Document:

Exhibit 10.1

 

MARKWEST ENERGY GP, L.L.C.

 

AMENDED AND RESTATED INDEMNIFICATION AGREEMENT

 

THIS AMENDED AND RESTATED INDEMNIFICATION
AGREEMENT (this “Agreement”) is entered into as of the
26th day of October, 2007, by and between MarkWest Energy GP, L.L.C., a
Delaware limited liability company and the general partner (the “General
Partner”) of MarkWest Energy Partners, L.P., a Delaware limited partnership
(the “Partnership”), and the undersigned Director and/or Officer (“Indemnitees”).

 

RECITALS

 

A.            The General Partner and the Partnership are
aware that competent and experienced persons are increasingly reluctant to
serve or continue serving as directors or officers of companies unless they are
protected by comprehensive liability insurance and adequate indemnification due
to the increased exposure to litigation costs and risks resulting from service
to such companies that often bear no relationship to the compensation of such
directors or officers.

 

B.            The statutes and
judicial decisions regarding the duties of directors and officers are often
difficult to apply, ambiguous, or conflicting, and therefore often fail to
provide directors and officers with adequate, reliable knowledge of the legal
risks to which they are exposed or the manner in which they are expected to
execute their fiduciary duties and responsibilities.

 

C.            The General Partner,
the Partnership, and the Indemnitees recognize that plaintiffs often seek
damages in such large amounts, and the costs of litigation may be so great
(whether or not the case is meritorious), that the defense and/or settlement of
such litigation can create an extraordinary burden on the personal resources of
individuals.

 

D.            The General Partner and the Partnership believe that it is
unreasonable for their directors, officers, employees, controlling persons,
agents, or fiduciaries and similar persons at their subsidiaries to assume the
risk of judgments and other expenses which may occur in cases in which those
persons received no personal benefit or were not culpable.

 

E.             The General Partner and the Partnership recognize that the
issues in controversy in litigation against a director, officer or agent of a
corporation or other entity, such as the General Partner, the Partnership or
their subsidiaries, are often related to the knowledge, motives and intent of
such director, officer or agent, that he or she is usually the only witness
with knowledge of the essential facts and exculpating circumstances regarding
such matters, and that the long period of time which usually elapses before the
trial or other disposition of such litigation often extends beyond the time
that the director, officer or agent can reasonably recall such matters and may
extend beyond the normal time for retirement for such director, officer or
agent with the result that he or she, after retirement or in the event of his
or her death, his or her spouse, heirs, executors or administrators may be
faced with limited ability and undue hardship in maintaining an adequate
defense, which may discourage such a director, officer or agent from serving in
that position.

 

F.             The Board of
Directors of MarkWest Energy GP, L.L.C. (the “Board”) has concluded that, to
attract and retain competent and experienced persons to serve as directors and
officers of the General Partner, it is not only reasonable and prudent but
necessary to promote the best interests of the General Partner and its members
or unitholders, as the case may be, for the General Partner to

 

 

contractually indemnify the
directors, officers and other persons of the General Partner in the manner set
forth herein, and to assume for itself liability for expenses and damages in
connection with claims against such persons in connection with their service to
the General Partner as provided herein.

 

G.            Section 18-108 of
the Delaware Limited Liability Company Act (the “LLC Act”), under which the
General Partner is organized, and Article 9 of the General Partner’s Amended
and Restated Limited Liability Company Agreement, empowers the General Partner
to indemnify its members, managers, directors, officers, employees and agents
by agreement and to indemnify persons who serve, at the request of the General
Partner, as the directors, officers, employees or agents of other corporations
or enterprises.

 

H.            Section 17-108 of the
Delaware Revised Uniform Limited Partnership Act (the “LP Act”), under which
the Partnership is organized, and Section 7.7 of the Partnership’s Amended and
Restated Agreement of Limited Partnership empower the Partnership to indemnify,
among others, any member, partner, officer, director, employee, agent or
trustee of the General Partner, the Partnership or any affiliate thereof.

