Document:

Exhibit 10.1

 

FIRST
AMENDED AND RESTATED CREDIT AGREEMENT

 

Originally dated as of October 25, 2004

 

among

 

MARKWEST
HYDROCARBON, INC.,

as the Borrower,

 

ROYAL BANK
OF CANADA,

as Administrative Agent

 

and

 

The Lenders Party Hereto

 

$25,000,000

 

SENIOR
CREDIT FACILITY

 

 

 

RBC CAPITAL
MARKETS

As Lead Arranger and Sole Bookrunner

 

 

Dated as of
January 31, 2006

 

 

TABLE OF
CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I.

  	
  DEFINITIONS AND ACOUNTING TERMS

  	
  1

  
	
  1.01

  	
  Defined Terms

  	
  1

  
	
  1.02

  	
  Other Interpretive Provisions

  	
  26

  
	
  1.03

  	
  Accounting Terms

  	
  26

  
	
  1.04

  	
  Rounding

  	
  26

  
	
  1.05

  	
  References to Agreements and Laws

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  THE COMMITMENT AND BORROWINGS

  	
  27

  
	
  2.01

  	
  Revolver Loans

  	
  27

  
	
  2.02

  	
  Borrowing Base Determinations

  	
  27

  
	
  2.03

  	
  Borrowings, Conversions and Continuations of Loans

  	
  27

  
	
  2.04

  	
  Prepayments

  	
  29

  
	
  2.05

  	
  Reduction or Termination of Revolving Commitments

  	
  30

  
	
  2.06

  	
  Repayment of Loans

  	
  30

  
	
  2.07

  	
  Interest

  	
  30

  
	
  2.08

  	
  Fees

  	
  31

  
	
  2.09

  	
  Computation of Interest and Fees

  	
  31

  
	
  2.10

  	
  Evidence of Debt

  	
  31

  
	
  2.11

  	
  Payments Generally

  	
  32

  
	
  2.12

  	
  Sharing of Payments

  	
  34

  
	
  2.13

  	
  Priority of Hedging Obligations and Banking Service
  Obligations

  	
  34

  
	
  2.14

  	
  Letters of Credit

  	
  34

  
	
  2.15

  	
  Extension of Termination Date; Removal of Lenders

  	
  41

  
	
  2.16

  	
  Conversion to Term Loan

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  43

  
	
  3.01

  	
  Taxes

  	
  43

  
	
  3.02

  	
  Illegality

  	
  44

  
	
  3.03

  	
  Inability to Determine Rates

  	
  44

  
	
  3.04

  	
  Increased Cost and Reduced Return; Capital Adequacy;
  Reserves on Eurodollar Rate Loans

  	
  44

  
	
  3.05

  	
  Funding Losses

  	
  45

  
	
  3.06

  	
  Matters Applicable to all Requests for Compensation

  	
  46

  
	
  3.07

  	
  Survival

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  CONDITIONS PRECEDENT

  	
  46

  
	
  4.01

  	
  Conditions Precedent

  	
  46

  
	
  4.02

  	
  Conditions to all Loans and L/C Credit Extension

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REPRESENTATIONS AND WARRANTIES.

  	
  49

  
	
  5.01

  	
  Existence; Qualification and Power; Compliance with
  Laws

  	
  49

  
						

 

i

 

	
  5.02

  	
  Authorization; No Contravention

  	
  49

  
	
  5.03

  	
  Governmental Authorization

  	
  50

  
	
  5.04

  	
  Binding Effect

  	
  50

  
	
  5.05

  	
  Financial Statements; No Material Adverse Effect

  	
  50

  
	
  5.06

  	
  Litigation

  	
  50

  
	
  5.07

  	
  No Default

  	
  50

  
	
  5.08

  	
  Ownership of Property; Liens

  	
  50

  
	
  5.09

  	
  Environmental Compliance

  	
  50

  
	
  5.10

  	
  Insurance

  	
  51

  
	
  5.11

  	
  Taxes

  	
  51

  
	
  5.12

  	
  ERISA Compliance

  	
  51

  
	
  5.13

  	
  Subsidiaries and other Investments

  	
  52

  
	
  5.14

  	
  Margin Regulations; Investment Company Act; Public
  Utility Holding Company Act; Use of Proceeds

  	
  52

  
	
  5.15

  	
  Disclosure

  	
  52

  
	
  5.16

  	
  Labor Matters

  	
  52

  
	
  5.17

  	
  Compliance with Laws

  	
  52

  
	
  5.18

  	
  Third Party Approvals

  	
  53

  
	
  5.19

  	
  Solvency

  	
  53

  
	
  5.20

  	
  Collateral

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  AFFIRMATIVE COVENANTS

  	
  53

  
	
  6.01

  	
  Financial Statements

  	
  53

  
	
  6.02

  	
  Certificates; Other Information

  	
  54

  
	
  6.03

  	
  Notices

  	
  54

  
	
  6.04

  	
  Payment of Obligations

  	
  55

  
	
  6.05

  	
  Preservation of Existence, Etc.

  	
  55

  
	
  6.06

  	
  Maintenance of Assets and Business

  	
  55

  
	
  6.07

  	
  Maintenance of Insurance

  	
  56

  
	
  6.08

  	
  Compliance with Laws and Contractual Obligations

  	
  57

  
	
  6.09

  	
  Books and Records

  	
  57

  
	
  6.10

  	
  Inspection Rights

  	
  57

  
	
  6.11

  	
  Compliance with ERISA

  	
  57

  
	
  6.12

  	
  Use of Proceeds

  	
  57

  
	
  6.13

  	
  Material Agreements

  	
  57

  
	
  6.14

  	
  Intentionally Deleted

  	
  57

  
	
  6.15

  	
  Guaranties

  	
  57

  
	
  6.16

  	
  Further Assurances; Additional Collateral

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  NEGATIVE COVENANTS.

  	
  59

  
	
  7.01

  	
  Liens

  	
  59

  
	
  7.02

  	
  Investments

  	
  60

  
	
  7.03

  	
  Hedging Agreements

  	
  60

  
	
  7.04

  	
  Indebtedness

  	
  60

  
						

 

ii

 

	
  7.05

  	
  Lease Obligations

  	
  61

  
	
  7.06

  	
  Fundamental Changes

  	
  61

  
	
  7.07

  	
  Dispositions

  	
  61

  
	
  7.08

  	
  Restricted Payments; Distributions and Redemptions

  	
  62

  
	
  7.09

  	
  ERISA

  	
  62

  
	
  7.10

  	
  Nature of Business; Capital Expenditures; Risk
  Management

  	
  62

  
	
  7.11

  	
  Transactions with Affiliates

  	
  62

  
	
  7.12

  	
  Burdensome Agreements

  	
  63

  
	
  7.13

  	
  Use of Proceeds

  	
  63

  
	
  7.14

  	
  Material Agreements

  	
  63

  
	
  7.15

  	
  Financial Covenants

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
  63

  
	
  8.01

  	
  Events of Default

  	
  63

  
	
  8.02

  	
  Remedies Upon Event of Default

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  ADMINISTRATIVE AGENT

  	
  67

  
	
  9.01

  	
  Appointment and Authorization of Agents; Lender
  Hedging Agreements

  	
  67

  
	
  9.02

  	
  Delegation of Duties

  	
  67

  
	
  9.03

  	
  Default; Collateral

  	
  67

  
	
  9.04

  	
  Liability of Agents

  	
  69

  
	
  9.05

  	
  Reliance by Administrative Agent

  	
  69

  
	
  9.06

  	
  Notice of Default

  	
  70

  
	
  9.07

  	
  Credit Decision; Disclosure of Information by
  Administrative Agent

  	
  70

  
	
  9.08

  	
  Indemnification of Agents

  	
  71

  
	
  9.09

  	
  Administrative Agent in its Individual Capacity

  	
  71

  
	
  9.10

  	
  Successor Administrative Agent

  	
  71

  
	
  9.11

  	
  Other Agents; Arranger

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS.

  	
  72

  
	
  10.01

  	
  Amendments, Release of Collateral, Etc

  	
  72

  
	
  10.02

  	
  Notices and Other Communications; Facsimile Copies

  	
  74

  
	
  10.03

  	
  No Waiver; Cumulative Remedies

  	
  75

  
	
  10.04

  	
  Attorney Costs; Expenses and Taxes

  	
  75

  
	
  10.05

  	
  Indemnification

  	
  76

  
	
  10.06

  	
  Payments Set Aside

  	
  76

  
	
  10.07

  	
  Successors and Assigns

  	
  77

  
	
  10.08

  	
  Confidentiality

  	
  79

  
	
  10.09

  	
  Set-off

  	
  80

  
	
  10.10

  	
  Interest Rate Limitation

  	
  80

  
	
  10.11

  	
  Counterparts

  	
  80

  
	
  10.12

  	
  Integration

  	
  81

  
	
  10.13

  	
  Survival of Representations and Warranties

  	
  81

  
	
  10.14

  	
  Severability

  	
  81

  
	
  10.15

  	
  Foreign Lenders

  	
  81

  
						

 

iii

 

	
  10.16

  	
  Governing Law

  	
  82

  
	
  10.17

  	
  Waiver of Right to Trial by Jury, Etc

  	
  82

  
	
  10.18

  	
  Termination of Commitments Under Original Credit
  Agreement

  	
  83

  
	
  10.19

  	
  Termination of Control Agreement

  	
  83

  
	
  10.20

  	
  No Novations, Etc.

  	
  83

  
	
  10.21

  	
  ENTIRE AGREEMENT

  	
  84

  

 

iv

 

SCHEDULES

 

	
  2.01

  	
  Commitments

  	
   

  
	
  5.13

  	
  Subsidiaries and other Equity Investments

  	
   

  
	
  7.01

  	
  Existing Liens

  	
   

  
	
  7.12

  	
  Agreements Restricting Liens on Leasehold Interests

  	
   

  
	
  10.02

  	
  Addresses for Notices to Borrower, Guarantors and Administrative
  Agent

  	
   

  

 

EXHIBITS

 

	
  Exhibit:

  	
   

  	
  Form of:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A-1

  	
   

  	
  Borrowing Notice

  	
   

  
	
  A-2

  	
   

  	
  Conversion/Continuation Notice

  	
   

  
	
  B

  	
   

  	
  Note

  	
   

  
	
  C-1

  	
   

  	
  Compliance Certificate pursuant to Section 6.02(a)

  	
   

  
	
  C-2

  	
   

  	
  Borrowing Base

  	
   

  
	
  D

  	
   

  	
  Assignment and Assumption

  	
   

  
	
  E

  	
   

  	
  Legal Opinion of Hogan & Hartson L.L.P.

  	
   

  

 

v

 

FIRST
AMENDED AND RESTATED CREDIT AGREEMENT

 

Originally dated as of October 25, 2004

 

THIS FIRST AMENDED AND RESTATED CREDIT AGREEMENT is
entered into as of January 31, 2006, among MARKWEST HYDROCARBON, INC., a
Delaware corporation (the “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and ROYAL BANK OF
CANADA,  as Administrative Agent and L/C
Issuer.

 

PRELIMINARY
STATEMENTS

 

(1)           The Borrower, Royal Bank of Canada (“Royal Bank”), U.S.
Bank National Association (“US Bank”), and Bank of Oklahoma, N.A. (“Bank of Oklahoma”)
entered into a Credit Agreement originally dated October 25, 2004
providing for a senior credit facility of $25,000,000, as amended by a First
Amendment to Credit Agreement dated October 17, 2005, a Second Amendment
to Credit Agreement dated November 15, 2005, and a Third Amendment to
Credit Agreement dated December 30, 2005 (as amended, the “Original Credit Agreement”).

 

(2)           The Borrower, Royal Bank, US Bank and Bank of
Oklahoma have agreed to amend and restate in its entirety the Original Credit
Agreement on the terms and conditions set forth herein and to extend, renew and
rearrange the indebtedness outstanding under the Original Credit Agreement (but
not to repay or pay off such indebtedness).

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties hereto hereby agree that the Original Credit Agreement
is amended and restated in its entirety to read as follows:

 

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined Terms.

 

As used in this Agreement, the terms defined in the
introductory paragraph hereof and in the preliminary statements hereto shall
have the meanings therein indicated and the following terms shall have the
meanings set forth below:

 

Accrued Columbia Settlement
Balances means
the amount of natural gas which has been earned by the Borrower to date
pursuant to the Settlement Agreement dated as of October 16, 1999, between
the Borrower and Columbia Gas Transmission Corporation (“Columbia”)
(the “Settlement Agreement”); provided that such amounts shall not be included if:

 

(i)            the Administrative Agent fails to have a
first priority Lien on the Borrower’s Rights, titles and interests in and to
the Settlement Agreement;

 

1

 

(ii)           Columbia has disputed, or is in default of
any of its obligations under, the Settlement Agreement;

 

(iii)          Columbia is the subject of any of the events
of the type described in clause (v) of
the definition of Eligible Midstream Accounts Receivable;
or

 

(iv)          any other event or condition occurs or exists
which leads the Required Lenders to believe, in the exercise of their
reasonable judgment, that the Borrower’s prospect of receiving, or the Lenders’
ability to exercise their Lien on, the natural gas in question could reasonably
be expected to be impaired.

 

Administrative Agent means Royal Bank of Canada in its capacity
as administrative agent under any of the Loan Documents, or any successor
administrative agent.

 

Administrative Agent’s Office means the Administrative Agent’s address
and, as appropriate, account as set forth on Schedule 10.02, or such other
address or account as the Administrative Agent may from time to time notify to
the Borrower and the Lenders.

 

Administrative Details Form means the Administrative Details Reply Form furnished
by a Lender to the Administrative Agent in connection with this Agreement.

 

Affiliate means, as to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person.  A
Person shall be deemed to be controlled by any other Person if such other
Person possesses, directly or indirectly, power (a) to vote 10% or more of
the securities (on a fully diluted basis) having ordinary voting power for the
election of directors, managing members, or managing general partner; or (b) to
direct or cause the direction of the management and policies of such Person
whether by contract or otherwise.

 

Agent/Arranger
Fee Letter has
the meaning specified in Section 2.08(b).

 

Agent-Related Persons means the Administrative Agent (including
any successor administrative agent) and its respective Affiliates (including
the officers, directors, employees, agents and attorneys-in-fact of such
Person).

 

Aggregate Commitment has the meaning specified in the definition of Commitment.

 

Agreement means this First Amended and Restated Credit
Agreement.

 

Amended and Restated Guaranty means the Amended and Restated Guaranty made
by each Guarantor as of the Restatement Date in favor of the Administrative
Agent on behalf of the Lenders, in form and substance reasonably acceptable to
the Administrative Agent, as it may be amended from time to time.

 

2

 

Applicable Rate means the following
amounts per annum set forth in the table below, on any date of determination,
with respect to the Type of Credit Extension or commitment fee that corresponds
to the Utilization Percentage at such date of determination:

 

	
  Pricing

  Level

  	
   

  	
  Utilization

  Percentage

  	
   

  	
  Letter of Credit and

  Eurodollar Rate

  + (bps)

  	
   

  	
  Base Rate + (bps)

  	
   

  	
  Commitment Fee

  + (bps)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Less than 50%

  	
   

  	
  175.0

  	
   

  	
  75.0

  	
   

  	
  50.0

  	
   

  
	
  2

  	
   

  	
  50% or more but
  less than 75%

  	
   

  	
  225.0

  	
   

  	
  125.0

  	
   

  	
  50.0

  	
   

  
	
  3

  	
   

  	
  75% or more

  	
   

  	
  275.0

  	
   

  	
  175.0

  	
   

  	
  50.0

  	
   

  

 

Approved Fund means any Fund that is administered or
managed by a Lender, an Affiliate of a Lender, or an entity or an Affiliate of
an entity that administers or manages a Lender.

 

Arranger means RBC Capital Markets in its capacity as
lead arranger and sole bookrunner.

 

Assignment and Assumption means an Assignment and Assumption
substantially in the form of Exhibit D.

 

Attorney Costs means and includes the reasonable fees and
disbursements of any law firm or other external counsel and the allocated cost
of internal legal services and all disbursements of internal counsel.

 

Attributable Indebtedness means, on any date, (a) in respect of
any Capital Lease of any Person, the capitalized amount thereof that would
appear on a balance sheet of such Person prepared as of such date in accordance
with GAAP, and (b) in respect of any Synthetic Lease Obligation, the
capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP if such lease were accounted for as a capital lease.

 

Authorizations means all filings, recordings, and
registrations with, and all validations or exemptions, approvals, orders,
authorizations, consents, franchises, licenses, certificates, and permits from,
any Governmental Authority.

 

Bank Guaranties means guaranties or other agreements or
instruments serving a similar function issued by a bank or other financial
institution.

 

Banking Services means each and any of the following bank
services provided to any Loan Party by any Lender or Affiliate of a Lender: (i) commercial
credit cards; (ii) stored value cards; and (iii) treasury management
services (including, without limitation, controlled disbursement, automated
clearinghouse transactions, return items, overdrafts and interstate depository
network services).

 

3

 

Banking Service Obligations means any and all obligations of the Loan
Parties, whether absolute or contingent and howsoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor) in connection with Banking Services.

 

Base Rate means for any day a fluctuating rate per
annum equal to the higher of (a) the Federal Funds Rate plus 1⁄2 of 1% and (b) the
rate of interest in effect for such day as publicly announced from time to time
by the Administrative Agent as its “prime
rate.” Such rate is a rate set by the Administrative Agent based
upon various factors including the Administrative Agent’s costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such
rate announced by the Administrative Agent shall take effect at the opening of
business on the day specified in the public announcement of such change.

 

Base Rate Loan means a Loan that bears interest based on
the Base Rate.

 

Board means the Board of Governors of the Federal
Reserve System of the United States.

 

Borrower means MarkWest Hydrocarbon, Inc., a
Delaware corporation.

 

Borrower Affiliate means the Borrower and its Subsidiaries.

 

Borrowing means a borrowing consisting of simultaneous
Loans of the same Type and having the same Interest Period made by each of the
Lenders pursuant to Section 2.01.

 

Borrowing Base has the meaning given to such term in Section 2.02.

 

Borrowing Base Report means a report in the form attached hereto as Exhibit C-2,
appropriately completed, together with the following attachments:  (a) a detailed aged schedule of all
Midstream Accounts Receivable as of the date specified in such report, listing
face amounts and dates of invoices of each such Midstream Accounts Receivable
and the name and address of each account debtor obligated on such Midstream
Accounts Receivable (and, upon request of Administrative Agent, copies of
invoices, credit reports, and any other matters and information relating to the
Midstream Accounts Receivable), (b) a schedule of Midstream
Inventory, setting forth the location, volume, cost, market price and hedged
price of all such Midstream Inventory, and (c) a summary aged listing of
Borrower’s accounts payable and an aged list of the ten (10) largest
accounts payable.

 

Borrowing Notice means a notice of (a) a Borrowing, (b) a
conversion of Loans from one Type to the other, or (c) a continuation of
Loans as the same Type, pursuant to Section 2.03(a), which, if in writing,
shall be substantially in the form of Exhibit A-1 or A-2, as applicable.

 

Business Day means any day other than a Saturday, Sunday,
or other day on which commercial banks are authorized to close under the Laws
of New York, or are in fact closed and, if such day relates to any Eurodollar
Rate Loan, means any such day on which dealings in Dollar deposits are
conducted by and between banks in the applicable offshore Dollar interbank
market.

 

Capital Expenditure by a Person means an expenditure (determined
in accordance with GAAP) for any fixed asset owned by such Person for use in
the operations of such Person having a useful life of more than one year, or
any improvements or additions thereto.

 

4

 

Capital Lease means any capital lease or sublease which
should be capitalized on a balance sheet in accordance with GAAP.

 

Cash Collateralize means to pledge and deposit with or deliver
to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders,
as collateral for the L/C Obligations, cash and deposit account balances
pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the L/C Issuer (which documents hereby are consented
to by the Lenders).

 

Cash Equivalents means:

 

(a)           United States Dollars;

 

(b)           direct general obligations, or obligations
of, or obligations fully and unconditionally guaranteed as to the timely
payment of principal and interest by, the United States or any agency or instrumentality
thereof having remaining maturities of not more than 13 months, but excluding
any such securities whose terms do not provide for payment of a fixed dollar
amount upon maturity or call for redemptions;

 

(c)           certificates of deposit and eurodollar-time
deposits with maturities of thirteen (13) months or less, bankers acceptances
with maturities not exceeding 180 days, overnight bank deposits and other
similar short term instruments, in each case with any domestic commercial bank
having capital and surplus in excess of $250,000,000 and having a rating of at
least “A2” by Moody’s and at least “A” by S&P;

 

(d)           repurchase obligations with a term of not
more than 13 months for underlying securities of the types described in (b) and
(c) above entered into with any financial institution meeting the
qualifications in (c) above;

 

(e)           commercial paper (having original maturities
of not more than 270 days) of any Person rated “P-1” or better by Moody’s or “A-1”
or the equivalent by S&P;

 

(f)            money market mutual or similar funds having
assets in excess of $100,000,000, at least 95% of the assets of which are
comprised of assets specified in clause (a) through (e) above;

 

(g)           obligations of the Federal National Mortgage
Association (Fannie Mae) having remaining maturities of not more than 5 years,
but excluding any such securities whose terms do not provide for payment of a
fixed dollar amount upon maturity or call for redemptions; and

 

(h)           obligations of the Government National
Mortgage Association (Ginnie Mae) having remaining maturities of not more than
5 years, but excluding any such securities whose terms do not provide for
payment of a fixed dollar amount upon maturity or call for redemptions.

 

CERCLA has the meaning specified in the definition
of Environmental Law.

 

Change of Control means the acquisition by any Person, or two
or more Persons acting in concert (other than John Fox and members of his
family), of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934)
of 50% or more of the outstanding shares of voting stock of Borrower.

 

5

 

Change in Law means (a) the adoption of any Law after
the date of this Agreement, (b) any change in any Law or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender or the L/C Issuer
(or, for purposes of Section 3.04(b),
by any Lending Office of such Lender or by such Lender’s or the L/C Issuer’s
holding company, if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after
the date of this Agreement.

 

Code means the Internal Revenue Code of 1986.

 

Collateral means all property and interests in property
and proceeds thereof now owned or hereafter acquired by the Borrower, and its
Subsidiaries (other than the Excluded MLP Entities) in or upon which a Lien now
or hereafter exists in favor of the Lenders, or the Administrative Agent on
behalf of the Lenders, whether under this Agreement, the Collateral Documents,
or under any other document executed by any Borrower Affiliate (other than the
Excluded MLP Entities) and delivered to the Administrative Agent or the
Lenders.

 

Collateral Documents means (a) each guaranty, pledge
agreement, security agreement, mortgage, assignment, and all other security
agreements, deeds of trust, mortgages, chattel mortgages, assignments, pledges,
guaranties, financing statements, continuation statements, extension agreements
and other similar agreements or instruments executed by the Borrower or any
MarkWest Inc. Subsidiary for the benefit of the Lenders now or hereafter
delivered to the Lenders or the Administrative Agent pursuant to or in
connection with the transactions contemplated hereby, and all financing
statements (or comparable documents now or hereafter filed in accordance with
the UCC or comparable law) against the Borrower or any MarkWest Inc. Subsidiary
as debtor in favor of the Lenders or the Administrative Agent for the benefit
of the Lenders as secured party to secure or guarantee the payment of any part
of the Obligations or the performance of any other duties and obligations of
Borrower under the Loan Documents, whenever made or delivered, and (b) any
amendments, supplements, modifications, renewals, replacements, consolidations,
substitutions, restatements, and extensions of any of the foregoing.

 

Columbia has the meaning specified in the definition
of Accrued Columbia Settlement Balances.

 

Columbia/Triana Agreements means the Kenova Operating Agreement, Gas Processing Agreement and
amendment no. 1 thereto between Borrower and Columbia Natural Resources, Inc.

 

Commitment means, as to each Lender, its obligation to
make Revolving Loans to the Borrower pursuant to Section 2.01, to purchase
participations in L/C Obligations pursuant to Section 2.16, and to convert the
Revolving Loans outstanding on the Revolving Credit Termination Date to Term
Loans, in an aggregate principal amount at any one time outstanding not to
exceed the amount stated beside such Lender’s name on Schedule 2.01 to
this Agreement (which amount is subject to increase, reduction, or cancellation
in accordance with the Loan Documents) and collectively for all Lenders an
amount (subject to reduction or cancellation as herein provided) equal to $25,000,000 (collectively, the
Commitments of all the Lenders herein the Aggregate Commitment).

 

Compensation
Period has the
meaning set forth in Section 2.11(e)(ii).

 

Compliance Certificate means a certificate substantially in the
form of Exhibit C-1.

 

Consenting Lenders has the meaning specified in Section 2.15(c).

 

6

 

Consolidated EBITDA means, for any period, for the Borrower and
its Subsidiaries (excluding the MLP GP, MLP and their Subsidiaries, except as
set forth in clause (e) of this definition) on a consolidated basis, an
amount equal to the sum of (a) Consolidated Net Income, (b) Consolidated
Interest Charges, (c) the amount of taxes, based on or measured by income,
used or included in the determination of such Consolidated Net Income, (d) the
amount of depreciation, depletion, and amortization expense deducted in
determining such Consolidated Net Income, (e) cash distributions from the
MLP (including for purposes of this clause (e) such cash distributions
made to the MLP GP) and (f) other non-cash charges and expenses,
including, without limitation, non-cash charges and expenses relating to Swap
Contracts or resulting from accounting convention changes, of the Borrower and
its Subsidiaries (excluding the MLP GP, MLP and their Subsidiaries) on a
consolidated basis, all determined in accordance with GAAP.

 

Consolidated Funded Debt means, as of any date of determination, for
the Borrower and its Subsidiaries (excluding the MLP GP, MLP and their
Subsidiaries) on a consolidated basis, the sum of (a) the outstanding
principal amount of all obligations and liabilities, whether current or long-term,
for borrowed money (including Obligations hereunder), (b) all
reimbursement obligations relating to letters of credit, (c) Capital
Leases, (d) Synthetic Lease Obligations, and (e) without duplication,
all Guaranty Obligations with respect to Indebtedness of the type specified in
subsections (a) through (d) above.

 

Consolidated Interest Charges means, for any period, for the Borrower and
its Subsidiaries (excluding the MLP GP, MLP and their Subsidiaries) on a
consolidated basis, the sum of (a) all interest, premium payments, fees,
charges and related expenses of the Borrower and its Subsidiaries (excluding
the MLP GP, MLP and their Subsidiaries) in connection with Indebtedness
(including capitalized interest), in each case to the extent treated as
interest in accordance with GAAP, and (b) the portion of rent expense of
the Borrower and its Subsidiaries (excluding the MLP GP, MLP and their
Subsidiaries) with respect to such period under Capital Leases that is treated
as interest in accordance with GAAP.

 

Consolidated Net Income means, for any period, for the Borrower and
its Subsidiaries (excluding the MLP GP, MLP and their Subsidiaries) on a
consolidated basis, the net income or net loss of the Borrower and its
Subsidiaries (excluding the MLP GP, MLP and their Subsidiaries) from continuing
operations, provided that there shall be excluded from such net income (to the
extent otherwise included therein): (a) the income (or loss) of any entity
other than a Subsidiary in which the Borrower or any Subsidiary (excluding the
MLP GP, MLP and their Subsidiaries) has an ownership interest, except to the
extent that any such income has been actually received by the Borrower or such
Subsidiary in the form of cash dividends or similar cash distributions; (b) net
extraordinary gains and losses (other than, in the case of losses, losses
resulting from charges against net income to establish or increase reserves for
potential environmental liabilities and reserves for exposure under rate
cases), (c) any gains or losses attributable to non-cash write-ups or
write-downs of assets, (d) proceeds of any insurance on property, plant or
equipment other than business interruption insurance, (e) any gain or
loss, net of taxes, on the sale, retirement or other disposition of assets
(including the capital stock or other equity ownership of any other Person, but
excluding the sale of inventories in the ordinary course of business), and (f) the
cumulative effect of a change in accounting principles.

 

Consolidated Tangible Net Worth means the consolidated net worth (excluding
any Redeemable Preferred Stock) of the Borrower and its Subsidiaries (excluding
the MLP GP, MLP and their Subsidiaries) after subtracting therefrom the
aggregate amount of any Intangible Assets of the Borrower and its Subsidiaries
(excluding the MLP GP, MLP and their Subsidiaries).  Intangible Assets
means the amount (to the extent reflected in determining consolidated net
worth) of all unamortized debt discount

 

7

 

and expense (to the extent, if any, recorded as an unamortized deferred
charge), unamortized deferred charges, goodwill, franchises, licenses, patents,
trademarks, trade names, copyrights, service marks and brand names; provided, that for purposes of this definition, consolidated
net worth shall be adjusted to exclude non-cash items, including foreign
currency translation adjustments, unrealized gains and losses, and mark-to-market
adjustments relating to Swap Contracts, pursuant to GAAP.

 

Contractual Obligation means, as to any Person, any provision of
any security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

 

Contribution, Conveyance and Assumption Agreement dated as of May 24, 2002, among the
Borrower, the MLP and others

 

Credit Extension means each of the following: (a) a
Borrowing and (b) an L/C Credit Extension.

 

Debtor Relief Laws means the Bankruptcy Code of the United
States, and all other liquidation, conservatorship, bankruptcy, assignment for
the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights
of creditors generally.

 

Default means any event that, with the giving of any
notice, the passage of time, or both, would be an Event of Default.

 

Default Rate means an interest rate equal to (a) the
Base Rate plus (b) the Applicable Rate, if any, applicable to Base Rate
Loans plus (c) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default
Rate shall be an interest rate equal to the interest rate (including any
Applicable Rate) otherwise applicable to such Loan plus 2% per annum, in each
case to the fullest extent permitted by applicable Laws.

 

Disposition or Dispose means the sale, transfer, license or
other disposition (including any sale and leaseback transaction) of any
property (including stock, partnership and other equity interests) by any
Person of property owned by such Person, including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts
receivable or any rights and claims associated therewith.

 

Dollar and $ means lawful money of the United States.

 

Domestic means, with respect to an entity, that such
entity is incorporated, organized or formed under the laws of a state in the
United States.

 

Eligible Assignee means (a) a Lender, (b) an
Affiliate of a Lender, (c) an Approved Fund, (d) any institutional
investor and (e) any other Person (other than a natural Person) approved,
in the case of clauses (a), (b), (c) (d) and
(e) by the Administrative Agent
and, in the case of clause  (e), unless a Default or an Event of
Default has occurred and is continuing or in connection with the settlement of
a credit derivative transaction, by the Borrower (each such approval by
Borrower not to be unreasonably withheld, conditioned or delayed); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include the Borrower or any of its
respective Affiliates or Subsidiaries.

 

8

 

Eligible Midstream Accounts
Receivable means
Midstream Accounts Receivable, excluding any Midstream Accounts Receivable:

 

(i)            with respect to which more than sixty (60)
days have elapsed since the date of the original invoice;

 

(ii)           with respect to which any of the
representations, warranties, covenants, and agreements contained in any
Collateral Document are incorrect or have been breached in any material
respect;

 

(iii)          with respect to which, in whole or in part, a
check, promissory note, draft, trade acceptance or other instrument for the
payment of money has been received, presented for payment and returned
uncollected for any reason for such Midstream Accounts Receivable (or any other
Midstream Accounts Receivable due from such account debtor);

 

(iv)          which represents a progress billing (as
hereinafter defined) or as to which the Borrower or any of the Domestic
MarkWest Inc. Operating Subsidiaries has extended the time for payment without
the consent of the Administrative Agent; for the purposes hereof, “progress billing” means any invoice
for goods sold or leased or services rendered under a contract or agreement
pursuant to which the account debtor’s obligation to pay such invoice is
conditioned upon the Borrower’s or any of the Domestic MarkWest Inc. Operating
Subsidiaries’ completion of any further performance under the contract or
agreement;

 

(v)           with respect to which any one or more of the
following events has occurred to the account debtor on such Midstream Accounts
Receivable: death or judicial declaration of incompetency of an account debtor
who is an individual; the filing by or against the account debtor of a request
or petition for liquidation, reorganization, arrangement, adjustment of debts,
adjudication as a bankrupt, winding-up, or other relief under the bankruptcy,
insolvency, or similar laws of the United States, any state or territory
thereof, or any foreign jurisdiction, now or hereafter in effect; the making of
any general assignment by the account debtor for the benefit of creditors; the
appointment of a receiver or trustee for the account debtor or for any of the assets
of the account debtor including, without limitation, the appointment of or
taking possession by a “custodian,” as defined in the Bankruptcy Code of the
United States; the institution by or against the account debtor of any other
type of insolvency proceeding (under Debtor Relief Laws of the United States or
otherwise) or of any formal or informal proceeding for the dissolution or
liquidation of, settlement of claims against, or winding up of affairs of, the
account debtor; the sale, assignment, or transfer of all or any material part
of the assets of the account debtor; the nonpayment generally by the account
debtor of its debts as they become due; or the cessation of the business of the
account debtor as a going concern;

 

(vi)          if fifteen percent (15%) or more of the
aggregate Dollar amount of outstanding Midstream Accounts Receivable owed at
such time by the account debtor thereon is classified as ineligible under clause (i) above; provided,
however, any Midstream Accounts Receivable classified as ineligible
under clause (i) above shall not be
included in the calculation of the fifteen percent (15%) threshold in this clause (vi) if such

 

9

 

Midstream Accounts Receivable is the subject of a
bona fide dispute between such account debtor and the Borrower;

 

(vii)         owed by an account debtor which: (1) does
not maintain its chief executive office in the United States; or (2) is
not organized under the laws of the United States or any state thereof; or (3) is
the government of any foreign country or sovereign state, or of any state,
province, municipality, or other political subdivision thereof, or of any
department, agency, public corporation, or other instrumentality thereof; except to the extent that such Midstream Accounts Receivable
is secured or payable by a letter of credit satisfactory to the Administrative
Agent in its discretion;

 

(viii)        owed by an account debtor which is an
Affiliate or employee of the Borrower or any of its Subsidiaries;

 

(ix)           except as provided in clause (xi)
below, with respect to which either the perfection, enforceability, or validity
of the Administrative Agent’s Liens in such Midstream Accounts Receivable, or
the Administrative Agent’s right or ability to obtain direct payment to the Administrative
Agent of the proceeds of such Midstream Accounts Receivable, is governed by any
federal, state, or local statutory requirements other than those of the UCC;

 

(x)            owed by an account debtor to which the
Borrower or any of its Subsidiaries, is indebted in any way, or which is
subject to any right of setoff or recoupment by the account debtor, unless the
account debtor has entered into an agreement acceptable to the Administrative
Agent to waive setoff rights; or if the account debtor thereon has disputed
liability or made any claim with respect to any other Midstream Accounts
Receivable due from such account debtor; but in each such case only to the
extent of such indebtedness, setoff, recoupment, dispute, or claim;

 

(xi)           owed by the government of the United States,
or any department, agency, public corporation, or other instrumentality
thereof, unless the Federal Assignment of Claims Act of 1940, as amended (31
U.S.C. § 3727 et  seq.), and any other steps necessary to perfect the
Administrative Agent’s Liens therein, have been complied with to the
Administrative Agent’s satisfaction with respect to such Midstream Accounts
Receivable;

 

(xii)          owed by any state, municipality, or other
political subdivision of the United States, or any department, agency, public
corporation or other instrumentality thereof and as to which the Administrative
Agent determines that its Lien therein is not or cannot be perfected;

 

(xiii)         which represents a sale on a bill-and-hold,
guaranteed sale, sale and return, sale on approval, consignment, or other
repurchase or return basis;

 

(xiv)        which is evidenced by a promissory note or
other instrument or by chattel paper;

 

(xv)         if the Administrative Agent believes, in the
exercise of its reasonable judgment, that the prospect of collection of such
Midstream Accounts Receivable is reasonably likely to be impaired or that the
Midstream Accounts Receivable could reasonably be expected not to be paid by
reason of the account debtor’s financial inability to pay;

 

10

 

(xvi)        with respect to which the account debtor is
located in any state requiring the filing of a Notice of Business Activities
Report or similar report in order to permit the Borrower or any of the Domestic
MarkWest Inc. Operating Subsidiaries to seek judicial enforcement in such state
of payment of such Midstream Accounts Receivable, unless such Borrower or
Domestic MarkWest Inc. Operating Subsidiary has qualified to do business in
such state or has filed a Notice of Business Activities Report or equivalent
report for the then current year;

 

(xvii)       which arises out of a sale not made in the
ordinary course of the Borrower’s or any of the Domestic MarkWest Inc.
Operating Subsidiaries’ Midstream Business;

 

(xviii)      with respect to which the goods giving rise
to such Midstream Accounts Receivable have not been shipped and delivered to
and accepted by the account debtor or the services giving rise to such
Midstream Accounts Receivable have not been performed by the Borrower or a Domestic
MarkWest Inc. Operating Subsidiary, as applicable, and, if applicable, accepted
by the account debtor, or the account debtor revokes its acceptance of such
goods or services;

 

(xix)         owed by an account debtor which is obligated
to the Borrower or any of the Domestic MarkWest Inc. Operating Subsidiaries
respecting Midstream Accounts Receivable the aggregate unpaid balance of which
exceeds twenty percent (20%) of the aggregate unpaid balance of all Midstream
Accounts Receivable owed to the Borrower or any of the Domestic MarkWest Inc.
Operating Subsidiaries at such time by all of the Borrower’s and the Domestic
MarkWest Inc. Operating Subsidiaries’ account debtors, but only to the extent
of such excess; provided, however, that account
debtors Columbia Natural Resources, Inc., a subsidiary of NiSource Inc.
and Equitable shall not be subject to the foregoing twenty percent (20%)
limitation;

 

(xx)          which is not subject to a first priority and
perfected security interest in favor of the Administrative Agent for the
benefit of the Lenders; or

 

(xxi)         which the Administrative Agent or the
Required Lenders in their reasonable discretion determine to be ineligible.

