 

(d)           None of the Securities, the New
Indenture, or the Exchange, is or may be void or voidable as an actual or
constructive fraudulent transfer or as a preferential transfer.

 

(e)           It (i) is a sophisticated entity
with respect to the Exchange, (ii) has such knowledge and experience, and
has made investments of a similar nature, so as to be aware of the risks and
uncertainties inherent in the Exchange and (iii) has independently and
without reliance upon Taberna, any Holder of the Securities, Taberna Capital
Management, LLC or Trustee or any of their affiliates, and based on such
information as it has deemed appropriate, made its own analysis and decision to
enter into this Agreement, except that it has relied upon Taberna’s express
representations, warranties, covenants and agreements in this Agreement.  The Company acknowledges that none of
Taberna, any Holders of the Securities, Taberna Capital Management, LLC or
Trustee or any of their affiliates has given it any investment advice, credit
information or opinion on whether the Exchange is prudent.

 

(f)            It has not engaged any broker,
finder or other entity acting under the authority of it or any of its
affiliates that is entitled to any broker’s commission or other fee in
connection with the transaction for which Taberna, any Holder, Trustee or any
of their affiliates could be responsible.

 

(g)           No interest in the Taberna
Transferred Rights is being acquired by or on behalf of an entity that is, or
at any time while the Taberna Transferred Rights are held thereby will be, one
or more Benefit Plans.

 

(h)           Neither the Company nor any of its “Affiliates”
(as defined in Rule 501(b) of Regulation D (“Regulation D”) under the Securities Act (as defined below)),
nor any person acting on its or their behalf, has, directly or indirectly, made
offers or sales of any security, or solicited offers to buy any security, under
circumstances that would require the registration of any of the Securities
under the Securities Act; provided that the Company does not make any
representations as to any action taken by an Indemnified Party.

 

10

 

(i)            Neither the Company nor any of its
Affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with any offer or sale of any of the Securities provided, that the Company does not make any representations
as to any action taken by an Indemnified Party.

 

(j)            The Securities (i) are not and
have not been listed on a national securities exchange registered under Section 6
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or quoted on a U.S. automated inter-dealer
quotation system and (ii) are not of an open-end investment company, unit
investment trust or face-amount certificate company that are, or are required
to be, registered under Section 8 of the Investment Company Act of 1940,
as amended (the “Investment Company
Act”), and the Securities otherwise satisfy the eligibility
requirements of Rule 144A(d)(3) promulgated pursuant to the
Securities Act (“Rule 144A(d)(3)”).

 

(k)           Neither the Company nor any of its
Affiliates, nor any person acting on its or their behalf, has engaged, or will
engage, in any “directed selling efforts” within the meaning of Regulation S
under the Securities Act with respect to the Securities.

 

(l)            The Company is not, and immediately
following consummation of the transactions contemplated hereby, will not be, an
“investment company” or an entity “controlled” by an “investment company,” in
each case within the meaning of Section 3(a) of the Investment
Company Act.

 

(m)          Each of this Agreement and the New
Indenture and the consummation of the transactions contemplated herein and
therein have been duly authorized by the Company and, on the Closing Date, will
have been duly executed and delivered by the Company, and, assuming due
authorization, execution and delivery by Taberna and/or the Trustee, as
applicable, will be a legal, valid and binding obligations of the Company
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally
and to general principles of equity.

 

(n)           The Securities have been duly
authorized by the Company and, on the Closing Date, will have been duly
executed and delivered to the Trustee for authentication in accordance with the
New Indenture and, when authenticated in the manner provided for in the New
Indenture and delivered to the Holders, will constitute legal, valid and binding
obligations of the Company entitled to the benefits of the New Indenture,
enforceable against the Company in accordance with their terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally and to general principles of equity.

 

(o)           Neither the issue of the Securities
and exchange of the Securities for the Original Preferred Securities, nor the
execution and delivery of and compliance with the Operative Documents by the
Company, nor the consummation of the transactions contemplated herein or
therein, (i) will conflict with or constitute a violation or breach of (x) the
charter or bylaws or similar organizational documents of the Company or any of
its Significant Subsidiaries or (y) any applicable law, statute, rule,
regulation, judgment, order, writ or decree of any government, governmental
authority, agency or instrumentality or court, domestic or 

 