 

I.              The General Partner
desires and has requested the Indemnitees to serve or continue to serve as a
director, officer or in another capacity of the General Partner, and the
Indemnitees only is willing to serve, or to continue to serve, if the
Indemnitees is furnished the indemnity provided for herein by the General
Partner and the Partnership.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants and agreements
set forth below, the parties hereto, intending to be legally bound, hereby
agree as follows:

 

1.             Definitions.  For purposes of this Agreement, the
following terms shall have the corresponding meanings set forth below:

 

“Claim” means
a claim or action, including counterclaims or crossclaims, asserted by a Person
in a Proceeding.

 

“Covered
Entity” means the General Partner, any subsidiary or affiliate of the General
Partner or any other Person for which Indemnitees is or was or may be deemed to
be serving at the request of the General Partner, or any subsidiary of the
General Partner, as a director, officer, employee, controlling person, agent or
fiduciary.

 

“Disinterested
Director” means, with respect to any determination contemplated by this
Agreement, any Person who, as of the time of such determination, is a member of
the Board but is not a party to any Proceeding then pending with respect to any
Indemnification Event.

 

“ERISA” means
Employee Retirement Income Security Act of 1974, as amended, or any similar
Federal statute then in effect.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any similar Federal
statute then in effect.

 

“Expenses”
means any and all direct and indirect fees and costs, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating,
printing and binding costs, telephone charges, postage and delivery service
fees and all other disbursements or expenses of any type or nature whatsoever
reasonably incurred by Indemnitees (including fees of investment bankers,
accountants and, subject to the limitations set forth in Section 3(c) below,
reasonable attorneys’ fees) in connection with or arising from an Indemnification
Event, including, without limitation: (i) the investigation or defense of a
Claim; (ii) being, or preparing to be, a witness or otherwise participating, or

 

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preparing to participate, in
any Proceeding; (iii) furnishing, or preparing to furnish, documents in
response to a subpoena or otherwise in connection with any Proceeding; (iv) any
appeal of any judgment, outcome or determination in any Proceeding (including,
without limitation, any premium, security for and other costs relating to any
cost bond, supersedes bond or any other appeal bond or its equivalent); (v)
establishing or enforcing any right to indemnification under this Agreement
(including, without limitation, pursuant to Section 2(c) below), applicable law
or otherwise, regardless of whether Indemnitees is ultimately successful in
such action, unless as a part of such action, a court of competent jurisdiction
over such action determines that each of the material assertions made by
Indemnitees as a basis for such action was not made in good faith or was
frivolous; (vi) Indemnitees’ defense of any Proceeding instituted by or in the
name of the General Partner under this Agreement to enforce or interpret any of
the terms of this Agreement (including, without limitation, costs and expenses
incurred with respect to Indemnitees counterclaims and cross-claims made in
such action); and (vii) any Federal, state, local or foreign taxes imposed on
Indemnitees as a result of the actual or deemed receipt of any payments under
this Agreement, including all interest, assessments and other charges paid or
payable with respect to such payments.

 

“General
Partner Action” means a Proceeding in which a Claim has been brought by or in
the name of the General Partner to procure a judgment in its favor.

 

An “Indemnification
Event” shall be deemed to have occurred if Indemnitees was or is or becomes, or
is threatened to be made, a party to or witness or other participant in, or was
or is or becomes obligated to furnish or furnishes documents in response to a
subpoena or otherwise in connection with, any Proceeding by reason of the fact
that Indemnitees is or was or may be deemed a director, officer, employee,
controlling person, agent or fiduciary of any Covered Entity, or by reason of
any action or inaction on the part of Indemnitees while serving or acting or
having served or acted in any such capacity (including, without limitation,
rendering any written statement that is a Required Statement or is made to
another officer or employee of the Covered Entity to support a Required
Statement).