 

If
any Midstream Accounts Receivable at any time ceases to be an Eligible
Midstream Accounts Receivable, then such Midstream Accounts Receivable shall
promptly be excluded from the calculation of Eligible Midstream Accounts
Receivable.

 

Eligible Midstream Inventory means (i) Accrued Columbia Settlement
Balances and (ii) all Midstream Inventory excluding any Midstream
Inventory:

 

(i)            that is not owned by the Borrower or any of
the Domestic MarkWest Inc. Operating Subsidiaries;

 

(ii)           that is not subject to the Administrative
Agent’s Liens, which are perfected as to such Midstream Inventory, or that are
subject to any other Lien whatsoever (other than the Liens described in clauses (d) and (m) (to the extent clause (viii) below has been

 

11

 

complied with) of Section 7.01;
provided that such Permitted Liens (1) are
junior in priority to the Administrative Agent’s Liens and (2) do not
impair directly or indirectly the ability of the Administrative Agent to
realize on or obtain the full benefit of such Midstream Inventory);

 

(iii)          that does not consist of finished goods or
raw materials;

 

(iv)          that consists of work-in-process, samples,
prototypes, supplies, or packing and shipping materials;

 

(v)           that is not in good condition, is
unmerchantable, or does not meet all standards imposed by any Governmental
Authority having regulatory authority over such goods, their use or sale;

 

(vi)          that is obsolete or returned or repossessed
or used goods taken in trade;

 

(vii)         that is located outside the United States (or
that is in transit from vendors or suppliers);

 

(viii)        that is located in a public warehouse or in
possession of a bailee or in a facility leased by the Borrower of any of the
MarkWest Inc. Subsidiaries, if the warehouseman, or the bailee, or the lessor
has not delivered to the Administrative Agent, if requested by the
Administrative Agent, a subordination agreement in form and substance
satisfactory to the Administrative Agent or if a sufficient amount has been
deducted from the value of such Midstream Inventory to cover rents or storage
charges;

 

(ix)           that contains or bears any intellectual
property rights licensed to the Borrower or any of the MarkWest Inc.
Subsidiaries by any Person, if the Administrative Agent is not satisfied that
it may sell or otherwise dispose of such Midstream Inventory in accordance with
the terms of any Collateral Document and Section 8.02
without infringing the rights of the licensor of such intellectual property
rights or violating any contract with such licensor (and without payment of any
royalties other than any royalties due with respect to the sale or disposition
of such Midstream Inventory pursuant to the existing license agreement), and,
as to which the Borrower has not delivered to the Administrative Agent a
consent or sublicense agreement from such licensor in form and substance acceptable
to the Administrative Agent if requested;

 

(x)            that is not reflected in the details of a
current perpetual inventory report;

 

(xi)           that is Midstream Inventory placed on
consignment;

 

(xii)          that Equitable Pre-Delivered Gas delivered by
Equitable to Borrower pursuant to that certain Netting, Financial
Responsibility and Security Agreement dated September 23, 2004 between
Equitable and Borrower and/or related agreements; or

 

(xiii)         which the Administrative Agent or the
Required Lenders in their reasonable discretion determine to be ineligible.

 

12

 

If
any Midstream Inventory at any time ceases to be Eligible Midstream Inventory,
such Midstream Inventory shall promptly be excluded from the calculation of Eligible
Midstream Inventory.

 

Environmental Law means any applicable Law that relates to (a) the
condition or protection of air, groundwater, surface water, soil, or other
environmental media, (b) the environment, including natural resources or
any activity which affects the environment, (c) the regulation of any
pollutants, contaminants, wastes, substances, and Hazardous Substances,
including, without limitation, the Comprehensive Environmental Response,
Compensation, and Liability Act (42 U.S.C. §9601 et seq.) (“CERCLA”), the Clean
Air Act (42 U.S.C. § 7401 et seq.), the Federal Water Pollution Control
Act, as amended by the Clean Water Act (33 U.S.C. § 1251 et seq.), the
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. § 136 et
seq.), the Emergency Planning and Community Right to Know Act of 1986 (42
U.S.C. § 1100 1 et seq.), the Hazardous Materials Transportation Act (49
U.S.C. § 1801 et seq.), the National Environmental Policy Act of 1969 (42
U.S.C. § 4321 et seq.), the Oil Pollution Act (33 U.S.C. § 2701 et
seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et
seq.), the Rivers and Harbors Act (33 U.S.C. §401 et seq.), the Safe Drinking
Water Act (42 U.S.C. § 201 and § 300f et seq.), the Solid Waste
Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976
and the Hazardous and Solid Waste Amendments of 1984 (42 U.S.C. § 6901 et
seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), and
analogous state and local Laws, as any of the foregoing may have been and may
be amended or supplemented from time to time, and any analogous enacted or
adopted Law, or (d) the Release or threatened Release of Hazardous
Substances.

 

Equitable
means Equitable Production Company, a subsidiary of Equitable Resources, Inc.

 

Equitable Agreements means and includes the following: (a) the Base Contract for Sale
and Purchase of Natural Gas dated as of September 23, 2004, by and between
Equitable Production Company and MarkWest Hydrocarbon, Inc. as amended,
modified and supplemented by the Special Provisions to Base Contract for Sale
and Purchase of Natural Gas dated as of October 1, 2004 by and between
Equitable Production Company and MarkWest Hydrocarbon, Inc.; (b) the
Firm Gas Processing Agreement (Dwale) dated as of September 23, 2004, by
and between Equitable Production Company and MarkWest Hydrocarbon, Inc.
replacing the Gas Processing Agreement (Dwale) dated as of May 28, 1999,
by and between Equitable Production Company and MarkWest Hydrocarbon, Inc.;
and (c) the Netting, Financial Responsibility and Security Agreement dated
as of September 23, 2004, by and between Equitable Production Company and
MarkWest Hydrocarbon, Inc.

 

Equitable Pre-Delivered Gas means natural gas delivered by Equitable to
Borrower prior to the actual sale of such natural gas by Equitable to Borrower,
the title to which natural gas remains in Equitable prior to sale to Borrower,
as described in and covered by that certain Netting, Financial Responsibility
and Security Agreement dated September 23, 2004 between Equitable and
Borrower and/or related agreements.

 

ERISA means the Employee Retirement Income
Security Act of 1974 and any regulations issued pursuant thereto.

 

ERISA Affiliate means any trade or business (whether or not
incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
of this Agreement relating to obligations imposed under Section 412 of the Code).

 

13

 

ERISA Event means: (a) a Reportable Event with
respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA
Affiliate from a Pension Plan subject to Section 4063
of ERISA during a plan year in which it was a substantial employer (as defined
in Section 4001(a)(2) of
ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A
of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which might
reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan or Multiemployer Plan;
or (f) the imposition of any liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007
of ERISA, upon the Borrower or any ERISA Affiliate.

 

Eurodollar Rate means for any Interest Period with respect
to any Eurodollar Rate Loan:

 

(a)           the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate that appears on
the page of the LIBOR I screen (or any successor thereto) that displays an
average British Bankers Association Interest Settlement Rate for deposits in
Dollars (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period,
or

 

(b)           if the rate referenced in the preceding subsection (a) does
not appear on such page or service or such page or service shall
cease to be available, the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate on such other page or other
service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period, determined as
of approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period, or

 

(c)           if the rates referenced in the preceding
subsections (a) and (b) are not available, the rate per annum determined
by the Administrative Agent as the rate of interest (rounded upward to the next
1/100th of 1%) at which deposits in Dollars for delivery on the first day of
such Interest Period in same day funds in the approximate amount of the
Eurodollar Rate Loan being made, continued or converted by the Administrative
Agent and with a term equivalent to such Interest Period would be offered by
the Administrative Agent’s London Branch to major banks in the offshore Dollar
market at their request at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period.

 

Eurodollar Rate Loan means a Loan that bears interest at a rate
based on the Eurodollar Rate.

 

Event of Default means any of the events or circumstances
specified in Article VIII.

 

Evergreen Letter of Credit has the meaning specified in Section 2.14(b)(iii).

 

Excluded MLP Entities means the MLP, MLP Operating Subsidiary, and
their Subsidiaries.

 

14

 

Existing Letter of Credit means that certain standby letter of credit
no. 1185/S22614 issued by Royal Bank of Canada to Equitable, as beneficiary,
for the account of Borrower in the face amount of $6,000,000 dated October 4,
2004 and having an expiration date of September 30, 2006.

 

Existing Revolving Credit
Termination Date
has the meaning specified in Section 2.15(a).

 

Federal Funds Rate means, for any day, the rate per annum
(rounded upwards to the nearest 1/100 of 1%) equal to the weighted average of
the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate charged to the Administrative Agent on such day on such
transactions as determined by the Administrative Agent.

 

Final Maturity Date means (i) if the Revolving Loans are converted to Term Loans
pursuant to Section 2.16 on the
Revolving Credit Termination Date, then with respect to any Term Loan, January 30,
2008 (or if the Existing Revolving Credit Termination Date is extended for a
second or subsequent additional one-year period pursuant to Section 2.15, such date falling
364 days after the Existing Revolving Credit Termination Date) or (ii) if
the Revolving Loans are not so converted, the Revolving Credit Termination
Date.

 

Foreign Lender has the meaning specified in Section 10.15.

 

Fractionation, Storage and Loading
Agreement (Siloam)
means the Fractionation, Storage and Loading Agreement (Siloam) agreement
between MW Appalachia and Borrower.

 

Freely Available Cash Reserves means with respect to the Borrower and
Guarantors, without duplication, the sum of (i) Cash Equivalents
(including disclosed government bonds) and (ii) interests in master
limited partnerships permitted under Section 7.02(a).

 

Fund means any Person (other than a natural
person) that is (or will be) engaged in making, purchasing, holding or otherwise
investing in commercial loans and similar extensions of credit in the ordinary
course of its business.

 

GAAP means generally accepted accounting
principles set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or
such other principles as may be approved by a significant segment of the
accounting profession, that are applicable to the circumstances as of the date
of determination, consistently applied. 
If at any time any change in GAAP would affect the computation of any
financial ratio or requirement set forth in any Loan Document, and either the
Borrower or the Required Lenders shall so request, the Administrative Agent,
the Lenders and the Borrower shall negotiate in good faith to amend such ratio
or requirement to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (a) such
ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (b) the Borrower shall provide to the
Administrative Agent and the Lenders financial statements and other documents
required under this

 

15

 

Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP.

 

Gas Processing Agreement (Kenova, Boldman
and Cobb Plants)
means the Gas Processing Agreement (Kenova, Boldman and Cobb Plants) between MW
Appalachia and Borrower.

 

Governmental Authority means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other legal
entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

 

Guarantors means any Person and every present and
future Subsidiary of Borrower (other than Excluded MLP Entities) which
undertakes to be liable for all or any part of the Obligations by execution of
a Guaranty, or otherwise.

 

Guaranty means a Guaranty now or hereafter made by
any Guarantor in favor of the Administrative Agent on behalf of the Lenders
including the Amended and Restated Guaranty, and if hereafter made such
Guaranty shall be on substantially the same terms as the Guaranty previously
executed by the Guarantors securing the Obligations.

 

Guaranty Obligation means, as to any Person, (a) any
obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other payment obligation of
another Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of
such Person, direct or indirect, (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other payment
obligation, (ii) to purchase or lease property, securities or services for
the purpose of assuring the obligee in respect of such Indebtedness or other
payment obligation of the payment of such Indebtedness or other payment
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other payment
obligation, or (iv) entered into for the purpose of assuring in any other
manner the obligees in respect of such Indebtedness or other payment obligation
of the payment thereof or to protect such obligees against loss in respect
thereof (in whole or in part), or (b) any Lien on any assets of such
Person securing any Indebtedness or other payment obligation of any other
Person, whether or not such Indebtedness or other payment obligation is assumed
by such Person; provided, however,
that the term “Guaranty
Obligation” shall not include endorsements of instruments for
deposit or collection in the ordinary course of business.  The amount of any Guaranty Obligation shall
be deemed to be the lesser of (a) an amount equal to the stated or
determinable outstanding amount of the related primary obligation and (b) the
maximum amount for which such guaranteeing Person may be liable pursuant to the
terms of the instrument embodying such Guaranty Obligation, unless the
outstanding amount of such primary obligation and the maximum amount for which
such guaranteeing Person may be liable are not stated or determinable, in which
case the amount of such Guaranty Obligation shall be the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith.

 

Hazardous Substance means any substance that poses a threat to,
or is regulated to protect, human health, safety, public welfare, or the
environment, including without limitation (a) any “hazardous substance,” “pollutant”
or “contaminant,” and any “petroleum” or “natural gas liquids” as those terms
are defined or used under Section 101
of CERCLA, (b) ”solid waste” as defined by the federal Solid Waste Disposal Act (42 U. S.C. §§ 6901 et seq.), (c) asbestos
or a material containing asbestos, (d) any material

 

16

 

that contains lead or lead-based paint, (e) any item or equipment
that contains or is contaminated by polychlorinated biphenyls, (f) any
radioactive material, (g) urea formaldehyde, (h) putrescible materials,
(i) infectious materials, (j) toxic microorganisms, including mold, or (k)
any substance the presence or Release of which requires reporting,
investigation or remediation under any Environmental Law.

 

Hedged Eligible Midstream Inventory means Eligible Midstream Inventory subject
to a Swap Contract with respect to such inventory, satisfactory as to form and
substance to the Administrative Agent and with a counterparty satisfactory to
the Administrative Agent.

 

Honor Date has the meaning set forth in Section 2.14(c)(i).

 

Indebtedness means, as to any Person at a particular
time, all of the following:

 

(a)           all obligations of such Person for borrowed
money and all obligations of such Person evidenced by bonds, debentures, notes,
loan agreements or other similar instruments;

 

(b)           the face amount of all letters of credit
(including standby and commercial), banker’s acceptances, Bank Guaranties,
surety bonds, and similar instruments issued for the account of such Person
and, without duplication, all drafts drawn and unpaid thereunder;

 

(c)           net obligations under any Swap Contract in an
amount equal to (i) if such Swap Contract has been closed out, the
termination value thereof, or (ii) if such Swap Contract has not been
closed out, the mark-to-market value thereof determined on the basis of readily
available quotations provided by any recognized dealer in such Swap Contract;

 

(d)           whether or not so included as liabilities in
accordance with GAAP, all obligations of such Person to pay the deferred
purchase price of property or services, other than trade accounts payable in
the ordinary course of business not overdue by more than 60 days, and
indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under
conditional sales or other title retention agreements), whether or not such
indebtedness shall have been assumed by such Person or is limited in recourse;

 

(e)           Capital Leases and Synthetic Lease
Obligations; and

 

(f)            all Guaranty Obligations of such Person in
respect of any of the foregoing.

 

For
all purposes hereof, the Indebtedness of any Person shall include the
Indebtedness of any partnership or joint venture in which such Person is a
general partner, unless such Indebtedness is expressly made non-recourse to
such Person except for customary exceptions acceptable to the Required
Lenders.  The amount of any Capital Lease
or Synthetic Lease as of any date shall be deemed to be the amount of
Attributable Indebtedness in respect thereof as of such date.  In addition, the determination of
Indebtedness of the Borrower and/or its Subsidiaries shall be made on a
consolidated basis without taking into account any Indebtedness owed by any
such Person to any other such Person.

 

Indemnified
Liabilities has
the meaning set forth in Section 10.
05.

 

Indemnitees has the meaning set forth in Section 10.05.

 

17

 

Insurance Deposit
Account has the
meaning set forth in Section 6.07(b).

 

Interest Payment Date means, (a) as to any Loan other than a
Base Rate Loan, the last day of each Interest Period applicable to such Loan; provided, however, that if any Interest
Period for a Eurodollar Rate Loan exceeds three months, the respective dates
that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan, the last
Business Day of each March, June, September and December and the
Final Maturity Date.

 

Interest Period means, as to each Eurodollar Rate Loan, the
period commencing on the date such Eurodollar Rate Loan is disbursed or
converted to or continued as a Eurodollar Rate Loan and ending on the date one,
two, three or six months thereafter, as selected by the Borrower in its
Borrowing Notice; provided that:

 

(i)            any Interest Period that would otherwise end
on a day that is not a Business Day shall be extended to the next succeeding
Business Day unless, in the case of a Eurodollar Rate Loan, such Business Day
falls in another calendar month, in which case such Interest Period shall end
on the next preceding Business Day;

 

(ii)           any Interest Period pertaining to a
Eurodollar Rate Loan that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such Interest Period; and

 

(iii)          no Interest Period shall extend beyond the
Final Maturity Date.

 

Investment means, as to any Person, any acquisition or
investment by such Person, whether by means of (a) the purchase or other
acquisition of capital stock or other securities of another Person, (b) a
loan, advance or capital contribution to, guaranty of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person, or (c) the purchase or other acquisition (in one transaction
or a series of transactions) of assets of another Person that constitute a
business unit. For purposes of covenant compliance, the amount of any
Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment, less all
returns of principal or equity thereon, and shall, if made by the transfer or
exchange of property other than cash be deemed to have been made in an amount
equal to the fair market value of such property.

 

IRS means the United States Internal Revenue
Service.

 

ISDA means the International Swaps and
Derivatives Association, Inc.

 

Laws means, collectively, all applicable
international, foreign, federal, state and local statutes, treaties, rules,
regulations, ordinances, codes and administrative or judicial precedents or
authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, licenses,
authorizations and permits of, any Governmental Authority.

 

L/C Advance means, with respect to each Lender, such
Lender’s participation in any L/C Borrowing in accordance with its Pro Rata
Share.

 

18

 

L/C Borrowing means an extension of credit resulting from
a drawing under any Letter of Credit which has not been reimbursed on the date
when made or refinanced as a Borrowing.

 

L/C Credit Extension means, with respect to any Letter of Credit,
the issuance thereof or extension of the expiry date thereof, or the renewal or
increase of the amount thereof.

 

L/C Issuer means Royal Bank of Canada in its capacity
as issuer of Letters of Credit hereunder, or any successor issuer of Letters of
Credit hereunder.

 

L/C Obligations means, as at any date of determination, the
aggregate undrawn face amount of all outstanding Letters of Credit plus the aggregate of all Unreimbursed
Amounts, including all L/C Borrowings.

 

Lender has the meaning specified in the introductory
paragraph hereto and, as the context requires, includes the L/C Issuer.

 

Lender Hedging Agreement means a Swap Contract between the Borrower
or any of the MarkWest Inc. Subsidiaries and a Lender or an Affiliate of a
Lender.

 

Lending Office means, as to any Lender, the office or
offices of such Lender set forth on its Administrative Details Form, or such
other office or offices as a Lender may from time to time notify the Borrower
and the Administrative Agent.

 

Letter of Credit means the Existing Letter of Credit and any
standby letter of credit issued hereunder.

 

Letter of Credit Application means an application and agreement for the
issuance or amendment of a letter of credit in the form from time to time in
use by the L/C Issuer.

 

Letter of Credit Expiration Date means the day that is five days prior to the
Revolving Credit Termination Date (or, if such day is not a Business Day, the
next preceding Business Day).

 

Letter of Credit Sublimit means an amount equal to the lesser of the
Aggregate Commitment and $7,500,000.

 

Leverage Ratio means, for the Borrower and its Subsidiaries
(excluding the MLP GP, MLP and their Subsidiaries) on a consolidated basis, the
ratio of (a) Consolidated Funded Debt as of the determination date to (b) Consolidated
EBITDA for the period of the four fiscal quarters ending on such date, or if
such date is not the last day of a fiscal quarter, ending on the last day of
the fiscal quarter most recently ended.

 

Lien means any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other),
charge, or preference, priority or other security interest or preferential
arrangement of any kind or nature whatsoever to secure or provide for payment
of any obligation of any Person (including any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of any financing statement under
the UCC or comparable Laws of any jurisdiction), including the interest of a
purchaser of accounts receivable.

 

19

 

Loans means the Revolving Loans or the Term Loans
made by the Lenders to the Borrower pursuant to this Agreement.

 

Loan Documents means this Agreement, each Note, each of the
Collateral Documents, the Agent/Arranger Fee Letter, each Borrowing Notice,
each Borrowing Base Report, each Compliance Certificate, each Security
Agreement, the Guaranties, any subordination agreement, each Letter of Credit
Application, and each other agreement, document or instrument delivered by the
Borrower or any of its Subsidiaries from time to time in connection with this
Agreement and the Notes.

 

Loan Party means each of the Borrower, each Guarantor,
and each other entity that is an Affiliate of the Borrower that executes one or
more Loan Documents.

 

MarkWest Inc. Operating
Subsidiary means
any Subsidiary of the Borrower other than the MLP Parties.

 

MarkWest Inc. Subsidiary means any Subsidiary of
the Borrower other than the Excluded MLP Entities.

 

Master Agreement has the meaning specified in the definition
of Swap Contract.

 

Material Adverse Effect means: (a) a material adverse change in,
or a material adverse effect upon, the operations, business, properties or
condition (financial or otherwise) or prospects of the Borrower and its
Subsidiaries taken as a whole; (b) a material impairment of the ability of
the Borrower, or any other Loan Party to perform their obligations under the
Loan Documents to which it is a party; or (c) a material adverse effect
upon the legality, validity, binding effect or enforceability against the
Borrower or any other Loan Party of any Loan Documents.

 

Material Agreements means the following, which shall be
satisfactory to the Administrative Agent and the Required Lenders: (a) the
Omnibus Agreement; (b) the Gas Processing Agreement (Kenova, Boldman and
Cobb Plants); (c) the Pipeline Liquids Transportation Agreement; (d) the
Fractionation, Storage and Loading Agreement (Siloam); (e) the Natural Gas
Liquids Purchase Agreement (Maytown); (f) the Equitable Agreement; (g) the
Columbia/Triana Agreements; and (h) any
other contract material to the business of the MLP or the Borrower to which the
Borrower or any Borrower Affiliate is a party. 
“Material
Agreement” means each of such Material Agreements.

 

Maximum Amount and Maximum Rate respectively mean, for each
Lender, the maximum non-usurious amount and the maximum non-usurious rate of
interest which, under applicable Law, such Lender is permitted to contract for,
charge, take, reserve, or receive on the Obligations.

 

Midstream Accounts Receivable means and includes all of the Borrower’s and
the Domestic MarkWest Inc. Operating Subsidiaries’ now owned or hereafter
acquired or arising accounts, as defined in the UCC, including any rights to
payment for the sale or lease of goods or rendition of services, whether or not
they have been earned by performance, which arise as a result of the Midstream
Business.

 

Midstream Business means any and all operations of the Borrower
and the Domestic MarkWest Inc. Operating Subsidiaries in the United States
related to the gathering and processing of natural gas and the fractionation,
transportation, marketing, and storage of natural gas liquids.

 

20

 

Midstream Inventory means, for any of the Borrower and the
Domestic MarkWest Inc. Operating Subsidiaries, all now owned or hereafter
acquired inventory, goods and merchandise, wherever located, to be furnished
under any contract of service or held for sale or lease, all returned goods,
raw materials, work-in-process, finished goods (including embedded software),
other materials and supplies of any kind, nature or description which are used
or consumed in the Midstream Business or used in connection with the packing,
shipping, advertising, selling or finishing of such goods, merchandise, each
valued at the lower of cost or market, and all documents of title or other
documents (as defined in the UCC) representing them.

 

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

 

MLP GP means MarkWest Energy GP, L.L.C., a Delaware
limited liability company, a subsidiary of the Borrower, and the sole general
partner of the MLP.

 

MLP Operating Subsidiary means MarkWest Energy Operating Company,
L.L.C., a Delaware limited liability company and a wholly-owned Subsidiary of
the MLP.

 

MLP/Borrower Material Agreement means and includes the following: (a) the
Omnibus Agreement, (b) the Contribution, Conveyance and Assumption
Agreement, (c) the Gas Processing Agreement (Kenova, Boldman and Cobb
Plants), (d) the Pipeline Liquids Transportation Agreement, (e) the
Fractionation, Storage and Loading Agreement (Siloam), (f) the Natural Gas
Liquids Purchase Agreement, and (g) each other agreement that is material
to the business of the Borrower or a MarkWest Inc. Subsidiary, that is by and
between the Borrower (or a MarkWest Inc. Subsidiary) and an MLP Party.

 

MLP Party means the MLP, the MLP GP and the MLP’s
Subsidiaries.

 

Moody’s
means Moody’s Investors Service, Inc.

 

Multiemployer Plan means any employee benefit plan of the type
described in Section 4001(a)(3) of
ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to
make contributions, or during the preceding three calendar years, has made or
been obligated to make contributions.

 

MW Appalachia means MarkWest Energy Appalachia L.L.C., a
Delaware limited liability company.

 

Natural Gas Liquids Purchase Agreement
(Maytown) means
the Natural Gas Liquids Purchase Agreement (Maytown) between MW Appalachia and
Borrower.

 

Nominee
has the meaning specified in Section 2.15(e).

 

Non-Consenting Lenders has the meaning specified in Section 2.15(c).

 

Nonrenewal Notice
Date has the
meaning specified in Section 2.14(b)(iii).

 

Note means a promissory note of Borrower in
substantially the form of Exhibit B,
evidencing the obligation of Borrower to repay the Loans and all renewals and
extensions of all or any part thereof.

 

21

 

Notice of Extension has the meaning specified in Section 2.15(a).

 

Obligations means all advances to, and debts,
liabilities, obligations, covenants and duties of, any Loan Party arising under
any Loan Document, whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest that accrues after the commencement by
or against any Loan Party of any proceeding under any Debtor Relief Laws naming
such Person as the debtor in such proceeding. In addition, all references to
the “Obligations” in
the Collateral Documents and in Sections 2.13 and 10.09 of this Agreement shall, in addition to
the foregoing, also include all present and future indebtedness, liabilities,
and obligations (and all renewals and extensions thereof or any part thereof
now or hereafter owed to any Lender or any Affiliate of a Lender arising
pursuant to any Lender Hedging Agreement and all Banking Service Obligations.

 

Obligor means the Borrower or any other Person
(other than the Administrative Agent or any Lender) obligated under any Loan
Document.

 

Omnibus Agreement means the Omnibus Agreement dated as of May 24,
2002, among the MLP and Borrower.

 

Organization Documents means, (a) with respect to any
corporation, the certificate or articles of incorporation and the bylaws, (b) with
respect to any limited liability company, the certificate of formation and
operating agreement; and (c) with respect to any partnership, joint
venture, trust or other form of business entity, the partnership, joint venture
or other applicable agreement of formation and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation
with the secretary of state or other department in the state of its formation,
in each case as amended from time to time.

 

Other Taxes has the meaning specified in Section 3. 01(b).

 

Outstanding Amount on any date (i) with respect to Loans,
means the aggregate principal amount thereof after giving effect to any
Borrowings and prepayments or repayments occurring on such date, (ii) with
respect to any L/C Obligations, the amount of such L/C Obligations on such date
after giving effect to any L/C Credit Extension occurring on such date and any
other changes in the aggregate amount of the L/C Obligations as of such date,
including as a result of any reimbursements of outstanding unpaid drawings
under any Letters of Credit or any reductions in the maximum amount available
for drawing under Letters of Credit taking effect on such date, and (iii) for
purposes of Section 2.11(d) with
respect to Obligations under a Lender Hedging Agreement, means the amount then
due and payable under such Lender Hedging Agreement.

 

Participant has the meaning specified in Section 10.07(d).

 

PBGC means the Pension Benefit Guaranty
Corporation.

 

Pension Plan means any “employee
pension benefit plan” (as such term is defined in Section 3(2)(A) of ERISA), other
than a Multiemployer Plan, that is subject to Title
IV of ERISA and is sponsored or maintained by the Borrower or any
ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes or
has an obligation to contribute, or in the case of a multiple employer plan (as
described in Section 4064(a) of
ERISA) has made contributions at any time during the immediately preceding five
plan years.

 

22

 

Permitted Liens means Liens permitted under Section 7.01 as
described in such Section.

 

Person means any individual, trustee, corporation,
general partnership, limited partnership, limited liability company, joint
stock company, trust, unincorporated organization, bank, business association,
firm, joint venture or Governmental Authority.

 

Pipeline Liquids Transportation Agreement means the Pipeline Liquids Transportation
Agreement between MW Appalachia and Borrower.

 

Plan means any “employee
benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Borrower
or any ERISA Affiliate.

 

Pro Rata Share means, at any date of determination, for any
Lender, the percentage (carried out to the ninth decimal place) that its
Commitment bears to the Aggregate Commitment.

 

Redeemable Preferred Stock means preferred stock that has, or is
convertible into any security that has, mandatory redemption or repurchase
requirements (other than those exercisable solely at the option of the issuer
of said stock) on or prior to the Final Maturity Date.

 

Register has the meaning set forth in Section 10.07(c).

 

Related Parties means, with respect to any specified Person,
such Person’s Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person’s Affiliate.

 

Release means any spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping, disposal, deposit, dispersal, migrating, or other movement into the
air, ground, or surface water, or soil.

 

Reportable Event means any of the events set forth in Section 4043(c) of ERISA, other
than events for which the 30 day notice period has been waived.

 

Request for Credit Extension means (a) with respect to a Borrowing,
conversion or continuation of Loans, a Borrowing Notice, and (b) with
respect to an L/C Extension, a Letter of Credit Application.

 

Required Lenders means (a) on any date of determination
on and after the Restatement Date and prior to the date of the initial
Borrowing under this Agreement, those Lenders holding more than 662/3%
of the Aggregate Commitment, (b) on any date of determination on and after
the date of the initial Borrowing under this Agreement and prior to the Final
Maturity Date, those Lenders holding more than 662/3% of
the Outstanding Amount of Loans.

 

Responsible Officer means the president, chief executive
officer, executive vice president, senior vice president, vice president, chief
financial officer, controller, treasurer or assistant treasurer of a
Person.  Any document delivered hereunder
that is signed by a Responsible Officer of a Loan Party shall be conclusively
presumed to have been authorized by all necessary corporate, partnership,
limited liability company, and/or other action on the part of such Loan Party
and such Responsible Officer shall be conclusively presumed to have acted on
behalf of such Loan Party.

 

Restatement Date means the date upon which this Agreement has
been executed by the Borrower, the Lenders and the Administrative Agent.

 

23

 

Restricted Payment by a Person means any dividend or other
distribution (whether in cash, securities or other property) with respect to
any equity interest in such Person, or any payment (whether in cash, securities
or other property), including any sinking fund or similar deposit on account of
the purchase, redemption, retirement, acquisition, cancellation or termination
of any such equity interest or of any option, warrant or other right to acquire
any such equity interest.

 

Revolver Facility means the revolving credit facility as
described in and subject to the limitations set forth in Section 2.01.

 

Revolver Facility Usage means, at the time in question, the
aggregate principal amount of outstanding Revolving Loans and existing LC
Obligations at such time.

 

Revolver Principal Debt means, on any date of determination, the
aggregate unpaid principal balance of all Loans under the Revolver Facility.

 

Revolving Credit Termination Date means (a) January 30, 2007
(subject to extension to January 29, 2008 pursuant to Section 2.15
upon Borrower’s request and the agreement of each Lender willing to so extend
the Existing Revolving Credit Termination Date or if the Existing Revolving
Credit Termination Date is extended for a second or subsequent additional
one-year period pursuant to Section 2.15,
such date falling 364 days after the Existing Revolving Credit Termination
Date), or (b) such earlier effective date of any other termination,
cancellation, or acceleration of the Aggregate Commitment under this Agreement.

 

Revolving Loan means an extension of credit by a Lender to
the Borrower pursuant to Section 2.01.

 

Rights means rights, remedies, powers, privileges,
and benefits.

 

S&P
means Standard & Poor’s.

 

Security Agreements means, collectively, the security
agreements, or similar instruments, now or hereafter executed by any of the
Loan Parties in favor of the Administrative Agent for the benefit of the
Lenders, and all supplements, assignments, amendments, and restatements thereto
(or any agreement in substitution therefor), and “Security Agreement” means each of such
Security Agreements and if hereafter executed such Security Agreement shall be
on substantially the same terms as the Security Agreements previously executed
by the Loan Parties.

 

Settlement Agreement has the meaning specified in the definition
of Accrued Columbia Settlement Balances.

 

Subsidiary of a Person means a corporation,
partnership, joint venture, limited liability company or other business entity
of which a majority of the shares of securities or other interests having
ordinary voting power for the election of directors or other governing body
(other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the
management of which is otherwise controlled, directly, or indirectly through
one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references
herein to a “Subsidiary”
or to “Subsidiaries”
shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

24

 

Swap Contract means (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether
or not any such transaction is governed by or subject to any master agreement,
and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including any such obligations or
liabilities under any Master Agreement.

 

Swap Termination Value means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or
after the date such Swap Contracts have been closed out and termination
value(s) determined in accordance therewith, such termination value(s), and (b) for
any date prior to the date referenced in clause (a) the amount(s)
determined as the mark-to-market value(s) for such Swap Contracts, as
determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts (which may
include any Lender).

 

Synthetic Lease Obligation means the monetary obligation of a Person
under (a) a so-called synthetic or tax retention lease, or (b) an
agreement for the use or possession of property creating obligations that do
not appear on the balance sheet of such Person but which are depreciated for
tax purposes by such Person.  The amount
of any Synthetic Lease Obligation as of any date shall be deemed to be the
amount of Attributable Indebtedness in respect thereof as of such date.

 

Taxes has the meaning set forth in Section 3.01.

 

Term Loan means a Revolving Loan that is converted to
a Term Loan pursuant to Section 2.16.

 

Term Out Period means the period commencing on the Revolving
Credit Termination Date and ending on the first anniversary thereof.

 

Term Principal Debt means, on any date of determination, the
aggregate unpaid principal balance of all Term Loans.

 

Type means, with respect to a Loan, its character
as a Base Rate Loan or a Eurodollar Rate Loan.

 

UCC means
the Uniform Commercial Code as in effect in the State of Texas or other
applicable jurisdiction.

 

Unfunded Pension Liability means the excess of a Pension Plan’s benefit
liabilities under Section 4001(a)(16)
of ERISA, over the current value of that Pension Plan’s assets, determined in
accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.

 

25

 

Unhedged Eligible Midstream Inventory means Eligible Midstream Inventory other
than Hedged Eligible Midstream Inventory.

 

United States or U.S. means
the United States of America, its fifty states and the District of Columbia.

 

Unreimbursed
Amount has the
meaning set forth in Section 2.14(c)(i).

 

Utilization Percentage means on any date the percentage, at the
close of business on such day, equivalent to the (i) Revolver Facility
Usage divided by (ii) the Borrowing Base.

 

Wholly-Owned when used in connection with a Person means
any Subsidiary of such Person of which all of the issued and outstanding equity
interests (except shares required
as directors’ qualifying shares) shall be owned by such Person or one or more
of its Wholly-Owned Subsidiaries.

 

1.02        Other Interpretive Provisions.

 

(a)           The meanings of defined terms are equally
applicable to the singular and plural forms of the defined terms.

 

(b)           (i)            The words “herein” and “hereunder” and words
of similar import when used in any Loan Document shall refer to such Loan
Document as a whole and not to any particular provision thereof.

 

(ii)           Unless otherwise specified herein, Article,
Section, Exhibit and Schedule references are to this Agreement.

 

(iii)          The term “including” is by way of example and not
limitation.

 

(iv)          The term “documents” includes any and all
instruments, documents, agreements, certificates, notices, reports, financial
statements and other writings, however evidenced.

 

(c)           In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and including;”
the words “to”
and “until”
each mean “to but
excluding;” and the word “through” means “to and including.”

 

(d)           Section headings herein and the other
Loan Documents are included for convenience of reference only and shall not
affect the interpretation of this Agreement or any other Loan Document.

 

1.03        Accounting
Terms.  All accounting terms not
specifically or completely defined herein shall be construed in conformity
with, and all financial data required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent
basis, as in effect from time to time, applied in a manner consistent with that
used in preparing the audited financial statements, except as otherwise
specifically prescribed herein.

 

1.04        Rounding.  Any financial ratios required to be
maintained by the Borrower pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed
herein

 

26

 

and rounding the result
up or down to the nearest number (with a rounding-up if there is no nearest
number).

 

1.05        References
to Agreements and Laws.  Unless
otherwise expressly provided herein, (a) references to agreements
(including the Loan Documents) and other contractual instruments shall be
deemed to include all subsequent amendments, restatements, extensions,
supplements and other modifications thereto, but only to the extent that such
amendments, restatements, extensions, supplements and other modifications are
not prohibited by any Loan Document; and (b) references to any Law shall
include all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting such Law.

 

ARTICLE II.

THE COMMITMENT AND BORROWINGS

 

2.01        Revolving
Loans.  Subject to and in reliance
upon the terms, conditions, representations, and warranties in the Loan
Documents, each Lender severally, but not jointly, agrees (i) to make
revolving loans (each such Loan a “Revolving Loan”) to Borrower from time to
time on any Business Day during the period from the Restatement Date to the
Revolving Credit Termination Date, in an aggregate amount not to exceed at any
time outstanding the amount of such Lender’s Pro Rata Share of one or more
Borrowings not to exceed, when aggregated with the Outstanding Amount of the
L/C Obligations, such Lender’s Commitment and (ii) to convert the Revolver
Principal Debt remaining outstanding on the Revolving Credit Termination Date
to Term Loans pursuant to and in accordance with Section 2.16.  Borrowings may be repaid and reborrowed from
time to time in accordance with the terms and provisions of the Loan Documents;
provided that, each such
Borrowing must occur on a Business Day and no later than the Business Day
immediately preceding the Revolving Credit Termination Date.  No Lender shall be obligated to make any
Revolving Loan if the Outstanding Amount of all L/C Obligations and all Loans
would exceed the lesser of (i) the Borrowing Base and (ii) the
Aggregate Commitment (as such Aggregate Commitment may be capped as provided in
the definition of “Commitment”).