11

 

foreign, having jurisdiction over the Company or any of
its Significant Subsidiaries or their respective properties or assets
(collectively, the “Governmental
Entities”), (ii) will conflict with or constitute a violation
or breach of, or a default or Repayment Event (as defined below) under, or
result in the creation or imposition of any pledge, security interest, claim,
lien or other encumbrance of any kind (each, a “Lien”) upon any property or assets of the Company or any if
its Significant Subsidiaries pursuant to any contract, indenture, mortgage,
loan agreement, note, lease or other agreement or instrument to which (A) the
Company or any Significant Subsidiary is a party or by which it or any of them
may be bound, or (B) to which any of the property or assets of any of them
is subject, or any judgment, order or decree of any court, Governmental Entity
or arbitrator, except, in the case of clause (i)(y) or this clause (ii),
for such conflicts, breaches, violations, defaults, Repayment Events (as
defined below) or Liens which (X) would not, singly or in the aggregate,
adversely affect the consummation of the transactions contemplated by the
Operative Documents and (Y) would not, singly or in the aggregate, have a
Material Adverse Effect or (iii) will require the consent, approval,
authorization or order of any court or Governmental Entity.  As used herein, a “Repayment Event” means any event or condition which gives
the holder of any note, debenture or other evidence of indebtedness (or any
person acting on such holder’s behalf) the right to require the repurchase,
redemption or repayment of all or a portion of such indebtedness by the Company
or any of its subsidiaries prior to its scheduled maturity. Notwithstanding the
foregoing, solely for purposes of subclause (ii) above, no conflict,
breach, violation, default, Repayment Event, Lien or Material Adverse Effect
will be deemed to have occurred unless (a) acknowledged by the Company or (b) adjudicated
by a court of competent jurisdiction.

 

(p)           The Company has all requisite power
and authority to own, lease and operate its properties and assets and conduct
the business it transacts and proposes to transact, and is duly qualified to
transact business and is in good standing in each jurisdiction where the nature
of its activities requires such qualification, except where the failure of the
Company to be so qualified would not, singly or in the aggregate, have a
Material Adverse Effect.

 

(q)           The Company has no subsidiaries that
are material to its business, financial condition or earnings, other than those
Subsidiaries listed in Schedule 1 attached hereto (which Schedule 1
lists each of the Company’s Significant Subsidiaries).  Each Significant Subsidiary is a corporation,
partnership or limited liability company duly and properly incorporated or
organized or formed, as the case may be, validly existing and in good standing
under the laws of the jurisdiction in which it is chartered or organized or
formed, with all requisite power and authority to own, lease and operate its
properties and conduct the business it transacts.  Each Significant Subsidiary is duly qualified
to transact business as a foreign corporation, partnership or limited liability
company, as applicable, and is in good standing in each jurisdiction where the
nature of its activities requires such qualification, except where the failure
to be so qualified would not, singly or in the aggregate, have a Material
Adverse Effect.

 

(r)            The Company and each of its
subsidiaries hold all necessary approvals, authorizations, orders, licenses,
consents, registrations, qualifications, certificates and permits
(collectively, the “Governmental
Licenses”) of and from Governmental Entities necessary to conduct
their respective businesses as now being conducted, and neither the Company nor
any of its subsidiaries has received any notice of proceedings relating to the
revocation or modification of any such Government License, except where the
failure to be so licensed or approved or the 

 

12

 

receipt of an unfavorable decision, ruling or finding,
would not, singly or in the aggregate, have a Material Adverse Effect; all of
the Governmental Licenses are valid and in full force and effect, except where
the invalidity or the failure of such Governmental Licenses to be in full force
and effect, would not, singly or in the aggregate, have a Material Adverse
Effect; and the Company and its subsidiaries are in compliance with all
applicable laws, rules, regulations, judgments, orders, decrees and consents,
except where the failure to be in compliance would not, singly or in the
aggregate, have a Material Adverse Effect.

 

(s)           Reserved.

 

(t)            Neither the Company nor any of its
subsidiaries is (i) in violation of its respective charter or by-laws or
similar organizational documents or (ii) in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, lease or other agreement
or instrument to which the Company or any such subsidiary is a party or by
which it or any of them may be bound or to which any of the property or assets
of any of them is subject, except, in the case of clause (ii), where such
violation or default would not, singly or in the aggregate, have a Material
Adverse Effect.

 

(u)           There is no action, suit or
proceeding before or by any Governmental Entity, arbitrator or court, domestic
or foreign, now pending or, to the knowledge of the Company after due inquiry,
threatened against or affecting the Company or any of its subsidiaries, except
for such actions, suits or proceedings that, if adversely determined, would
not, singly or in the aggregate, adversely affect the consummation of the
transactions contemplated by the Operative Documents or have a Material Adverse
Effect; and the aggregate of all pending legal or governmental proceedings to
which the Company or any of its subsidiaries is a party or of which any of
their respective properties or assets is subject, including ordinary routine
litigation incidental to the business, are not expected to result in a Material
Adverse Effect.

 

(v)           The accountants of the Company who
certified the Financial Statements(defined below) are independent accountants
of the Company and its subsidiaries within the meaning of the Securities Act,
and the rules and regulations of the Securities and Exchange Commission
(the “Commission”)
thereunder.