 

“Independent
Legal Counsel” means an attorney or firm of attorneys designated by the
Indemnitees that is satisfactory to a majority of the Disinterested Directors
(or, if there are no Disinterested Directors, the Board) that is experienced in
matters of corporate law and neither presently is, nor in the twenty-four (24)
months prior to such designation has been, retained to represent: (i) the
General Partner, the Partnership or Indemnitees in any matter material to any
such party, or (ii) any other party to the Proceeding giving rise to a claim
for indemnification hereunder.

 

“Losses” means
any and all losses, claims, damages, liabilities, judgments, fines, penalties,
settlement payments, awards and amounts of any type whatsoever incurred by
Indemnitees in connection with or arising from an Indemnification Event.

 

“Organizational
Documents” means any and all organizational documents, charters or similar
agreements or governing documents, including, without limitation (i) with
respect to a corporation, its certificate of incorporation and bylaws, (ii) with
respect to a limited liability company, its operating agreement, and (iii) with
respect to a limited partnership, its partnership agreement.

 

“Person” means
an individual, a partnership, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization or other enterprise or government or agency or political subdivision
thereof.

 

“Proceeding”
means any threatened, pending or completed claim, action, suit, proceeding,
arbitration or alternative dispute resolution mechanism, investigation (formal
or informal), inquiry, administrative hearing, appeal or any other actual,
threatened or completed proceeding, whether brought in the right of a Covered
Entity or otherwise and whether of a civil (including intentional or
unintentional tort claims), criminal, administrative, arbitrative or
investigative nature.

 

3

 

“Required
Statement” means a written statement of a Person that is required to be, and
is, filed with the SEC regarding the design, adequacy or evaluation of a
Covered Entity’s internal controls or the accuracy, sufficiency or completeness
of reports or statements filed by a Covered Entity with the SEC pursuant to
federal law and/or administrative regulations, including without limitation,
the certifications contemplated by Sections 302 and 906 of the Sarbanes-Oxley
Act of 2002, as amended, or any rule or regulation promulgated pursuant
thereto.

 

“Reviewing
Party” means, with respect to any determination contemplated by this Agreement,
any one of the following: (i) a majority vote of a quorum of the Board
consisting solely of Disinterested Directors; (ii) a committee consisting
solely of Disinterested Directors, even if such Persons would not constitute a
quorum of Board, so long as such committee was designated by a majority of the
Disinterested Directors; or (iii) Independent Legal Counsel (in which case, any
determination shall be evidenced by the rendering of a written opinion (which
may be in the form of a “more likely than not” opinion)); provided, the
expenses of any such Independent Legal Counsel shall be paid for by the General
Partner.

 

“SEC” means
the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any similar Federal
statute then in effect.

 

2.             Indemnification.

 

(a)           Indemnification of
Losses and Expenses.  If an
Indemnification Event has occurred, then, subject to Section 9 below, the
General Partner and the Partnership shall, jointly and severally, indemnify and
hold harmless Indemnitees, to the fullest extent permitted by law, against any
and all Losses and Expenses, provided the Indemnitees acted in good faith and
in a manner Indemnitees reasonably believed to be in, or not opposed to, the
best interests of the General Partner, and, with respect to any criminal
Proceeding, had no reasonable cause to believe Indemnitees’ conduct was
unlawful.  The termination of any
Proceeding by judgment, court order, settlement or conviction or on plea of
nolo contendere, or its equivalent, shall not, of itself, create a presumption
that Indemnitees (i) did not act in good faith in a manner which he reasonably
believed to be in, or not opposed to, the best interests of the General
Partner, or (ii) with respect to any criminal Proceeding, had reasonable cause
to believe that Indemnitees’ conduct was unlawful.  Any indemnification provided for herein shall
be made no later than forty-five (45) days after receipt by the General Partner
of the Notice as required by Section 3(a) below and subject additionally to
Section 4 below.