 

2.02        Borrowing
Base Determinations.

 

(a)           The Borrowing Base (the “Borrowing
Base”) shall be equal to the lesser of (x) the sum of (1) seventy-five
percent (75%) of the Eligible Midstream Accounts Receivable, plus (2) seventy-five
percent (75%) of Unhedged Eligible Midstream Inventory, plus (3) eighty-five
percent (85%) of the Hedged Eligible Midstream Inventory and (y)
$25,000,000.  The Borrowing Base shall be
determined each month by reference to the most recent Borrowing Base Report
delivered to the Administrative Agent (absent any error in such Borrowing Base
Report) which shall be effective as of the date such Borrowing Base Report is
required to be delivered pursuant to Section 6.02(c).

 

(b)           During the period from the date hereof to the
first redetermination of the Borrowing Base pursuant to Section 2.02(a),
the Borrowing Base shall be determined based on the Borrowing Base Report
delivered pursuant to Section 4.01(a)(vii).

 

2.03        Borrowings, Conversions and Continuations of Loans.

 

(a)           Each Borrowing, each conversion of Loans from
one Type to the other, and each continuation of Loans as the same Type shall be
made upon the Borrower’s irrevocable notice to the

 

27

 

Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Administrative Agent not later than 11:00 a.m., New York time, (i) three
Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurodollar Rate Loans, and (ii) one Business Day prior to
the conversion of Eurodollar Rate Loans to Base Rate Loans, or the requested
date of any Borrowing of Base Rate Loans. 
Each such telephonic notice must be confirmed promptly by delivery to
the Administrative Agent of a written Borrowing Notice, appropriately completed
and signed by an authorized officer of the Borrower.  Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of
$500,000 or a whole multiple of $500,000 in excess thereof.  Each Borrowing of or conversion to Base Rate
Loans shall be in a principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof.  Each Borrowing
Notice (whether telephonic or written) shall specify (i) whether the
Borrower is requesting a Borrowing, a conversion of Loans from one Type to the
other, or a continuation of Loans as the same Type, (ii) the requested
date of the Borrowing, conversion or continuation, as the case may be (which
shall be a Business Day), (iii) the principal amount of Loans to be
borrowed, converted or continued, (iv) the Type of Loans to be borrowed or
to which existing Loans are to be converted, and (v) if applicable, the
duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of
Loan in a Borrowing Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be
made or continued as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate
Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any such Borrowing
Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

 

(b)           Following receipt of a Borrowing Notice, the
Administrative Agent shall promptly notify each Lender of its Pro Rata Share of
the applicable Loans, and if no timely notice of a conversion or continuation
is provided by the Borrower, the Administrative Agent shall notify each Lender
of the details of any automatic conversion to Base Rate Loans described in the
preceding subsection.  In the case of a
Borrowing, each Lender shall make the amount of its Loan available to the
Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 11:00 a.m., New York time, on the Business Day
specified in the applicable Borrowing Notice. 
Upon satisfaction of the applicable conditions set forth in Section 4.01 and
Section 4.02,
the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i) crediting
the account of the Borrower on the books of the Administrative Agent with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to the Administrative Agent by the
Borrower; provided, however, that
if, on the date of the Borrowing there are L/C Borrowings outstanding, then the
proceeds of such Borrowing shall be applied, first,
to the payment in full of any such L/C Borrowings, and second, to the Borrower as provided above.

 

(c)           Except as otherwise provided herein, a
Eurodollar Rate Loan may be continued or converted only on the last day of the
Interest Period for such Eurodollar Rate Loan. 
During the existence of a Default or Event of Default, no Loans may be
requested as, converted to or continued as Eurodollar Rate Loans without the
consent of the Required Lenders, and the Required Lenders may demand that any
or all of the then outstanding Eurodollar Rate Loans be converted immediately
to Base Rate Loans.

 

(d)           The Administrative Agent shall promptly
notify the Borrower and the Lenders of the interest rate applicable to any
Eurodollar Rate Loan upon determination of such interest rate.  The determination of the Eurodollar Rate by
the Administrative Agent shall be conclusive in the absence of manifest error.

 

28

 

(e)           After giving effect to all Borrowings, all
conversions of Loans from one Type to the other, and all continuations of Loans
as the same Type, there shall not be more than three (3) Interest Periods
in effect at any given time with respect to Loans.

 

2.04        Prepayments.

 

(a)           Optional Prepayments.  The
Borrower may, upon notice to the Administrative Agent, at any time or from time
to time voluntarily prepay in whole or in part Loans outstanding hereunder
without premium or penalty; provided
that (i) such notice must be received by the Administrative Agent not
later than 11:00 a.m., New York time, (A) three Business Days prior
to any date of prepayment of Eurodollar Rate Loans, and (B) the date of
prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate
Loans shall be in a principal amount of $500,000 or a whole multiple of
$500,000 in excess thereof; and (iii) any prepayment of Base Rate Loans
shall be in a principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof.  Each such notice shall
specify the date and amount of such prepayment and the Type(s) of Loans to be
prepaid.  The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of such
Lender’s Pro Rata Share of such prepayment. 
If such notice is given by the Borrower, the Borrower shall make such prepayment
and the payment amount specified in such notice shall be due and payable on the
date specified therein.  Any prepayment
of a Eurodollar Rate Loan shall be accompanied by all accrued interest thereon,
together with any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Pro Rata Shares.

 

Unless
a Default or Event of Default has occurred and is continuing or would arise as
a result thereof, any payment or prepayment of the Revolving Loans may be
reborrowed by Borrower, subject to the terms and conditions hereof.

 

(b)           Mandatory Prepayments.

 

(i)            Prepayments by Reason of Borrowing Base
Deficiency.  If on any date the Outstanding Amount of all
Loans and L/C Obligations shall exceed the Borrowing Base, then the Borrower
shall immediately make mandatory prepayments of Loans equal to such excess, and
if any such excess remains after such prepayments, to the extent of such excess
the Borrower shall immediately Cash Collateralize the L/C Obligations.

 

(ii)           Prepayments by Reason of Aggregate Commitment
Exceeded.  If on any date the Outstanding Amount of all
Loans and L/C Obligations shall exceed the Aggregate Commitment, then the
Borrower shall immediately make mandatory prepayments of Loans equal to such
excess, and if any such excess remains after such prepayments, to the extent of
such excess the Borrower shall immediately Cash Collateralize the L/C
Obligations.

 

(c)           Prepayments: Interest/Consequential Loss.  All
prepayments under this Section 2.04
shall be made together with
accrued interest to the date of such prepayment on the principal amount prepaid
and any amounts due under Section 3.05.

 

2.05        Reduction
or Termination of Revolving Commitments. 
The Borrower may, upon notice to the Administrative Agent, terminate the
Aggregate Commitment or permanently reduce the Aggregate Commitment prior to
the Revolving Credit Termination Date to an amount not less than the sum of the
Outstanding Amount of the then existing (i) Revolver Principal Debt and (ii) L/C
Obligations; provided that (i) any
such notice shall be received by the Administrative Agent not later than 11:00 a.m.,

 

29

 

five Business Days prior
to the date of termination or reduction, and (ii) any such partial
reduction shall be in an aggregate amount of $1,000,000 or any whole multiple
of $500,000 in excess thereof.   The
Administrative Agent shall promptly notify the Lenders of any such notice of
reduction or termination.  Once reduced
in accordance with this Section, the Aggregate Commitment may not be
increased.  Any reduction of the
Aggregate Commitment shall be applied to the Commitment of each Lender
according to its Pro Rata Share.  All
commitment fees on the portion of the Aggregate Commitment so terminated which
have accrued to the effective date of any termination of the Aggregate
Commitment shall at Administrative Agent’s option either be paid on the
effective date of such termination or on the date when such commitment fee
would otherwise be due.

 

2.06        Repayment
of Loans.  The Borrower shall repay
to the Lenders (a) on the Revolving Credit Termination Date the aggregate
Revolver Principal Debt outstanding on such date (unless converted to Term Loans
pursuant to Section 2.16) and (b) on
the Final Maturity Date the Term Principal Debt outstanding on such date.

 

2.07        Interest.

 

(a)           Subject to the provisions of subsection (b) below,
(i) each Eurodollar Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the Eurodollar Rate for such Interest Period plus
the Applicable Rate and (ii) each Base Rate Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at
a rate per annum equal to the Base Rate plus
the Applicable Rate.

 

(b)           While any Event of Default exists or after
acceleration (i) the Borrower shall pay interest on the principal amount
of all outstanding Obligations at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by applicable
Law, and (ii) accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be due and payable upon demand.

 

(c)           Interest on each Loan shall be due and
payable in arrears on each Interest Payment Date applicable thereto and at such
other times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

 

(d)           If the designated rate applicable to any
Borrowing exceeds the Maximum Rate, the rate of interest on such Borrowing
shall be limited to the Maximum Rate, but any subsequent reductions in such
designated rate shall not reduce the rate of interest thereon below the Maximum
Rate until the total amount of interest accrued thereon equals the amount of
interest which would have accrued thereon if such designated rate had at all
times been in effect.  In the event that
at maturity (stated or by acceleration), or at final payment of the Outstanding
Amount of any Loans or L/C Obligations, the total amount of interest paid or
accrued is less than the amount of interest which would have accrued if such
designated rates had at all times been in effect, then, at such time and to the
extent permitted by Law, the Borrower shall pay an amount equal to the
difference between (a) the lesser of the amount of interest which would
have accrued if such designated rates had at all times been in effect and the
amount of interest which would have accrued if the Maximum Rate had at all
times been in effect, and (b) the amount of interest actually paid or
accrued on such Outstanding Amount.

 

30

 

2.08        Fees.

 

(a)           Commitment Fee. 
Prior to any Term Out Period, the Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro
Rata Share, a commitment fee equal to the Applicable Rate times the actual
daily amount by which the Aggregate Commitment (subject to reduction pursuant
to Section 2.05) exceeds the sum
of (i) the Outstanding Amount of Loans plus (ii) the Outstanding
Amount of L/C Obligations.  The
commitment fee shall accrue at all times from the Restatement Date until the
Revolving Credit Termination Date and shall be due and payable quarterly in
arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Restatement
Date, and on the Revolving Credit Termination Date.  The commitment fee shall be calculated
quarterly in arrears.  The commitment fee
shall accrue at all times, including at any time during which one or more of
the conditions in Article IV
is not met.

 

(b)           Arranger’s and Administrative Agent’s Fees.  On
the Restatement Date, the Borrower shall pay certain fees to the Arranger and
Administrative Agent to be shared between them and the Borrower shall pay
certain fees to the Administrative Agent for the Administrative Agent’s own
account as an administrative agency fee, in the amounts and at the times
specified in the letter agreement dated January 30, 2006 (the “Agent/Arranger Fee Letter”),
between the Borrower, the Arranger and the Administrative Agent.  Such fees shall be fully earned when paid and
shall be nonrefundable for any reason whatsoever.  Additionally, Borrower shall pay to the
Administrative Agent for the Administrative Agent’s own account the fees in the
amounts and on the dates specified in the Agent/Arranger Fee Letter.

 

2.09        Computation
of Interest and Fees.  Computation of
interest on Base Rate Loans shall be calculated on the basis of a year of 365
or 366 days, as the case may be, and the actual number of days elapsed.  Computation of all other types of interest
and all fees shall be calculated on the basis of a year of 360 days and the
actual number of days elapsed, which results in a higher yield to the payee
thereof than a method based on a year of 365 or 366 days.  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid; provided that any Loan that is repaid on
the same day on which it is made shall bear interest for one day.

 

2.10        Evidence
of Debt.

 

(a)           The Loans made by each Lender shall be
evidenced by one or more accounts or records maintained by such Lender and by
the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Loans made by the Lenders to the Borrower and the interest
and payments thereon.  Any failure so to
record or any error in doing so shall not, however, limit or otherwise affect
the obligation of the Borrower hereunder to pay any amount owing with respect
to the Loans or the L/C Obligations.  In
the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of such Lender shall control.  Upon the request of any Lender made through
the Administrative Agent, such Lender’s Loans may be evidenced by one or more
Notes.  Each Lender may attach schedules
to its Note(s) and endorse thereon the date, Type (if applicable), amount and
maturity of the applicable Loans and payments with respect thereto.

 

31

 

(b)           In addition to the accounts and records
referred to in subsection (a), each Lender and the Administrative Agent
shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters
of Credit.  In the event of any conflict
between the accounts and records maintained by the Administrative Agent and the
accounts and records of any Lender in respect of such matters, the accounts and
records of the Administrative Agent shall control.

 

2.11        Payments Generally.

 

(a)           All payments to be made by the Borrower shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided
herein, all payments by the Borrower hereunder shall be made to the
Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the Administrative Agent’s Office in Dollars and in
immediately available funds not later than 11:00 a.m., New York time, on
the date specified herein.  The
Administrative Agent will promptly distribute to each Lender its Pro Rata Share
(or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 11:00 a.m., New York time, shall be deemed received on the
next succeeding Business Day and any applicable interest or fee shall continue
to accrue.

 

(b)           Subject to the definition of “Interest Period,” if
any payment to be made by the Borrower shall come due on a day other than a
Business Day, payment shall be made on the next following Business Day, and
such extension of time shall be reflected in computing interest or fees, as the
case may be.

 

(c)           If no Default or Event of Default exists and
if no order of application is otherwise specified in the Loan Documents,
payments and prepayments of the Obligations shall be applied first to fees,
second to accrued interest then due and payable on the Outstanding Amount of
Loans and L/C Obligations, and then to the remaining Obligations in the order
and manner as Borrower may direct.

 

(d)           If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully the
Obligations, or if a Default or Event of Default exists, any payment or
prepayment shall be applied in the following order: (i) to the payment of
enforcement expenses incurred by the Administrative Agent, including Attorney
Costs; (ii) to the ratable payment of all other fees, expenses, and
indemnities for which the Administrative Agent or Lenders have not been paid or
reimbursed in accordance with the Loan Documents (as used in this Section 2.11(d)(ii),
a “ratable payment”
for any Lender or the Administrative Agent shall be, on any date of
determination, that proportion which the portion of the total fees, expenses,
and indemnities owed to such Lender or the Administrative Agent bears to the
total aggregate fees and indemnities owed to all Lenders and the Administrative
Agent on such date of determination); (iii) to the ratable payment of
accrued and unpaid interest on the Outstanding Amount of Loans and the
Outstanding Amount of Obligations under Lender Hedging Agreements (it being
understood that for purposes of this clause (iii) the Outstanding Amount
of Obligations under Lender Hedging Agreements refers only to payments owing
pursuant to Section 2(a) of the 2002 Master Agreement form
promulgated by the ISDA (or equivalent type payment obligation if some other
form of Swap Contract is in effect)(as used in this Section 2.11(d)(iii),
“ratable payment”
means, for any Lender (or Lender Affiliate, in the case of Lender Hedging
Agreements), on any date of determination, that proportion which the accrued
and unpaid interest on the Outstanding Amount of Loans and the Outstanding
Amount of Obligations under Lender Hedging Agreements owed to such Lender (or
Lender

 

32

 

Affiliate, in the case of Lender Hedging Agreements) bears to the total
accrued and unpaid interest on the Outstanding Amount of Loans and the
Outstanding Amount of Obligations under Lender Hedging Agreements owed to all
Lenders (and Affiliates, in the case of Lender Hedging Agreements)); (iv) to
the ratable payment of the Outstanding Amount of Loans and the Outstanding
Amount of Obligations under Lender Hedging Agreements (it being understood that
for purposes of this clause (iv) the Outstanding Amount of Obligations
under Lender Hedging Agreements refers to payments owing in connection with an
Early Termination Payment as defined in the 2002 Master Agreement form
promulgated by the ISDA (or equivalent type payment obligation if some other
form of Swap Contract is in effect)(as used in this Section 2.11(d)(iv),
“ratable payment”
means for any Lender (or Lender Affiliate, in the case of Lender Hedging
Agreements), on any date of determination, that proportion which the
Outstanding Amount of Loans and the Outstanding Amount of Obligations under
Lender Hedging Agreements owed to such Lender (or Lender Affiliate, in the case
of Lender Hedging Agreements) bears to the Outstanding Amount of Loans owed to
all Lenders)(and Affiliates, in the case of Lender Hedging Agreements)); (v) to
Cash Collateralize the Letters of Credit; and (vi) to the payment of the
remaining Obligations, if any, in the order and manner the Required Lenders
deem appropriate.

 

(e)           Unless the Borrower or any Lender has
notified the Administrative Agent prior to the date any payment is required to
be made by it to the Administrative Agent hereunder, that the Borrower or such
Lender, as the case may be, will not make such payment, the Administrative
Agent may assume that the Borrower or such Lender, as the case may be, has
timely made such payment and may (but shall not be so required to), in reliance
thereon, make available a corresponding amount to the Person entitled
thereto.  If and to the extent that such
payment was not in fact made to the Administrative Agent in immediately
available funds, then:

 

(i)            if the Borrower failed to make such payment,
each Lender shall forthwith on demand repay to the Administrative Agent the
portion of such assumed payment that was made available to such Lender in
immediately available funds, together with interest thereon in respect of each
day from and including the date such amount was made available by the
Administrative Agent to such Lender to the date such amount is repaid to the
Administrative Agent in immediately available funds, at the Federal Funds Rate
from time to time in effect; and

 

(ii) if any Lender
failed to make such payment, such Lender shall forthwith on demand pay to the
Administrative Agent the amount thereof in immediately available funds,
together with interest thereon for the period from the date such amount was
made available by the Administrative Agent to the Borrower to the date such
amount is recovered by the Administrative Agent (the “Compensation Period”)
at a rate per annum equal to the Federal Funds Rate from time to time in
effect.  If such Lender pays such amount
to the Administrative Agent, then such amount shall constitute such Lender’s
Loan, included in the applicable Borrowing. 
If such Lender does not pay such amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent may make a
demand therefor upon the Borrower, and the Borrower shall pay such amount to
the Administrative Agent, together with interest thereon for the Compensation
Period at a rate per annum equal to the rate of interest applicable to the applicable
Borrowing.  Nothing herein shall be
deemed to relieve any Lender from its obligation to fulfill its Commitment or
to prejudice any rights which the Administrative Agent or the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

 

A
notice of the Administrative Agent to any Lender with respect to any amount
owing under this subsection (e) shall be conclusive, absent manifest
error.

 

33

 

(f)            If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided
in the foregoing provisions of this Article II, and the conditions to the
applicable Borrowing set forth in Article IV are not satisfied or waived
in accordance with the terms hereof, the Administrative Agent shall return such
funds (in like funds as received from such Lender) to such Lender, without
interest.

 

(g)           The obligations of the Lenders hereunder to
make Loans are several and not joint. 
The failure of any Lender to make any Loan on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to
do so on such date, and no Lender shall be responsible for the failure of any
other Lender to so make its Loan or purchase its participation.

 

(h)           Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will
obtain the funds for any Loan in any particular place or manner.

 

2.12        Sharing
of Payments.  If, other than as
expressly provided elsewhere herein, any Lender shall obtain on account of the
Loans made by it, or the participations in the L/C Obligations, any payment
(whether voluntary, involuntary, through the exercise of any right of set-off,
or otherwise) in excess of its ratable share (or other share contemplated
hereunder) thereof, such Lender shall immediately (a) notify the
Administrative Agent, of such fact, and (b) purchase from the other
Lenders such participations in the Loans made by them, and/or such
subparticipations in the participations in L/C Obligations held by them, as
shall be necessary to cause such purchasing Lender to share the excess payment
in respect of such Loan or such participations, as the case may be, pro rata
with each of them; provided, however,
that if all or any portion of such excess payment is thereafter recovered from
the purchasing Lender, such purchase shall to that extent be rescinded and each
other Lender shall repay to the purchasing Lender the purchase price paid
therefor, together with an amount equal to such paying Lender’s ratable share
(according to the proportion of (i) the amount of such paying Lender’s
required repayment to (ii) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered.  The Borrower agrees that any Lender so
purchasing a participation from another Lender may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off, but subject to Section 10.09)
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.  The Administrative Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of
participations purchased under this Section and will in each case notify
the Lenders following any such purchases or repayments.  Each Lender that purchases a participation
pursuant to this Section shall from and after such purchase have the right
to give all notices, requests, demands, directions and other communications
under this Agreement with respect to the portion of the Obligations purchased
to the same extent as though the purchasing Lender were the original owner of
the Obligations purchased.

 

2.13        Priority
of Hedging Obligations and Banking Service Obligations.  Any amounts received in satisfaction of any
Obligations arising under the Loan Documents, including, without limitation,
Obligations under this Agreement, Obligations under any Lender Hedging
Agreement and Obligations in connection with any Banking Services, shall rank pari passu in right of payment and shall
be used to repay such Obligations on a pro rata basis, unless specified
otherwise in Section 2.11(d).

 

34

 

2.14        Letters of Credit.

 

(a)           The Letter of Credit Commitment.

 

(i)            Subject to the terms and conditions set forth
herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the
other Lenders set forth in this Section 2.14, (1) from time to time on any
Business Day during the period from the Restatement Date until the Letter of
Credit Expiration Date, to issue Letters of Credit for the account of the
Borrower or any Guarantor, and to amend or renew Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to
honor drawings under the Letters of Credit; and (B) the Lenders severally
agree to participate in Letters of Credit issued for the account of the
Borrower or any Guarantor; provided
that the L/C Issuer shall not be obligated to make any L/C Credit Extension
with respect to any Letter of Credit, and no Lender shall be obligated to
participate in any Letter of Credit, if as of the date of such L/C Credit
Extension, (w) the Outstanding Amount of all L/C Obligations and all Loans
would exceed the Borrowing Base, (x) the Outstanding Amount of all L/C
Obligations and all Loans would exceed the Aggregate Commitment, (y) the
aggregate Outstanding Amount of the Loans of any Lender, plus such Lender’s Pro Rata Share of the
Outstanding Amount of all L/C Obligations would exceed such Lender’s
Commitment, or (z) the Outstanding Amount of the L/C Obligations would exceed
the Letter of Credit Sublimit.  Within
the foregoing limits, and subject to the terms and conditions hereof, the
Borrower’s ability to obtain Letters of Credit shall be fully revolving, and
accordingly the Borrower may, during the foregoing period, obtain Letters of
Credit to replace Letters of Credit that have expired or that have been drawn
upon and reimbursed.  The Existing Letter
of Credit shall be deemed to have been issued pursuant hereto, and from and
after the Restatement Date shall be subject to and governed by the terms and
conditions hereof.

 

(ii)           The L/C Issuer shall be under no obligation
to issue any Letter of Credit if:

 

(A)          any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain the L/C Issuer from issuing such Letter of Credit, or any Law
applicable to the L/C Issuer or any request or directive (whether or not having
the force of law) from any Governmental Authority with jurisdiction over the
L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the
issuance of letters of credit generally or such Letter of Credit in particular
or shall impose upon the L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Restatement Date, or
shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which
was not applicable on the Restatement Date and which the L/C Issuer in good
faith deems material to it;

 

(B)           subject to Section 2.14(b)(iii), the expiry
date of such requested Letter of Credit would occur more than twelve months
after the date of issuance or last renewal, unless the Required Lenders have
approved such expiry date;

 

(C)           the expiry date of such requested Letter of
Credit would occur after the Letter of Credit Expiration Date, unless all the
Lenders have approved such expiry date;

 

(D)          the issuance of such Letter of Credit would
violate one or more policies of the L/C Issuer generally applicable to all
borrowers; or

 

35

 

(E)           such Letter of Credit is in a face amount
less than $100,000, or is to be used for a purpose other than as described in Section 6.12 or
is denominated in a currency other than Dollars.

 

(iii)          The L/C Issuer shall be under no obligation
to amend any Letter of Credit if (A) the L/C Issuer would have no
obligation at such time to issue such Letter of Credit in its amended form under
the terms hereof, or (B) the beneficiary of such Letter of Credit does not
accept the proposed amendment to such Letter of Credit.

 

(b)           Procedures for Issuance and Amendment of
Letters of Credit; Evergreen Letters of Credit.

 

(i)            Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the Borrower delivered to the
L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of
Credit Application, appropriately completed and signed by a Responsible Officer
of the Borrower.  Such Letter of Credit
Application must be received by the L/C Issuer and the Administrative Agent not
later than 11:00 a.m., New York time, at least two Business Days (or such
later date and time as the L/C Issuer may agree in a particular instance in its
sole discretion) prior to the proposed issuance date or date of amendment, as
the case may be.  In the case of a
request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer: (A) the
proposed issuance date of the requested Letter of Credit (which shall be a
Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the
name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the
full text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (G) such other matters as the L/C Issuer may
require.  In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A) the
Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment;
and (D) such other matters as the L/C Issuer may require.

 

(ii)           Promptly after receipt of any Letter of
Credit Application, the L/C Issuer will confirm with the Administrative Agent
(by telephone or in writing) that the Administrative Agent has received a copy
of such Letter of Credit Application from the Borrower and, if not, the L/C
Issuer will provide the Administrative Agent with a copy thereof.  Upon receipt by the L/C Issuer of
confirmation from the Administrative Agent that the requested issuance or
amendment is permitted in accordance with the terms hereof, then, subject to
the terms and conditions hereof, the L/C Issuer shall, on the requested date,
issue a Letter of Credit for the account of the Borrower or enter into the
applicable amendment, as the case may be, in each case in accordance with the
L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a participation in such
Letter of Credit in an amount equal to the product of such Lender’s Pro Rata
Share times the amount of such
Letter of Credit.

 

(iii)          If the Borrower so requests in any applicable
Letter of Credit Application, the L/C Issuer may, in it sole and absolute
discretion, agree to issue a Letter of Credit that has automatic renewal
provisions (each, an “Evergreen
Letter of Credit”); provided that
any such

 

36

 

Evergreen Letter of Credit must permit the L/C
Issuer to prevent any such renewal at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior
notice to the beneficiary thereof not later than a day (the “Nonrenewal Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued.  Unless otherwise
directed by the L/C Issuer, the Borrower shall not be required to make a
specific request to the L/C Issuer for any such renewal.  Once an Evergreen Letter of Credit has been
issued, the Lenders shall be deemed to have authorized (but may not require)
the L/C Issuer to permit the renewal of such Letter of Credit at any time to a
date not later than the Letter of Credit Expiration Date; provided, however, that the L/C Issuer
shall not permit any such renewal if it has received notice on or before the 5th
Business Day immediately preceding the Nonrenewal Notice Date (1) from the
Administrative Agent that the Required Lenders have elected not to permit such
renewal or (2) from any Lender stating that one or more of the applicable
conditions specified in Section 4.02
is not then satisfied and directing the L/C Issuer not to permit such
renewal.  Notwithstanding anything to the
contrary contained herein, the L/C Issuer shall have no obligation to permit
the renewal of any Evergreen Letter of Credit at any time.

 

(iv)          Promptly after its delivery of any Letter of
Credit or any amendment to a Letter of Credit to an advising bank with respect
thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the
Borrower and the Administrative Agent a true and complete copy of such Letter
of Credit or amendment.

 

(c)           Drawings and Reimbursements; Funding of
Participations.

 

(i)            Upon any drawing under any Letter of Credit,
the L/C Issuer shall notify the Borrower and the Administrative Agent
thereof.   Not later than 11:00 a.m.,
New York time, on the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), the Borrower shall reimburse the L/C
Issuer through the Administrative Agent in an amount equal to the amount of
such drawing.  If the Borrower fails to
so reimburse the L/C Issuer by such time, the Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed
drawing (the “Unreimbursed
Amount”), and such Lender’s Pro Rata Share thereof.  In such event, the Borrower shall be deemed
to have requested a Borrowing of Base Rate Loans to be disbursed on the Honor
Date in an amount equal to the Unreimbursed Amount, without regard to the
minimum and multiples specified in Section 2.03 for the principal amount of
Base Rate Loans, but subject to the amount of the unutilized portion of the
Aggregate Commitment and the conditions set forth in Section 4.02
(other than the delivery of a Borrowing Notice).  Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.14(c)(i) may be given by
telephone if immediately confirmed in writing; provided
that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

 

(ii)           Each Lender (including the Lender acting as
L/C Issuer) shall upon any notice pursuant to Section 2.14(c)(i) make funds
available to the Administrative Agent for the account of the L/C Issuer at the
Administrative Agent’s Office in an amount equal to its Pro Rata Share of the
Unreimbursed Amount not later than 11:00 a.m., New York time, on the
Business Day specified in such notice by the Administrative Agent, whereupon,
subject to the provisions of Section 2.14(c)(iii), each Lender that so makes
funds available shall be deemed to have made a Base Rate Loan to the Borrower
in such amount.  The Administrative Agent
shall remit the funds so received to the L/C Issuer.

 

37

 

(iii)          With respect to any Unreimbursed Amount that
is not fully refinanced by a Borrowing of Base Rate Loans because the
conditions set forth in Section 4.02
cannot be satisfied or for any other reason, the Borrower shall be deemed to
have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable on demand (together with interest) and shall bear interest at the
Default Rate.  In such event, each Lender’s
payment to the Administrative Agent for the account of the L/C Issuer pursuant
to Section 2.14(c) (ii) shall
be deemed payment in respect of its participation in such L/C Borrowing and
shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.14.

 

(iv)          Until each Lender funds its Loan or L/C
Advance pursuant to this Section 2.14(c) to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Pro Rata Share of such amount shall be
solely for the account of the L/C Issuer.

 

(v)           Each Lender’s obligation to make Loans or L/C
Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit,
as contemplated by this Section 2.14(c),
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense
or other right which such Lender may have against the L/C Issuer, the Borrower
or any other Person for any reason whatsoever, (B) the occurrence or
continuance of a Default or Event of Default, or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing.  Any such reimbursement shall not relieve or
otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for
the amount of any payment made by the L/C Issuer under any Letter of Credit,
together with interest as provided herein.

 

(vi)          If any Lender fails to make available to the
Administrative Agent for the account of the L/C Issuer any amount required to
be paid by such Lender pursuant to the foregoing provisions of this Section 2.14(c) by
the time specified in Section 2.14(c)(ii),
the L/C Issuer shall be entitled to recover from such Lender (acting through
the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the L/C Issuer at a rate per annum equal to the
Federal Funds Rate from time to time in effect. 
A certificate of the L/C Issuer submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (vi) shall
be conclusive absent manifest error.

 

(d)           Repayment of Participations.

 

(i)            At any time after the L/C Issuer has made a
payment under any Letter of Credit and has received from any Lender such Lender’s
L/C Advance in respect of such payment in accordance with Section 2.14(c),
if the Administrative Agent receives for the account of the L/C Issuer any
payment related to such Letter of Credit (whether directly from the Borrower or
otherwise, including proceeds of cash Collateral applied thereto by the
Administrative Agent), or any payment of interest thereon, the Administrative
Agent will distribute to such Lender its Pro Rata Share thereof in the same
funds as those received by the Administrative Agent.

 

(ii)           If any payment received by the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.14(c)(i) is
required to be returned, each Lender shall pay to the Administrative Agent for
the account of the L/C Issuer its Pro Rata Share thereof on demand of

 

38

 

the Administrative Agent, plus interest thereon from
the date of such demand to the date such amount is returned by such Lender, at
a rate per annum equal to the Federal Funds Rate from time to time in effect.

 

(e)           Obligations
Absolute.  The obligation of the Borrower to reimburse the L/C Issuer for each
drawing under each Letter of Credit, and to repay each L/C Borrowing and each
drawing under a Letter of Credit that is refinanced by a Borrowing of Loans,
shall be absolute, unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement under all circumstances, including
the following:

 

(i)            any lack of validity or enforceability of
such Letter of Credit, this Agreement, or any other agreement or instrument
relating thereto;

 

(ii)           the existence of any claim, counterclaim, set-off,
defense or other right that the Borrower may have at any time against any
beneficiary or any transferee of such Letter of Credit (or any Person for whom
any such beneficiary or any such transferee may be acting), the L/C Issuer or
any other Person, whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument
relating thereto, or any unrelated transaction;

 

(iii)          any draft, demand, certificate or other
document presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under such Letter of Credit;

 

(iv)          any payment by the L/C Issuer under such
Letter of Credit against presentation of a draft or certificate that does not
strictly comply with the terms of such Letter of Credit; or any payment made by
the L/C Issuer under such Letter of Credit to any Person purporting to be a
trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including any arising
in connection with any proceeding under any Debtor Relief Law; or

 

(v)           any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing, that might
otherwise constitute a defense available to, or a discharge of, the Borrower.

 

The
Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer.  The Borrower shall be conclusively deemed to
have waived any such claim against the L/C Issuer and its correspondents unless
such notice is given as aforesaid.

 

(f)            Role of L/C Issuer.  Each
Lender and the Borrower agree that, in paying any drawing under a Letter of
Credit, the L/C Issuer shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by
the Letter of Credit) or to ascertain or inquire as to the validity or accuracy
of any such document or the authority of the Person executing or delivering any
such document.  No Agent-Related Person
nor any of the respective correspondents, participants or assignees of the L/C
Issuer shall be liable to any Lender for (i) any action taken or omitted

 

39

 

in connection herewith at the request or with the approval of the
Lenders or the Required Lenders, as applicable, (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit or Letter of Credit
Application.  The Borrower hereby assumes
all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not,
preclude the Borrower’s pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.  No Agent-Related Person, nor any of the
respective correspondents, participants or assignees of the L/C Issuer, shall
be liable or responsible for any of the matters described in clauses (i) through
(v) of Section 2.14(e);
provided, however, that anything
in such clauses to the contrary notwithstanding, the Borrower may have a claim
against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to
the extent, but only to the extent, of any direct, as opposed to consequential
or exemplary, damages suffered by the Borrower which the Borrower proves were
caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C
Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a drawing strictly complying with the
terms and conditions of a Letter of Credit. 
In furtherance and not in limitation of the foregoing, the L/C Issuer
may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and the L/C Issuer shall not be responsible for
the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

 

(g)           Cash Collateral.  
Upon the request of the Administrative Agent, (i) if the L/C Issuer
has honored any full or partial drawing request under any Letter of Credit and
such drawing has resulted in an L/C Borrowing, or (ii) if, as of the
Letter of Credit Expiration Date, any Letter of Credit may for any reason
remain outstanding and partially or wholly undrawn, the Borrower shall
immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations (in an amount equal to such Outstanding Amount).  The Borrower hereby grants the Administrative
Agent, for the benefit of the L/C Issuer and the Lenders, a Lien on all such
cash and deposit accounts at any Lender.

 

(h)           Applicability of ISP98. 
Unless otherwise expressly agreed by the L/C Issuer and the Borrower
when a Letter of Credit is issued (including any such agreement applicable to
an Existing Letter of Credit), the rules of the “International Standby Practices
1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance) shall apply to each Letter of Credit.

 

(i)            Letter of Credit Fees.  The
Borrower shall pay to the Administrative Agent for the account of each Lender
in accordance with its Pro Rata Share a Letter of Credit fee for each Letter of
Credit issued equal to the Applicable Rate times the actual daily undrawn
amount under each Letter of Credit.  Such
fee for each Letter of Credit shall be due and payable on the last Business Day
of each March, June, September and December, commencing with the first
such date to occur after the issuance of such Letter of Credit, and on the
Letter of Credit Expiration Date.  If there
is any change in the Applicable Rate during any quarter, the actual daily
undrawn amount of each Letter of Credit shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect.

 

(j)            Fronting Fee and Documentary and Processing
Charges Payable to L/C Issuer.  The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee in an amount with respect

 

40

 

to each Letter of Credit issued equal to the greater of (i) $500
and (ii) 1⁄4 of 1% calculated on the face amount thereof.   In addition, the Borrower shall pay directly
to the L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the L/C Issuer relating to letters of credit as from time to time in
effect.  Such fees and charges are due
and payable on demand and are nonrefundable.

 

(k)           Conflict with Letter of Credit Application.  In
the event of any conflict between the terms hereof and the terms of any Letter
of Credit Application, the terms hereof shall control.

 

2.15        Extension of Termination Date;
Removal of Lenders.

 

(a)           The Borrower may, by written notice to the
Administrative Agent (a “Notice of Extension”)
given not less than 45 nor more than 60 days prior to the then effective
Revolving Credit Termination Date, advise the Lenders that it requests an
extension of the then effective Revolving Credit Termination Date (such then
effective Revolving Credit Termination Date being the “Existing
Revolving Credit Termination Date”) by 364 calendar days,
effective on the Existing Revolving Credit Termination Date.  The Administrative Agent will promptly, and
in any event within five Business Days of receipt of such Notice of Extension,
notify the Lenders of the contents of each such Notice of Extension.

 

(b)           Each Notice of Extension shall (i) be
irrevocable and (ii) constitute a representation by the Borrower that (A) neither
any Event of Default nor any Default has occurred and is continuing, and (B) the
representations and warranties contained in Article V
are correct on and as of such date, as though made on and as of such date
(unless any representation and warranty expressly relates to an earlier date,
in which case such representation and warranty shall be correct as of such
earlier date).  In the event the Existing
Revolving Credit Termination Date is extended pursuant to the terms of this Section 2.15, the Borrower
shall be deemed to represent on and as of the effective date of such extension
that (i) neither any Event of Default nor any Default has occurred and is
continuing, and (ii) the representations and warranties contained in Article V are correct on and as
of such date, as though made on and as of such date (unless any representation
and warranty expressly relates to an earlier date, in which case such
representation and warranty shall be correct as of such earlier date).

 

(c)           In the event a Notice of Extension is given
to the Administrative Agent as provided in Section 2.15(a) and
the Administrative Agent notifies a Lender of the contents thereof, such Lender
shall on or before the 20th day next preceding the Existing
Revolving Credit Termination Date advise the Administrative Agent in writing
whether or not such Lender consents to the extension requested thereby and if
any Lender fails so to advise the Administrative Agent, such Lender shall be
deemed to have not consented to such extension. 
If Lenders holding 66% or more of the Aggregate Commitment so consent
(the “Consenting Lenders”) to such
extension and any and all Lenders who have not consented (the “Non-Consenting Lenders”) are
replaced pursuant to subsection (d) or
(e) of this Section 2.15 or repaid pursuant
to subsection (f) of this Section 2.15, the Revolving
Credit Termination Date, and the Commitments of the Consenting Lenders and the
Nominees (as defined below) shall be automatically extended 364 calendar days
from the Existing Revolving Credit Termination Date, effective on the Existing
Revolving Credit Termination Date.  The
Administrative Agent shall promptly notify the Borrower and all of the Lenders
of each written notice of consent given pursuant to this Section 2.15(c).