 

(w)          The audited consolidated financial
statements (including the notes thereto) and schedules of the Company and its
consolidated subsidiaries for the fiscal year ended December 31, 2007 (the “Financial
Statements”) and the interim unaudited consolidated financial
statements of the Company and its consolidated subsidiaries for the quarter
ended September 30, 2008
(the “Interim Financial
Statements”) provided to Taberna are the most recent available
audited and unaudited consolidated financial statements of the Company and its
consolidated subsidiaries, respectively, and fairly present in all material
respects, in accordance with U.S. generally accepted accounting principles (“GAAP”), the financial position of
the Company and its consolidated subsidiaries, and the results of operations
and changes in financial condition as of the dates and for the periods therein
specified, subject, in the case of Interim Financial Statements, to year-end
adjustments (which are expected to consist solely of normal recurring
adjustments).  Such consolidated
financial statements and schedules have been 

 

13

 

prepared in accordance with GAAP consistently applied
throughout the periods involved (except as otherwise noted therein).

 

(x)            Neither
the Company nor any of its subsidiaries has any material liability, whether
asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated, and whether due or to become
due, including any liability for taxes (and there is no past or present fact,
situation, circumstance, condition or other basis for any present or future
action, suit, proceeding, hearing, charge, complaint, claim or demand against
the Company or any of its subsidiaries that could give rise to any such
liability), except for (i) liabilities set forth in the Financial
Statements or the Interim Financial Statements and (ii) normal
fluctuations in the amount of the liabilities referred to in clause (i) above
occurring in the ordinary course of business of the Company and all of its
subsidiaries since the date of the most recent balance sheet included in such
Financial Statements.

 

(y)           Since
the respective dates of the Financial Statements and/or the Interim Financial
Statements, there has not been (A) any Material Adverse Change or (B) any
dividend or distribution of any kind declared, paid or made by the Company on
any class of its Equity Interests.

 

(z)            No
labor dispute with the employees of the Company or any of its subsidiaries
exists or, to the knowledge of the Company, is imminent, except those which
would not, singly or in the aggregate, have a Material Adverse Effect.

 

(aa)         No
filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any Governmental Entity, other than those that have
been made or obtained, is necessary or required for the performance by the
Company of its obligations under the Operative Documents, as applicable, or the
consummation by the Company of the transactions contemplated by the Operative
Documents.

 

(bb)         The
Company and each of its subsidiaries has good and marketable title to all of
its respective real and personal property, in each case free and clear of all
Liens and defects, except for those securing debt in the ordinary course of its
business and that would not, singly or in the aggregate, have a Material
Adverse Effect; and all of the leases and subleases under which the Company or
any of its subsidiaries holds properties are in full force and effect, except
where the failure of such leases and subleases to be in full force and effect
would not, singly or in the aggregate, have a Material Adverse Effect, and
neither the Company nor any of its subsidiaries has any notice of any claim of
any sort that has been asserted by anyone adverse to the rights of the Company
or any Significant Subsidiary under any such leases or subleases, or affecting
or questioning the rights of such entity to the continued possession of the
leased or subleased premises under any such lease or sublease, except for such
claims that would not, singly or in the aggregate, have a Material Adverse
Effect.

 

(cc)         The
Company and each Significant Subsidiary has timely and duly filed (or filed
extensions thereof (and which extensions are presently in effect)) all Tax
Returns (as defined below) required to be filed by them, and all such Tax
Returns are true, correct and complete, except for such failures to timely file
or inaccuracies that would not, singularly or in the aggregate, have a Material
Adverse Effect.  The Company and each of
its subsidiaries has 

 

14

 

timely and duly paid in full all Taxes (as defined
below) required to be paid by them (whether or not such amounts are shown as
due on any Tax Return).  There are no
material federal, state, or other Tax audits or deficiency assessments proposed
or pending with respect to the Company or and Significant Subsidiary, and no
such audits or assessments are threatened. 
As used herein, the terms “Tax” or “Taxes” mean (i) all federal, state, local, and foreign
taxes, and other assessments of a similar nature (whether imposed directly or
through withholding), including any interest, additions to tax, or penalties
applicable thereto, imposed by any Governmental Entity, and (ii) all
liabilities in respect of such amounts arising as a result of being a member of
any affiliated, consolidated, combined, unitary or similar group, as a
successor to another person or by contract. 
As used herein, the term “Tax Returns” means all federal, state, local,
and foreign Tax returns, declarations, statements, reports, schedules, forms,
and information returns and any amendments thereto filed or required to be
filed with any Governmental Entity.

 

(dd)         To the knowledge of the Company there
are no rulemaking or similar proceedings before the U.S. Internal Revenue
Service or comparable federal, state, local or foreign government bodies which
involve or affect the Company or any subsidiary, which, if the subject of an
action unfavorable to the Company or any subsidiary, could result in a Material
Adverse Effect.