 

(b)           Limitation with
Respect to General Partner Actions. The General Partner and the Partnership
shall not indemnify and hold harmless Indemnitees with respect to any Losses
(as opposed to Expenses) in connection with or arising from any General Partner
Action, but the General Partner and the Partnership shall indemnify and hold
harmless Indemnitees with respect to any Expenses in connection with or arising
from any General Partner Action unless, and only to the extent that, the
Indemnitees shall have been finally adjudged to be liable to the General Partner
or the Partnership with respect thereto by a court of competent jurisdiction
due to Indemnitees’ gross negligence or willful misconduct of a culpable nature
in the performance of Indemnitees’ duties to the General Partner; provided,
that Indemnitees shall nevertheless be entitled to indemnification to extent
that any court in which such General Partner Action was brought shall determine
upon application that, despite the adjudication of liability, but in view of
all the circumstances of the case, the Indemnitees is fairly and reasonably
entitled to Expenses for such indemnification as such court shall deem proper.

 

(c)           Advancement of
Expenses.  The General Partner or the
Partnership shall advance Expenses to or on behalf of Indemnitees as soon as
practicable, but in any event not later than 20 days

 

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after written request therefore
by Indemnitees which request shall be accompanied by vouchers, invoices or
similar evidence documenting in reasonable detail the Expenses incurred or to
be incurred by Indemnitees.  The
Indemnitees hereby undertakes to repay such amounts advanced only if, and to
the extent that, it shall ultimately be determined by final, nonappealable
adjudication that Indemnitees is not entitled to be indemnified by the General
Partner or the Partnership.  In the event
that the General Partner or the Partnership fails to pay expenses as incurred
by Indemnitees as required by this paragraph, Indemnitees may seek mandatory
injunctive relief from any court having jurisdiction to require the General
Partner or the Partnership to pay expenses as set forth in this paragraph.  If Indemnitees seeks mandatory injunctive
relief pursuant to this paragraph, it shall not be a defense to enforcement of
the General Partner’s and the Partnership’s obligations set forth in this
paragraph that Indemnitees has an adequate remedy at law for damages.

 

(d)           Contribution.  If, and to the extent, the indemnification of
Indemnitees provided for in Section 2(a) above for any reason is held by a
court of competent jurisdiction not to be permissible for liabilities arising
under Federal securities laws or ERISA, then the General Partner and the
Partnership, in lieu of indemnifying Indemnitees under this Agreement, shall
contribute to the amount paid or payable by Indemnitees as a result of such
Losses or Expenses (i) in such proportion as is appropriate to reflect the
relative benefits received by the Covered Entities and all officers, directors
or employees of the Covered Entities other than Indemnitees who are jointly
liable with Indemnitees (or would be if joined in such Proceeding), on the one
hand, and Indemnitees, on the other hand, or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Covered Entities and all officers,
directors or employees of the Covered Entities other than Indemnitees who are jointly
liable with Indemnitees (or would be if joined in such Proceeding), on the one
hand, and the Indemnitees, on the other hand, in connection with the action or
inaction that resulted in such Losses or Expenses, as well as any other
relevant equitable considerations.  The
relative fault of the Covered Entities and all officers, directors or employees
of the Covered Entities other than Indemnitees who are jointly liable with
Indemnitees (or would be if joined in such Proceeding), on the one hand, and
Indemnitees, on the other hand, shall be determined by reference to, among
other things, the degree to which their actions were motivated by intent to
gain personal profit or advantage, the degree to which their liability is
primary or secondary, and the degree to which their conduct is active or
passive.  No Person found guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
found guilty of such fraudulent misrepresentation.