 

(d)           In the event the Consenting Lenders hold less
than 100% of the Aggregate Commitment, the Consenting Lenders, or any of them,
shall have the right (but not the obligation) to assume all or any portion of
the Non-Consenting Lenders’ Commitments by giving written notice to the Borrower
and the

 

41

 

Administrative Agent of their election to do so on or before the 15th
day next preceding the Existing Revolving Credit Termination Date, which notice
shall be irrevocable and shall constitute an undertaking to (i) assume, as
of the close of business on the Existing Revolving Credit Termination Date, all
or such portion of the Commitments of the Non-Consenting Lenders, as the case
may be, as may be specified in such written notice, and (ii) purchase
(without recourse) from the Non-Consenting Lenders, at the close of business on
the Existing Revolving Credit Termination Date, the Revolving Loans outstanding
on the Existing Revolving Credit Termination Date that correspond to the
portion of the Commitments to be so assumed at a price equal to the sum of (x)
the unpaid principal amount of all Revolving Loans so purchased, plus (y) the
aggregate amount, if any, previously funded by the transferor or any
participations so purchased, plus (z) all accrued and unpaid interest thereon.
Such Commitments, or portions thereof, to be assumed and purchased by
Consenting Lenders shall be allocated among those Consenting Lenders who have
so elected to assume the same pro rata in accordance with the respective Commitments
of such Consenting Lenders as of the Existing Revolving Credit Termination Date
(provided, however, in no event shall a
Consenting Lender be required to assume and purchase an amount or portion of
the Commitments of the Non-Consenting Lenders in excess of the amount such
Consenting Lender agreed to assume and purchase pursuant to the immediately
preceding sentence) or on such other basis as such Consenting Lender shall
agree.  The Administrative Agent shall promptly
notify the Borrower and the other Consenting Lenders in the event it receives
any notice from a Consenting Lender pursuant to this Section 2.15(d).

 

(e)           In the event that the Consenting Lenders
shall not elect as provided in Section 2.15(d) to
assume and purchase all of the Non-Consenting Lenders’ Loans and Commitments,
the Borrower may designate, by written notice to the Administrative Agent and
the Consenting Lenders given on or before the 10th day next
preceding the Existing Revolving Credit Termination Date, one or more Eligible
Assignees not a party to this Agreement (individually, a “Nominee”
and collectively the “Nominees”)
to assume all or any portion of the Non-Consenting Lenders’ Loans and
Commitments not to be assumed by the Consenting Lenders and to purchase
(without recourse) from the Non-Consenting Lenders all Loans and Commitments
outstanding at the close of business on the Existing Revolving Credit
Termination Date that corresponds to the portion of the Loans and Commitments
so to be assumed at the price specified in Section 2.15(d).  Each assumption and purchase under this Section 2.15(e) shall be
effective as of the close of business on the Existing Revolving Credit
Termination Date when each of the following conditions has been satisfied in a
manner satisfactory to the Administrative Agent:

 

(i)            each Nominee and the Non-Consenting Lenders
have executed an Assignment and Assumption pursuant to which the Nominee shall (A) assume
in writing its share of the obligations of the Non-Consenting Lenders
hereunder, including its share of the Loans and Commitments of the
Non-Consenting Lenders and (B) agree to be bound as a Lender by the term
of this Agreement;

 

(ii)           each Nominee shall have completed and
delivered to the Administrative Agent an Administrative Details Form; and

 

(iii)          the assignment shall otherwise comply with Section 10.07.

 

(f)            If all of the Commitments of the
Non-Consenting Lenders are not replaced on or before the Existing Revolving
Credit Termination Date, then, at the Borrower’s option, either (i) all
Commitments to fund Revolving Loans shall terminate on the Existing Revolving
Credit Termination Date or (ii) the Borrower shall give prompt notice of
termination on the Existing Revolving Credit

 

42

 

Termination Date of the Commitments of each Non-Consenting Lender not
so replaced to the Administrative Agent, and shall prepay on the Existing
Revolving Credit Termination Date the Loans, if any, of such Non-Consenting
Lenders, which shall reduce the Aggregate Commitment accordingly (to the extent
not assumed), and the Existing Revolving Credit Termination Date shall be
extended in accordance with this Section 2.15
for the remaining Commitments of the Consenting Lenders.

 

2.16        Conversion
to Term Loan.  At the option of the Borrower
and subject to the satisfaction of the conditions precedent for a Borrowing set
forth in Section 4.02, upon
written notice delivered to the Administrative Agent no earlier than 60 days
and no later than five Business Day prior to the Revolving Credit Termination
Date, the aggregate principal amount of all, but not less than all, of the
Revolving Loans remaining outstanding at the close of the Administrative Agent’s
business on the Revolving Credit Termination Date shall automatically convert
to Term Loans with a maturity of one year. 
Any portion of each Lender’s Commitment not utilized on or before the
Revolving Credit Termination date shall be permanently cancelled.  Any Term Loans that are prepaid may not be
reborrowed.

 

ARTICLE III.

TAXES,
YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

(a)           Any and all payments by the Borrower to or
for the account of the Administrative Agent or any Lender under any Loan
Document shall be made free and clear of and without deduction for any and all
present or future taxes, duties, levies, imposts, deductions, assessments,
fees, withholdings or similar charges, and all liabilities with respect
thereto; excluding, in the case
of the Administrative Agent and each Lender, taxes imposed on or measured by
its net income, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is
organized or maintains its Lending Office (all such non-excluded taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and liabilities being hereinafter referred to as “Taxes”).  If the Borrower shall be required by any Laws
to deduct any Taxes from or in respect of any sum payable under any Loan
Document to the Administrative Agent or any Lender, (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this
Section), each of the Administrative Agent and such Lender receives an amount
equal to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions, (iii) the Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with applicable Laws, and (iv) within 30 days after the date of
such payment, the Borrower shall furnish to the Administrative Agent (which
shall forward the same to such Lender) the original or a certified copy of a
receipt evidencing payment thereof.

 

(b)           In addition, the Borrower agrees to pay any
and all present or future stamp, court or documentary taxes and any other
excise or property taxes or charges or similar levies which arise from any
payment made under any Loan Document or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, any
Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)           If the Borrower shall be required to deduct
or pay any Taxes or Other Taxes from or in respect of any sum payable under any
Loan Document to the Administrative Agent or any Lender, the Borrower shall
also pay to the Administrative Agent (for the account of such Lender) or to
such Lender,

 

43

 

at the time interest is paid, such additional amount that such Lender
specifies as necessary to preserve the after-tax yield (after factoring in all
taxes, including taxes imposed on or measured by net income) such Lender would
have received if such Taxes or Other Taxes had not been imposed.

 

(d)           The Borrower agrees to indemnify the
Administrative Agent and each Lender for (i) the full amount of Taxes and
Other Taxes (including any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section) paid by the Administrative
Agent and such Lender, (ii) amounts payable under Section 3.01(c) and
(iii) any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto. 
Payment under this subsection (d) shall be made within 30 days
after the date the Lender or the Administrative Agent makes a demand therefor.

 

3.02        Illegality.  If any Lender determines that any Law has
made it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Eurodollar Rate Loans, or materially restricts the authority of such
Lender to purchase or sell, or to take deposits of, Dollars in the applicable
offshore Dollar market, or to determine or charge interest rates based upon the
Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through
the Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans
shall be suspended until such Lender notifies the Administrative Agent and the
Borrower that the circumstances giving rise to such determination no longer
exist.  Upon receipt of such notice, the
Borrower shall, upon demand from such Lender (with a copy to the Administrative
Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period
thereof, if such Lender may lawfully continue to maintain such Eurodollar Rate
Loans to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurodollar Rate Loans. 
Upon any such prepayment or conversion, the Borrower shall also pay interest
on the amount so prepaid or converted. 
Each Lender agrees to designate a different Lending Office if such
designation will avoid the need for such notice and will not, in the reasonable
judgment of such Lender, otherwise be materially disadvantageous to such
Lender.

 

3.03        Inability
to Determine Rates.  If the
Administrative Agent determines in connection with any request for a Eurodollar
Rate Loan or a conversion to or continuation thereof that (a) Dollar
deposits are not being offered to banks in the applicable offshore Dollar
market for the applicable amount and Interest Period of such Eurodollar Rate
Loan, or adequate and reasonable means do not exist for determining the
Eurodollar Rate for such Eurodollar Rate Loan, or (b) if the Required
Lenders determine and notify the Administrative Agent that the Eurodollar Rate
for such Eurodollar Rate Loan does not adequately and fairly reflect the cost
to the Lenders of funding such Eurodollar Rate Loan, then the Administrative
Agent will promptly notify the Borrower and all Lenders.  Thereafter, the obligation of the Lenders to
make or maintain Eurodollar Rate Loans shall be suspended until the
Administrative Agent revokes such notice. 
Upon receipt of such notice, the Borrower may revoke any pending request
for a Borrowing, conversion or continuation of Eurodollar Rate Loans or,
failing that, will be deemed to have converted such request into a request for
a Borrowing of Base Rate Loans in the amount specified therein.

 

3.04        Increased Cost and Reduced Return; Capital Adequacy; Reserves
on Eurodollar Rate Loans.

 

(a)           If any Lender determines that as a result of
a Change in Law, or such Lender’s compliance therewith, there shall be any
increase in the cost to such Lender of agreeing to make or making, funding or
maintaining Eurodollar Rate Loans, or a reduction in the amount received or

 

44

 

receivable by such Lender in connection with any of the foregoing
(excluding for purposes of this subsection (a) any such increased
costs or reduction in amount resulting from (i) Taxes or Other Taxes (as
to which Section 3.01
shall govern), (ii) changes in the basis of taxation of overall net income
or overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office, and (iii) reserve requirements
contemplated by Section 3.04(c) utilized,
as to Eurodollar Rate Loans, in the determination of the Eurodollar Rate), then
from time to time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for such increased cost or reduction.

 

(b)           If any Lender determines a Change in Law has
the effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of such Lender’s
obligations hereunder (taking into consideration its policies with respect to
capital adequacy and such Lender’s desired return on capital, then from time to
time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for such reduction.

 

(c)           The Borrower shall pay to each Lender, as
long as such Lender shall be required under regulations of the Board to
maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”),
additional costs on the unpaid principal amount of each Eurodollar Rate Loan
equal to the actual costs of such reserves allocated to such Loan by such
Lender (as determined by such Lender in good faith, which determination shall
be conclusive), which shall be due and payable on each date on which interest
is payable on such Loan; provided
the Borrower shall have received at least 15 days’ prior notice (with a copy to
the Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 15 days
prior to the relevant Interest Payment Date, such additional interest shall be
due and payable 15 days from receipt of such notice.

 

3.05        Funding
Losses.  Upon demand of any Lender
(with a copy to the Administrative Agent) from time to time, the Borrower shall
promptly compensate such Lender for and hold such Lender harmless from any
loss, cost or expense incurred by it as a result of:

 

(a)           any continuation, conversion, payment or
prepayment of any Loan other than a Base Rate Loan on a day other than the last
day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise); or

 

(b)           any failure by the Borrower (for a reason
other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrower; including any loss of anticipated profits and
any loss or expense arising from the liquidation or reemployment of funds
obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained.  
The Borrower shall also pay any customary administrative fees charged by
such Lender in connection with the foregoing.

 

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05,
each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it
at the Eurodollar Rate for such Loan by a matching deposit or other borrowing
in the applicable offshore Dollar interbank market for a comparable amount and
for a comparable period, whether or not such Eurodollar Rate Loan was in fact
so funded.

 

45

 

3.06        Matters
Applicable to all Requests for Compensation.  A certificate of the Administrative Agent or
any Lender claiming compensation under this Article III and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive in
the absence of manifest error.  In
determining such amount, the Administrative Agent or such Lender may use any
reasonable averaging and attribution methods.

 

3.07        Survival.  All of the Borrower’s obligations under this Article III shall
survive termination of the Aggregate Commitment and payment in full of all the
other Obligations.

 

ARTICLE IV.

CONDITIONS PRECEDENT 

 

4.01        Conditions
Precedent.  This Agreement shall be
effective on the Restatement Date subject to satisfaction of the following
conditions precedent on or prior to such date:

 

(a)           The Administrative Agent’s receipt of the
following, each of which shall be originals or facsimiles (followed promptly by
originals) and unless otherwise specified, each properly executed by an authorized
officer of the signing Loan Party or other Person party thereto, each dated the
Restatement Date (or, in the case of certificates of governmental officials, a
recent date before the Restatement Date), and each in form and substance
satisfactory to the Administrative Agent and its legal counsel:

 

(i)            executed counterparts of this Agreement, the
Amended and Restated Guaranty, and such other Collateral Documents, as amended
and restated, as deemed advisable by the Administrative Agent or its counsel, each
dated as of the Restatement Date;

 

(ii)           Notes executed by the Borrower in favor of
each Lender requesting such Notes, each Note in a principal amount equal to
such Lender’s Commitment, and each Note dated as of the Restatement Date;

 

(iii)          such certificates of resolutions or other
action, incumbency certificates and/or other certificates of officers of each
Loan Party as the Administrative Agent may require to establish the identities
of and verify the authority and capacity of each officer thereof authorized to
act in connection with this Agreement and the other Loan Documents to which
such Loan Party is a party;

 

(iv)          such evidence as the Administrative Agent may
reasonably require to verify that each Loan Party is duly organized or formed,
validly existing, and in good standing in the jurisdiction of its organization;

 

(v)           a certificate signed by a Responsible Officer
of the Borrower certifying (A) that the representations and warranties
contained in Article V
are true and correct in all respects on and as of the Restatement Date, (B) that
no Default or Event of Default has occurred and is continuing under this
Agreement as of the Restatement Date, (C) since December 31, 2004
there has occurred no material adverse change in the business, assets, liabilities
(actual or contingent), operations, or condition (financial or otherwise) or
prospects of the Borrower and Guarantors, taken as a whole, (D) that as of
the Restatement Date there are no material environmental or material legal
issues affecting any Loan Party or any of the Collateral, (E) all
necessary governmental and third party approvals necessary or required for any
Loan Party to enter into this Agreement or any of the Loan Documents have been
obtained, (F) there is no litigation,

 

46

 

investigation or proceeding known to and affecting
the Borrower or any Loan Party for which the Borrower is required to give
notice pursuant to Section 6.03(c) (or,
if there is any such litigation, investigation or proceeding, then a notice
containing the information required by Section 6.03(c) shall be given
concurrently with the delivery of the certificate given pursuant to this clause
(v)), and (G) no action, suit, investigation or proceeding is pending or
threatened in any court or before any arbitrator or governmental authority by
or against the Borrower, or any Loan Party or any of their respective
properties, that (y) could reasonably be expected to materially and adversely
affect the Borrower or any Loan Party, taken as a whole, or (z) seeks to affect
or pertains to any transaction contemplated hereby or the ability of the
Borrower or any Loan Party to perform its obligations under the Loan Documents;

 

(vi)          a certificate of a Responsible Officer of the
Borrower (a) as to the satisfaction of all conditions specified in this Section 4.01 and
Section 4.02,(b) attaching
an updated two year stand alone financial forecast for the Borrower for its
2006 and 2007 fiscal years, and (c) attaching any amendments, modifications or
supplements to any Material Agreement entered into on or after the date of the
Original Credit Agreement;

 

(vii)         a Borrowing Base Report from a Responsible
Officer of the Borrower as of December 31, 2005;

 

(viii)        a certificate of a Borrower’s chief financial
officer or treasurer, in form and substance satisfactory to the Arranger,
certifying that neither the Borrower and its Subsidiaries on a consolidated are
“insolvent” as such term is used and
defined in (i) the United States Bankruptcy
Code or (ii) the Texas Uniform Fraudulent
Transfer Act, Tex. Bus. & Com. Code Ann. §24.003;

 

(ix)           a Compliance Certificate from a Responsible
Officer of the Borrower as of September 30, 2005 demonstrating compliance
with all financial covenants (other than Section 7.15(c))
on a pro forma basis for the quarter ended September 30, 2005;

 

(x)            an opinion from Hogan & Hartson,
L.L.P., counsel to each Loan Party, in form and substance satisfactory to the
Administrative Agent and its counsel; and

 

(xi)           such other assurances, certificates,
documents, consents or opinions as the Administrative Agent reasonably may
require.

 

(b)           The Borrower shall pay (i) to the
Administrative Agent for the account of the Original Lenders all interest and
fees accrued under the Original Credit Agreement, (ii) to the L/C Issuer
all fronting fees accrued under the Original Credit Agreement with respect to
the Existing Letter of Credit and (iii) any fees due and payable at the
Restatement Date including, without limitation, payment of fees and expenses pursuant
to the Agent/Arranger Fee Letter.

 

(c)           The Borrower shall have paid Attorney Costs
of the Administrative Agent to the extent invoiced prior to, or on, the
Restatement Date.

 

(d)           Documents, executed by each Loan Party that
has assets or conducts business, in appropriate form for recording, where
necessary, together with:

 

47

 

(i)            such Lien searches as the Administrative
Agent shall have reasonably requested, and such termination statements or other
documents as may be necessary to confirm that the Collateral is subject to no
other Liens (other than Permitted Liens) in favor of any Persons;

 

(ii)           funds sufficient to pay any filing or
recording tax or fee in connection with any and all UCC-1 financing statements;

 

(iii)          evidence that the Administrative Agent has
been named as loss payee under all policies of casualty insurance pertaining to
the Collateral;

 

(iv)          such consents, estoppels, subordination
agreements and other documents and instruments executed by landlords and other
Persons party to material contracts relating to any Collateral as to which the
Administrative Agent shall be granted a Lien for the benefit of the Lenders, as
requested by the Administrative Agent or any Lender;

 

(v)           certificates evidencing all of the issued and
outstanding shares of capital stock, partnership interests, or membership
interests pledged pursuant thereto, which certificates shall in each case be
accompanied by undated stock powers duly executed in blank, or, if any securities
pledged pursuant thereto are uncertificated securities, confirmation and
evidence satisfactory to the Administrative Agent that the security interest in
such uncertificated securities has been transferred to and perfected by the
Administrative Agent for the benefit of the Lenders in accordance with the UCC;

 

(vi)          a Statement of Purpose for an Extension of
Credit Secured by Margin Stock (Federal Reserve Form U-1); and

 

(vii)         evidence that all other actions necessary or,
in the opinion of the Administrative Agent or the Lenders, desirable to perfect
and protect the first priority Lien created by the Collateral Documents (except
to the extent otherwise permitted hereunder), and to enhance the Administrative
Agent’s ability to preserve and protect its interests in and access to the
Collateral, have been taken.

 

(e)           Certification to the Administrative Agent
that no changes have been made to the certificate of incorporation of the
Borrower or any other Loan Party since copies were previously delivered to the
Administrative Agent in connection with the Original Credit Agreement.

 

(f)            Delivery to the Administrative Agent (with
sufficient copies for all Lenders) of any other information required by Section 326
of the USA Patriot Act or necessary for the Administrative Agent or any Lender
to verify the identity of Borrower as required by Section 326 of the USA
Patriot Act.

 

The
Administrative Agent shall notify the Borrower and the Lenders of the
Restatement Date, and such notice shall be conclusive and binding.

 

4.02        Conditions
to all Loans and L/C Credit Extension. 
The obligation of each Lender to honor any Borrowing Notice and the
obligation of the L/C Issuer to issue any Letter of Credit is subject to the
following conditions precedent:

 

(a)           The representations and warranties of the
Loan Parties contained in Article V,
or which are contained in any document furnished at any time under or in
connection herewith, including, but not

 

48

 

limited to the Collateral Documents, shall be true and correct in all
material respects on and as of the date of such Loan is made, continued or
converted, as applicable, or such Letter of Credit is issued except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier
date.

 

(b)           Since the date of the last delivered
financial statements, there has been no event or circumstance that has or could
reasonably be expected to have a Material Adverse Effect.

 

(c)           No Default or Event of Default shall exist or
would result from such proposed Loan, continuation or conversion, or L/C Credit
Extension.

 

(d)           The Administrative Agent and, if applicable,
the L/C Issuer, shall have received a Request for Credit Extension and, if
applicable, a Letter of Credit Application in accordance with the requirements
hereof.

 

(e)           The Administrative Agent shall have received,
in form and substance reasonably satisfactory to it, such other assurances,
certificates, documents or consents related to the foregoing as the
Administrative Agent reasonably may require.

 

Each
Request for Credit Extension submitted by the Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.02(a), (b) and (c) have been
satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V.

REPRESENTATIONS
AND WARRANTIES

 

The
Borrower and each Loan Party by its execution of this Agreement represents and
warrants to the Administrative Agent and the Lenders that:

 

5.01        Existence;
Qualification and Power; Compliance with Laws.  Borrower and each Loan Party (a) is a
corporation, partnership or limited liability company duly organized or formed,
validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority
and all governmental licenses, authorizations, consents and approvals to own
its assets, carry on its business and to execute, deliver, and perform its
obligations under the Loan Documents to which it is a party, (c) is duly
qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, and (d) is
in compliance with all Laws, except in each case referred to in clause (c) or
this clause (d), to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

 

5.02        Authorization;
No Contravention.  The execution,
delivery and performance by each Loan Party of each Loan Document to which such
Person is party, have been duly authorized by all necessary corporate or other
organizational action, and do not and will not: (a) contravene the terms
of any of such Person’s Organization Documents; (b) conflict with or
result in any breach or contravention of, or the creation of any Lien under,
any material Contractual Obligation to which such Person is a party or any
order, injunction, writ or decree of any Governmental Authority to which such
Person or its property is subject; or (c) violate any Law.

 

49

 

5.03        Governmental
Authorization.  No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority, except for the filings in connection with the granting
of security interests pursuant to the Collateral Documents, is necessary or
required in connection with the execution, delivery or performance by, or
enforcement against, any Loan Party of this Agreement or any other Loan
Document.

 

5.04        Binding
Effect.  This Agreement has been, and
each other Loan Document, when delivered hereunder, will have been duly
executed and delivered by each Loan Party that is party thereto.  This Agreement constitutes, and each other
Loan Document when so delivered will constitute, a legal, valid and binding
obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms.

 

5.05        Financial Statements; No Material Adverse Effect.

 

(a)           The audited financial statements delivered to
the Lenders were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted
therein.  Such financial statements: (i) fairly
present the financial condition of the entities therein named and their
respective Subsidiaries as of the date thereof and their results of operations
for the period covered thereby in accordance in all material respects with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; and (ii) show all material indebtedness and other
liabilities, direct or contingent, of the entities therein named and their
Subsidiaries as of the date thereof, including liabilities for taxes, material
commitments and Indebtedness in accordance with GAAP consistently applied
throughout the period covered thereby.

 

(b)           Since December 31, 2004, there has been
no event or circumstance that has or could reasonably be expected to have a
Material Adverse Effect.

 

5.06        Litigation.  There are no actions, suits, proceedings,
claims or disputes pending or, to the knowledge of the Borrower threatened or
contemplated in writing, at law, in equity, in arbitration or before any
Governmental Authority, by or against the Borrower or any Loan Party or against
any of their properties or revenues which (a) seek to affect or pertain to
this Agreement or any other Loan Document, the borrowing of Loans, the use of
the proceeds thereof, or the issuance of Letters of Credit hereunder, or (b) if
determined adversely, could reasonably be expected to have a Material Adverse
Effect.

 

5.07        No
Default.  Neither the Borrower nor
any Loan Party is in default under or with respect to any Contractual
Obligation which could be reasonably expected to have a Material Adverse
Effect.  No Default or Event of Default
has occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.  There is no default under any Material
Agreement.

 

5.08        Ownership
of Property; Liens.  From and after
the Restatement Date, (a) each Loan Party has good title to, or valid
leasehold interests in, all its real and personal property necessary or used in
the ordinary conduct of its business, except for such defects in title as would
not, individually or in the aggregate, have a Material Adverse Effect, and (b) the
property of the Borrower and Loan Parties is subject to no Liens, other than
Permitted Liens.

 

5.09        Environmental
Compliance.  The Borrower has
reasonably concluded that (a) there are no claims alleging potential
liability under or responsibility for violation of any Environmental Law except
any such claims that could not, individually or in the aggregate, reasonably be
expected to have a

 

50

 

Material Adverse Effect, (b) there
is no environmental condition or circumstance, such as the presence or Release
of any Hazardous Substance, on any property owned, operated or used the
Borrower or any Borrower Affiliate that could reasonably be expected to have a
Material Adverse Effect, and (c) there is no violation of or by the
Borrower or any Borrower Affiliate of any Environmental Law, except for such
violations as could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

5.10        Insurance.  The properties of the Borrower and the
Borrower Affiliates are insured with financially sound and reputable insurance
companies not Affiliates of the Borrower, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
the Borrower or the Borrower Affiliates operate.

 

5.11        Taxes.  The Borrower and the Borrower Affiliates have
filed all federal, state and other material tax returns and reports required to
be filed, and have paid all federal, state and other material taxes,
assessments, fees and other governmental charges levied or imposed upon them or
their properties, income or assets otherwise due and payable, except those
which are being contested in good faith by appropriate proceedings and for
which adequate reserves have been provided in accordance with GAAP.  There is no proposed tax assessment against
any Borrower Affiliate or any of their respective Subsidiaries that would, if
made, have a Material Adverse Effect.

 

5.12        ERISA
Compliance.  The representations and
warranties set forth in this Section 5.12 shall apply only if the Borrower or an
ERISA Affiliate establishes a Plan.

 

(a)           Each Plan is in compliance in all material
respects with the applicable provisions of ERISA, the Code and other federal or
state Laws except to the extent that noncompliance could not reasonably be
expected to have a Material Adverse Effect. 
Each Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter
is currently being processed by the IRS with respect thereto and, to the best
knowledge of the Borrower, nothing has occurred which would prevent, or cause
the loss of, such qualification, except to the extent that nonqualification
could not reasonably be expected to have a Material Adverse Effect.  The Borrower and each ERISA Affiliate have
made all required contributions to each Plan subject to Section 412 of the Code, and no
application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of
the Code has been made with respect to any Plan, except to the extent that
nonpayment could not reasonably be expected to have a Material Adverse Effect.

 

(b)           There are no pending or, to the best knowledge
of the Borrower, threatened claims, actions or lawsuits, or action by any
Governmental Authority, with respect to any Plan that could reasonably be
expected to have a Material Adverse Effect. 
Neither the Borrower nor any ERISA Affiliate has engaged in or knowingly
permitted to occur and, to the Borrower’s knowledge, no other party has engaged
in or permitted to occur any prohibited transaction or violation of the
fiduciary responsibility rules with respect to any Plan that has resulted
or could reasonably be expected to result in a Material Adverse Effect.

 

(c)           (i)            No ERISA Event has occurred or is reasonably
expected to occur that could reasonably be expected to have a Material Adverse
Effect; (ii) no Pension Plan has any Unfunded Pension Liability that (when
aggregated with any other Unfunded Pension Liability) has resulted or could
reasonably be expected to result in a Material Adverse Effect; and (iii) neither
the Borrower nor any

 

51

 

ERISA
Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA that could
reasonably be expected to have a Material Adverse Effect.

 

5.13        Subsidiaries
and other Investments.  As of the
Restatement Date the Borrower (i) will have no Subsidiaries (other than
Excluded MLP Entities) other than those specifically disclosed in Schedule 5.13, (ii) will
have no equity investment in any other corporation or other entity other than
those specifically disclosed in Schedule 5.13, and (iii) will have no other
Investments except as disclosed in Schedule 5.13.

 

5.14        Margin Regulations; Investment Company Act; Public Utility
Holding Company Act; Use of Proceeds.

 

(a)           Neither the Borrower nor any Borrower
Affiliate is engaged nor will it engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the Board), or extending credit for the
purpose of purchasing or carrying margin stock.   Margin stock constitutes less than 25% of
those assets of each Loan Party which are subject to any limitation on a sale,
pledge, or other restrictions hereunder.

 

(b)           Neither the Borrower nor any Borrower
Affiliate, no Person controlling the Borrower or any Borrower Affiliate, or any
Subsidiary thereof (i) is a “holding
company,” or a “subsidiary
company” of a “holding company,”
or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within the meaning of
the Public Utility Holding Company Act of 1935, or (ii) is or is required
to be registered as an “investment company”
under the Investment Company Act of 1940.

 

(c)           The Borrower will use all proceeds of Credit
Extension in the manner set forth in Section 6.12.

 

5.15        Disclosure.  All material factual information hereto
furnished by or on behalf of the Borrower in writing to the Administrative
Agent or any Lender for purposes of or in connection with this Agreement or any
transaction contemplated hereby, as modified or supplemented by other information
so furnished, is true and accurate in all material respects, and such
information is not, or shall not be, as the case may be, incomplete by omitting
to state any material fact necessary to make such information not misleading.  All estimates and projections delivered to
the Administrative Agent or any Lender were based upon information that was
available at the time such estimates or projections were prepared and believed
to be correct and upon assumptions believed to be reasonable; however, the Borrower does not warrant
that such estimates and projections will ultimately prove to have been
accurate.

 

5.16        Labor
Matters.  To the Borrower’s
knowledge, there are no actual or threatened strikes, labor disputes,
slowdowns, walkouts, or other concerted interruptions of operations that could
reasonably be expected to have a Material Adverse Effect.

 

5.17        Compliance
with Laws.  Neither the Borrower nor
any Borrower Affiliate is in violation of any Laws, other than such violations which could not, individually or
collectively, reasonably be expected to have a Material Adverse Effect.  Neither the Borrower nor any Borrower
Affiliate has received notice alleging any noncompliance with any Laws, except for such noncompliance which no
longer exists, or which non-compliance could not reasonably be expected to have
a Material Adverse Effect.

 

52

 

5.18        Third
Party Approvals.  No approval,
consent, exemption, authorization, or other action by, or notice to, or filing with,
any party that is not a party to this Agreement is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document except where obtained or where the failure
to receive such approval, consent, exemption, authorization, or the failure to
do such other action by, or provide such notice could not reasonably be
expected to have a Material Adverse Effect; and provided, however, that the transfer of rights in certain
Collateral consisting of rights under contracts to a foreclosure purchaser may,
in some instances, require the consent of third parties who have rights in such
Collateral

 

5.19        Solvency.  The Borrower and its Subsidiaries on a
consolidated basis are not “insolvent” as such term is used and defined in (i) the
United States Bankruptcy Code or (ii) the Texas Uniform Fraudulent
Transfer Act, Tex. Bus. & Com. Code Ann. §24.003.

 

5.20        Collateral.

 

(a)           The provisions of each of the Collateral
Documents are effective to create in favor of the Administrative Agent for the
benefit of the Lenders, a legal valid and enforceable first priority security
interest in all Rights, titles and interests of each Loan Party in the
Collateral described therein, except as otherwise permitted hereunder; and
financing statements have been filed in the offices in all of the jurisdictions
listed in the schedule to all Security Agreements.

 

(b)           All representations and warranties of each
Loan Party thereto contained in the Collateral Documents are true and correct
in all material respects.

 

(c)           None of the terms or provisions of any
indenture, mortgage, deed of trust, agreement or other instrument to which the
Borrower or any Loan Party is a party or by which the Borrower or any Loan
Party or the property of the Borrower or any Loan Party is bound prohibit the
filing or recordation of any of the Loan Documents or any other action which is
necessary or appropriate in connection with the perfection of the Liens on
material assets evidenced and created by any of the Loan Documents.

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

 

So
long as any Lender shall have any Commitment hereunder, or any Loan or other
Obligation shall remain unpaid or unsatisfied, or any Letter of Credit shall
remain outstanding, the Borrower and each Loan Party shall:

 

6.01        Financial
Statements.  Deliver to the
Administrative Agent and each Lender, in form and detail reasonably
satisfactory to the Administrative Agent and the Required Lenders:

 

(a)           as soon as available, but in any event within
90 days after the end of each fiscal year of the Borrower, stand alone balance
sheets of the Borrower as at the end of such fiscal year, and the related
statements of income and cash flows for such fiscal year, setting forth in each
case in comparative form the figures for the previous fiscal year of the
Borrower, all in reasonable detail and as reported on Borrower’s Report on Form 10K
for such fiscal year, audited and accompanied by a report and opinion of
Deloitte & Touche LLP or other independent certified public accountant
of nationally recognized standing reasonably acceptable to the Required
Lenders, which report and opinion shall be prepared in accordance with GAAP and
shall not be subject to any qualifications or exceptions as to the scope of the
audit nor to any qualifications and exceptions not reasonably acceptable to the
Required Lenders;

 

53

 

(b)           as soon as available, but in any event within
45 days after the end of each of the first three fiscal quarters of each fiscal
year of the Borrower, an unaudited stand alone balance sheet of the Borrower as
at the end of such fiscal quarter, and the related statements of income and
cash flows for such fiscal quarter and for the portion of the Borrower’s fiscal
year then ended, setting forth in each case in comparative form the figures for
the corresponding fiscal quarter of the previous fiscal year of the Borrower,
all in reasonable detail and as reported on Borrower’s Report on Form 10Q
for such fiscal quarter and certified by a Responsible Officer of the Borrower,
as applicable, as fairly presenting the financial condition, results of
operations and cash flows of the Borrower in accordance with GAAP, subject only
to normal year-end audit adjustments and the absence of footnotes;

 

(c)           within 45 days after the end of each fiscal
year of the Borrower, Borrower shall deliver a one year projection/budget for
the Borrower and the Loan Parties for the year following such fiscal year.

 

6.02        Certificates;
Other Information.  Deliver to the
Administrative Agent and each Lender, in form and detail satisfactory to the
Administrative Agent and the Required Lenders:

 

(a)           concurrently with the delivery of the
financial statements referred to in Sections 6.01(a) and (b), a duly completed
Compliance Certificate in the form of Exhibit C signed by a Responsible
Officer of the Borrower;

 

(b)           promptly after the same are available, copies
of each annual report, proxy or financial statement or other report or written
communication sent to the equity owners of the Borrower, and copies of all
annual, regular, periodic and special reports and registration statements which
the Borrower may file or be required to file with the Securities and Exchange
Commission under Section 13
or 15(d) of the Securities
Exchange Act of 1934, and not otherwise required to be delivered to the
Administrative Agent pursuant hereto;

 

(c)           within twenty (20) calendar days after the
end of each calendar month, (i) a completed Borrowing Base Report
calculating and certifying the Borrowing Base as of the last day of such
calendar month, certified as complete and correct and signed on behalf of the
Borrower by its chief financial officer or treasurer, and (ii) such other
supporting documentation and additional reports with respect to the Borrowing
Base as the Administrative Agent shall request;

 

(d)           promptly after execution thereof, copies of
Material Agreements and any material amendment thereto; and

 

(e)           promptly, such additional information regarding
the business, financial or corporate affairs of any Loan Party as the
Administrative Agent, at the request of any Lender, may from time to time
reasonably request, which information may include copies of any detailed audit
reports, if any, management letters or recommendations submitted to the board
of directors (or the audit committee of the board of directors) of the Borrower
by independent accountants in connection with the accounts or books of the
Borrower or any Loan Party, or any audit of any of them.

 

6.03        Notices.  Promptly notify the Administrative Agent and
each Lender:

 

(a)           of the occurrence of any Default or Event of
Default, as soon as possible but in any event within ten (10) days after
the occurrence thereof;

 

54

 

(b)           of any matter that has resulted or could
reasonably be expected to result in a Material Adverse Effect, including any of
the following events if such has resulted or could reasonably be expected to
result in a Material Adverse Effect: (i) breach or non-performance of, or
any default under, a Contractual Obligation of any Loan Party; (ii) any
litigation, investigation by or required by a Governmental Authority,
proceeding or suspension of licenses or permits between any Loan Party and any
Governmental Authority; (iii) any dispute, litigation, investigation or
proceeding involving any Loan Party related to any Environmental Law;

 

(c)           of any litigation, investigation or
proceeding known to and affecting the Borrower or any Loan Party in which (i) the
amount involved exceeds (individually or collectively) $1,000,000, or (ii) injunctive
relief or other relief is sought, which could be reasonably expected to have a
Material Adverse Effect; and

 

(d)           of any material change in accounting policies
or financial reporting practices by the Borrower.

 

Each
notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower has taken and proposes
to take with respect thereto.  Each
notice pursuant to Section 6.03(a) shall
describe with particularity any and all provisions of this Agreement or other
Loan Document that have been breached.

 

6.04        Payment
of Obligations.  Pay and discharge as
the same shall become due and payable, all its obligations and liabilities,
including (a) the Obligations, (b) all tax liabilities, assessments
and governmental charges or levies upon it or its properties or assets and (c) all
lawful claims which, if unpaid, would by law become a Lien upon its property; except, in the case of clause (b) or
(c), where (x) the validity thereof are being contested in good faith by
appropriate proceedings and (y) adequate reserves in accordance with GAAP are
being maintained by the appropriate Loan Party.

 

6.05        Preservation of Existence, Etc.

 

(a)           Preserve, renew and maintain in full force
and effect its legal existence and good standing under the Laws of the
jurisdiction of its organization, except in a transaction permitted by Sections 7.06 and 7.07, (b) take
all reasonable action to maintain all rights, privileges, permits, licenses and
franchises material to the conduct of its business, except in a transaction
permitted by Sections
7.06 and 7.07.