 

(ee)         The books, records and accounts of the
Company and its subsidiaries accurately and fairly reflect, in all material
respects and in reasonable detail, the transactions in, and dispositions of,
the assets of, and the results of operations of, the Company and its
subsidiaries.  The Company and each of
its subsidiaries maintains a system of internal accounting controls sufficient
to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in
accordance with GAAP and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management’s general or specific
authorization and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.

 

(ff)           The Company and its Significant
Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts in all material respects as
are customary in the businesses in which they are engaged or propose to engage
after giving effect to the transactions contemplated hereby.  All policies of insurance and fidelity or
surety bonds insuring the Company or any of its Significant Subsidiaries’
respective businesses, assets, employees, officers and directors are in full
force and effect.  The Company and each
of the Significant Subsidiaries are in compliance with the terms of such
policies and instruments in all material respects. Neither the Company nor any
Significant Subsidiary has reason to believe that it will not be able to renew
its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not have a Material Adverse Effect.  Within the past twelve months, neither the
Company nor any Significant Subsidiary has been denied any insurance coverage
it has sought or for which it has applied.

 

(gg)         Neither the Company and its Significant
Subsidiaries, nor, to the knowledge of the Company, any person acting on behalf
of the Company and/or its Significant 

 

15

 

Subsidiaries including, without limitation, any
director, officer, manager, agent or employee of the Company or its Significant
Subsidiaries has, directly or indirectly, while acting on behalf of the Company
and/or its Significant Subsidiaries (i) used any corporate, partnership or
company funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to political activity; (ii) made any unlawful
payment to foreign or domestic government officials or employees or to foreign
or domestic political parties or campaigns from corporate, partnership or
company funds; (iii) violated any provision of the Foreign Corrupt
Practices Act of 1977, as amended; or (iv) made any other unlawful
payment.

 

(hh)         Intentionally omitted.

 

(ii)           Except as would not, individually or
in the aggregate, result in a Material Adverse Change, (i) the Company and
its subsidiaries have been and are in material compliance with applicable
Environmental Laws (as defined below), (ii) none of the Company, any of
its subsidiaries or, to the best of the Company’s knowledge, (a) any other
owners of any of the real properties currently or previously owned, leased or
operated by the Company or any of its Significant Subsidiaries (collectively,
the “Properties”) at any time or any other
party, has at any time released (as such term is defined in CERCLA (as defined
below)) or otherwise disposed of Hazardous Materials (as defined below) on, to,
in, under or from the Properties other than in compliance with all applicable
Environmental Laws, (iii) neither the Company nor any of its subsidiaries
has used nor intends to use the Properties or any subsequently acquired
properties, other than in compliance with applicable Environmental Laws, (iv) neither
the Company nor any of its subsidiaries has received any notice of, or have any
knowledge of any occurrence or circumstance which, with notice or passage of
time or both, would give rise to a claim under or pursuant to any Environmental
Law with respect to the Properties, or their respective assets or arising out
of the conduct of the Company or its subsidiaries, (v) none of the
Properties are included or, to the best knowledge of the Company, proposed for
inclusion on the National Priorities List issued pursuant to CERCLA by the
United States Environmental Protection Agency or, to the best of the Company’s
knowledge, proposed for inclusion on any similar list or inventory issued
pursuant to any other Environmental Law or issued by any other Governmental
Entity, (vi) none of the Company, any of its subsidiaries or agents or, to
the best of the Company’s knowledge, any other person or entity for whose
conduct any of them is or may be held responsible, has generated, manufactured,
refined, transported, treated, stored, handled, disposed, transferred, produced
or processed any Hazardous Material at any of the Properties, except in
compliance with all applicable Environmental Laws, and has not transported or
arranged for the transport of any Hazardous Material from the Properties to
another property, except in compliance with all applicable Environmental Laws, (vii) no
lien has been imposed on the Properties by any Governmental Entity in
connection with the presence on or off such Property of any Hazardous Material
or with respect to an Environmental Law, and (viii) none of the Company,
any of its Significant Subsidiaries or, to the best knowledge of the Company,
any other person or entity for whose conduct any of them is or may be held
responsible, has entered into or been subject to any consent decree, compliance
order, or administrative order in connection with an Environmental Law with
respect to the Properties or any facilities or improvements or any operations
or activities thereon.