 

(e)           Actions where
Indemnitees is Deceased.  If an
Indemnification Event has occurred, and if prior to, during the pendency of or
after completion of a Proceeding Indemnitees dies, the General Partner and the
Partnership shall indemnify and hold harmless Indemnitees’ heirs, executors and
administrators against any and all Expenses and Losses to the extent
Indemnitees would have been entitled to indemnification pursuant to
Sections 2(a) above if Indemnitees were still alive.

 

3.             Indemnification
Procedures.

 

(a)           Notice of
Indemnification Event.  Indemnitees
shall give the General Partner notice as soon as practicable of any
Indemnification Event of which Indemnitees becomes aware, provided that any
failure to so notify the General Partner shall not relieve the General Partner
or the Partnership of any of its obligations under this Agreement, except if,
and then only to the extent that, such failure increases the liability of the
General Partner or the Partnership under this Agreement.  In addition, Indemnitees shall give the
General Partner such information and cooperation as it may reasonably require
and as shall be within Indemnitees’ power.

 

(b)           Notice to Insurers.  If, at the time the General Partner receives
notice of an

 

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Indemnification Event pursuant
to Section 3(a) above, the General Partner has liability insurance in effect
which may cover such Indemnification Event, the General Partner shall give
prompt written notice of such Indemnification Event to the insurers in
accordance with the procedures set forth in each of the applicable policies of
insurance.  The General Partner shall
thereafter take all necessary or desirable action to cause such insurers to
pay, on behalf of Indemnitees, all amounts payable as a result of such
Indemnification Event in accordance with the terms of such policies; provided
that nothing in this Section 3(b) shall affect the General Partner’s or the
Partnership’s obligations under this Agreement or the General Partner’s or the
Partnership’s obligations to comply with the provisions of this Agreement in a
timely manner as provided.

 

(c)           Selection of Counsel.  If the General Partner or the Partnership
shall be obligated hereunder to pay or advance Expenses or indemnify
Indemnitees with respect to any Losses, the General Partner shall be entitled
to assume the defense of any related Claims in a Proceeding, with counsel
selected by the General Partner and approved by Indemnitees in Indemnitees’
reasonable discretion, upon the delivery to Indemnitees of written notice of
its election so to do.  After the
retention of such counsel by the General Partner, the Indemnitees shall be
entitled to employ or continue to employ separate counsel with respect to such
Claims at the cost and expense of the General Partner and the Partnership
unless and until the General Partner shall have demonstrated to the reasonable
satisfaction of Indemnitees that there is complete identity of issues and
defenses and no actual or potential conflict of interest exists between
Indemnitees and the General Partner with respect to such Claims, after which
time further employment of such counsel by Indemnitees shall be the cost and
expense of Indemnitees.  If the General
Partner shall not have in fact retained counsel to assume the defense or shall
not continue to retain such counsel to defend such Claim, then the fees and
expenses of Indemnitees’ counsel shall be at the expense of the General Partner
and the Partnership. The General Partner or the Partnership may not settle or
compromise any claim or consent to the entry of any judgment with respect to
which indemnification is being sought hereunder without the prior written
consent of the Indemnitees (such consent not to be unreasonably withheld).

 

4.             Determination
of Right to Indemnification.

 

(a)           Successful
Proceeding.  To the extent
Indemnitees has been successful, on the merits or otherwise, in defense of any
Proceeding referred to in Sections 2(a) or 2(b), the General Partner and the
Partnership shall indemnify Indemnitees against Losses and Expenses incurred by
him in connection therewith.  If
Indemnitees is not wholly successful in such Proceeding, but is successful, on
the merits or otherwise, as to one or more but less than all Claims in such Proceeding,
the General Partner and the Partnership shall indemnify Indemnitees against all
Losses and Expenses actually or reasonably incurred by Indemnitees in
connection with each successfully resolved Claim.

 

(b)           Other Proceedings.  In the event that Section 4(a) is
inapplicable, the General Partner and the Partnership shall nevertheless
indemnify Indemnitees, unless, but then only to the extent that, a Reviewing
Party chosen pursuant to Section 4(c) determines that Indemnitees has not met
the applicable standard of conduct set forth in Sections 2(a) or 2(b), as
applicable, as a condition to such indemnification.