 

6.06        Maintenance of Assets and Business.

 

(a)           Maintain all material properties, equipment,
licenses, permits, and franchises necessary for its normal business; (b) keep
all of its assets which are useful in and necessary to its business in good
working order and condition (ordinary wear and tear excepted) and make all
necessary repairs thereto and replacements thereof; (c) do all things
necessary to obtain, renew, extend, and continue in effect all Authorizations
which may at any time and from time to time be necessary for the operation of
its business in compliance with applicable Law, except
where the failure to so maintain, renew, extend, or continue in effect could
not reasonably be expected to have a Material Adverse Effect; (d) preserve
or renew all of its registered patents, trademarks, trade names and service
marks, the non-preservation of which could reasonably be expected to have a
Material Adverse Effect; and (e) use the standard of care typical in the
industry in the operation and maintenance of its facilities.

 

55

 

6.07        Maintenance of Insurance.

 

(a)           Maintain with responsible insurance companies
insurance with respect to its properties and business (including business
interruption insurance) against such casualties and contingencies and of such
types and in such amounts as is customary in the case of similar businesses and
which is satisfactory to the Administrative Agent and the Required Lenders and
will (i) furnish to the Administrative Agent on each anniversary of the
Restatement Date a certificate or certificates of insurance from the applicable
insurance company evidencing the existence of insurance required to be
maintained by this Agreement and the other Loan Documents and evidencing that
Administrative Agent is listed as sole loss payee on property insurance (except
as to properties owned by MLP or a Subsidiary of MLP) and the Administrative
Agent and Lenders are additional insureds on liability insurance, and (ii) upon
request of the Administrative Agent, furnish to each Lender at reasonable
intervals a certificate of an Authorized Officer of the Borrower setting forth
the nature and extent of all insurance maintained in accordance with this
Section.

 

(b)           (i) Except as the Administrative Agent
may otherwise consent to in writing, Borrower will, and will cause each Loan
Party to, forthwith upon receipt, transmit and deliver to the Administrative
Agent, in the form received, all cash, checks, drafts, chattel paper and other
instruments or writings for the payment of money (properly endorsed, where
required, so that such items may be collected by the Administrative Agent)
which may be received by the Borrower at any time in full or partial payment of
amounts due under any insurance policy covering Borrower or any Loan
Party.  Except as the Administrative
Agent may otherwise consent in writing, any such items which may be received by
the Borrower will not be commingled with any other of its funds or property, but
will be held separate and apart from its own funds or property and upon express
trust for the Administrative Agent until delivery is made to the Administrative
Agent.  Borrower will comply with the
terms and conditions of any consent given by the Administrative Agent pursuant
to the provisions of this paragraph.

 

All
items or amounts in excess of $250,000 which are delivered by the Borrower or
by any insurance company to the Administrative Agent on account of partial or
full payment of amounts due under any insurance policy shall be deposited to
the credit of a deposit account (herein called the “Insurance Deposit Account”)
of the Borrower with the Administrative Agent, as security for payment of the
Obligations.  Borrower shall have no
right to withdraw any funds deposited in the Insurance Deposit Account.  Administrative Agent will apply all or any of
the then balance in the Insurance Deposit Account toward payment of the
Obligations, in such order of application as the Administrative Agent may
determine.  Administrative Agent may,
from time to time, in its reasonable discretion and with the consent of the
Required Lenders, release all or any of such balance representing collected
funds to the Borrower.  Administrative
Agent is authorized to endorse, in the name of the Borrower, any item, howsoever
received by the Administrative Agent, representing any payment under any
insurance policy.

 

(ii)           The Borrower hereby grants to the
Administrative Agent, for the benefit of the Lenders, a lien on and security
interest in and to such account and all monies, cash, checks, drafts,
certificates of deposit, instruments, investment property, and other items ever
received by Administrative Agent for deposit therein and held therein, as
security for the Obligations.  The rights
granted by this Section 6.07
shall be in addition to the rights of the Administrative Agent under any
statutory banker’s Lien or the common law right of setoff.

 

56

 

6.08        Compliance
with Laws and Contractual Obligations.

 

(a)           Comply in all material respects with the
requirements of all Laws (including Environmental Laws) applicable to it or to
its business or property, except in such instances in which (i) such
requirement of Law is being contested in good faith or a bona fide dispute
exists with respect thereto, or (ii) the failure to comply therewith could
not be reasonably expected to have a Material Adverse Effect; and (b) comply
with all Contractual Obligations, except the failure to comply therewith could
not be reasonably expected to have a Material Adverse Effect.

 

6.09        Books
and Records.  Maintain (a) proper
books of record and account, in which full, true and correct entries in
conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving its assets and business, and (b) maintain
such books of record and account in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over
it.

 

6.10        Inspection
Rights.  Permit representatives and
independent contractors of the Administrative Agent and each Lender to visit
and inspect any of its properties, to examine its corporate, financial and
operating records, and make copies thereof or abstracts therefrom, and to
discuss its affairs, finances and accounts with its directors, officers, and
independent public accountants, at such reasonable times during normal business
hours and as often as may be reasonably desired, upon reasonable advance notice
to the Borrower; provided, however,
that when an Event of Default exists the Administrative Agent or any Lender (or
any of their respective representatives or independent contractors) may do any
of the foregoing at the expense of the Borrower at any time during normal
business hours and without advance notice.

 

6.11        Compliance
with ERISA.  With respect to each
Plan maintained by a Loan Party, do each of the following: (a) maintain
each Plan in compliance in all material respects with the applicable provisions
of ERISA, the Code and other federal or state Laws; (b) cause each Plan
which is qualified under Section 401(a) of
the Code to maintain such qualification; and (c) make all required
contributions to any Plan subject to Section 412
of the Code, except to the extent
that noncompliance, with respect to each event listed above, could not be
reasonably expected to have a Material Adverse Effect

 

6.12        Use of Proceeds.  Use proceeds of the Revolver
Facility to (i) finance inventory and accounts receivable of the Borrower
and Guarantors, (ii) issue Letters of Credit, and (iii) pay fees,
costs and expenses owed pursuant to this Agreement; provided,
however, no proceeds of any Loans or Letters of Credit may be paid,
advanced, lent, given or contributed to the MLP GP, the MLP or any of their
Subsidiaries except in connection with bona fide business transactions; and provided further, no proceeds of any Loans or Letters of
Credit may paid, advanced, lent, given or contributed to the MLP GP or the MLP
or any of their Subsidiaries for the purpose of enabling the MLP to pay
distributions to its partners.

 

6.13        Material
Agreements.  Timely perform the
obligations of Borrower contained in the indemnification provisions of the
Omnibus Agreement, and perform all other obligations of the Borrower and Loan
Parties contained in the Material Agreements.

 

6.14        Intentionally Deleted

 

6.15        Guaranties.  As an inducement to the Administrative Agent
and Lenders to enter into this Agreement, each Subsidiary of Borrower (other
than Excluded MLP Entities) shall execute a

 

57

 

Guaranty in connection
with this Agreement, in the substantially in the form and upon the terms of Exhibit E.  In addition, at the time of the formation or
acquisition of any Subsidiary of the Borrower (other than Excluded MLP
Entities), cause such Subsidiary to execute and deliver to the Administrative
Agent (a) a Guaranty substantially in the form and upon the terms of Exhibit E,
providing for the guaranty of payment and performance of the Obligations, (b) Collateral
Documents in form and substance satisfactory to the Administrative Agent
creating liens and security interests in all assets and properties of such
Subsidiary and in the equity interests in such Subsidiary, and (c) certified
copies of such Subsidiary’s Organization Documents and opinions of counsel with
respect to such Subsidiary and such Guaranty, and (d) such other documents
and instruments as may be required with respect to such Subsidiary pursuant to Section 6.16.

 

6.16        Further Assurances; Additional Collateral.

 

(a)           The Borrower shall and shall cause each of
its Subsidiaries (other than Excluded MLP Entities) to take such actions and to
execute and deliver such documents and instruments as the Administrative Agent
shall require to ensure that the Administrative Agent on behalf of the Lenders
shall, at all times, have received currently effective duly executed Loan
Documents granting Liens and security interests in substantially all of the
assets of the Borrower and each of its Subsidiaries (other than Excluded MLP
Entities), including all capital stock, partnership, joint venture, membership
interests, or other equity interests.

 

(b)           In connection with the actions required
pursuant to the foregoing subsection (a), the Borrower shall and shall
cause each Loan Party to execute and deliver such stock certificates, blank
stock powers, evidence of corporate authorization, opinions of counsel, current
valuations, evidence of title, title opinions, title insurance and other
documents, and shall use commercially reasonable efforts to obtain landlord and
mortgagee waivers and third party consents, as shall be requested by the
Administrative Agent, in each case in form and substance satisfactory to the
Administrative Agent.

 

(c)           The Liens required by this Section 6.16 shall
be first priority perfected Liens in favor of the Administrative Agent for the
benefit of the Lenders, subject to no other Liens except Permitted Liens of the
type described in Section 7.01
(other than Section 7.01(h)).  If the Administrative Agent shall determine
that, as of any date, the Borrower shall have failed to comply with this Section 6.16, the
Administrative Agent may (and at the direction of the Required Lenders, shall)
notify the Borrower in writing of such failure and, within 30 days from and
after receipt of such written notice by the Borrower, the Borrower shall
execute and deliver to the Administrative Agent supplemental or additional Loan
Documents, in form and substance satisfactory to the Administrative Agent and
its counsel, securing payment of the Notes and the other Obligations and
covering additional assets and properties of the Loan Parties not then
encumbered by any Loan Documents (together with such other information, as may
be requested by the Administrative Agent, each of which shall be in form and
substance reasonably satisfactory to the Administrative Agent) such that the
Administrative Agent shall have received currently effective duly executed and
perfected Collateral Documents encumbering substantially all of the assets of
the Borrower and the Loan Parties as required by Section 6.16(a).

 

58

 

ARTICLE VII.

NEGATIVE
COVENANTS

 

So
long as any Lender shall have any Commitment hereunder, or any Loan or other
Obligations shall remain unpaid or unsatisfied, or any Letter of Credit shall
remain outstanding, the Borrower agrees that it shall not, nor shall it permit
any Loan Party to, directly or indirectly:

 

7.01        Liens.  Create, incur, assume or suffer to exist, any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, other than the following:

 

(a)           Liens pursuant to any Loan Document;

 

(b)           Liens existing on the Restatement Date and
listed on Schedule 7.01
to this Agreement and any renewals or extensions thereof; provided that the property covered thereby
is not increased, the amount of the Indebtedness secured thereby is not
increased, and any renewal or extension of the obligations secured or benefited
thereby is permitted under this Agreement;

 

(c)           Liens for taxes not yet due or which are
being contested in good faith and by appropriate proceedings, if adequate reserves
with respect thereto are maintained on the books of the applicable Person in
accordance with GAAP;

 

(d)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 30 days or which
are being contested in good faith and by appropriate proceedings, if adequate
reserves with respect thereto are maintained on the books of the applicable
Person;

 

(e)           pledges or deposits in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other social security legislation, other than any Lien imposed by ERISA;

 

(f)            deposits to secure the performance of bids,
trade contracts (other than for borrowed money), leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case incurred in the ordinary course of business;

 

(g)           easements, rights-of-way, restrictions and
other encumbrances affecting real property which do not, taken as a whole,
materially detract from the value of the mortgaged properties subject thereto
or materially interfere with the ordinary conduct of the business of the
applicable Person;

 

(h)           judgment Liens not giving rise to an Event of
Default;

 

(i)            any Lien existing on any asset (other than
stock of a Subsidiary) prior to acquisition thereof by the Borrower or a Loan
Party, and not created in contemplation of such acquisition; provided that (i) no such Lien shall
be extended to cover property other than the asset being acquired, (ii) such
Lien was not created in contemplation of or in connection with such
acquisition, (iii) the Indebtedness thereby secured is permitted by Section 7.04(d);

 

(j)            Liens securing Capital Lease obligations; provided that the Indebtedness in respect
of such Capital Lease is permitted under Section 7.04(d);

 

59

 

(k)           Purchase money Liens upon or in any property
acquired by Borrower or any Loan Party to secure the deferred portion of the
purchase price of such property or to secure Indebtedness incurred to finance
the acquisition of such property; provided
that (i) no such Lien shall be extended to cover property other than the
property being acquired, and (ii) the Indebtedness thereby secured is
permitted by Section 7.04(d);

 

(l)            Liens reserved in or exercisable under any
lease or sublease to which the Borrower or a Loan Party is a lessee which
secure the payment of rent or compliance with the terms of such lease or
sublease; provided, that the rent
under such lease or sublease is not then overdue and the Borrower or Loan Party
is in material compliance with the terms and conditions thereof;

 

(m)          any interest or title of a lessor under any
lease entered into by the Borrower or any Loan Party in the ordinary course of
its business and covering only the assets so leased; and

 

(n)           Liens incurred in the ordinary course of
business in connection with margin requirements under Lender Hedging Agreements
not to exceed in the aggregate $1,000,000
at any time outstanding.

 

7.02        Investments.  Make or own any Investments, except:

 

(a)           Investments existing on the Restatement Date
and listed in Section (b) of Schedule 5.13; provided that with
respect to Investments consisting of interests in master limited partnerships
(other than the MLP), such Investments shall not exceed at any time an
aggregate of $10,000,000;

 

(b)           Cash Equivalents;

 

(c)           Investments constituting Indebtedness
permitted under Section 7.04(b);

 

(d)           Investments by the Borrower in the MLP GP and
MLP and their Subsidiaries;

 

(e)           Investments by the Borrower and the Loan
Parties in any Subsidiary of the Borrower that, prior to such Investment, is a
Guarantor; and

 

(f)            trade accounts receivable which are for goods
furnished or services rendered in the ordinary course of business.

 

7.03        Hedging
Agreements.  Enter into any Swap
Contracts other than in the ordinary course of business for the purpose of
protecting against fluctuations in interest rates, commodity prices, or foreign
exchange rates and not for purposes of speculation; provided that the Swap Contract shall not contain any
provision exonerating the non-defaulting party from its obligation to make
payments on outstanding transactions to the defaulting party.

 

7.04        Indebtedness.  Create, incur, or assume any Indebtedness
except:

 

(a)           Indebtedness incurred pursuant to the Loan
Documents;

 

(b)           Indebtedness owed by a Loan Party to the
Borrower or by the Borrower to a Loan Party; provided,
that, in each such case such Indebtedness is evidenced by a promissory note
which has been pledged to secure the Obligations and is in the possession of
the Administrative Agent;

 

60

 

(c)           Obligations (contingent or otherwise) of the
Borrower or any Loan Party existing or arising under any Swap Contract to the
extent permitted by Section 7.03;

 

(d)           Indebtedness of the Borrower and the Loan
Parties in respect of purchase money obligations for fixed or capital assets
within the limitations set forth in Section 7.01(k); provided, however, that the aggregate
amount of such Indebtedness at any one time outstanding shall not exceed $1,000,000.00; and

 

(e)           Other Indebtedness of the Borrower and the
Loan Parties not to exceed $1,000,000
in the aggregate principal amount outstanding at any time;

 

Provided, that if any Indebtedness is incurred pursuant to this Section 7.04,
both before and after such Indebtedness is created, incurred or assumed, no
Default or Event of Default shall exist.

 

7.05        Lease
Obligations.  Create or suffer to
exist any obligations for the payment of rent for any property under lease or
agreement to lease, except for
operating leases (other than those constituting Synthetic Lease Obligations)
entered into or assumed by the Borrower or any Loan Party in the ordinary
course of business prior to the Restatement Date; provided that, such operating leases will not require the
payment of an aggregate amount of payments in excess of (excluding escalations
resulting from a rise in the consumer price or similar index) $500,000 during the full remaining term of
such leases, exclusive of expenses for maintenance, repairs, insurance taxes,
assessments and similar changes.

 

7.06        Fundamental
Changes.  Merge or consolidate with
or into, or convey, transfer, lease or otherwise Dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to or in favor of any Person; except that, so long as no Default or Event
of Default exists or would result therefrom:

 

(a)           any Person may merge into the Borrower; provided that the Borrower is the
surviving entity;

 

(b)           any Loan Party may merge with (i) the
Borrower; provided that the
Borrower shall be the continuing or surviving Person, or (ii) any one or
more Loan Parties;

 

(c)           any Loan Party may sell all or substantially
all of its assets (upon voluntary liquidation or otherwise), to the Borrower or
to another Loan Party; and

 

(d)           any Person (other than the Borrower or a Loan
Party) may merge into any Loan Party; provided
that such Loan Party is the surviving entity.

 

7.07        Dispositions.

 

Make
any Disposition or enter into any agreement to make any Disposition, except:

 

(a)           Dispositions by the Borrower or the Loan
Parties of inventory in the ordinary course of business;

 

(b)           Dispositions of property by any Loan Party to
the Borrower, or by any Loan Party or by the Borrower, to a Wholly-Owned
Subsidiary that is a Guarantor; or

 

61

 

(c)           other Dispositions for fair market value; provided no Default or Event of Default
then exists or arises as a result thereof.

 

7.08        Restricted
Payments; Distributions and Redemptions. 
Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, except that:

 

(a)           each Loan Party may make Restricted Payments
to the Borrower and to Wholly-Owned Subsidiaries of the Borrower;

 

(b)           (i) the Borrower (A) may make
Restricted Payments in an amount equal to $0.125 per share declared prior to
the Restatement Date and payable in February, 2006 and (B) thereafter may
declare and make Restricted Payments if either (y) Borrower maintains Freely
Available Cash Reserves of not less than $18,000,000 as
of the date of such declaration and payment after giving pro forma effect to
such Restricted Payment;  provided, if the Columbia/Triana Agreement is restructured
so as to eliminate the monetary obligation of the Borrower thereunder in a
manner satisfactory to the Administrative Agent (and such is confirmed in
writing by the Administrative Agent), then the Borrower need have Freely
Available Cash Reserves of not less than $5,000,000 or
(z) after giving pro forma effect to such Restricted Payment, such Restricted Payment
together with all prior Restricted Payments made by Borrower on or after September 30,
2005 do not exceed 50% of Borrower’s Consolidated Net Income commencing with
the fiscal quarter ending September 30, 2005 and (ii) any Guarantor
may make redemptions of, or purchase equity interest in, the Borrower or any
Guarantor from employees of the Borrower or such Guarantor; provided, that at the time each Restricted
Payment is made or any purchase or redemption is made no Default or Event of
Default exists or would result therefrom; provided
further that the aggregate amount expended in any consecutive 12-month
period for purchases or redemptions pursuant to clause (ii) above shall
not exceed $100,000.

 

7.09        ERISA.  At any time engage in a transaction which could
be subject to Section 4069 or
4212(c) of ERISA, or permit
any Plan maintained by Borrower or an ERISA Affiliate to: (a) engage in
any non-exempt “prohibited transaction”
(as defined in Section 4975
of the Code); (b) fail to comply with ERISA or any other applicable Laws;
or (c) incur any material “accumulated
funding deficiency” (as defined in Section 302
of ERISA), which, with respect to each event listed above, could be reasonably
expected to have a Material Adverse Effect.

 

7.10        Nature
of Business; Capital Expenditures; Risk Management.  Engage in any line of business other than the
Midstream Business, or make any Capital Expenditures except in connection with
the Midstream Business.  The Borrower
will comply with its current risk management (hedging) policy and without the
written approval of the Administrative Agent, the Borrower will not materially
change its risk management (hedging) policy.

 

7.11        Transactions
with Affiliates.  Sell, lease or
otherwise transfer any property or assets to, or purchase, lease or otherwise
acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (i) transactions between
or among the Borrower and the Loan Parties not involving any other Affiliate,
and (ii) any Restricted Payment permitted by Section 7.08, (iii) transactions
governed by any Material Agreement a copy of which has been delivered to
Administrative Agent and the Lenders pursuant to the Original Credit Agreement,
and (iv) in the ordinary course of business at prices and on terms and
conditions not less favorable to the Borrower or such Loan Party, as
applicable, than could be obtained on an arm’s length basis from unrelated
third parties.

 

62

 

7.12        Burdensome
Agreements.  Enter into any
Contractual Obligation that limits the ability of any Subsidiary (other than
Excluded MLP Entities) to make Restricted Payments to the Borrower or to
otherwise transfer property to the Borrower. 
Notwithstanding the foregoing, (i) documents governing a Capital
Lease or a purchase money Lien permitted by Sections 7.01(j) and (k) may prohibit
other Liens on the asset encumbered by such Lien, and (ii) the Lenders
acknowledge that the real estate leases described on Schedule 7.12
restrict or prohibit Liens on the Borrower’s or a Loan Party’s leasehold
interest.

 

7.13        Use
of Proceeds.  Use the proceeds of any
Loan or Letter of Credit for purposes other than those permitted by Section 6.12, or
use the proceeds of any Loan, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the Board) or to extend credit to others
for the purpose of purchasing or carrying margin stock or to refund
indebtedness originally incurred for such purpose.

 

7.14        Material
Agreements.  Permit (a) any
amendment to Borrower’s or any Loan Party’s Organization Documents or any
Material Agreement, if such amendment could reasonably be expected to (y) have
a Material Adverse Effect on the ability of the Borrower or any Loan Party to
perform its obligations under the Loan Documents to which it is a party or (z)
otherwise materially adversely affect the Lenders, or (b) any assignment
of any Material Agreement if such assignment could reasonably be expected to
materially adversely affect the Lenders or have a Material Adverse Effect on
the ability of the Borrower or any other Loan Party to perform its obligations
under the Loan Documents to which it is a party.

 

7.15        Financial Covenants.

 

(a)           Leverage Ratio.  Permit the Leverage Ratio at
any fiscal quarter-end to be greater than 3.5 to 1.0.

 

(b)           Minimum Tangible Net Worth.  Permit the Consolidated
Tangible Net Worth of the Borrower and its Subsidiaries (other than Excluded
MLP Entities) as of the end of any fiscal quarter to be less than the sum of (i) $34,000,000
plus (ii) 50% of Consolidated Net Income (if positive) earned or accrued
on or after October 1, 2005 plus (iii) 100% of net proceeds of all
equity issued by the Borrower subsequent to the Restatement Date.

 

(c)           Minimum Freely Available Cash Reserves. 
Borrower shall have, as of each fiscal quarter end beginning with the
fiscal quarter ending March 31, 2006, Freely Available Cash Reserves of
not less than $13,000,000; provided, if the Columbia/Triana Agreement is restructured
so as to eliminate the monetary obligation of the Borrower thereunder in a
manner satisfactory to the Administrative Agent (and such is confirmed in
writing by the Administrative Agent), then the Borrower shall no longer have to
maintain Freely Available Cash Reserves.

 

ARTICLE VIII.

EVENTS OF
DEFAULT AND REMEDIES

 

8.01        Events of Default.  Any of the following shall
constitute an Event of Default:

 

(a)           Non-Payment.  The Borrower fails to pay (i) any
amount due under the Agent/Arranger Fee Letter when and as required to be paid
therein, (ii) when and as required to be paid herein, any amount of
principal of any Loan or any L/C Obligation or (iii) within three Business
Days after the same

 

63

 

becomes due, any interest on any Loan, any L/C Obligation, any
commitment or other fee due hereunder (other than a fee specified in the
Agent/Arranger Fee Letter), or any other amount payable hereunder or under any
other Loan Document; or

 

(b)           Specific Covenants.  The
Borrower fails to perform or observe any term, covenant or agreement contained
in any of Section 6.03(a),
6.05 (with respect to the Borrower’s existence), 6.12, 6.15, 6.16, or Article VII; or

 

(c)           Other Defaults.  Any
Loan Party fails to perform or observe any other covenant or agreement (not
specified in subsection (a) or (b) above) contained in any Loan
Document on its part to be performed or observed and such failure continues for
15 days after the earlier of (i) the date notice has been given to the
Borrower by the Administrative Agent or a Lender or (ii) the date a
Responsible Officer knew or reasonably should have known of such Default; or

 

(d)           Representations and Warranties.  Any
representation or warranty made or deemed made by the Borrower or any other
Loan Party herein, in any other Loan Document, or in any document delivered in
connection herewith or therewith proves to have been incorrect in any material
respect when made or deemed made; or

 

(e)           Cross-Default.  (i) The
Borrower or any Borrower Affiliate (A) fails to make any payment when due
(whether by scheduled maturity, required prepayment, acceleration, demand, or
otherwise) in respect of any Indebtedness or Guaranty Obligation (other than
Indebtedness under Swap Contracts) having an aggregate principal amount (or, in
the case of a Capital Lease or a Synthetic Lease Obligation, Attributable
Indebtedness) (including undrawn or available amounts and including amounts
owing to all creditors under any combined or syndicated credit arrangement) of
more than (individually or collectively) $6,000,000,
or (B) fails to observe or perform any other agreement or condition
relating to any such Indebtedness or Guaranty Obligation or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event occurs, the effect of which default or other event is to cause, or to
permit the holder or holders of such Indebtedness, the lessor under such
Synthetic Lease Obligation or the beneficiary or beneficiaries of such Guaranty
Obligation (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required,
such Indebtedness to be demanded or to become due or to be repurchased or
redeemed (automatically or otherwise) prior to its stated maturity, or such
Guaranty Obligation to become payable or cash collateral in respect thereof to
be demanded; or (ii) (A) there occurs under any Swap Contract an
Early Termination Date (as defined in such Swap Contract) resulting from any
event of default under such Swap Contract as to which the Borrower or any
Borrower Affiliate is the Defaulting Party (as defined in such Swap Contract)
and the Swap Termination Value owed by the Borrower or any Borrower Affiliate
as a result thereof is greater than (individually or collectively) $6,000,000, or (B) there occurs under
any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from any Termination Event (as so defined) under such Swap Contract
as to which the Borrower or any Borrower Affiliate is an Affected Party (as so
defined) and the Early Termination Amount owed by the Borrower and Borrower
Affiliate as a result thereof is greater than (individually or collectively) $6,000,000 and such amount is not paid when
due under such Swap Contract; or

 

(f)            Insolvency Proceedings, Etc.  (i) The
Borrower, the MLP, the MLP GP or any Borrower Affiliate institutes or consents
to the institution of any proceeding under any Debtor Relief Law, or makes an
assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer for it or for all or any material

 

64

 

part of its property or takes any action to effect any of the
foregoing; or (ii) any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the application
or consent of such Person and the appointment continues undischarged or
unstayed for 60 calendar days; or (iii) any proceeding under any Debtor
Relief Law relating to any such Person or to all or any part of its property is
instituted without the consent of such Person and continues undismissed or
unstayed for 60 calendar days, or an order for relief is entered in any such
proceeding; or

 

(g)           Inability to Pay Debts; Attachment.  (i) The
Borrower, the MLP, the MLP GP or any Borrower Affiliate becomes unable or
admits in writing its inability or fails generally to pay its debts as they
become due, or (ii) any writ or warrant of attachment or execution or
similar process is issued or levied against property which is a material part
of the property of the Borrower and its Subsidiaries taken as a whole, and is
not released, vacated or fully bonded within 45 days after its issue or levy;
or

 

(h)           Judgments.  There is entered against the
Borrower or any Borrower Affiliate (i) a final judgment or order for the
payment of money in an aggregate amount exceeding (individually or
collectively) $6,000,000 (to the
extent not covered by third-party insurance as to which the insurer does not
dispute coverage), or (ii) any non-monetary final judgment that has or
could reasonably be expected to have a Material Adverse Effect and, in either
case, (A) enforcement proceedings are commenced by any creditor upon such
judgment or order, or (B) there is a period of 30 consecutive days during
which a stay of enforcement of such judgment, by reason of a pending appeal or
otherwise, is not in effect; or

 

(i)            ERISA.  (i) If the Borrower, any
Borrower Affiliate or any of their ERISA Affiliates maintains any Pension Plan
or any Multiemployer Plan, an ERISA Event occurs with respect to a Pension Plan
or Multiemployer Plan which has resulted or could reasonably be expected to
result in liability of the Borrower or any Borrower Affiliate under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of $3,500,000,
or (ii) if there is any Multiemployer Plan, the Borrower, any Borrower
Affiliate or any ERISA Affiliate thereof fails to pay when due, after the
expiration of any applicable grace period, any installment payment with respect
to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of
$3,500,000; or

 

(j)            Invalidity of Loan Documents.  Any
Loan Document, at any time after its execution and delivery and for any reason
other than the agreement of all the Lenders or termination of all Commitments
and satisfaction in full of all the Obligations, ceases to be in full force and
effect, or is declared by a court of competent jurisdiction to be null and
void, invalid or unenforceable in any material respect; or any Loan Party
denies that it has any or further liability or obligation under any Loan
Document, or purports to revoke, terminate or rescind any Loan Document; or

 

(k)           Change of Control. 
There occurs any Change of Control; or

 

(l)            Dissolution.  The Borrower or any Loan Party
shall dissolve, liquidate, or otherwise terminate its existence, except as
permitted in Section 7.06;
or

 

(m)          Material Agreements.  (i) Termination
of any Material Agreement, or any material provision of any of the foregoing if
such termination could reasonably be expected to have a Material Adverse Effect
and such agreement or provision is not replaced (prior to such cessation) in a
manner satisfactory to the Administrative Agent; (ii) default by any
Person in the performance or observance of any material term of any Material
Agreement which is not cured within the applicable cure period specified in
such Material Agreement, if such default could reasonably be expected to have a
Material

 

65

 

Adverse Effect; or (iii) any event or condition occurs or exists
which in the opinion of the Administrative Agent is reasonably likely to (x)
have a material adverse effect on the ability of Borrower or any of its
Subsidiaries to perform its obligations under a Material Agreement and (y)
result in a Material Adverse Effect hereunder; or

 

(n)           Collateral; Impairment of Security, etc.  (i) Any
provision of any Loan Document shall for any reason cease to be valid and
binding on or enforceable against a Loan Party or any Loan Party shall so state
in writing or bring an action to limit its obligations or liabilities
thereunder; or (ii) any Collateral Document shall for any reason (other
than pursuant to the terms thereof) cease to create a valid security interest
in the Collateral purported to be covered thereby or such security interest
shall for any reason cease to be a perfected and first priority security
interest subject to Permitted Liens.

 

8.02        Remedies
Upon Event of Default.  If any Event
of Default occurs, the Administrative Agent shall, at the request of, or may,
with the consent of, the Required Lenders:

 

(a)           declare the Commitment of each Lender to make
Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be
terminated, whereupon such Commitments and obligations shall be terminated;

 

(b)           declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest, notice of
intent to accelerate, notice of acceleration or other notice of any kind, all
of which are hereby expressly waived by the Borrower;

 

(c)           declare that an amount equal to the then
Outstanding Amount of all L/C Obligations be immediately due and payable by the
Borrower, without presentment, demand, protest, notice of intent to accelerate,
notice of acceleration or other notice of any kind, all of which are hereby
expressly waived by the Borrower, and require that the Borrower deliver such
payments to the Administrative Agent to Cash Collateralize the L/C Obligations
(in an amount equal to the then Outstanding Amount thereof); and

 

(d)           exercise on behalf of itself and the Lenders
all rights and remedies available to it and the Lenders under the Loan
Documents or applicable Law;

 

provided, however, that upon the occurrence of any event specified in subsection (f) of
Section 8.01,
the obligation of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid
principal amount of all outstanding Loans and all interest and other amounts as
aforesaid shall automatically become due and payable, and an amount equal to
the then Outstanding Amount of all L/C Obligations shall be deemed to be
forthwith due and owing by the Borrower to the L/C Issuer and the Lenders as of
the date of such occurrence and the Borrower’s obligation to pay such amounts
shall be absolute and unconditional, without regard to whether any beneficiary
of any such Letter of Credit has attempted to draw down all or a portion of
such amount under the terms of a Letter of Credit and, to the fullest extent
permitted by applicable Law, shall not be subject to any defense or be affected
by a right of set-off, counterclaim or recoupment which the Borrower may now or
hereafter have against any such beneficiary, the L/C Issuer, the Administrative
Agent, the Lenders or any other Person for any reason whatsoever.  Such payments shall be delivered to and held
by the Administrative Agent as cash collateral securing the L/C Obligations.

 

66

 

ARTICLE IX.

ADMINISTRATIVE AGENT

 

9.01        Appointment
and Authorization of Agents; Lender Hedging Agreements.  (a) Each Lender hereby irrevocably
(subject to Section 9.10)
appoints, designates and authorizes the Administrative Agent to take such
action on its behalf under the provisions of this Agreement and each other Loan
Document and to exercise such powers and perform such duties as are expressly
delegated to it by the terms of this Agreement or any other Loan Document,
together with such powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Loan Document, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist
against the Administrative Agent.  Without
limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan
Documents with reference to the Administrative Agent is not intended to connote
any fiduciary or other implied (or express) obligations arising under agency
doctrine of any applicable Law.  Instead,
such term is used merely as a matter of market custom, and is intended to
create or reflect only an administrative relationship between independent
contracting parties.

 

(b)           The L/C Issuer shall act on behalf of the
Lenders with respect to any Letters of Credit issued by it and the documents
associated therewith until such time (and except for so long) as the
Administrative Agent may agree at the request of the Required Lenders to act
for the L/C Issuer with respect thereto; provided,
however, that the L/C Issuer shall have all of the benefits and
immunities (i) provided to the Administrative Agent in this Article IX with
respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and the
application and agreements for letters of credit pertaining to the Letters of
Credit as fully as if the term “Administrative Agent” as used in this Article IX
included the L/C Issuer with respect to such acts or omissions, and (ii) as
additionally provided herein with respect to the L/C Issuer.

 

(c)           To the extent any Lender or any Affiliate of
a Lender is a party to a Lender Hedging Agreement and accepts the benefits of
the Liens in the Collateral arising pursuant to the Collateral Documents, such
Lender (for itself and on behalf of any such Affiliates) shall be deemed (i) to
appoint the Administrative Agent, as its nominee and agent, to act for and on
behalf of such Lender or Affiliate thereof in connection with the Collateral
Documents and (ii) to be bound by the terms of this Article IX.

 

9.02        Delegation
of Duties.  The Administrative Agent
may execute any of its duties under this Agreement or any other Loan Document
by or through agents, employees or attorneys-in-fact and shall be entitled to
advice of counsel and other consultants or experts concerning all matters
pertaining to such duties. 
Administrative Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects in the absence of
gross negligence or willful misconduct.

 

9.03        Default;
Collateral.  (a) Upon the
occurrence and continuance of a Default or Event of Default, the Lenders agree
to promptly confer in order that Required Lenders or the Lenders, as the case
may be, may agree upon a course of action for the enforcement of the rights of
the Lenders; and the Administrative Agent shall be entitled to refrain from
taking any action (without incurring any liability to

 

67

 

any Person for so
refraining) unless and until the
Administrative Agent shall have received instructions from Required
Lenders.  All rights of action under the
Loan Documents and all right to the Collateral, if any, hereunder may be
enforced by the Administrative Agent and any suit or proceeding instituted by
the Administrative Agent in furtherance of such enforcement shall be brought in
its name as the Administrative Agent without the necessity of joining as plaintiffs
or defendants any other Lender, and the recovery of any judgment shall be for
the benefit of the Lenders (and, with respect to Lender Hedging Agreements,
Affiliates, if applicable) subject to the expenses of the Administrative Agent.  In actions with respect to any property of
the Borrower or any other Obligor, the Administrative Agent is acting for the
ratable benefit of each Lender (and, with respect to Lender Hedging Agreement,
Affiliates, if applicable).  Any and all
agreements to subordinate (whether made heretofore or hereafter) other
indebtedness or obligations of Borrower to the Obligations shall be construed
as being for the ratable benefit of each Lender (and, with respect to Lender
Hedging Agreement, Affiliates, if applicable).

 

(b)           Each Lender authorizes and directs the
Administrative Agent to enter into the Collateral Documents on behalf of and
for the benefit of the Lenders (and, with respect to Lender Hedging Agreements,
Affiliates, if applicable)(or if previously entered into, hereby ratifies the
Administrative Agent’s previously entering into such agreements and Collateral
Documents).

 

(c)           Except to
the extent unanimity (or other percentage set forth in Section 10.1)
is required hereunder, each Lender agrees that any action taken by the Required
Lenders in accordance with the provisions of the Loan Documents, and the
exercise by the Required Lenders of the power set forth herein or therein, together with such other powers as are
reasonably incidental thereto, shall be authorized and binding upon all of the
Lenders.

 

(d)           The Administrative Agent is hereby authorized
on behalf of the Lenders, without the necessity of any notice to or further
consent from any Lender, from time to time to take any action with respect to
any Collateral or Collateral Documents which may be necessary to perfect and
maintain perfected the Liens upon the Collateral granted pursuant to the
Collateral Documents.

 

(e)           The Administrative Agent shall have no
obligation whatsoever to any Lender or to any other Person to assure that the
Collateral exists or is owned by any Obligor or is cared for, protected, or
insured or has been encumbered or that the Liens granted to the Administrative
Agent herein or pursuant thereto have been properly or sufficiently or lawfully
created, perfected, protected, or enforced, or are entitled to any particular
priority, or to exercise at all or in any particular manner or under any duty
of care, disclosure, or fidelity, or to continue exercising, any of the Rights
granted or available to the Administrative Agent in this Section 9.03 or
in any of the Collateral Documents; it being understood and agreed that in
respect of the Collateral, or any act, omission, or event related thereto, the
Administrative Agent may act in any manner it may deem appropriate, in its sole
discretion, given the Administrative Agent’s own interest in the Collateral as
one of the Lenders and that the Administrative Agent shall have no duty or
liability whatsoever to any Lender, other than to act without gross negligence or
willful misconduct.

 

(f)            The Lenders hereby irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any Lien
granted to or held by the Administrative Agent upon any Collateral: (i) constituting
property in which no Obligor owned an interest at the time the Lien was granted
or at any time thereafter; (ii) constituting property leased to an Obligor
under a lease which has expired or been terminated in a transaction permitted
under the Loan Document or is about to expire and which has not been, and is
not intended by such Obligor to be, renewed; and (iii) consisting of an
instrument evidencing

 

68

 

Indebtedness pledged to the Administrative Agent (for the benefit of
the Lenders), if the Indebtedness evidenced thereby has been paid in full.   In addition, the Lenders irrevocably
authorize the Administrative Agent to release Liens upon Collateral as
contemplated in Section 10.01(c) or
(d), or
if approved, authorized, or ratified in writing by the requisite Lenders.  Upon request by the Administrative Agent at
any time, the Lenders will confirm in writing the Administrative Agent’s
authority to release particular types or items of Collateral pursuant to this Section 9.03.