 

(jj)           As used herein, “Hazardous Materials” shall include, without limitation, any
flammable materials, explosives, radioactive materials, hazardous materials,
hazardous 

 

16

 

substances, hazardous wastes, toxic substances or
related materials, asbestos, petroleum, petroleum products and any hazardous
material as defined by any federal, state or local environmental law, statute,
ordinance, rule or regulation, including, without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
as amended, 42 U.S.C. §§ 9601-9675 (“CERCLA”),
the Hazardous Materials Transportation Act, as amended, 49 U.S.C.
§§ 5101-5127, the Resource Conservation and Recovery Act, as amended, 42
U.S.C. §§ 6901-6992k, the Emergency Planning and Community Right-to-Know
Act of 1986, 42 U.S.C. §§ 11001-11050, the Toxic Substances Control Act,
15 U.S.C. §§ 2601-2692, the Federal Insecticide, Fungicide and Rodenticide
Act, 7 U.S.C. §§ 136-136y, the Clean Air Act, 42 U.S.C. §§ 7401-7642,
the Clean Water Act (Federal Water Pollution Control Act), 33 U.S.C.
§§ 1251-1387, the Safe Drinking Water Act, 42 U.S.C. §§ 300f-300j-26,
and the Occupational Safety and Health Act, 29 U.S.C. §§ 651-678, and any
analogous state laws, as any of the above may be amended from time to time and
in the regulations promulgated pursuant to each of the foregoing (including
environmental statutes and laws not specifically defined herein) (individually,
an “Environmental Law”
and collectively, the “Environmental
Laws”) or by any Governmental Entity.

 

Except as expressly stated in the Operative Documents
or any of the other documents delivered by the company in connection herewith,
the Company makes no representations or warranties, express or implied, with
respect to the Exchange, the Taberna Transferred Rights, the Original Preferred
Securities, the Existing Indenture or any other matter.

 

5.             Representations and Warranties
of Taberna.  Each Taberna entity, for itself, represents
and warrants to, and agrees with, the Company as follows:

 

(a)           It is a company duly formed, validly
existing and in good standing under the laws of the jurisdiction in which it is
organized with all requisite (i) power and authority to execute, deliver
and perform under Operative Documents to which it is a party, to make the representations
and warranties specified herein and therein and to consummate the transactions
contemplated in the Operative Documents.

 

(b)           This Agreement and the consummation
of the transactions contemplated herein has been duly authorized by it and, on
the Closing Date, will have been duly executed and delivered by it and,
assuming due authorization, execution and delivery by the Company and Trustee
of the Operative Documents to which each is a party, will be a legal, valid and
binding obligation of such Taberna, enforceable against such Taberna in
accordance with its terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors’ rights generally and to general principles of
equity.

 

(c)           No filing with, or authorization,
approval, consent, license, order registration, qualification or decree of, any
Governmental Entity or any other Person, other than those that have been made
or obtained, is necessary or required for the performance by such Taberna of
its obligations under this Agreement or to consummate the transactions
contemplated herein.

 

(d)           It is a “Qualified Holder” as such
term is defined in Section 2(a)(51) of the Investment Company Act.

 

17

 

(e)           Taberna I, Taberna II and Taberna III
are the legal and beneficial owners of the Trust I Preferred Securities and the
related Taberna Transferred Rights and shall deliver the Trust I Preferred
Securities free and clear of any Lien created by such Taberna entities.

 

(f)            Taberna III, Taberna IV and Taberna
V are the legal and beneficial owners of the Trust II Preferred Securities and
the related Taberna Transferred Rights and shall deliver the Trust II Preferred
Securities free and clear of any Lien created by such Taberna entities.

 

(g)           Taberna IV, Taberna VII and Taberna
VIII are the legal and beneficial owners of the Trust III Preferred Securities
and the related Taberna Transferred Rights and shall deliver the Trust III
Preferred Securities free and clear of any Lien created by such Taberna
entities.

 

(h)           Intentionally Omitted.

 

(i)            There is no action, suit or
proceeding before or by any Governmental Entity, arbitrator or court, domestic
or foreign, now pending or, to its knowledge, threatened against or affecting
it, except for such actions, suits or proceedings that, if adversely
determined, would not, singly or in the aggregate, adversely affect the
consummation of the transactions contemplated by the Operative Documents.

 

(j)            The outstanding principal amount of
its respective Original Preferred Securities is the face amount as set forth in
such Original Preferred Securities.

 

(k)           It is aware that the Securities have
not been and will not be registered under the Securities Act and may not be
offered or sold within the United States or to “U.S. persons” (as defined in
Regulation S under the Securities Act) except in accordance with Rule 903
of Regulation S under the Securities Act or pursuant to an exemption from the
registration requirements of the Securities Act.

 

(l)            It is an “accredited investor,” as
such term is defined in Rule 501(a) of Regulation D under the
Securities Act and has such knowledge and experience in financial and business
matters as to be capable of evaluating the risks and merits of exchanging the
Original Preferred Securities for the Securities. Without characterizing the
Original Preferred Securities or the Taberna Transferred Rights as a “security”
within the meaning of applicable securities laws, it has not made any offers to
sell, or solicitations of any offers to buy, all or any portion of the Original
Preferred Securities or Taberna Transferred Rights in violation of any
applicable securities laws.