 

(g)           In furtherance of the authorizations set
forth in this Section 9.03,
each Lender hereby irrevocably appoints the Administrative Agent its attorney-in-fact,
with full power of substitution, for and on behalf of and in the name of each
such Lender (i) to enter into Collateral Documents (including, without
limitation, any appointments of substitute trustees under any Collateral
Documents), (ii) to take action with respect to the Collateral and
Collateral Documents to perfect, maintain, and preserve Lenders’ Liens, and (iii) to
execute instruments of release or to take other action necessary to release
Liens upon any Collateral to the extent authorized in paragraph (f) hereof.  This power of attorney shall be liberally,
not restrictively, construed so as to give the greatest latitude to the
Administrative Agent’s power, as attorney, relative to the Collateral matters
described in this Section 9.03.  The powers and authorities herein conferred
on the Administrative Agent may be exercised by the Administrative Agent
through any Person who, at the time of the execution of a particular
instrument, is an officer of the Administrative Agent (or any Person acting on
behalf of the Administrative Agent pursuant to a valid power of attorney).  The power of attorney conferred by this Section 9.03(g) to
the Administrative Agent is granted for valuable consideration and is coupled
with an interest and is irrevocable so long as the Obligations, or any part
thereof, shall remain unpaid or the Lenders are obligated to make any Borrowings
under the Loan Documents.

 

9.04        Liability
of Agents.  No Agent-Related Person
shall (a) be liable for any action taken or omitted to be taken by any of
them under or in connection with this Agreement or any other Loan Document or
the transactions contemplated hereby (except for its own gross negligence or
willful misconduct in connection with its duties expressly set forth herein),
or (b) be responsible in any manner to any Lender or participant for any
recital, statement, representation or warranty made by any Loan Party or any
officer thereof, contained herein or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for
in, or received by Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document, or for the creation, perfection or priority of any Liens purported to
be created by any of the Loan Documents, or the validity, genuineness,
enforceability, existence, value or sufficiency of any collateral security, or
to make any inquiry respecting the performance by the Borrower of its
obligations hereunder or under any other Loan Document, or for any failure of
any Loan Party or any other party to any Loan Document to perform its
obligations hereunder or thereunder.  No
Agent-Related Person shall be under any obligation to any Lender or participant
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party or
any Affiliate thereof.

 

9.05        Reliance
by Administrative Agent.  (a) The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to any Loan Party), independent accountants
and other experts selected by the

 

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Administrative
Agent.  The Administrative Agent shall be
fully justified in failing or refusing to take any action under any Loan
Document unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate and, if it so requests, it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action.  The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the Required Lenders or all the Lenders, if required
hereunder, and such request and any action taken or failure to act pursuant
thereto shall be binding upon all the Lenders and participants.  Where this Agreement expressly permits or
prohibits an action unless the Required Lenders otherwise determine, the
Administrative Agent shall, and in all other instances, the Administrative
Agent may, but shall not be required to, initiate any solicitation for the
consent or a vote of the Lenders.

 

(b)           For purposes of determining compliance with
the conditions specified in Section 4.01, each Lender that has funded its Pro
Rata Share of the Borrowing(s) on the Restatement Date (or, if there is no
Borrowing made on such date, each Lender other than Lenders who gave written
objection to the Administrative Agent prior to such date) shall be deemed to
have consented to, approved or accepted or to be satisfied with, each document
or other matter either sent by the Administrative Agent to such Lender for
consent, approval, acceptance or satisfaction, or required hereunder to be
consented to or approved by or acceptable or satisfactory to a Lender.

 

9.06        Notice
of Default.  The Administrative Agent
shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default, except with respect to defaults in the payment of
principal, interest and fees required to be paid to the Administrative Agent
for the account of the Lenders, unless the Administrative Agent shall have
received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default.”
The Administrative Agent will notify the Lenders of its receipt of any such
notice.  The Administrative Agent shall take
such action with respect to such Default or Event of Default as may be directed
by the Required Lenders in accordance with Article VIII; provided, however, that unless and until the Administrative
Agent has received any such direction, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable or in
the best interest of the Lenders.

 

9.07        Credit
Decision; Disclosure of Information by Administrative Agent.  Each Lender acknowledges that no Agent-Related
Person has made any representation or warranty to it, and that no act by the
Administrative Agent hereinafter taken, including any consent to and acceptance
of any assignment or review of the affairs of any Loan Party or any Affiliate
thereof, shall be deemed to constitute any representation or warranty by any
Agent-Related Person to any Lender as to any matter, including whether Agent-Related
Persons have disclosed material information in their possession.  Each Lender represents to the Administrative
Agent that it has, independently and without reliance upon any Agent-Related
Person and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
prospects, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their respective Subsidiaries, and all
applicable bank or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and
to extend credit to the Borrower hereunder. 
Each Lender also represents that it will, independently and without
reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the

 

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business, prospects,
operations, property, financial and other condition and creditworthiness of the
Borrower and the other Loan Parties. 
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent herein, the Administrative
Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of any of the Loan
Parties or any of their respective Affiliates which may come into the
possession of any Agent Related Person.

 

9.08        Indemnification
of Agents.  Whether or not the
transactions contemplated hereby are consummated, the Lenders shall indemnify
upon demand each Agent-Related Person (to the extent not reimbursed by or on
behalf of any Loan Party and without limiting the obligation of any Loan Party
to do so), pro rata, and hold harmless each Agent-Related Person from and
against any and all Indemnified Liabilities incurred by it; provided, however, that no Lender shall be
liable for the payment to any Agent-Related Person of any portion of such
Indemnified Liabilities resulting from such Person’s gross negligence or
willful misconduct; provided, however,
that no action taken in accordance with the directions of the Required Lenders
shall be deemed to constitute gross negligence or willful misconduct for purposes
of this Section.  Without limitation of
the foregoing, each Lender shall reimburse the Administrative Agent upon demand
for its ratable share of any costs or out-of-pocket expenses (including
Attorney Costs) incurred by the Administrative Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, this Agreement,
any other Loan Document, or any document contemplated by or referred to herein,
to the extent that the Administrative Agent is not reimbursed for such expenses
by or on behalf of the Borrower.  The
undertaking in this Section shall survive termination of the Commitments,
the payment of all Obligations hereunder and the resignation or replacement of
the Administrative Agent.

 

9.09        Administrative
Agent in its Individual Capacity. 
Royal Bank of Canada and its Affiliates may make loans to, accept
deposits from, acquire equity interests in and generally engage in any kind of
banking, trust, financial advisory, underwriting or other business with each of
the Loan Parties and their respective Affiliates as though Royal Bank of Canada
were not the Administrative Agent or the L/C Issuer hereunder and without
notice to or consent of the Lenders.  The
Lenders acknowledge that, pursuant to such activities, Royal Bank of Canada or
its Affiliates may receive information regarding any Loan Party or its
Affiliates (including information that may be subject to confidentiality
obligations in favor of such Loan Party or such Affiliate) and acknowledge that
the Administrative Agent shall be under no obligation to provide such
information to them.  With respect to its
Loans, Royal Bank of Canada shall have the same rights and powers under this
Agreement as any other Lender and may exercise such rights and powers as though
it were not the Administrative Agent or the L/C Issuer, and the terms “Lender” and “Lenders” include Royal Bank of Canada in its individual
capacity.

 

9.10        Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders with a copy of such notice to the Borrower.  If the Administrative Agent resigns under
this Agreement, the Required Lenders shall appoint from among the Lenders a
successor administrative agent for the Lenders which successor administrative
agent shall be consented to by the Borrower at all times other than during the
existence of an Event of Default (which consent of the Borrower shall not be
unreasonably withheld or delayed).  If no
successor administrative agent is appointed prior to the effective date of the
resignation of the Administrative Agent, the Administrative Agent may appoint, after
consulting with the Lenders and the Borrower, a successor administrative agent
from among the Lenders.  Upon the
acceptance of its appointment as successor

 

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administrative agent
hereunder, such successor administrative agent shall succeed to all the rights,
powers and duties of the retiring Administrative Agent and the term “Administrative Agent”
shall mean such successor administrative agent and the retiring Administrative
Agent’s appointment, powers and duties as Administrative Agent shall be
terminated.  After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Article IX
and Sections 10.03
and 10.13
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.  If no successor administrative agent has
accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

 

9.11        Other
Agents; Arranger.  None of the
Lenders or other Persons identified on the facing page or signature pages of
this Agreement as any other type of agent (other than the Administrative
Agent), “arranger,” or “bookrunner” shall have any right, power, obligation,
liability, responsibility or duty under this Agreement other than those
applicable to all Lenders as such. 
Without limiting the foregoing, none of the Lenders so identified shall
have or be deemed to have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders so identified in deciding to
enter into this Agreement or in taking or not taking action hereunder.

 

ARTICLE X.

MISCELLANEOUS

 

10.01      Amendments, Release of Collateral, Etc.

 

(a)           No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent to any departure by
the Borrower or any other Loan Party therefrom, shall be effective unless in
writing signed by the Required Lenders and the Borrower or the applicable Loan
Party, as the case may be, and acknowledged by the Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall, unless in
writing and signed by each of the Lenders directly affected thereby and by the
Borrower, and acknowledged by the Administrative Agent, do any of the following:

 

(i)            extend or increase the Commitment of any such
Lender (or reinstate any Commitment terminated pursuant to Section 8.02);

 

(ii)           postpone or delay any date fixed by this
Agreement or any other Loan Document for any payment or mandatory prepayment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document;

 

(iii)          reduce the principal of, or the rate of
interest specified herein on, any Loan or L/C Borrowing or (subject to clause (ii) of
the proviso below) any fees or other amounts payable hereunder or under any
other Loan Document; provided, however,
that only the consent of the Required Lenders shall be necessary to amend the
definition of “Default Rate” or
to waive any obligation of the Borrower to pay interest at the Default Rate;

 

72

 

(iv)          change the percentage of the Aggregate
Commitment or of the aggregate unpaid principal amount of the Loans and L/C
Obligations which is required for the Lenders or any of them to take any action
hereunder;

 

(v)           change the Pro Rata Share of any Lender;

 

(vi)          release a material amount of Collateral or
release any Guarantor from a Guaranty (except in connection with a Disposition
permitted under Section 7.07
or as otherwise permitted under this Section 10.01); or

 

(vii)         amend this Section, or Section 2.12, or
any provision herein providing for unanimous consent or other action by all the
Lenders;

 

and,
provided further: (i) no
amendment, waiver or consent shall, unless in writing and signed by the L/C
Issuer in addition to the Required Lenders or all the Lenders, as the case may
be, affect the rights or duties of the L/C Issuer under this Agreement or any
Letter of Credit Application relating to any Letter of Credit issued or to be
issued by it; (ii) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Required
Lenders or all the Lenders, as the case may be, affect the rights or duties of
the Administrative Agent under this Agreement or any other Loan Document; and (iii) the
Agent/Arranger Fee Letter may be amended, or rights or privileges thereunder
waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary
herein, any Lender that has failed to fund any portion of the Loans or
participation in L/C Obligations required to be funded by it hereunder shall
not have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Pro Rata Share of such Lender may not be increased
without the consent of such Lender.

 

(b)           Any amendment to any Loan Document which
purports to (i) decrease the amount of any mandatory prepayment or
commitment reduction required by Section 2.04 or (ii) change this Section 10.01(b),
must be by an instrument in writing executed by Borrower, the Administrative
Agent, and the Required Lenders.

 

(c)           Upon any sale, transfer, or disposition of
Collateral which is permitted pursuant to the Loan Documents, and upon 10
Business Days’ prior written request by the Borrower (which request must be
accompanied by (i) true and correct copies of all material documents of
transfer or disposition, including any contract of sale, (ii) a
preliminary closing statement and instructions to the title company, if any, (iii) all
requested release instruments in form and substance satisfactory to the
Administrative Agent and (iv) if required, written consent of the
requisite Lenders), the Administrative Agent shall (and is hereby irrevocably
authorized by the Lenders to) execute such documents as may be necessary to
evidence the release of Liens granted to the Administrative Agent for the
benefit of the Lenders pursuant hereto in such Collateral.   The Administrative Agent shall not be required
to execute any release instruments on terms which, in the Administrative Agent’s
opinion, would expose the Administrative Agent to liability or create any
obligation or entail any consequence other than the release of Liens without
recourse or warranty.  No such release
shall impair the Administrative Agent’s Lien on the proceeds of sale of such
Collateral.

 

(d)           If all outstanding Loans and other
Obligations have been indefeasibly paid in full and the Commitments have
terminated or have been reduced to zero, and, subject to Section 10.01(e) all
Lender Hedging Agreement have terminated, the Administrative Agent agrees to,
and the Lenders hereby instruct the Administrative Agent to, at the Borrower’s
expense, execute and authorize such releases of the

 

73

 

Collateral Documents as the Borrower shall reasonably request and this
Agreement shall be deemed terminated except that such termination shall not
relieve the Borrower of any obligation to make any payments to the
Administrative Agent or any Lender required by any Loan Document to the extent
accruing, or relating to an event occurring, prior to such termination.

 

(e)           Notwithstanding any provision herein to the
contrary, if the Commitments have been terminated, and the only outstanding
Obligations are amounts owed pursuant to one or more Lender Hedging Agreements,
the Administrative Agent will, and is hereby authorized to, (A) release
the Liens created under the Loan Documents and (B) release all Guaranties
of the Borrower; provided, that
contemporaneously with such release, (i) the Borrower (and, if applicable,
the Subsidiary that is a party to such Lender Hedging Agreements) (A) executes
a margin agreement in form and substance acceptable to such Lender(s) (or its
Affiliates) that are parties to such Lender Hedging Agreements (the “Lender Counterparties”)
and (B), if required, provides collateral in the form of cash or a letter of
credit having an aggregate value acceptable to such Lender Counterparties, and (ii) if
such Lender Hedging Agreement is executed by a Subsidiary of the Borrower
(other than Excluded MLP Entities) and the Borrower is not a party thereto, the
Borrower executes a guaranty covering such Subsidiary’s obligations thereunder,
such guaranty to be in form and substance satisfactory to the Lender
Counterparties.  Any release under this Section 10.01(e) must
be in writing and signed by the Administrative Agent.

 

10.02      Notices and Other Communications; Facsimile Copies.

 

(a)           General.  Unless otherwise expressly
provided herein, all notices and other communications provided for hereunder
and under the other Loan Documents shall be in writing (including by facsimile
transmission) and mailed, faxed or delivered, to the address, facsimile number or
(subject to subsection (c) below) electronic mail address specified
for notices on Schedule 10.02
(for the Borrower, any Guarantor and the Administrative Agent) or on the
Administrative Details Form (for the other Lenders); or, in the case of
the Borrower, the Guarantors, the Administrative Agent, or the L/C Issuer, to
such other address as shall be designated by such party in a notice to the
other parties, and in the case of any other party, to such other address as
shall be designated by such party in a notice to the Borrower, the
Administrative Agent and the L/C Issuer. 
All such notices and other communications shall be deemed to be given or
made upon the earlier to occur of (i) actual receipt by the intended
recipient and (ii) (A) if delivered by hand or by courier, when
signed for by the intended recipient; (B) if delivered by mail, four (4) Business
Days after deposit in the mails, postage prepaid; (C) if delivered by
facsimile, when sent and receipt has been confirmed by telephone; and (D) if
delivered by electronic mail (which form of delivery is subject to the
provisions of subsection (c) below), when delivered; provided, however, that notices and other
communications to the Administrative Agent or the L/C Issuer pursuant to Article II shall
not be effective until actually received by such Person.  Any notice or other communication permitted
to be given, made or confirmed by telephone hereunder shall be given, made or
confirmed by means of a telephone call to the intended recipient at the number
specified in accordance with this Section, it being understood and agreed that
a voicemail message shall in no event be effective as a notice, communication
or confirmation hereunder.

 

(b)           Effectiveness of Facsimile Documents and
Signatures.  Loan Documents may be transmitted and/or
signed by facsimile.  The effectiveness
of any such documents and signatures shall, subject to applicable Law, have the
same force and effect as manually-signed originals and shall be binding on all
Loan Parties, the Administrative Agent and the Lenders.  The Administrative Agent may also require
that any such documents and signatures be confirmed by a manually-signed
original thereof;

 

74

 

provided, however, that the failure to request or deliver the
same shall not limit the effectiveness of any facsimile document or signature.

 

(c)           Limited Use of Electronic Mail. 
Electronic mail and internet and intranet websites may be used only to
distribute routine communications, such as financial statements and other
information, and to distribute Loan Documents for execution by the parties
thereto, and shall not be recognized hereunder for any other purpose.

 

(d)           Reliance by Administrative Agent and Lenders.  The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including telephonic Borrowing Notices) purportedly given by or on
behalf of the Borrower even if (i) such notices were not made in a manner
specified herein, were incomplete or were not preceded or followed by any other
form of notice specified herein, or (ii) the terms thereof, as understood
by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify each Agent-Related
Person and each Lender from all losses, costs, expenses and liabilities
resulting from the reliance by such Person on each notice purportedly given by
or on behalf of the Borrower.  All
telephonic notices to and other communications with the Administrative Agent
may be recorded by the Administrative Agent, and each of the parties hereto
hereby consents to such recording.

 

10.03      No
Waiver; Cumulative Remedies.  No
failure by any Lender or the Administrative Agent to exercise, and no delay by
any such Person in exercising, any right, remedy, power or privilege hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges herein or therein provided are cumulative and not exclusive of
any rights, remedies, powers and privileges provided by law.

 

10.04      Attorney
Costs; Expenses and Taxes.  The
Borrower agrees (a) to pay or reimburse the Administrative Agent for all
reasonable costs and expenses incurred in connection with the development,
preparation, negotiation, syndication, administration and execution of this
Agreement and the other Loan Documents, including the filing, recording,
refiling or rerecording of any pledge agreement and any Security Agreement
and/or any UCC financing statements relating thereto and all amendments,
supplements and modifications to any thereof and any and all other documents or
instruments of further assurance required to be filed or recorded or refiled or
rerecorded by the terms hereof or of any mortgage, any pledge agreement or any
security agreement, and any amendment, waiver§, consent or other modification
of the provisions hereof and thereof (whether or not the transactions
contemplated hereby or thereby are consummated), and the consummation and
administration of the transactions contemplated hereby and thereby, including
all Attorney Costs, and (b) to pay or reimburse the Administrative Agent
and each Lender for all costs and expenses incurred in connection with the
enforcement, attempted enforcement, or preservation of any rights or remedies
under this Agreement or the other Loan Documents (including all such costs and
expenses incurred during any workout or restructuring in respect of the
Obligations and during any legal proceeding, including any proceeding under any
Debtor Relief Law), including all Attorney Costs.  The foregoing costs and expenses shall
include all search, filing, recording, title insurance and appraisal charges
and fees and taxes related thereto, and other out-of-pocket expenses incurred
by the Administrative Agent and the cost of independent public accountants and
other outside experts retained by the Administrative Agent or any Lender.  The agreements in this Section shall
survive the termination of the Commitments and repayment of all the other
Obligations.

 

75

 

10.05      Indemnification.  Whether or not the transactions contemplated
hereby are consummated, the Borrower and each Guarantor (by execution of a
Guaranty), jointly and severally, agrees to indemnify, save and hold harmless
each Agent-Related Person, the Administrative Agent, the Arranger, each Lender,
the L/C Issuer and their respective Affiliates, directors, officers, employees,
counsel, agents and attorneys-in-fact (collectively the “Indemnitees”) from
and against: (a) any and all claims, demands, actions or causes of action
that are asserted against any Indemnitee by any Person (other than the
Administrative Agent or any Lender) relating directly or indirectly to a claim,
demand, action or cause of action that such Person asserts or may assert
against any Loan Party, any Affiliate of any Loan Party or any of their
respective officers or directors, arising out of or relating to, the Loan
Documents, the Commitments, the use or contemplated use of the proceeds of any
Loans, or the relationship of any Loan Party, the Administrative Agent, the
Lenders and the L/C Issuer under this Agreement or any other Loan Document; (b) any
and all claims, demands, actions or causes of action that may at any time
(including at any time following repayment of the Obligations and the
resignation of the Administrative Agent or the replacement of any Lender) be
asserted or imposed against any Indemnitee by any Person or by the Borrower or
any other Loan Party, arising out of or relating to, the Loan Documents, the
Commitments, the use or contemplated use of the proceeds of any Loans, or the
relationship of any Loan Party, the Administrative Agent, the Lenders and the
L/C Issuer under this Agreement or any other Loan Document; (c) without
limiting the foregoing, any and all claims, demands, actions or causes of
action, judgments and orders, penalties and fines that are asserted or imposed
against any Indemnitee, (i) under the application of any Environmental Law
applicable to the Borrower or any of its Subsidiaries or any of their
properties or assets, including the treatment or disposal of Hazardous
Substances on any of their properties or assets, (ii) as a result of the
breach or non-compliance by the Borrower or any Subsidiary with any
Environmental Law applicable to the Borrower or any Subsidiary, (iii) due
to past ownership by the Borrower or any Subsidiary of any of their properties
or assets or past activity on any of their properties or assets which, though
lawful and fully permissible at the time, could result in present liability, (iv) due
to the presence, use, storage, treatment or disposal of Hazardous Substances on
or under, or the escape, seepage, leakage, spillage, discharge, emission or
Release from, any of the properties owned or operated by the Borrower or any
Subsidiary (including any liability asserted or arising under any Environmental
Law), regardless of whether caused by, or within the control of, the Borrower
or such Subsidiary, or (v) due to any other environmental, health or
safety condition in connection with the Loan Documents; (d) any
administrative or investigative proceeding by any Governmental Authority
arising out of or related to a claim, demand, action or cause of action
described in subsection (a), (b) or (c) above; and (e) any
and all liabilities (including liabilities under indemnities), losses, costs,
damages or expenses (including Attorney Costs and settlement costs) that any
Indemnitee suffers or incurs as a result of the assertion of any foregoing
claim, demand, action, cause of action or proceeding, or as a result of the
preparation of any defense in connection with any foregoing claim, demand,
action, cause of action or proceeding, in all cases, WHETHER OR NOT ARISING OUT OF THE
STRICT LIABILITY OR NEGLIGENCE OF AN INDEMNITEE, and whether or
not an Indemnitee is a party to such claim, demand, action, cause of action or
proceeding (all the foregoing, collectively, the “Indemnified Liabilities”); provided that no Indemnitee shall be
entitled to indemnification for any claim to the extent caused by its own gross
negligence or willful misconduct.  The
agreements in this Section shall survive and continue for the benefit of
the Indemnitees at all times after the Borrower’s acceptance of the Lenders’
Commitments under this Agreement, whether or not the Restatement Date shall
occur and shall survive the termination of the Commitments and repayment of all
the other Obligations.

 

10.06      Payments
Set Aside.  To the extent that the
Borrower makes a payment to the Administrative Agent or any Lender, or the
Administrative Agent or any Lender exercises its right of setoff, and such
payment or the proceeds of such set-off or any part thereof is subsequently
invalidated,

 

76

 

declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement
entered into by the Administrative Agent or such Lender in its discretion) to
be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the
extent of such recovery, the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred, and (b) each
Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share of any amount so recovered from or repaid by the
Administrative Agent, plus interest thereon from the date of such demand to the
date such payment is made at a rate per annum equal to the Federal Funds Rate
from time to time in effect.

 

10.07      Successors and Assigns.

 

(a)           The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to
an Eligible Assignee in accordance with the provisions of paragraph (b) of
this Section, (ii) by way of participation in accordance with the
provisions of paragraph (d) of this Section or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of
paragraph (f) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in paragraph (d) of this Section and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

 

(b)           Any Lender may at any time assign to one or
more Eligible Assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C
Obligations) at the time owing to it); provided
that: (i) except in the case of an assignment of the entire remaining
amount of the assigning Lender’s Commitment and the Loans at the time owing to
it or in the case of an assignment to a Lender or an Affiliate of a Lender or
an Approved Fund with respect to a Lender, the aggregate amount of the
Commitment (which for this purpose includes Loans outstanding thereunder) or,
if the applicable Commitment is not then in effect, the outstanding principal
balance of the Loan of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date) shall not be
less than $1,000,000, unless each of the Administrative Agent and, so long as
no Default has occurred and is continuing, the Borrower otherwise consent
(Borrower’s consent not to be unreasonably withheld, conditioned or delayed); (ii) each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned; and (iii) the parties to
each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee of
$3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver
to the Administrative Agent an Administrative Details Form.  Subject to acceptance and recording thereof
by the Administrative Agent pursuant to paragraph (c) of this Section,
from and after the effective date specified in each Assignment and Assumption,
the Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such

 

77

 

Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.07, 10.04 and 10.05 with respect to
facts and circumstances occurring prior to the effective date of such
assignment.  Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply
with this paragraph shall be treated for purposes of this Agreement as a sale
by such Lender of a participation in such rights and obligations in accordance
with paragraph (d) of this Section.  
Upon the occurrence and during the continuance of an Event of Default
all restrictions on assignment by any Lender shall cease, including all
restrictive clauses driven by withholding tax considerations.

 

(c)           The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at one of its offices
a copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amounts of the Loans and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive
absent manifest error, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

 

(d)           Any Lender may at any time, without the
consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all
or a portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans (including such
Lender’s participation in L/C Obligations) owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations and (iii) the Borrower, the Administrative Agent and
the other Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that would (i) postpone any
date upon which any payment of money is scheduled to be paid to such
Participant, (ii) reduce the principal, interest, fees or other amounts
payable to such Participant, or (iii) extend the Revolving Credit
Termination Date or the Final Maturity Date. 
Subject to subsection (e) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 3.01, 3.04
and 3.05 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.09 as
though it were a Lender; provided
such Participant agrees to be subject to Section 2.12 as though it were a Lender.

 

(e)           A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be

 

78

 

entitled to the benefits of Section 3.01 unless the Borrower is notified
of the participation sold to such Participant and such Participant agrees, for
the benefit of the Borrower, to comply with Section 10.15 as though it were a
Lender.

 

(f)            Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such
pledge or assignment shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

 

(g)           If the consent of the Borrower to an
assignment or to an Eligible Assignee is required hereunder (including a
consent to an assignment which does not meet the minimum assignment threshold
specified in clause (i) of the proviso to the first sentence of Section 10.07(b)),
the Borrower shall be deemed to have given its consent five Business Days after
the date notice thereof has been delivered by the assigning Lender (through the
Administrative Agent) unless such consent is expressly refused by the Borrower
prior to such fifth Business Day.

 

(h)           Notwithstanding anything to the contrary
contained herein, if at any time Royal Bank of Canada assigns all of its
Commitment and Loans pursuant to subsection (b) above, Royal Bank of
Canada may, (i) upon 30 days’ notice to the Borrower and the Lenders,
resign as L/C Issuer.  In the event of
any such resignation as L/C Issuer, the Borrower shall be entitled to appoint
from among the Lenders a successor L/C Issuer hereunder; provided, however, that no failure by the
Borrower to appoint any such successor shall affect the resignation of Royal
Bank of Canada as L/C Issuer.  Royal Bank
of Canada shall retain all the rights and obligations of the L/C Issuer
hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as L/C Issuer and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Loans or
fund participations in Unreimbursed Amounts pursuant to Section 2.14(c)).

 

10.08      Confidentiality.  Each Lender agrees that it will not disclose
without the prior consent of the Borrower (other than to directors, officers,
employees, auditors, accountants, counsel or other professional advisors of the
Administrative Agent or any Lender) any information with respect to the
Borrower or its Subsidiaries, which is furnished pursuant to this Agreement and
which (i) the Borrower in good faith considers to be confidential and (ii) is
either clearly marked confidential or is designated by the Borrower to the
Administrative Agent or the Lenders in writing as confidential; provided that any Lender may disclose any
such information (a) as has become generally available to the public, (b) as
may be required or appropriate in any report, statement or testimony submitted
to or required by any municipal, state or federal regulatory body having or
claiming to have jurisdiction over such Lender or submitted to or required by
the Board or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (c) as
may be required or appropriate in response to any summons or subpoena in
connection with any litigation, (d) in order to comply with any law,
order, regulation or ruling applicable to such Lender, (e) to any Eligible
Assignee of or Participant in, or any prospective Eligible Assignee of or
Participant in, any of its rights or obligations under this Agreement; provided that such Eligible Assignee or
Participant or prospective Eligible Assignee or Participant executes an
agreement containing provisions substantially similar to those contained in
this Section 10.08,
(f) in connection with the exercise of any remedy by such Lender following
an Event of Default pertaining to the Loan Documents, (g) in connection
with any litigation involving such Lender pertaining to the Loan Documents, (h) to
any Lender or the Administrative Agent, or (i) to any Affiliate of any
Lender (it being understood that the Persons to whom such disclosure is made
will be informed of the

 

79

 

confidential nature of
such information and obligated to keep such information confidential); provided further, that notwithstanding
anything in this Agreement to the contrary, the Borrower, the Administrative
Agent, the L/C Bank, each Lender and each Related Party may disclose to any and
all Persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated hereby and all materials of any kind
(including opinions or other tax analysis) that are provided to it relating to
such tax treatment and tax structure; and nothing in the foregoing
authorization shall apply to any disclosure that would constitute a violation
of applicable federal or state securities laws.

 

10.09      Set-off.  In addition to any rights and remedies of the
Lenders provided by law, upon the occurrence and during the continuance of any
Event of Default, each Lender is authorized at any time and from time to time,
without prior notice to the Borrower or any other Loan Party, any such notice
being waived by the Borrower (on its own behalf and on behalf of each Loan Party)
to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held by, and other indebtedness at any time owing by, such Lender to or for the
credit or the account of the respective Loan Parties against any and all
Obligations owing to the Administrative Agent and the Lenders, now or hereafter
existing, irrespective of whether or not the Administrative Agent or such
Lender shall have made demand under this Agreement or any other Loan Document
and although such Obligations may be contingent or unmatured.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such set-off and application
made by such Lender; provided, however,
that the failure to give such notice shall not affect the validity of such set-off
and application.

 

10.10      Interest
Rate Limitation.  Regardless of any
provision contained in any Loan Document, neither the Administrative Agent nor
any Lender shall ever be entitled to contract for, charge, take, reserve,
receive, or apply, as interest on all or any part of the Obligations, any
amount in excess of the Maximum Rate, and, if any Lender ever does so, then
such excess shall be deemed a partial prepayment of principal and treated
hereunder as such and any remaining excess shall be refunded to the
Borrower.  In determining if the interest
paid or payable exceeds the Maximum Rate, the Borrower and the Lenders shall,
to the maximum extent permitted under applicable Law, (a) treat all
Borrowings as but a single extension of credit (and the Lenders and the
Borrower agree that such is the case and that provision herein for multiple
Borrowings is for convenience only), (b) characterize any nonprincipal
payment as an expense, fee, or premium rather than as interest, (c) exclude
voluntary prepayments and the effects thereof, and (d) amortize, prorate,
allocate, and spread the total amount of interest throughout the entire
contemplated term of the Obligations. 
However, if the Obligations are paid and performed in full prior to the
end of the full contemplated term thereof, and if the interest received for the
actual period of existence thereof exceeds the Maximum Amount, the Lenders
shall refund such excess, and, in such event, the Lenders shall not, to the
extent permitted by Law, be subject to any penalties provided by any Laws for
contracting for, charging, taking, reserving or receiving interest in excess of
the Maximum Amount.  To the extent the
Laws of the State of Texas are applicable for purposes of determining the “Maximum Rate” or the “Maximum Amount,” then those terms mean the
“weekly ceiling” from time to
time in effect under Texas Finance Code § 303.001,
as limited by Texas Finance Code § 303.009.  The Borrower agrees that Chapter 346 of the
Texas Finance Code, as amended (which regulates certain revolving credit loan
accounts and revolving tri-party accounts), does not apply to the Obligations.

 

10.11      Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

80

 

10.12      Integration.  This Agreement, together with the other Loan
Documents, comprises the complete and integrated agreement of the parties on
the subject matter hereof and thereof and supersedes all prior agreements,
written or oral, on such subject matter. 
In the event of any conflict between the provisions of this Agreement
and those of any other Loan Document, the provisions of this Agreement shall
control; provided that the
inclusion of supplemental rights or remedies in favor of the Administrative
Agent or the Lenders in any other Loan Document shall not be deemed a conflict
with this Agreement.  Each Loan Document
was drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

 

10.13      Survival of Representations
and Warranties.  All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the
execution and delivery hereof and thereof. 
Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default or Event of Default at the time of any Borrowing,
and shall continue in full force and effect as long as any Loan or any other
Obligation shall remain unpaid or unsatisfied.

 

10.14      Severability.  Any
provision of this Agreement and the other Loan Documents to which the Borrower
is a party that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions thereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

10.15      Foreign Lenders.  Each
Lender that is a “foreign corporation, partnership or trust” within the meaning
of the Code (a “Foreign
Lender”) shall deliver to the Administrative Agent, prior to
receipt of any payment subject to withholding under the Code (or after
accepting an assignment of an interest herein), two duly signed completed
copies of either IRS Form W-8BEN or any successor thereto (relating to
such Person and entitling it to an exemption from, or reduction of, withholding
tax on all payments to be made to such Person by the Borrower pursuant to this
Agreement) or IRS Form W-8ECI or any successor thereto (relating to all
payments to be made to such Person by the Borrower pursuant to this Agreement)
or such other evidence satisfactory to the Borrower and the Administrative
Agent that such Person is entitled to an exemption from, or reduction of, U.S.
withholding tax.  Thereafter and from
time to time, each such Person shall (a) promptly submit to the
Administrative Agent such additional duly completed and signed copies of one of
such forms (or such successor forms as shall be adopted from time to time by
the relevant United States taxing authorities) as may then be available under
then current United States laws and regulations to avoid, or such evidence as
is satisfactory to the Borrower and the Administrative Agent of any available
exemption from or reduction of, United States withholding taxes in respect of
all payments to be made to such Person by the Borrower pursuant to this
Agreement, (b) promptly notify the Administrative Agent of any change in
circumstances which would modify or render invalid any claimed exemption or
reduction, and (c) take such steps as shall not be materially
disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable Laws that the Borrower make any deduction
or withholding for taxes from amounts payable to such Person.  If such Person fails to deliver the above
forms or other documentation, then the Administrative Agent may withhold from
any interest payment to such Person an amount equivalent to the applicable
withholding tax imposed by Sections 1441
and 1442 of the Code, without
reduction.  If any Governmental Authority

 

81

 

asserts that the Administrative Agent did not properly withhold any tax
or other amount from payments made in respect of such Person, such Person shall
indemnify the Administrative Agent therefor, including all penalties and
interest, any taxes imposed by any jurisdiction on the amounts payable to the
Agent under this Section, and costs and expenses (including Attorney Costs) of
the Administrative Agent.  The obligation
of the Lenders under this Section shall survive the payment of all
Obligations and the resignation or replacement of the Administrative Agent.

 

10.16      Governing
Law.

 

(a)           THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF TEXAS APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL
RETAIN ALL RIGHTS ARISING UNDER UNITED STATES FEDERAL LAW.

 

(b)           EACH LOAN PARTY AND OTHER PARTY HERETO, AND
EACH GUARANTOR, BY EXECUTION OF A GUARANTY, AGREES AS TO THIS SECTION 10.16(b).
ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS SITTING IN
HARRIS COUNTY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE,
AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, AND BY EXECUTION OF A GUARANTY,
EACH GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS.  THE
BORROWER, EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER (1) IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF
ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO, AND (2) IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES
DESIGNATED HEREIN.  THE BORROWER, EACH
GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF
ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER
MEANS PERMITTED BY THE LAW OF SUCH STATE. 
THE BORROWER AND EACH GUARANTOR, BY ITS EXECUTION OF A GUARANTY, HEREBY
IRREVOCABLY APPOINTS NATIONAL REGISTERED AGENTS, INC., WITH AN ADDRESS AT 5
EVERETTE DRIVE, SUITE 107B, WEST WINDSOR, NEW JERSEY 08550 (THE “TEXAS PROCESS AGENT”)
AS PROCESS AGENT IN ITS NAME, PLACE AND STEAD TO RECEIVE AND FORWARD SERVICE OF
ANY AND ALL WRITS, SUMMONSES AND OTHER LEGAL PROCESS IN ANY SUIT, ACTION OR
PROCEEDING BROUGHT IN THE STATE OF TEXAS, AGREES THAT SUCH SERVICE IN ANY SUCH
SUIT, ACTION OR PROCEEDING MAY BE MADE UPON THE TEXAS PROCESS AGENT, AND
AGREES TO TAKE ALL SUCH ACTION AS MAY BE NECESSARY TO CONTINUE SAID
APPOINTMENT IN FULL FORCE AND EFFECT.

 

10.17      Waiver
of Right to Trial by Jury, Etc.  EACH
PARTY TO THIS AGREEMENT AND EACH GUARANTOR, BY EXECUTION OF A GUARANTY, HEREBY (a) EXPRESSLY
AND

 

82

 

IRREVOCABLY WAIVES ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING
UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF THE PARTIES TO THE LOAN DOCUMENTS OR ANY OF THEM WITH
RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR
TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE LOAN PARTIES TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY; AND (b) EXPRESSLY AND IRREVOCABLY WAIVES, TO THE MAXIMUM
EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN
ANY SUCH ACTION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR
DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; PROVIDED THAT THE WAIVER CONTAINED IN THIS
SECTION 10.17(b) SHALL
NOT APPLY TO THE EXTENT THAT THE PARTY AGAINST WHOM DAMAGES ARE SOUGHT HAS
ENGAGED IN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

10.18      Termination of Commitments Under Original Credit Agreement.  As of the Restatement Date, the Commitments
under the Original Credit Agreement are terminated and the Administrative Agent
and the Lenders hereby waive any right to receive prior notice of such
termination.   Each Lender agrees upon
the Restatement Date to return to Borrower with reasonable promptness all “Notes”
as defined under the Original Credit Agreement which were delivered by the
Borrower in exchange for new Notes to be issued pursuant to this Agreement.