 

(m)          Neither it nor any of its Affiliates,
nor any person acting on its or its Affiliate’s behalf has engaged, or will
engage, any form of “general solicitation or general advertising” (within the
meaning of Regulation D under the Securities Act) in connection with any offer
or sale of the Securities.

 

(n)           It understands and acknowledges that (i) no
public market exists for any of the Securities and that it is unlikely that a
public market will ever exist for the Securities, (ii) such Holder is
purchasing the Securities for its own account, for investment and not with a
view to, or for offer or sale in connection with, any distribution thereof in
violation of the Securities 

 

18

 

Act or other applicable securities laws, subject to
any requirement of law that the disposition of its property be at all times
within its control and subject to its ability to resell such Securities
pursuant to an effective registration statement under the Securities Act or
pursuant to an exemption therefrom or in a transaction not subject thereto, and
it agrees to the legends and transfer restrictions applicable to the Securities
contained in the New Indenture, and (iii) it has had the opportunity to
ask questions of, and receive answers and request additional information from,
the Company and is aware that it may be required to bear the economic risk of
an investment in the Securities.

 

(o)           It has not engaged any broker, finder
or other entity acting under its authority that is entitled to any broker’s
commission or other fee in connection with this Agreement and the consummation
of transactions contemplated in this Agreement and the New Indenture for which
the Company could be responsible.

 

(p)           It (i) is a sophisticated entity
with respect to the Exchange, (ii) has such knowledge and experience, and
has made investments of a similar nature, so as to be aware of the risks and
uncertainties inherent in the Exchange and (iii) has independently and
without reliance upon the Company or any of their affiliates, and based on such
information as it has deemed appropriate, made its own analysis and decision to
enter into this Agreement, except that it has relied upon the Company’s express
representations, warranties, covenants and agreements in the Operative
Documents and the other documents delivered by the Company in connection
therewith.

 

Except as expressly stated in this Agreement, Taberna
make no representations or warranties, express or implied, with respect to the
Exchange, the Taberna Transferred Rights, the Original Preferred Securities,
the Existing Indentures, or any other matter.

 

6.             Covenants
and Agreements of the Company.  The Company agrees with the Taberna and the
Holders as follows:

 

(a)           The Company has taken all action
reasonably necessary or appropriate to cause its representations and warranties
contained in Section 4 hereof to be true as of the Closing Date and
after giving effect to the Exchange.

 

(b)           The Company will arrange for the
qualification of the Securities for sale under the laws of such jurisdictions
as the Holders of the Securities may designate and will maintain such
qualifications in effect so long as required for the sale of the
Securities.  The Company will promptly
advise the Holders of the Securities of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose.

 

(c)           The Company will not, and
acknowledges that it is not permitted to, exercise any right to defer interest
for any Extension Period (as defined in the New Indenture) with respect to any
Interest Period commencing prior to January 30, 2019.

 

(d)           Intentionally omitted.

 

19

 

(e)           The Company will not, and will not
permit any of its Affiliates or any person acting on its or their behalf to,
directly or indirectly, make offers or sales of any security, or solicit offers
to buy any security, under circumstances that would require the registration of
any of the Securities under the Securities Act.

 

(f)            The Company will not, and will not
permit any of its Affiliates or any person acting on its or their behalf to,
engage in (i) any form of “general solicitation or general advertising”
(within the meaning of Regulation D), or (ii) any “directed selling
efforts” within the meaning of Regulation S under the Securities Act, in
connection with any offer or sale of the any of the Securities.

 

(g)           So long as any of the Securities are
outstanding, (i) the Securities shall not be listed on a national
securities exchange registered under Section 6 of the Exchange Act or
quoted in a U.S. automated inter-dealer quotation system and (ii) the
Company shall not be an open-end investment company, unit investment trust or
face-amount certificate company that is, or is required to be, registered under
Section 8 of the Investment Company Act, and, the Securities shall
otherwise satisfy the eligibility requirements of Rule 144A(d)(3).

 

(h)           The Company shall furnish to (i) the
Holders of the Securities, (ii) Taberna Capital Management, LLC and (iii) any
beneficial owner of the Securities reasonably identified to the Company, a duly
completed and executed certificate in the form attached hereto as Annex 
D, including the financial statements referenced in such Annex, which
certificate and financial statements shall be so furnished by the Company not
later than forty-five (45) days after the end of each of the first three fiscal
quarters of each fiscal year of the Company and not later than ninety (90) days
after the end of each fiscal year of the Company.

 

(i)            The Company will, during any period
in which it or its general partner is not subject to and in compliance with Section 13
or 15(d) of the Exchange Act, or it or its general partner is not exempt
from such reporting requirements pursuant to and in compliance with Rule 12g3-2(b) under
the Exchange Act, provide to each Holder of the Securities, upon the request of
such Holder, any information required to be provided by Rule 144A(d)(4) under
the Securities Act.  If the Company or
its general partner is required to register under the Exchange Act, such
reports filed in compliance with Rule 12g3-2(b) shall be sufficient
information as required above.  This
covenant is intended to be for the benefit of the Holders of the Securities.

 

(j)            Until one hundred eighty (180) days
following the Closing Date, the Company will not, without the Holders’ or their
assignees’ prior written consent in their sole discretion, offer, sell,
contract to sell, grant any option to purchase or otherwise dispose of,
directly or indirectly, (i) any Securities or other securities
substantially similar to the Securities other than as expressly contemplated by
the New Indenture, if at all, or (ii) any other securities convertible
into, or exercisable or exchangeable for, any of the Securities or other
securities substantially similar to the Securities.

 

(k)           The Company will not identify any of
the Indemnified Parties (as defined below) in a press release or any other
public statement without the prior written consent of such Indemnified Party.

 

20

 

(l)            The Holders of the Securities are
granted the right under the New Indenture to request the substitution of new
notes for all or a portion of the Securities (the “Replacement Securities”). 
The Replacement Securities shall bear terms identical to the Securities
with the sole exception of interest payment dates (and corresponding redemption
date and maturity date), which will be specified by the Holders of the
Securities.  In no event will the
interest payment dates (and corresponding redemption date and maturity date) on
the Replacement Securities vary by more than sixty (60) calendar days from the
original interest payment dates (and corresponding redemption date and maturity
date) under the Securities.  The Company
agrees to cooperate with all reasonable requests of the Holders of the
Securities, as applicable in connection with any of the foregoing, provided
that no action requested of the Company in connection with such cooperation
shall materially increase the obligations or materially decrease the rights of
the Company pursuant to such documents.

 

21

 

7.                                       Payment of Expenses. 
In addition to the obligations agreed to by the Company under Section 2(b)(vii) herein,
the Company agrees to pay all costs and expenses incident to the performance of
the obligations of the Company under this Agreement, whether or not the
transactions contemplated herein are consummated or this Agreement is
terminated, including all costs and expenses incident to (i) the
authorization, issuance, sale and delivery of the Securities and any taxes
payable in connection therewith; (ii) the fees and expenses of counsel,
accountants and any other experts or advisors retained by the Company; and (iv) the
fees and all reasonable expenses of the New Indenture Trustee and any other
trustee or paying agent appointed under the Operative Documents, including the
fees and disbursements of counsel for such trustees.  The fees of the New Indenture Trustee
(excluding fees and disbursements of counsel) shall not exceed the amounts set
forth in that certain Fee Agreement dated as of the date hereof between the
Company and The Bank of New York Mellon Trust, National Association,executed in
connection with this Agreement and the New Indenture.

 

8.                                       Indemnification.  (a)  The
Company agrees to indemnify and hold harmless BNYM, the Holders, Taberna Capital
Management, LLC, Taberna Securities, LLC, and their respective affiliates
(collectively, the “Indemnified Parties”)
each person, if any, who controls any of the Indemnified Parties within the
meaning of the Securities Act or the Exchange Act, and the Indemnified Parties’
respective directors, officers, employees and agents against any and all
losses, claims, damages or liabilities, joint or several, to which the
Indemnified Parties may become subject, under the Securities Act, the Exchange
Act or other federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based on (i) any untrue statement
or alleged untrue statement of a material fact contained in any information or
documents provided by or on behalf of the Company, (ii) any omission or
alleged omission to state a material fact required to be stated or necessary to
make the statements contained in any information provided by the Company, in
light of the circumstances under which they were made, not misleading, or (iii) the
breach or alleged breach of any representation, warranty, or agreement of the
Company contained herein, or (iv) the execution and delivery by the
Company of the Operative Documents and the consummation of the transactions
contemplated herein and therein, and agrees to reimburse each such Indemnified
Party, as incurred, for any legal or other expenses reasonably incurred by the
Indemnified Parties in connection with investigating or defending any such
loss, claim, damage, liability or action. This indemnity agreement will be in
addition to any liability that the Company may otherwise have.