 

10.19      Termination of Control
Agreement.  Upon the execution of this Agreement, each of
the Lenders authorizes the Administrative Agent to terminate that certain
Securities Account Control Agreement dated November 15, 2005 among the
Administrative Agent, Borrower and Smith Barney, Inc., as securities
intermediary pursuant to which Smith Barney, Inc. agreed, upon notice from
the Administrative Agent, to cease acting upon directions of the Borrower and
to instead act only upon directions of the Administrative Agent.  Notwithstanding the cessation of “control”
over the securities account maintained by Borrower with Smith Barney, Inc.,
the Borrower acknowledges and agrees that the securities account and the
investments therein continue to be subject to a Lien granted by the Borrower
pursuant to a Collateral Document and such Lien has been perfected by the
filing of that certain financing statement identifying Borrower, as debtor, and
Administrative Agent, as secured party, filed with the Delaware Secretary of
State on October 29, 2004 under file no. 20043119346.

 

10.20      No
Novations, Etc.  To the extent of the Aggregate
Commitment outstanding under the Original Credit Agreement ($25,000,000), nothing contained herein
shall be deemed a novation of or a repayment or new advance of any obligation
of the Borrower hereunder.   Only to the
extent of an increase in the Aggregate Commitments over that amount, if any,
shall there be deemed to be a new advance by the Lenders to the Borrower under
this Agreement.   The Indebtedness owing
under the Original Credit Agreement is renewed, rearranged, extended and
carried forward by this Agreement and all of the liens and security interests
securing the “Obligations” as defined in the Original Credit Agreement are
carried forward and secure, without interruption or loss or priority, the
Obligations under this Agreement.

 

83

 

10.21      ENTIRE
AGREEMENT.  THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK;

SIGNATURES BEGIN ON NEXT PAGE]

 

84

 

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

 

	
   

  	
  MARKWEST HYDROCARBON, INC.,

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Andrew L. Schroeder

  	
   

  
	
   

  	
   

  	
  Andrew L. Schroeder

  
	
   

  	
   

  	
  Vice President, Treasurer

  
	
   

  	
   

  	
  and Assistant Secretary

  
					

 

1

 

	
   

  	
  ROYAL BANK OF CANADA,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David Wheatley

  	
   

  
	
   

  	
   

  	
  David Wheatley

  
	
   

  	
   

  	
  Manager, Agency

  
					

 

2

 

	
   

  	
  ROYAL BANK OF CANADA, as Lender

  
	
   

  	
  and L/C Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jason York

  	
   

  
	
   

  	
   

  	
  Jason York

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

3

 

	
   

  	
  BANK OF OKLAHOMA, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michael M. Logan

  	
   

  
	
   

  	
   

  	
  Michael M. Logan

  
	
   

  	
   

  	
  Senior Vice President

  
					

 

4

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Justin M. Alexander

  	
   

  
	
   

  	
   

  	
  Justin M. Alexander

  
	
   

  	
   

  	
  Vice President

  
					

 

5

 

SCHEDULE 2.01

 

COMMITMENTS

 

	
  Lender

  	
   

  	
  Commitments

  	
   

  
	
  Royal Bank of
  Canada

  	
   

  	
  $

  	
  9,000,000.00

  	
   

  
	
  Bank of
  Oklahoma, N.A.

  	
   

  	
  $

  	
  8,000,000.00

  	
   

  
	
  U.S. Bank
  National Association

  	
   

  	
  $

  	
  8,000,000.00

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  

 

 

SCHEDULE 5.13

 

SUBSIDIARIES

AND OTHER EQUITY INVESTMENTS

 

(a)           Subsidiaries as of the Restatement Date:

 

	
  Name

  	
   

  	
  Jurisdiction of Organization

  	
   

  	
  Ownership

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MarkWest Energy GP, L.L.C.

  	
   

  	
  Delaware

  	
   

  	
  90.2% owned by the Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MarkWest Michigan, Inc.

  	
   

  	
  Colorado

  	
   

  	
  100% owned by the Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MarkWest Resources, Inc.

  	
   

  	
  Colorado

  	
   

  	
  100% owned by the Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matrex, L.L.C.

  	
   

  	
  Michigan

  	
   

  	
  100% owned by MarkWest Resources, Inc.

  

 

(b)           Other Equity Investments as of the
Restatement Date:

 

1.             2,469,496 units of limited partnership in
MarkWest Energy Partners, L.P.

 

2.             Investments in publicly traded master limited
partnerships that trade on NASDAQ, NYSE or AMEX.

 

(c)           Other Investments as of the Restatement Date:

 

1.             Investments in obligations of the Federal National
Mortgage Association and Government National Mortgage Association having
remaining maturities of not more than 5 years.

 

2.             Bank One Governmental Investments:

 

	
  Date

  	
   

  	
  Type

  	
   

  	
  Maturity

  	
   

  	
  Interest

  Rate

  	
   

  	
  Callable

  	
   

  	
  ID Number

  	
   

  	
  Amount

  	
   

  
	
  12/19/2003

  	
   

  	
  FHLM

  	
   

  	
  12/19/2007

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  
	
  1/28/2004

  	
   

  	
  FHLM

  	
   

  	
  5/5/2006

  	
   

  	
  2.750

  	
  %

  	
  on 5/5/04

  	
   

  	
  3128X06R5

  	
   

  	
  $

  	
  756,541.36

  	
   

  
	
  1/28/2004

  	
   

  	
  FHLM

  	
   

  	
  11/3/2006

  	
   

  	
  2.875

  	
  %

  	
  on 11/03/04

  	
   

  	
  3128X15Y9

  	
   

  	
  $

  	
  505,737.73

  	
   

  
	
  2/11/2004

  	
   

  	
  FHLB

  	
   

  	
  2/11/2008

  	
   

  	
  3.375

  	
  %

  	
  on 02/11/05

  	
   

  	
  3133X3QK2

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  
	
  2/18/2004

  	
   

  	
  FHLM

  	
   

  	
  11/18/2009

  	
   

  	
  4.000

  	
  %

  	
  on 02/18/05

  	
   

  	
  3128X2TS4

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  
	
  2/20/2004

  	
   

  	
  FNMA

  	
   

  	
  8/20/2009

  	
   

  	
  4.020

  	
  %

  	
  Called on
  03/24/04

  	
   

  	
  3133X3QV8

  	
   

  	
  $

  	
  (1,500,000.00

  	
  )

  
	
  2/24/2004

  	
   

  	
  FHLB

  	
   

  	
  11/24/2008

  	
   

  	
  4.250

  	
  %

  	
  on 05/20/04

  	
   

  	
  3136F45H3

  	
   

  	
  $

  	
  1,500,000.00

  	
   

  
	
  2/24/2004

  	
   

  	
  FHLB

  	
   

  	
  2/23/2007

  	
   

  	
  2.905

  	
  %

  	
  on 5/24/04

  	
   

  	
  3133X3QX4

  	
   

  	
  $

  	
  498,500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,760,779.09

  	
   

  
	
  3/24/2004

  	
   

  	
  Reinvestment at
  call FHLA

  	
   

  	
  3/24/2004

  	
   

  	
  2.900

  	
  %

  	
   

  	
   

  	
  3133X54Z8

  	
   

  	
  $

  	
  1,500,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  9,260,779.09

  	
   

  

 

1

 

SCHEDULE 7.01

 

EXISTING LIENS

 

	
  Debtor

  	
   

  	
  Creditor

  	
   

  	
  Asset Secured

  	
   

  	
  Filing Jurisdiction

  
	
  Borrower

  	
   

  	
  LaSalle National Leasing Corporation

  	
   

  	
  54 Trinity 60-337 railcars

  	
   

  	
  Delaware, Colorado

  
	
  Borrower

  	
   

  	
  LaSalle National Leasing Corporation

  	
   

  	
  5 Trinity 60-337 railcars

  	
   

  	
  Delaware, Colorado

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  1 Ariel compressor

  	
   

  	
  Delaware, Colorado

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  Compressors, dehydration unit, slug catcher related equipment,
  furniture and fixtures

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  Inter-Tel Leasing

  	
   

  	
  Axxess telephone system

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  LaSalle National Leasing Corporation

  	
   

  	
  54 Trinity 60-337 railcars (in lieu filing)

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  2 Superior compressors and related equipment

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  1 gas compressor and related equipment

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  1 gas compressor and related equipment

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  Equitable Production Company

  	
   

  	
  Equitable Pre-Delivered Gas

  	
   

  	
  Delaware

  

 

 

SCHEDULE 7.12

 

AGREEMENTS RESTRICTING LIENS ON LEASEHOLD
INTERESTS

 

None.

 

 

SCHEDULE 10.02

 

ADDRESSES FOR NOTICES TO BORROWER,

GUARANTORS AND ADMINISTRATIVE AGENT

 

ADDRESS FOR NOTICES TO BORROWER

MARKWEST HYDROCARBON, INC.

155
Inverness Drive West

Suite 200

Englewood,
Colorado 80112

Attn:
General Counsel

Telephone:
(303) 290-8700

Facsimile:
(303) 290-8769

 

ADDRESS FOR NOTICES TO GUARANTORS

[Name
of Guarantor]

155
Inverness Drive West

Suite 200

Englewood,
Colorado 80112

Attn:
General Counsel

Telephone:
(303) 290-8700

Facsimile:
(303) 290-8769

 

ADDRESSES FOR ROYAL BANK OF CANADA

 

Royal Bank of Canada’s Lending Office:

Royal
Bank of Canada

New
York Branch

One
Liberty Plaza, 3rd Floor

New
York, New York 10006-1404

Attention:
Manager, Loans Administration

Telephone:
(212) 428-6332

Facsimile:
(212) 428-2372

 

For matters related to letters of credit:

Attention:
Manager, Trade Products

Telephone:
(212) 428-6235

Facsimile:
(212) 428-3015

 

1

 

in each case with a copy to:

Royal
Bank of Canada

2800
Post Oak Boulevard

3900
Williams Tower

Houston,
Texas 77056

Attention:
Jason York

Telephone:
(713) 403-5679

Facsimile:
(713) 403-5624

Electronic
Mail: Jason.York@rbccm.com

 

Administrative Agent’s Office:

Royal
Bank of Canada

Agency
Services Group

Royal
Bank Plaza

P.
O. Box 50, 200 Bay Street

12th
Floor, South Tower

Toronto,
Ontario M5J 2W7

Attention:
Manager Agency

Telephone:
(416) 842-3901

Facsimile:
(416) 842-4023

 

Wiring Instructions:

JPMorgan
Chase Bank, New York, New York

ABA
021-000021

For
account Royal Bank of Canada, New York

Swift
Code: ROYCUS3X

A/C
920-1033363

For
further credit to A/C 2937464, Transit 1269

RBCCM
Agency Services, New York

Ref:
MarkWest Hydrocarbon

Attn:
Agency Services

 

2

 

EXHIBIT A-1

 

FORM OF
BORROWING NOTICE

 

Date:                         ,
          

 

To:          Royal Bank of Canada, as Administrative Agent

 

Ladies
and Gentlemen:

 

Reference
is made to that certain First Amended and Restated Credit Agreement, dated as
of January 31, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein
as therein defined), among MarkWest Hydrocarbon, Inc., a Delaware
corporation (the “Borrower”),
Royal Bank of Canada, as Administrative Agent, and the Lenders from time to
time party thereto.

 

The undersigned hereby requests a revolving loan:

 

I.              REVOLVING FACILITY

 

1.             Status Information for the Revolving Facility

 

(a)           Amount of Revolving Facility: $25,000,000

 

(b)           Loans outstanding prior to the Borrowing
requested herein: $                    

 

(c)           Letters of Credit outstanding prior to the
Borrowing requested herein:  $                    

 

(d)           Principal amount of Revolving Loans available
to be borrowed (1(a) minus the sum of 1(b) and 1(c)): $                    

 

2.             Amount of Borrowing: $                    

 

3(a).        Initial Borrowing Base as of January 31,
2006: $                        
OR

 

3(b).        Borrowing Base as of most recent calendar
month end: $                    

 

4.             Requested date of Borrowing:                               ,
200  .

 

5.             Requested Type of Loan and applicable Dollar
amount:

 

(a)           Base Rate Loan for $                    

 

(b)           Eurodollar Rate Loan with Interest Period of:

 

	
  (i)

  	
  one month for

  	
  $

  
	
  (ii)

  	
  two months for

  	
  $

  
	
  (iii)

  	
  three months for

  	
  $

  
	
  (iv)

  	
  six months for

  	
  $

  

 

1

 

6.             Purpose of Loan:

 

       Finance
accounts receivable and/or inventory

 

       To pay fees,
costs and expenses owed pursuant to the Agreement

 

The
undersigned hereby certifies that the following statements will be true on the
date of the proposed Borrowing(s) after giving effect thereto and to the
application of the proceeds therefrom:

 

(a)           the representations and warranties of the
Borrower contained in Article V
of the Agreement are true and correct as though made on and as of such date
(except such representations and warranties which expressly refer to an earlier
date, which are true and correct as of such earlier date);

 

(b)           the amount of the requested Borrowing, when
added to Loans outstanding prior to the Borrowing and Letters of Credit
outstanding prior to the Borrowing will not exceed the Borrowing Base Borrowing
Base referred to in Section I.3. above; and

 

(c)           no Default or Event of Default has occurred
and is continuing, or would result from such proposed Borrowing(s).

 

The
Borrowing requested herein complies with Sections 2.01, Sections 2.02 and 2.03 of the
Agreement, as applicable.

 

	
   

  	
  MARKWEST HYDROCARBON, INC.,

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT A-2

 

FORM OF
CONVERSION/CONTINUATION NOTICE

 

Date:                               ,
        

 

TO:         Royal Bank of Canada, as Administrative Agent

 

Ladies
and Gentlemen:

 

Reference
is made to that certain First Amended and Restated Credit Agreement, dated as
of January  31, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among MarkWest
Hydrocarbon, Inc., a Delaware corporation (the “Borrower”), Royal
Bank of Canada, as Administrative Agent, and the Lenders from time to time
party thereto.

 

The undersigned hereby requests:

 

I.              REVOLVING FACILITY

 

1.             Amount of [conversion] [continuation]: $                    

 

2.             Existing rate:                                                 Check applicable blank

 

(a)           Base Rate

 

(b)           Eurodollar Rate Loan with

Interest Period of:

 

	
  (i)

  	
  one month

  	
  $

  
	
  (ii)

  	
  two months

  	
  $

  
	
  (iii)

  	
  three months

  	
  $

  
	
  (iv)

  	
  six months

  	
  $

  

 

3.             If a Eurodollar Rate Loan, date of the last
day of the Interest Period for such Loan:                               ,
200  .

 

The
Revolving Loan described above is to be [converted] [continued] as follows:

 

4.             Requested date of [conversion]
[continuation]:                               ,
200  .

 

5.             Requested Type of Loan and applicable Dollar
amount:

 

(a)           Base Rate Loan for $                    

 

(b)           Eurodollar Rate Loan with Interest Period of:

 

	
  (i)

  	
  one month for

  	
  $

  
	
  (ii)

  	
  two months for

  	
  $

  

 

1

 

	
  (iii)

  	
  three months for

  	
  $

  
	
  (iv)

  	
  six months for

  	
  $

  

 

II.            TERM FACILITY

 

1.             Amount of [conversion] [continuation]: $                    

 

2.             Existing rate:                                                 Check applicable blank

 

(a)           Base Rate

 

(b)           Eurodollar Rate Loan with

Interest Period of:

 

	
  (i)

  	
  one month

  	
  $

  
	
  (ii)

  	
  two months

  	
  $

  
	
  (iii)

  	
  three months

  	
  $

  
	
  (iv)

  	
  six months

  	
  $

  

 

3.             If a Eurodollar Rate Loan, date of the last
day of the Interest Period for such Loan:                               ,
200  .

 

The
Term Loan described above is to be [converted] [continued] as follows:

 

4.             Requested date of [conversion]
[continuation]:                               ,
200  .

 

5.             Requested Type of Loan and applicable Dollar
amount:

 

(a)           Base Rate Loan for $                    

 

(b)           Eurodollar Rate Loan with Interest Period of:

 

	
  (i)

  	
  one month for

  	
  $

  
	
  (ii)

  	
  two months for

  	
  $

  
	
  (iii)

  	
  three months for

  	
  $

  
	
  (iv)

  	
  six months for

  	
  $

  

 

The
[conversion] [continuation] requested herein complies with Sections 2.01  and 2.03  of the Agreement, as applicable.  If this request is to convert Revolving Loans
to Term Loans on the Revolving Credit Termination Date, this request complies
with Section 2.15 of the Agreement.

 

	
   

  	
  MARKWEST ENERGY HYDROCARBON, INC.,

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT B

 

FORM OF
NOTE

 

	
  $

  	
  January 31, 2006

  

 

FOR
VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to the
order of                                           
(the “Lender”),
on the Final Maturity Date (as defined in the Credit Agreement referred to
below) the principal amount of                               
Dollars ($                    ),
or such lesser principal amount of Loans made by Lender under the Credit
Agreement due and payable by the Borrower to the Lender on the Final Maturity
Date under that certain First Amended and Restated Credit Agreement dated as of
even date herewith (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Credit Agreement”; the terms defined
therein being used herein as therein defined), among the Borrower, the Lenders
from time to time party thereto, and Royal Bank of Canada, as Administrative
Agent.

 

The
Borrower promises to pay interest on the unpaid principal amount of each Loan
from the date of such Loan until such principal amount is paid in full, at such
interest rates, and at such times as are specified in the Credit
Agreement.  All payments of principal and
interest shall be made to the Administrative Agent for the account of the
Lender in Dollars in immediately available funds to the account designated by
the Administrative Agent in the Credit Agreement.  If any amount is not paid in full when due
hereunder, such unpaid amount shall bear interest, to be paid upon demand, from
the due date thereof until the date of actual payment (and before as well as
after judgment) computed at the per annum rate set forth in the Credit
Agreement.

 

This
Note is one of the Notes referred to in the Credit Agreement, is entitled to
the benefits thereof and is subject to optional and mandatory prepayment in
whole or in part as provided therein. 
This Note is also entitled to the benefits of each Guaranty.  Upon the occurrence of one or more of the
Events of Default specified in the Credit Agreement, all amounts then remaining
unpaid on this Note shall become, or may be declared to be, immediately due and
payable all as provided in the Credit Agreement.  Loans made by the Lender shall be evidenced
by one or more loan accounts or records maintained by the Lender in the ordinary
course of business.  The Lender may also
attach schedules to this Note and endorse thereon the date, amount and maturity
of its Loans and payments with respect thereto.

 

This
Note is a Loan Document and is subject to Section 10.10 of the Credit Agreement,
which is incorporated herein by reference the same as if set forth herein
verbatim.

 

The
Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, notice of intent to
accelerate, notice of acceleration, demand, dishonor and non-payment of this
Note.

 

1

 

THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS.

 

	
   

  	
  MARKWEST HYDROCARBON, INC.,

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

2

 

EXHIBIT C

 

FORM OF
COMPLIANCE CERTIFICATE

(Pursuant to Section 6.02 of the Credit Agreement)

 

Financial
Statement Date:                       ,
        

 

To:          Royal Bank of Canada, as Administrative Agent

 

Ladies
and Gentlemen:

 

Reference
is made to that certain First Amended and Restated Credit Agreement, dated as
of January  31, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Credit
Agreement;”
the terms defined therein being used herein as therein defined), MarkWest
Hydrocarbon, Inc., a Delaware corporation (the “Borrower”), the
Lenders from time to time party thereto, and Royal Bank of Canada, as
Administrative Agent. Capitalized terms used herein but not defined herein
shall have the meaning set forth in the Credit Agreement.

 

The
undersigned Responsible Officer hereby certifies as of the date hereof that
he/she is the                                                       
of the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

 

[Use the following for fiscal year-end financial
statements]

 

Attached
hereto as Schedule 1 are the year-end audited stand alone
financial statements of the Borrower required by Section 6.01(a) of the Credit
Agreement for the fiscal year of the Borrower ended as of the above date,
together with the report and opinion of an independent certified public
accountant required by such section; and

 

[Use the following for fiscal quarter-end financial
statements]

 

Attached
hereto as Schedule 1 are, the unaudited stand alone financial
statements of the Borrower required by Section 6.01(b) of the Credit
Agreement for the first three fiscal quarters of the Borrower ended as of the
above date, together with a certificate of a Responsible Officer of the
Borrower stating that such financial statements fairly present the financial
condition, results of operations and cash flows of the Borrower for such fiscal
quarter in accordance with GAAP as at such date and for such period, subject
only to normal year-end audit adjustments and the absence of footnotes.

 

[Use
the following for both fiscal year-end and quarter-end financial statements]

 

1.             The undersigned has reviewed and is familiar
with the terms of the Credit Agreement and has made, or has caused to be made
under his/her supervision, a detailed review of the transactions and condition
(financial or otherwise) of the Borrower during the accounting period covered
by the attached financial statements.

 

2.             A review of the activities of the Borrower
during such fiscal period has been made under the supervision of the
undersigned with a view to determining whether during such fiscal period the
Borrower performed and observed all its Obligations under the Loan Documents,
and no Default or Event

 

1

 

of Default has occurred and is continuing except as follows (list of each such Default or Event of
Default and include the information required by Section 6.03 of the Credit
Agreement):

 

3.             The covenant analyses and information set
forth on Schedule 3
attached hereto are true and accurate on and as of the date of this
Certificate.

 

IN WITNESS WHEREOF, the undersigned has executed
this Certificate as of                       ,
200  .

 

	
   

  	
  MARKWEST HYDROCARBON, INC.

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

For the Quarter/Year ended                                           (“Statement Date”)

 

SCHEDULE 3

to the Compliance Certificate

($ in 000’s)

 

	
  I.              Section 7.04 — Indebtedness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.            Obligations existing under any Swap
  Contract permitted by Section 7.04(c)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  B.            Outstanding Principal Amount of Purchase
  Money Indebtedness for fixed or capital assets permitted by Section 7.04(d) (may
  not exceed $1,000,000)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  C.            Outstanding Principal Amount of other
  Indebtedness permitted by Section 7.04(e) (may not exceed $1,000,000)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  II.            Section 7.08 — Restricted Payments; Distributions and
  Redemptions

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.            Freely Available Cash Reserves as of
  Statement Date (see Credit Agreement definition of “Freely Available Cash
  Reserves”):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.             Cash Equivalents.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  2.             Government bonds.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  3.             Investments in master limited partnerships
  (not to exceed $10,000,000).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  4.             Total of Line II.A.1 + Line II.A.2 + Line
  II.A.3.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  5.             Has the Columbia/Triana Agreement been
  restructured?

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  
	
  6.             If the answer to Line II.A.5 is “No”, is
  Line II.A.4 greater than $18,000,000?
  If so, to the extent of such excess Borrower may make a Restricted Payment if
  no Default or Event of Default exists

  	
   

  	
  Yes/No

  Amount of excess: $

  
	
   

  	
   

  	
   

  
	
  7.             If the answer to Line II.A.5 is “Yes” is
  Line II.A.4 greater than $5,000,000?
  If so, to the extent of such excess Borrower may make a Restricted Payment if
  no Default or Event of Default exists

  	
   

  	
  Yes/No

  Amount of excess: $

  
	
   

  	
   

  	
   

  
	
  8.             As an alternative to Restricted Payments
  permitted under Line II.A.6 or Line II.A.7

  	
   

  	
   

  

 

3

 

	
  9.             Borrower’s Consolidated Net Income
  commencing with the fiscal quarter ending September 30, 2005 through and
  including the Statement Date:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  10.           50% of Line II.A.9:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  11.           Total of Restricted Payments made on or
  after September 30, 2005 through and including Statement Date:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  12.           Excess of Line II.A.10 over Line II.A.11:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  13.           Is Line II.A.10 greater than Line II.A.11?
  Is so, to the extent of such excess Borrower make a Restricted Payment if no Default or Event of Default exists

  	
   

  	
  Yes/No

  Amount of excess: $

  
	
   

  	
   

  	
   

  
	
  14.           If the answer to Line II.A.6, Line II.A.7 and Line II.A.13 is “No”,
  is the Restricted Payment one of $0.125 per share declared in January 2006
  and payable in February, 2006?

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  
	
  15.           If the answer to Line II.A.14 is “Yes” such Restricted Payment
  can nonetheless be paid if no Default or Event of Default exists.

  	
   

  	
  Amount of Restricted  Payment: $

  
	
   

  	
   

  	
   

  
	
  III.           Section 7.15(a) – Leverage Ratio

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.            Consolidated Funded Debt (borrowed money
  indebtedness, Capital Leases, and Synthetic Leases)

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  B.            Consolidated EBITDA for four consecutive
  fiscal quarters ending on the Statement Date (“Subject Period”) (see Credit Agreement definition of “Consolidated EBITDA”):

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  C.            Leverage Ratio (Line III.A. divided by Line
  III.B)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  D.            Is Leverage Ratio greater than 3.5 to 1.0

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  
	
  IV.           Section 7.15(b) – Minimum Consolidated Tangible Net Worth (as

       calculated pursuant to Credit Agreement)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.            80% of Consolidated Tangible Net Worth at September 30,
  2005

  	
   

  	
  $34,000,000

  

 

4

 

	
  B.            Consolidated Tangible Net Worth at
  Statement Date

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  C.            50% of Consolidated Net Income after September 30,
  2005:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  D.            100% of proceeds of all equity issued
  subsequent to January 31, 2006:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  E.             Sum of Line IV.A + Line IV.C + Line IV.D):

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  F.             Is Line IV.E equal to or greater than Line
  IV.B):

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  
	
  V.            Section 7.15(c) — Freely Available Cash Reserves (required
  for fiscal quarters beginning with the fiscal quarter ending March 31,
  2006)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A.            Freely Available Cash Reserves as of
  Statement Date (see Credit Agreement definition of “Freely Available Cash
  Reserves”) for each fiscal quarter ending on or after March 31, 2006:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.             Cash Equivalents.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  2.             Government bonds.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  3.             Investments in master limited partnerships
  (not to exceed $10,000,000).

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  4.             Total of Line V.A.1 + Line V.A.2 + Line
  V.A.3.

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  5.             Is Line V.A. at least $13,000,000

  	
   

  	
  Yes/no

  
	
   

  	
   

  	
   

  
	
  6.             Has the Columbia/Triana Agreement been
  restructured

  	
   

  	
  Yes/no

  
	
   

  	
   

  	
   

  
	
  9.             If the answer to Line V.A.6 is “No”, the
  answer to Line V.A.5 must be “Yes”;

  If the answer to Line V.A.6 is “yes” then the answer
  to Line V.A.5 can be either “Yes” or “No”; there is no required
  available cash reserve if the Columbia/Triana Agreement has been
  restructured

  	
   

  	
   

  

 

5

 

EXHIBIT C-2

 

FORM OF BORROWING BASE
REPORT

 

	
  Borrowing Base Report

  
	
  MARKWEST HYDROCARBON, INC.

  Monthly Borrowing Base Report

  For the Month Ending               

  
	
  Calculation of Monthly Borrowing Base and Excess Revolver Facility
  Availability

  
	
  A.

  	
  Eligible Midstream Accounts Receivable

  	
  $                    

  	
  X

  	
  75%

  	
  $                    

  
	
  B.

  	
  Hedged Eligible Midstream Inventory

  	
  $                    

  	
  X

  	
  85%

  	
  $                    

  
	
  C.

  	
  Unhedged Eligible Midstream Inventory

  	
  $                    

  	
  X

  	
  75%

  	
  $                    

  
	
  D.

  	
  Total Eligible Accounts Receivable and Inventory (A+B+C)

  	
  $                    

  
	
  E.

  	
  Borrowing Base (lower of (i) D or (ii) Commitment (maximum
  $25,000,000)

  	
  $                    

  
	
  F.

  	
  Outstanding Amount of Revolving Loans

  	
  $                    

  
	
  G.

  	
  Outstanding Amount of L/C Obligations

  	
  $                    

  
	
  H.

  	
  Revolver Facility Usage (F+G)

  	
  $                    

  
	
  I. 

  	
  Excess Revolver Facility Availability (E minus H)

  	
  $                    

  

 

- BORROWER CERTIFICATION -

 

Attached
hereto as Schedule 1
is a detailed aged schedule of all Midstream Accounts Receivable as of the
date specified in this Borrowing Base Report, listing face amounts and dates of
invoices of each such Midstream Accounts Receivable and the name and address of
each account debtor obligated on such Midstream Accounts Receivable (and, if requested
by Administrative Agent, copies of invoices, credit reports, and any other
matters and information relating to the Midstream Accounts Receivable).

 

Attached
hereto as Schedule 2
is a schedule of Midstream Inventory, setting forth the location, volume,
cost, market price and hedged price of all such Midstream Inventory.

 

Attached
hereto as Schedule 3
is a summary aged listing of Borrower’s accounts payable and an aged
list of the ten (10) largest accounts payable.

 

The undersigned hereby warrants to Royal Bank of
Canada, as Administrative Agent, that this Borrowing Base Report is a correct
statement regarding the Midstream Accounts Receivable and Midstream Inventory
of Borrower and its Domestic MarkWest Inc. Subsidiaries and that the
reconciliation figures are fully and correctly set forth.  Capitalized terms used but not defined herein
shall have the meanings given such terms in the First Amended and Restated
Credit Agreement dated January 31, 2006 among MarkWest Hydrocarbon, Inc.,
the lenders party thereto and Royal Bank of Canada, as Administrative Agent.

 

	
   

  	
  MARKWEST HYDROCARBON, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  	
  Chief Financial Officer/Treasurer

  
					

 

6

 

EXHIBIT D

 

FORM OF
ASSIGNMENT AND ASSUMPTION

 

This Assignment and
Assumption (the “Assignment
and Assumption”) is dated as of the Effective Date set forth
below and is entered into by and between [Insert
name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as may be amended, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged
by the Assignee.  The Standard Terms and
Conditions set forth in Annex I attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.

 

For an agreed consideration,
the Assignor hereby irrevocably sells and assigns to the Assignee, and the
Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit
Agreement, as of the Effective Date inserted by the Administrative Agent as
contemplated below (i) all of the Assignor’s rights and obligations in its
capacity as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below
and (ii) to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any Person, whether known or unknown, arising
under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed
thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the rights and
obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned pursuant to clauses (i) and (ii) above
being referred to herein collectively as, the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [and is an Affiliate/Approved Fund of [identify Lender](1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower(s):

  	
   

  	
  MarkWest Hydrocarbon, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
   

  	
  Royal Bank of Canada, as the administrative agent under the Credit
  Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  The $25,000,000 Credit Agreement dated as of January 31, 2006
  among MarkWest Hydrocarbon, Inc., the Lenders parties thereto, and Royal
  Bank of Canada, as Administrative Agent.

  
	
  6.

  	
   

  	
  Assigned Interest:

  	
   

  	
   

  

 

(1)   Select as
applicable.

 

1

 

	
   

  	
   

  	
  Aggregate Amount of

  Commitment/Loans for

  all Lenders*

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned*

  	
   

  	
  Percentage Assigned of

  Commitment/Loans(2)

  	
   

  
	
  Loans:

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
  Total:

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

[7.            Trade Date:                           ](3)

 

Effective Date:                      
        , 20      
[TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE
OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The
terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

*Amount to be adjusted by the
counterparties to take into account any payments or prepayments made between
the Trade Date and the Effective Date.

 

Consented
to and Accepted:

 

[NAME
OF ADMINISTRATIVE AGENT], as

Administrative
Agent

 

	
  By

  	
   

  	
   

  
	
  Title:

  

 

[Consented
to:](4)

 

(2)   Set forth, to at
least 9 decimals, as a percentage of the Commitment/Loans of all Lenders
thereunder.

 

(3)   To be completed if
the Assignor and the Assignee in end that the minimum assignment amount is to
be determined as of the date specified in paragraph 7 (the “Trade
Date”).

 

2

 

	
  MARKWEST HYDROCARBON, INC.

  
	
  a Delaware corporation

  
	
   

  
	
  By

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

(4)   To be added only
if the consent of the Borrower is required by the terms of the Credit
Agreement.

 

3

 

ANNEX 1

TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.             Representations and Warranties.

 

1.1           Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute
and deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or
observance by the Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Loan Document.

 

1.2.          Assignee. The Assignee (a) represents and warrants that (i) it has
full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit
Agreement), (iii) from and after the Effective Date, it shall be bound by
the provisions of the Credit Agreement as a Lender thereunder and, to the
extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 6.01  thereof,
as applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent or any other Lender, and (v) if it is a
Foreign Lender, attached to the Assignment and Assumption is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; and (b) agrees that (i) it
will, independently and without reliance on the Administrative Agent, the
Assignor or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents, and (ii) it will
perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Lender.

 

2.             Payments. From and after the Effective Date, the Administrative Agent shall
make all payments in respect of the Assigned Interest (including payments of
principal, interest, fees and other amounts) to the Assignor for amounts which
have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.

 

3.             General Provisions. This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of
this Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and

 

4

 

Assumption.
This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of Texas.

 

5

 

Exhibit E

 

January 31, 2006

 

The Lenders (as defined below) and

The Administrative Agent (as defined below)

c/o Royal Bank of Canada

Royal Bank Plaza

200 Bay Street

12th Floor, South Tower

Toronto, Ontario M5J 2W7

Canada

 

Re:          MarkWest
Hydrocarbon, Inc.

 

Ladies and Gentlemen:

 

This
firm has acted as counsel to MarkWest Hydrocarbon, Inc., a Delaware
corporation (the “Borrower”), MarkWest Energy G.P., L.L.C., a Delaware limited
liability company (the “MLP GP”), MarkWest Michigan, Inc., a Colorado
corporation (“MW Michigan”), MarkWest Resources, Inc., a Colorado
corporation (“MW Resources”) and Matrex, L.L.C., a Michigan limited liability
company (“Matrex,” and, together with the MLP GP, MW Michigan and MW Resources,
the “Guarantors”) in connection with the First Amended and Restated Credit
Agreement, dated as of January 31, 2006 (the “Amended Credit Agreement”),
by and among the Borrower, Royal Bank of Canada, as Administrative Agent (the “Administrative
Agent”) and each of the parties identified therein as lenders (the “Lenders”),
and the execution and delivery pursuant thereto of (i) a note, dated January 31,
2006, in the principal amount of $9,000,000.00 from the Borrower payable to the
order of Royal Bank of Canada, (ii) a note, dated January 31, 2006,
in the principal amount of $8,000,000.00 from the Borrower payable to the order
of U.S. Bank National Association, and (iii) a note, dated January 31,
2006, in the principal amount of $8,000,000.00 from the Borrower payable to the
order of Bank of Oklahoma, N.A. (collectively (i) through (iii), the “Notes”).  This opinion letter is furnished to you
pursuant to the requirements in Section 4.01(a)(x) of the Amended Credit
Agreement in connection with the closing thereunder on the date hereof.  Capitalized terms used herein that are
defined in the Amended Credit Agreement shall have the meanings set forth in
the Amended Credit Agreement, unless otherwise defined herein.

 

For purposes of
this opinion letter, we have examined copies of the following documents (the “Documents”):

 

1.             Executed
copy of the Amended Credit Agreement.

 

2.             Executed
copy of each of the Notes.

 

1

 

3.             Executed
copy of the Amended and Restated Guaranty, dated as of January 31, 2006,
by the Guarantors in favor of the Administrative Agent (the “Amended Guaranty”).

 

4.             The
Certificate of Incorporation of the Borrower, as certified by the Secretary of
State of the State of Delaware on January 27, 2006 and as certified by the
Secretary of the Borrower on the date hereof as being complete, accurate and in
effect.

 

5.             The
Bylaws of the Borrower, as certified by the Secretary of the Borrower on the
date hereof as being complete, accurate and in effect.

 

6.             A
certificate of good standing of the Borrower issued by the Secretary of State
of the State of Delaware dated January 27, 2006.

 

7.             The
Certificate of Formation of the MLP GP, as certified by the Secretary of State
of the State of Delaware on January 27, 2006 and as certified by the
Secretary of the MLP GP on the date hereof as being complete, accurate and in
effect.

 

8.             The
Amended and Restated Limited Liability Company Agreement of the MLP GP, as
certified by the Secretary of the MLP GP on the date hereof as being complete,
accurate and in effect.

 

9.             A
certificate of good standing of the MLP GP issued by the Secretary of State of
the State of Delaware dated January 27, 2006.

 

10.           The
Certificate of Incorporation of MW Michigan, as certified by the Secretary of
State of the State of Colorado on January     , 2006
and as certified by the Secretary of MW Michigan on the date hereof as being
complete, accurate and in effect.

 

11.           The
Amended and Restated Bylaws of MW Michigan, as certified by the Secretary of MW
Michigan on the date hereof as being complete, accurate and in effect.

 

12.           A
certificate of good standing of MW Michigan issued by the Secretary of State of
the State of Colorado dated January 27, 2006.

 

13.           The
Certificate of Incorporation of MW Resources, as certified by the Secretary of
State of the State of Colorado on January     , 2006
and as certified by the Secretary of MW Resources on the date hereof as being
complete, accurate and in effect.

 

2

 

14.           The
Bylaws of MW Resources, as certified by the Secretary of MW Resources on the
date hereof as being complete, accurate and in effect.

 

15.           A
certificate of good standing of MW Resources issued by the Secretary of State
of the State of Colorado dated January 27, 2006.

 

16.           The
Certificate of Formation of Matrex, as certified by the Secretary of State of
the State of Michigan on January     , 2006 and as
certified by the Secretary of MW Resources, acting in its capacity as the
managing member of Matrex, on the date hereof as being complete, accurate and
in effect.

 

17.           The
Operating Agreement of Matrex, as certified by the Secretary of MW Resources,
acting in its capacity as the managing member of Matrex, on the date hereof as
being complete, accurate and in effect.