 

(b)           Promptly after receipt by an
Indemnified Party under this Section 8 of notice of the commencement of
any action, such Indemnified Party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 8, promptly notify
the indemnifying party in writing of the commencement thereof; but the failure
so to notify the indemnifying party (i) will not relieve the indemnifying
party from liability under paragraph (a) above unless and to the extent
that such failure results in the forfeiture by the indemnifying party of
material rights and defenses and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any Indemnified Party other than the
indemnification obligation provided in paragraph (a) above.  The Indemnified Parties shall be entitled to
appoint one counsel to represent the Indemnified Parties in any action for
which indemnification is sought.  An
indemnifying party may participate at its own expense in the defense of any
such action; provided, that counsel to the
indemnifying party shall not (except with the consent of the 

 

22

 

Indemnified Party) also be counsel to the Indemnified
Party.  In no event shall the
indemnifying parties be liable for fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all
Indemnified Parties in connection with any one action or separate but similar
or related actions in the same jurisdiction arising out of the same general
allegations or circumstances, unless an Indemnified Party elects to engage
separate counsel because such Indemnified Party believes that its interests are
not aligned with the interests of another Indemnified Party or that a conflict
of interest might result.  An indemnifying
party will not, without the prior written consent of the Indemnified Parties,
settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of which
indemnification may be sought hereunder (whether or not the Indemnified Parties
are actual or potential parties to such claim, action, suit or proceeding)
unless such settlement, compromise or consent includes an unconditional release
of each Indemnified Party from all liability arising out of such claim, action,
suit or proceeding.

 

9.                                       Representations and
Indemnities to Survive.  The respective
agreements, representations, warranties, indemnities and other statements of
the Company or its officers set forth in or made pursuant to this Agreement
will remain in full force and effect and will survive the Exchange.  The provisions of Sections 7 and 8 shall
survive the termination or cancellation of this Agreement.

 

10.                                 Amendments. 
This Agreement may not be modified, amended, altered or supplemented,
except upon the execution and delivery of a written agreement by each of the
parties hereto.

 

11.                                 Notices. 
All communications hereunder will be in writing and effective only on
receipt, and will be mailed, delivered by hand or courier or sent by facsimile
and confirmed or by any other reasonable means of communication, including by
electronic mail, to the relevant party at its address specified in Exhibit C.

 

12.                                 Successors and Assigns. 
This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and permitted assigns.  Nothing expressed or mentioned in this
Agreement is intended or shall be construed to give any person other than the
parties hereto and the affiliates, directors, officers, employees, agents and
controlling persons referred to in Section 8 hereof and their successors,
assigns, heirs and legal representatives, any right or obligation
hereunder.  None of the rights or
obligations of the Company under this Agreement may be assigned, whether by
operation of law or otherwise, without Taberna’s prior written consent.  The rights and obligations of the Holders
under this Agreement may be assigned by the Holders without the Company’s
consent; provided that the assignee assumes the obligations of any such Holders
under this Agreement.

 

13.                                 Applicable Law. 
THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO
PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW).

 

14.                                 Submission to Jurisdiction. 
ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH
RESPECT TO OR ARISING OUT OF 

 

23

 

THIS AGREEMENT MAY BE
BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW YORK, IN AND FOR THE
COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

 

15.                                 Counterparts and Facsimile.  This
Agreement may be executed by any one or more of the parties hereto in any
number of counterparts, each of which shall be deemed to be an original, but
all such counterparts shall together constitute one and the same instrument.  This Agreement may be executed by any one or
more of the parties hereto by facsimile.

 

[Signature Page Follows]

 

24

 

IN WITNESS WHEREOF, this Agreement has been entered
into as of the date first written above.

 

	
   

  	
  GKK
  CAPITAL LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GRAMERCY CAPITAL CORP.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Roger M. Cozzi

  
	
   

  	
   

  	
  Name:

  	
  Roger M. Cozzi

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

 

(Signature
continue on the next page)

 

 

TABERNA,
AS HOLDERS OF THE ORIGINAL PREFERRED SECURITIES AND AS HOLDERS (AS DEFINED IN
THE NEW INDENTURE):

 

	
   

  	
  TABERNA PREFERRED FUNDING II
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alasdair Foster

  
	
   

  	
   

  	
  Name:

  	
  Alasdair Foster

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TABERNA PREFERRED FUNDING III,
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alasdair Foster

  
	
   

  	
   

  	
  Name:

  	
  Alasdair Foster

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TABERNA PREFERRED FUNDING IV,
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alasdair Foster

  
	
   

  	
   

  	
  Name:

  	
  Alasdair Foster

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TABERNA PREFERRED FUNDING V,
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alasdair Foster

  
	
   

  	
   

  	
  Name:

  	
  Alasdair Foster

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TABERNA PREFERRED FUNDING VII,
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alasdair Foster

  
	
   

  	
   

  	
  Name:

  	
  Alasdair Foster

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TABERNA PREFERRED FUNDING VIII,
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alasdair Foster

  
	
   

  	
   

  	
  Name:

  	
  Alasdair Foster

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

Acknowledged and Agreed:

 

THE BANK OF NEW YORK
MELLON TRUST COMPANY, NATIONAL ASSOCIATION not in its individual capacity but
as Existing Indenture Trustee, Property Trustee and New Indenture Trustee

 

 

	
  By:

  	
  /s/ Bill Marshall

  	
   

  
	
   

  	
  Name:

  	
  Bill Marshall

  	
   

  
	
   

  	
  Title:

  	
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]