 

18.           A
certificate of good standing of Matrex issued by the Secretary of State of the
State of Michigan dated January     , 2006.

 

19.           Certain
resolutions of the Board of Directors of the Borrower adopted by unanimous
written consent dated January     , 2006, as certified
by the Secretary of the Borrower on the date hereof as being complete, accurate
and in effect, relating to, among other things, authorization of the Amended
Credit Agreement, the Notes and arrangements in connection therewith.

 

20.           Certain
resolutions of the Board of Directors of the MLP GP adopted by unanimous
written consent dated January     , 2006, as certified
by the Secretary of the MLP GP on the date hereof as being complete, accurate
and in effect, relating to, among other things, authorization of the Amended
Guaranty and arrangements in connection therewith.

 

21.           Certain
resolutions of the Board of Directors of MW Michigan adopted by unanimous
written consent dated January     , 2006, as certified
by the Secretary of MW Michigan on the date hereof as being complete, accurate
and in effect, relating to, among other things, authorization of the Amended
Guaranty and arrangements in connection therewith.

 

22.           Certain
resolutions of the Board of Directors of MW Resources acting in its own behalf
and acting in its capacity as the managing member of Matrex, adopted by
unanimous written consent dated January     , 2006, as
certified by the Secretary of MW Resources on the date hereof as being
complete, accurate and in effect, relating to, among other things,

 

3

 

authorization of the
Amended Guaranty and arrangements in connection therewith.

 

23.           A
certificate of certain officers of the Borrower and each of the Guarantors
dated as of the date hereof, as to certain facts relating to the Borrower and
each of the Guarantors, as applicable.

 

24.           A
certificate of the Secretary of the Borrower, dated as of the date hereof, as
to the incumbency and signatures of certain officers of the Borrower.

 

25.           A
certificate of the Secretary of the MLP GP, dated as of the date hereof, as to
the incumbency and signatures of certain officers of the MLP GP.

 

26.           A
certificate of the Secretary of MW Michigan, dated as of the date hereof, as to
the incumbency and signatures of certain officers of MW Michigan.

 

27.           A
certificate of the Secretary of MW Resources acting in its own behalf and
acting in its capacity as the managing member of Matrex, dated as of the date
hereof, as to the incumbency and signatures of certain officers of MW
Resources.

 

The Amended Credit
Agreement, the Notes and the Amended Guaranty are sometimes hereinafter
referred to collectively as the “Loan Documents.”

 

In our
examination of the Loan Documents and the other Documents, we have assumed the
genuineness of all signatures, the legal capacity of all natural persons, the
accuracy and completeness of all of the Documents, the authenticity of all
originals of the Documents and the conformity to authentic originals of all of
the Documents submitted to us as copies (including telecopies).  As to all matters of fact relevant to the
opinions expressed and other statements made herein, we have relied on the
representations and statements of fact made in the Documents, we have not
independently established the facts so relied on, and we have not made any
investigation or inquiry other than our examination of the Documents.  This opinion letter is given, and all
statements herein are made, in the context of the foregoing.

 

As
used in this opinion letter, the phrase “to our knowledge” means the actual
knowledge (that is, the conscious awareness of facts or other information) of
lawyers currently in the firm who have given substantive legal attention to
representation of the Borrower and the Guarantors in connection with the Loan
Documents.

 

For
purposes of this opinion letter, we have assumed that (i) each Lender and
each other party to the Loan Documents (other than, with respect to the Loan
Documents only, the Borrower and the Guarantors) has all requisite power and
authority under all applicable laws,

 

4

 

regulations and governing
documents to execute, deliver and perform its obligations under the Loan
Documents and each Lender and each of such other parties has complied with all
legal requirements pertaining to its status as such status relates to its
rights to enforce the Loan Documents against the Borrower and the Guarantors, (ii) each
Lender and each of such other parties has duly authorized, executed and
delivered the Loan Documents to which it is a party, (iii) each Lender and
each of such other parties is validly existing and in good standing in all
necessary jurisdictions, (iv)  the Loan Documents constitute valid and
binding obligations of each party thereto (other than, with respect to the Loan
Documents only, the Borrower and the Guarantors), enforceable against each such
party in accordance with their respective terms, (v) there has been no
mutual mistake of fact or misunderstanding or fraud, duress or undue influence
in connection with the negotiation, execution or delivery of the Loan
Documents, and the conduct of all parties to the Loan Documents has complied
with any requirements of good faith, fair dealing and conscionability, and (vi) there
are and have been no agreements or understandings among the parties, written or
oral, and there is and has been no usage of trade or course of prior dealing
among the parties that would, in either case, define, supplement or qualify the
terms of the Loan Documents.  We have
also assumed the validity and constitutionality of each relevant statute, rule,
regulation and agency action covered by this opinion letter.

 

For
purposes of the opinions expressed in paragraphs (b), (e) and (g) below,
we have further assumed that the provisions of the MLP GP’s Amended and
Restated Limited Liability Company Agreement and Matrex’s Limited Liability
Company Agreement relating to the limited liability powers of, and
authorization and execution of agreements by, the MLP GP and Matrex,
respectively, would be enforced under Delaware law and Michigan law,
respectively, as written.

 

This
opinion letter is based as to matters of law solely on applicable provisions of
the following, as currently in effect:  (i) as
to the opinions expressed in paragraph (a), the General Corporation Law of the
State of Delaware, as amended, (ii) as to the opinions expressed in
paragraph (b), the Delaware Limited Liability Company Act, as amended, (iii) as
to the opinions expressed in paragraphs (c) and (d), the Colorado Business
Corporation Act, as amended, (iv) as to the opinions expressed in
paragraphs (e), the Michigan Limited Liability Company Act, as amended and (v) as
to the opinions expressed in paragraphs (f) and (g), except to the extent
excluded below, internal Colorado law (but not including any statutes,
ordinances, administrative decisions, rules or regulations of any
political subdivision of the State of Colorado); provided, however, that the
laws described above shall not include (and we express no opinion as to)
federal or state securities, antitrust, unfair competition, banking, or tax
laws or regulations and we express no opinion as to any other laws, statutes, rules or
regulations not specifically identified above; and further provided that, with
respect to clause (v) above, the opinions expressed herein are based upon
a review of those laws, statutes and regulations that, in our experience, are
generally recognized as applicable to the transactions contemplated in the Loan
Documents.  (The law identified in clause
(v) above, subject to the exclusions and limitations set forth above, is
referred to herein as “Applicable State Law.”) 
We note that the Loan Documents provide that they are to be governed by
the substantive law of the State of Texas. 
Nevertheless,

 

5

 

with your permission, we
have given the opinions in paragraphs (f) and (g) as if the Colorado
law covered by this opinion letter were the law governing the Loan
Documents.  We would further point out
that we are not admitted to practice law in, and do not purport to be experts
with respect to the laws of, the States of Texas, Delaware or Michigan.

 

Based
upon, subject to and limited by the limitations and qualifications set forth in
this opinion letter, we are of the opinion that:

 

(a)           The
Borrower is validly existing as a corporation and in good standing as of the
date of the certificate specified in paragraph 6 above under the laws of the
State of Delaware.  The Borrower has the
corporate power to execute, deliver and perform the Loan Documents to which it
is a party.  The execution, delivery and
performance by the Borrower of the Loan Documents to which it is a party have
been duly authorized by all necessary corporate action of the Borrower.

 

(b)           The
MLP GP is validly existing as a limited liability company and in good standing
as of the date of the certificate specified in paragraph 9 above under the laws
of the State of Delaware.  The MLP GP has
the limited liability company power to execute, deliver and perform the Loan
Documents to which it is a party.  The
execution, delivery and performance by the MLP GP of the Loan Documents to
which it is a party have been duly authorized by all necessary limited
liability company action of the MLP GP.

 

(c)           MW
Michigan is validly existing as a corporation and in good standing as of the
date of the certificate specified in paragraph 12 above under the laws of the State
of Colorado.  MW Michigan has the
corporate power to execute, deliver and perform the Loan Documents to which it
is a party.  The execution, delivery and
performance by MW Michigan of the Loan Documents to which it is a party have
been duly authorized by all necessary corporate action of MW Michigan.

 

(d)           MW
Resources is validly existing as a corporation and in good standing as of the
date of the certificate specified in paragraph 15 above under the laws of the
State of Colorado.  MW Resources has the
corporate power to execute, deliver and perform the Loan Documents to which it
is a party.  The execution, delivery and
performance by MW Resources of the Loan Documents to which it is a party have
been duly authorized by all necessary corporate action of MW Resources.

 

(e)           Matrex
is validly existing as a limited liability company and in good standing as of
the date of the certificate specified in paragraph 18 above under the laws of
the State of Michigan.  Matrex has the
limited liability company power to execute, deliver and perform the Loan
Documents to which it is a party.  The
execution, delivery and performance by Matrex of the Loan Documents to which it
is a party have been duly authorized by all necessary limited liability company
action of Matrex.

 

6

 

(f)            Each
of the Loan Documents to which the Borrower is a party has been duly executed
and delivered on behalf of the Borrower and constitutes a valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with
its terms.

 

(g)           Each
of the Loan Documents to which each Guarantor is a party has been duly executed
and delivered on behalf of such Guarantor and constitutes a valid and binding
obligation of such Guarantor, enforceable against such Guarantor in accordance
with its terms.

 

In
addition to the qualifications, exceptions and limitations elsewhere set forth
in this opinion letter, the opinions expressed in paragraphs (f) and (g) above
are subject to the qualification that certain rights, remedies, waivers and
other provisions of the Loan Documents may not be enforceable in accordance
with their terms, but, subject to the exceptions, qualifications and
limitations set forth elsewhere in this opinion letter, such unenforceability
would not render the Loan Documents invalid as a whole or preclude (i) the
judicial enforcement of the obligations of the Borrower to pay the principal of
the Notes and interest thereon at the rate or rates (but not including any
increase in rate after default) set forth therein, (ii) the acceleration
by the Lenders of the Borrower’s obligation to pay such principal, together
with such interest, after a default by the Borrower in the payment of such
principal or interest or (iii) the judicial enforcement of the obligations
of the Guarantors under the Amended Guaranty to pay the principal of the Notes
and interest thereon at the rate or rates (but not including any increase in
rate after default) set forth in the Amended Credit Agreement after a default
by the Borrower in the payment of such principal or interest at maturity or
following acceleration pursuant to clause (ii) above; provided, however,
that we express no opinion regarding the enforceability of the Guarantor
Documents in the event of or with respect to (1) any modification to or
amendment of the obligations of the Borrower under the Loan Documents that
increases such obligations, or (2) any election of remedies, any act or
omission by the Lenders or the Administrative Agent with respect to collateral,
or any other conduct of the Lenders or the Administrative Agent, that in each
case prejudices a Guarantor or constitutes a full or partial release or
discharge of a Guarantor under applicable law.

 

In
addition to the qualifications, exceptions and limitations elsewhere set forth
in this opinion letter, our opinions expressed above as to enforceability of
the Loan Documents are also subject to the effect of:  (1) bankruptcy, insolvency,
reorganization, receivership, moratorium and other laws affecting creditors’
rights (including, without limitation, the effect of statutory and other law
regarding fraudulent conveyances, fraudulent transfers and preferential
transfers); (2) the exercise of judicial discretion and the application of
principles of equity, good faith, fair dealing, reasonableness, conscionability
and materiality (regardless of whether the applicable agreements are considered
in a proceeding in equity or at law); and (3) generally applicable rules of law that limit
or affect the enforceability of provisions that purport to waive or require
waiver of (or that otherwise purport to have the effect of waiving) procedural,
judicial or substantive rights or defenses.

 

7

 

We assume no obligation to advise you of
any changes in the foregoing subsequent to the delivery of this opinion
letter.  This opinion letter has been
prepared solely for your use in connection with the closing under the Amended
Credit Agreement on the date hereof, and should not be quoted in whole or in
part or otherwise be referred to, and should not be filed with or furnished to
any governmental agency or other person or entity, without the prior written
consent of this firm.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Hogan & Hartson L.L.P.

  

 

8EXHIBIT 10.1

 

HORMEL FOODS CORPORATION

2000 STOCK INCENTIVE PLAN

(Amended 1-31-2006)

 

Section 1.  Purpose.

 

The
purpose of the Plan is to promote the interests of the Company and its
shareholders by aiding the Company in attracting and retaining employees,
officers, and nonemployee directors capable of assuring the future success of
the Company, to offer such persons incentives to put forth maximum efforts for
the success of the Company’s business and to afford such persons an opportunity
to acquire a proprietary interest in the Company by rewarding them for making
major contributions to the success of the Company.

 

Section 2.  Definitions.

 

As
used in the Plan, the following terms shall have the meanings set forth below:

 

(a)           “Affiliate”
shall mean (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which
the Company has a significant equity interest, in each case as determined by
the Committee.

 

(b)           “Award”
shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Award, Other Stock Grant or Other Stock-Based Award
granted under the Plan.

 

(c)           “Award
Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted under the Plan.

 

(d)           “Board”
shall mean the Board of Directors of the Company.

 

(e)           “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and
any regulations promulgated thereunder.

 

(f)            “Committee”
shall mean a committee of Directors designated by the Board to administer the
Plan.  In the absence of any other
designation, the Committee shall mean the Compensation Committee of the Board.  The Committee shall be comprised of not less
than such number of Directors as shall be required to permit Awards granted
under the Plan to qualify under Rule 16b-3, and each member of the
Committee shall be a “Nonemployee Director” within the meaning of Rule 16b-3
and an “outside director” within the meaning of Section 162(m) of the
Code.  The Company expects to have the
Plan administered in accordance with the requirements for the award of “qualified
performance-based compensation” within the meaning of Section 162(m) of
the Code.

 

(g)           “Company”
shall mean Hormel Foods Corporation, a Delaware corporation, and any successor
corporation.

 

(h)           “Director”
shall mean a member of the Board.

 

(i)            “Eligible
Person” shall mean any employee, officer, consultant, independent contractor or
Director providing services to the Company or any Affiliate whom the Committee
determines to be an Eligible Person based on the Committee’s judgment as to
that person’s ability to have a significant effect on the success of the
Company.

 

1

 

(j)            “Fair
Market Value” shall mean, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such
property determined by such methods or procedures as shall be established from
time to time by the Committee. 
Notwithstanding the foregoing, unless otherwise determined by the
Committee, the Fair Market Value of Shares as of a given date shall be, if
the Shares are then quoted on the New York Stock Exchange, the closing price as
reported on the New York Stock Exchange on the date preceding the day on which
the value is to be determined, or, if the New York Stock Exchange is not open
for trading on such date, on the most recent preceding date when it is open for
trading.

 

(k)           “Incentive
Stock Option” shall mean an option granted under Section 6(a) of the
Plan that is intended to meet the requirements of Section 422 of the Code
or any successor provision.

 

(l)            “Nonqualified
Stock Option” shall mean an option granted under Section 6(a) of the
Plan that is not intended to be an Incentive Stock Option.

 

(m)          “Option”
shall mean an Incentive Stock Option or a Nonqualified Stock Option, and shall
include Reload Options.

 

(n)           “Other
Stock Grant” shall mean any right granted under Section 6(e) of the
Plan.

 

(o)           “Other
Stock-Based Award” shall mean any right granted under Section 6(f) of
the Plan.

 

(p)           “Participant”
shall mean an Eligible Person designated to be granted an Award under the Plan.

 

(q)           “Performance
Award” shall mean any right granted under Section 6(d) of the Plan.

 

(r)            “Person”
shall mean any individual, corporation, partnership, association or trust.

 

(s)           “Plan”
shall mean the Hormel Foods Corporation 2000 Stock Incentive Plan, as amended
from time to time, the provisions of which are set forth herein.

 

(t)            “Reload
Option” shall mean any Option granted under Section 6(a)(iv) of the
Plan.

 

(u)           “Restricted
Stock” shall mean any Shares granted under Section 6(c) of the Plan.

 

(v)           “Restricted
Stock Unit” shall mean any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share (or a cash payment equal to the Fair
Market Value of a Share) at some future date.

 

(w)          “Rule 16b-3”
shall mean Rule 16b-3 promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended, or any
successor rule or regulation.

 

(x)            “Shares”
shall mean shares of Common Stock, $.0586 par value per share, of the Company
or such other securities or property as may become subject to Awards pursuant
to an adjustment made under Section 4(c) of the Plan. (Adjustment
made for two-for-one stock split effective January 26, 2000)

 

(y)           “Stock
Appreciation Right” shall mean any right granted under Section 6(b) of
the Plan.

 

Section 3.  Administration.

 

(a)           Power
and Authority of the Committee.  The
Plan shall be administered by the Committee. 
Subject to the express provisions of the Plan and to applicable law, the
Committee shall have full power and authority to:  (i) designate Participants; (ii) determine
the type or types of Awards to be granted to each Participant under the Plan; (iii) determine
the number of Shares to be covered by (or with respect to which

 

2

 

payments, rights or other matters are to be calculated in connection
with) each Award; (iv) determine the terms and conditions of any Award or
Award Agreement; (v) amend the terms and conditions of any Award or Award
Agreement and accelerate the exercisability of Options or the lapse of
restrictions relating to Restricted Stock, Restricted Stock Units or other
Awards; (vi) determine whether, to what extent and under what
circumstances Awards may be exercised in cash, Shares, other securities, other
Awards or other property, or canceled, forfeited or suspended; (vii) determine
whether, to what extent and under what circumstances cash, Shares, promissory
notes, other securities, other Awards, other property and other amounts payable
with respect to an Award under the Plan shall be deferred either automatically
or at the election of the holder thereof or the Committee; (viii) interpret
and administer the Plan and any instrument or agreement, including an Award
Agreement, relating to the Plan; (ix) establish, amend, suspend or waive
such rules and regulations and appoint such agents as it shall deem
appropriate for the proper administration of the Plan; and (x) make any other
determination and take any other action that the Committee deems necessary or
desirable for the administration of the Plan. 
Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to
the Plan or any Award shall be within the sole discretion of the Committee, may
be made at any time and shall be final, conclusive and binding upon any Participant,
any holder or beneficiary of any Award and any employee of the Company or any
Affiliate.

 

(b)           Delegation.  The Committee may delegate its powers and
duties under the Plan to one or more Directors or a committee of Directors,
subject to such terms, conditions and limitations as the Committee may
establish in its sole discretion.

 

(c)           Power
and Authority of the Board of Directors. 
Notwithstanding anything to the contrary contained herein, the Board
may, at any time and from time to time, without any further action of the
Committee, exercise the powers and duties of the Committee under the Plan.

 

Section 4.  Shares Available for Awards.

 

(a)           Shares
Available.  Subject to adjustment as
provided in Section 4(c) of the Plan, the aggregate number of Shares
that may be issued under all Awards under the Plan shall be 19,000,000 on a net
basis as provided in this Section 4(a). 
Shares to be issued under the Plan may be either authorized but unissued
Shares or Shares acquired in the open market or otherwise.  Any Shares that are used by a Participant as
full or partial payment to the Company of the purchase price relating to an
Award, or in connection with the satisfaction of tax obligations relating to an
Award (whether tendered by the Participant or withheld from the Award), shall
be available for granting Awards (other than Incentive Stock Options) under the
Plan without reducing the aggregate number of Shares that may be issued for all
Awards under the Plan.  In addition, if
any Shares covered by an Award or to which an Award relates are not purchased
or are forfeited, or if an Award otherwise terminates without delivery of any
Shares, then the number of Shares counted against the aggregate number of
Shares available under the Plan with respect to such Award, to the extent of
any such forfeiture or termination, shall again be available for granting
Awards under the Plan.  Notwithstanding
the foregoing, the number of Shares available for granting Incentive Stock
Options under the Plan shall not exceed 19,000,000 on a gross basis, subject to
adjustment as provided in the Plan and subject to the provisions of Section 422
or 424 of the Code or any successor provision, so that shares used as payment
of the purchase price or in connection with the satisfaction of tax obligations
relating to an Award which would not otherwise reduce the shares available for
issuance under the Plan will not be available for Incentive Stock Options.
(Adjustment made for two-for-one stock split effective January 26, 2000)

 

(b)           Accounting
for Awards.  For purposes of this Section 4,
if an Award entitles the holder thereof to receive or purchase Shares, the
number of Shares covered by such Award or to which such Award relates shall be
counted on the date of grant of such Award against the aggregate number of
Shares available for granting Awards under the Plan.

 

3

 

(c)           Adjustments.  In the event that the Committee shall
determine that any dividend or other distribution (whether in the form of cash,
Shares, other securities or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the
number and type of Shares (or other securities or other property) that
thereafter may be made the subject of Awards, (ii) the number and type of
Shares (or other securities or other property) subject to outstanding Awards
and (iii) the purchase or exercise price with respect to any Award; provided,
however, that the number of Shares covered by any Award or to which such
Award relates shall always be a whole number.

 

(d)           Award
Limitations Under the Plan.  No
Eligible Person may be granted any Award or Awards under the Plan, the value of
which Award or Awards is based solely on an increase in the value of the Shares
after the date of grant of such Award or Awards, for more than 600,000 Shares
(subject to adjustment as provided for in Section 4(c) of the Plan),
in the aggregate in any calendar year. 
The foregoing annual limitation specifically includes the grant of any
Award or Awards representing “qualified performance-based compensation” within
the meaning of Section 162(m) of the Code. (Adjustment made for
two-for-one stock split effective January 26, 2000)

 

Section 5.  Eligibility.

 

Any
Eligible Person shall be eligible to be designated a Participant.  In determining which Eligible Persons shall
receive an Award and the terms of any Award, the Committee may take into
account the nature of the services rendered by the respective Eligible Persons,
their present and potential contributions to the success of the Company or such
other factors as the Committee, in its discretion, shall deem relevant.  Notwithstanding the foregoing, an Incentive
Stock Option may only be granted to full or part-time employees (which term as
used herein includes, without limitation, officers and Directors who are also
employees), and an Incentive Stock Option shall not be granted to an employee
of an Affiliate unless such Affiliate is also a “subsidiary corporation” of the
Company within the meaning of Section 424(f) of the Code or any
successor provision.

 

Section 6.  Awards.

 

(a)           Options.  The Committee is hereby authorized to grant
Options to Participants with the following terms and conditions and with such
additional terms and conditions not inconsistent with the provisions of the
Plan as the Committee shall determine:

 

(i)            Exercise
Price.  The purchase price per Share
purchasable under an Option shall be determined by the Committee; provided,
however, that such purchase price shall not be less than 100% of the
Fair Market Value of a Share on the date of grant of such Option.

 

(ii)           Option
Term.  The term of each Option shall
be ten years from date of grant, except as earlier terminated pursuant to the
provisions of the Plan or any Award Agreement.

 

(iii)          Time
and Method of Exercise.  The
Committee shall determine the time or times at which an Option may be exercised
in whole or in part and the method or methods by which, and the form or forms
(including, without limitation, cash, Shares, promissory notes, other
securities, other Awards or other property, or any combination thereof, having
a Fair Market Value on the exercise date equal to the relevant exercise price)
in which, payment of the exercise price with respect thereto may be made or
deemed to have been made.

 

4

 

(iv)          Reload
Options.  The Committee may grant
Reload Options, separately or together with another Option, pursuant to which,
subject to the terms and conditions established by the Committee, the
Participant would be granted a new Option when the payment of the exercise
price of a previously granted option is made by the delivery of Shares owned by
the Participant pursuant to Section 6(a)(iii) of the Plan or the
relevant provisions of another plan of the Company, and/or when Shares are
tendered or withheld as payment of the amount to be withheld under applicable
income tax laws in connection with the exercise of an Option, which new Option
would be an Option to purchase the number of Shares not exceeding the sum of (A) the
number of Shares so provided as consideration upon the exercise of the
previously granted option to which such Reload Option relates and (B) the
number of Shares, if any, tendered or withheld as payment of the amount to be
withheld under applicable tax laws in connection with the exercise of the
option to which such Reload Option relates pursuant to the relevant provisions
of the plan or agreement relating to such option.  Reload Options may be granted with respect to
Options previously granted under the Plan or any other stock option plan of the
Company or may be granted in connection with any Option granted under the Plan
or any other stock option plan of the Company at the time of such grant.  Such Reload Options shall have a per share
exercise price equal to the Fair Market Value of one Share as of the date of
grant of the new Option.  Any Reload Option shall be subject
to availability of sufficient Shares for grant under the Plan.

 

(b)           Stock
Appreciation Rights.  The Committee
is hereby authorized to grant Stock Appreciation Rights to Participants subject
to the terms of the Plan and any applicable Award Agreement.  A Stock Appreciation Right granted under the
Plan shall confer on the holder thereof a right to receive upon exercise
thereof the excess of (i) the Fair Market Value of one Share on the date
of exercise (or, if the Committee shall so determine, at any time during a
specified period before or after the date of exercise) over (ii) the grant
price of the Stock Appreciation Right as specified by the Committee, which
price shall not be less than 100% of the Fair Market Value of one Share on the
date of grant of the Stock Appreciation Right. 
Subject to the terms of the Plan and any applicable Award Agreement, the
grant price, term, methods of exercise, dates of exercise, methods of
settlement and any other terms and conditions of any Stock Appreciation Right
shall be as determined by the Committee. 
The Committee may impose such conditions or restrictions on the exercise
of any Stock Appreciation Right as it may deem appropriate.

 

(c)           Restricted
Stock and Restricted Stock Units. 
The Committee is hereby authorized to grant Restricted Stock and
Restricted Stock Units to Participants with the following terms and conditions
and with such additional terms and conditions not inconsistent with the
provisions of the Plan as the Committee shall determine:

 

 (i)           Restrictions.  Shares of Restricted Stock and Restricted
Stock Units shall be subject to such restrictions as the Committee may impose
(including, without limitation, a waiver by the Participant of the right to
vote or to receive any dividend or other right or property with respect
thereto), which restrictions may lapse separately or in combination at such
time or times, in such installments or otherwise as the Committee may deem
appropriate.

 

(ii)           Stock
Certificates.  Any Restricted Stock
granted under the Plan shall be registered in the name of the Participant and
shall bear an appropriate legend referring to the terms, conditions and
restrictions applicable to such Restricted Stock.  In the case of Restricted Stock Units, no
Shares shall be issued at the time such Awards are granted.

 

(iii)          Forfeiture.  Except as otherwise determined by the
Committee, upon termination of employment (as determined under criteria
established by the Committee) during the applicable restriction period, all
Shares of Restricted Stock and all Restricted Stock Units at such time subject
to restriction shall be forfeited and reacquired by the Company; provided,
however, that the Committee may, when it finds that a waiver would be in
the best interest of the Company, waive in whole or in part any or all
remaining restrictions with respect to Shares of Restricted Stock or Restricted
Stock Units.  Upon the lapse or waiver of
restrictions and

 

5

 

the restricted period relating to Restricted Stock Units evidencing the
right to receive Shares, such Shares shall be issued and delivered to the
holders of the Restricted Stock Units.

 

(d)           Performance
Awards.  The Committee is hereby
authorized to grant Performance Awards to Participants subject to the terms of
the Plan and any applicable Award Agreement. 
A Performance Award granted under the Plan (i) may be denominated
or payable in cash, Shares (including, without limitation, Restricted Stock and
Restricted Stock Units), other securities, other Awards or other property and (ii) shall
confer on the holder thereof the right to receive payments, in whole or in
part, upon the achievement of such performance goals during such performance
periods as the Committee shall establish. 
Subject to the terms of the Plan and any applicable Award Agreement, the
performance goals to be achieved during any performance period, the length of
any performance period, the amount of any Performance Award granted, the amount
of any payment or transfer to be made pursuant to any Performance Award and any
other terms and conditions of any Performance Award shall be determined by the
Committee.

 

(e)           Other
Stock Grants.  The Committee is
hereby authorized, subject to the terms of the Plan and any applicable Award
Agreement, to grant to Participants Shares without restrictions thereon as are
deemed by the Committee to be consistent with the purpose of the Plan.

 

(f)            Other
Stock-Based Awards.  The Committee is
hereby authorized to grant to Participants subject to the terms of the Plan and
any applicable Award Agreement, such other Awards that are denominated or
payable in, valued in whole or in part by reference to, or otherwise based on
or related to, Shares (including, without limitation, securities convertible
into Shares), as are deemed by the Committee to be consistent with the purpose
of the Plan. Shares or other securities delivered pursuant to a purchase right
granted under this Section 6(f) shall be purchased for such
consideration, which may be paid by such method or methods and in such form or
forms (including, without limitation, cash, Shares, promissory notes, other
securities, other Awards or other property or any combination thereof), as the
Committee shall determine, the value of which consideration, as established by
the Committee, shall not be less than 100% of the Fair Market Value of such
Shares or other securities as of the date such purchase right is granted.

 

(g)           General.

 

(i)            No
Cash Consideration for Awards. 
Awards shall be granted for no cash consideration or for such minimal
cash consideration as may be required by applicable law.

 

(ii)           Awards
May Be Granted Separately or Together. 
Awards may, in the discretion of the Committee, be granted either alone
or in addition to, in tandem with or in substitution for any other Award or any
award granted under any plan of the Company or any Affiliate other than the
Plan.  Awards granted in addition to or
in tandem with other Awards or in addition to or in tandem with awards granted
under any such other plan of the Company or any Affiliate may be granted either
at the same time as or at a different time from the grant of such other Awards
or awards.

 

(iii)          Forms
of Payment under Awards.  Subject to
the terms of the Plan and of any applicable Award Agreement, payments or
transfers to be made by the Company or an Affiliate upon the grant, exercise or
payment of an Award may be made in such form or forms as the Committee shall
determine (including, without limitation, cash, Shares, promissory notes, other
securities, other Awards or other property or any combination thereof), and may
be made in a single payment or transfer, in installments or on a deferred
basis, in each case in accordance with rules and procedures established by
the Committee.  Such rules and
procedures may include, without limitation, provisions for the payment or
crediting of reasonable interest on installment or deferred payments or the
grant or crediting of dividend equivalents with respect to installment or
deferred payments.

 

6

 

(iv)          Limits
on Transfer of Awards.  No Award
(other than Other Stock Grants) and no right under any such Award shall be
transferable by a Participant otherwise than by will or by the laws of descent
and distribution; provided, however, that, if so determined by
the Committee, a Participant may, in the manner established by the Committee,
transfer Options (other than Incentive Stock Options) or designate a
beneficiary or beneficiaries to exercise the rights of the Participant and
receive any property distributable with respect to any Award upon the death of
the Participant.  Each Award or right
under any Award shall be exercisable during the Participant’s lifetime only by
the Participant or, if permissible under applicable law, by the Participant’s
guardian or legal representative.  No
Award or right under any such Award may be pledged, alienated, attached or
otherwise encumbered, and any purported pledge, alienation, attachment or
encumbrance thereof shall be void and unenforceable against the Company or any
Affiliate.

 

(v)           Term
of Awards.  Except as specifically
provided in the Plan, the term of each Award shall be for such period as may be
determined by the Committee.

 

(vi)          Restrictions;
Securities Exchange Listing.  All
Shares or other securities delivered under the Plan pursuant to any Award or
the exercise thereof shall be subject to such restrictions as the Committee may
deem advisable under the Plan, applicable federal or state securities laws and
regulatory requirements, and the Committee may cause appropriate entries to be
made or legends to be affixed to reflect such restrictions.  If any securities of the Company are traded
on a securities exchange, the Company shall not be required to deliver any
Shares or other securities covered by an Award unless and until such Shares or
other securities have been admitted for trading on such securities exchange.

 

(h)           Cancellation
and Rescission of Awards.

 

(i)            Competitive
Services.  A Participant shall not
render services for any organization or engage directly or indirectly in any
business which, in the judgment of the chief executive officer of the Company
or other senior officer designated by the Committee, is or becomes competitive
with the Company, or which organization or business, or the rendering of
services to such organization or business, is or becomes otherwise prejudicial
to or in conflict with the interests of the Company.

 

(ii)           Cancellation
and Rescission.  Failure to comply
with the provisions of paragraph (i) of this Section 6(h) shall
cause any Award(s) to be canceled. 
Failure to comply with the provisions of paragraph (i) of this Section 6(h) prior
to, or during the six months after, any exercise, payment or delivery pursuant
to an Award shall cause such exercise, payment or delivery to be
rescinded.  The Company shall notify the
Participant in writing of any such rescission within one year after such
exercise, payment or delivery.  Within
ten days after receiving such notice from the Company, the Participant shall
pay to the Company the amount of any gain realized or payment received as a result
of the rescinded exercise, payment or delivery pursuant to an Award.

 

Section 7.  Amendment and Termination; Adjustments.

 

(a)           Amendments
to the Plan.  The Board may amend,
alter, suspend, discontinue or terminate the Plan at any time; provided, however,
that, notwithstanding any other provision of the Plan or any Award Agreement,
without the approval of the shareholders of the Company, no such amendment,
alteration, suspension, discontinuation or termination shall be made that,
absent such approval:

 

(i)            would
violate the rules or regulations of the New York Stock Exchange or any
securities exchange that are applicable to the Company; or

 

(ii)           would
cause the Company to be unable, under the Code, to grant Incentive Stock
Options under the Plan.

 

7

 

(b)           Amendments
to Awards.  The Committee may waive
any conditions of or rights of the Company under any outstanding Award,
prospectively or retroactively.  Except
as otherwise provided herein or in the Award Agreement, the Committee may not
amend, alter, suspend, discontinue or terminate any outstanding Award,
prospectively or retroactively, if such action would adversely affect the
rights of the holder of such Award, without the consent of the Participant or holder
or beneficiary thereof.

 

(c)           Correction
of Defects, Omissions and Inconsistencies. 
The Committee may correct any defect, supply any omission or reconcile
any inconsistency in the Plan or any Award in the manner and to the extent it
shall deem desirable to carry the Plan into effect.

 

Section 8.  Income Tax Withholding; Tax Bonuses.

 

(a)           Withholding.  In order to comply with all applicable
federal or state income tax laws or regulations, the Company may take such
action as it deems appropriate to ensure that all applicable federal or state
payroll, withholding, income or other taxes, which are the sole and absolute
responsibility of a Participant, are withheld or collected from such
Participant.  In order to assist a
Participant in paying all or a portion of the federal and state taxes to be
withheld or collected upon exercise or receipt of (or the lapse of restrictions
relating to) an Award, the Committee, in its discretion and subject to such
additional terms and conditions as it may adopt, may permit the Participant to
satisfy such tax obligation by (i) electing to have the Company withhold a
portion of the Shares otherwise to be delivered upon exercise or receipt of (or
the lapse of restrictions relating to) such Award with a Fair Market Value
equal to the amount of such taxes or (ii) delivering to the Company Shares
other than Shares issuable upon exercise or receipt of (or the lapse of
restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes.  The election, if any,
must be made on or before the date that the amount of tax to be withheld is
determined.

 

(b)           Tax
Bonuses.  The Committee, in its
discretion, shall have the authority, at the time of grant of any Award under
this Plan or at any time thereafter, to approve cash bonuses to designated
Participants to be paid upon their exercise or receipt of (or the lapse of
restrictions relating to) Awards in order to provide funds to pay all or a
portion of federal and state taxes due as a result of such exercise or receipt
(or the lapse of such restrictions).  The
Committee shall have full authority in its discretion to determine the amount
of any such tax bonus.

 

Section 9.  General Provisions.

 

(a)           No
Rights to Awards.  No Eligible
Person, Participant or other Person shall have any claim to be granted any
Award under the Plan, and there is no obligation for uniformity of treatment of
Eligible Persons, Participants or holders or beneficiaries of Awards under the
Plan.  The terms and conditions of Awards
need not be the same with respect to any Participant or with respect to
different Participants.

 

(b)           Award
Agreements.  No Participant will have
rights under an Award granted to such Participant unless and until an Award
Agreement shall have been duly executed on behalf of the Company and, if
requested by the Company, signed by the Participant.

 

(c)           No
Limit on Other Compensation Arrangements. 
Nothing contained in the Plan shall prevent the Company or any Affiliate
from adopting or continuing in effect other or additional compensation
arrangements, and such arrangements may be either generally applicable or
applicable only in specific cases.

 

(d)           No
Right to Employment.  The grant of an
Award shall not be construed as giving a Participant the right to be retained
in the employ of the Company or any Affiliate, nor will it affect in any way
the right of the Company or an Affiliate to terminate such employment at any
time, with or without cause.  In
addition, the Company or an Affiliate may at any time dismiss a Participant
from employment free from any liability or any

 

8

 

claim under the Plan or any Award, unless otherwise expressly provided
in the Plan or in any Award Agreement.

 

(e)           Governing
Law.  The validity, construction and
effect of the Plan or any Award, and any rules and regulations relating to
the Plan or any Award, shall be determined in accordance with the laws of the
State of Delaware.

 

(f)            Severability.  If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially
altering the purpose or intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction or Award, and the remainder of the Plan or
any such Award shall remain in full force and effect.

 

(g)           No
Trust or Fund Created.  Neither the
Plan nor any Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company or any
Affiliate and a Participant or any other Person.  To the extent that any Person acquires a
right to receive payments from the Company or any Affiliate pursuant to an
Award, such right shall be no greater than the right of any unsecured general
creditor of the Company or any Affiliate.

 

(h)           No
Fractional Shares.  No fractional
Shares shall be issued or delivered pursuant to the Plan or any Award, and the
Committee shall determine whether cash shall be paid in lieu of any fractional
Shares or whether such fractional Shares or any rights thereto shall be
canceled, terminated or otherwise eliminated.

 

(i)            Headings.  Headings are given to the Sections and
subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of the Plan or any
provision thereof.

 

Section 10.  Effective Date of the Plan.

 

The
Plan shall be effective as of October 1, 1999, subject to approval by the
shareholders of the Company within one year thereafter.

 

Section 11.  Term of the Plan.

 

No
Award shall be granted under the Plan after September 30, 2009 or any
earlier date of discontinuation or termination established pursuant to Section 7(a) of
the Plan.  However, unless otherwise
expressly provided in the Plan or in an applicable Award Agreement, any Award
theretofore granted may extend beyond such date.

 

9

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