 

(c)           Determination of
Entitlement to Indemnification. A determination that Indemnitees has met
the applicable standard of conduct set forth in Sections 2(a) or 2(b), as
applicable, as a condition to any such indemnification, shall be made by a
Reviewing Party chosen by a majority vote of a quorum of the Board consisting
solely of Disinterested Directors, subject to the following:

 

(i)            A Reviewing Party so
chosen shall act in good faith to assure Indemnitees a complete opportunity to
present to such Reviewing Party Indemnitees’ case that Indemnitees has met the
applicable standard of conduct.

 

6

 

(ii)           Indemnitees shall be
deemed to have acted in good faith if Indemnitees’ action is based on the
records or books of account of a Covered Entity, including, without limitation,
its financial statements, or on information supplied to Indemnitees by the
officers or employees of a Covered Entity in the course of their duties, or on
the advice of legal counsel for a Covered Entity or on information or records
given, or reports made, to a Covered Entity by an independent certified public
accountant or by an appraiser or other expert selected with reasonable care by
a Covered Entity.  In addition, the
knowledge and/or actions, or failure to act, of any director, officer, agent or
employee of a Covered Entity shall not be imputed to Indemnitees for purposes
of determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of
this Section 4(c)(ii) are satisfied, it shall in any event be presumed that
Indemnitees has at all times acted in good faith and in a manner Indemnitees reasonably
believed to be in or not opposed to the best interests of the General
Partner.  Any Person seeking to overcome
this presumption shall have the burden of proof and the burden of persuasion,
by clear and convincing evidence.

 

(iii)          If a Reviewing Party
chosen pursuant to this Section 4(c) shall not have made a determination
whether Indemnitees is entitled to indemnification within forty-five (45) days
after receipt by the General Partner of the request therefore, the requisite
determination of entitlement to indemnification shall be deemed to have been
made and Indemnitees shall be entitled to such indemnification, absent (A) a
misstatement by Indemnitees of a material fact, or an omission of a material
fact necessary to make Indemnitees’ statement not materially misleading, in
connection with the request for indemnification, or (B) a prohibition of such
indemnification under applicable law; provided, however, that such 45-day
period may be extended for a reasonable time, not to exceed an additional fifteen
(15) days, if the Reviewing Party in good faith requires such additional time
for obtaining or evaluating documentation and/or information relating thereto.

 

(iv)          Change in Control.  If the General Partner, the Partnership, or
the General Partner’s Class A Member, MarkWest Hydrocarbon, Inc. (the “Company”)
under goes a Change in Control, the Reviewing Party shall be the Independent
Legal Counsel.  The General Partner
agrees that if there is such a Change in Control, then with respect to all
matters thereafter arising concerning the rights of Indemnitees to
Indemnification under this Agreement, the General Partner’s Limited Liability
Company Agreement, the Partnership’s Amended and Restated Agreement of Limited
Partnership or any other agreement, as now or hereafter in effect, Independent
Legal Counsel shall be selected by Indemnitees and approved by the General
Partner (which approval shall not be unreasonably withheld).  Such counsel, among other things, shall render
its written opinion (which may be in the form of a “more likely than not”
opinion) to the General Partner, the Partnership and Indemnitees as to whether
and to what extent Indemnitees would be permitted to be indemnified under
applicable law and this Agreement and the General Partner and the Partnership
agree to abide by such opinion.  The
General Partner and the Partnership agree to pay the fees of the Independent
Legal Counsel referred to above and to fully indemnify such counsel against any
and all expenses (including attorneys’ fees), claims, liabilities and damages
arising out of or relating to this Agreement or its engagement pursuant hereto.

 

For purposes
of this Section 4(c)(iv), a “Change in Control” shall mean (a) a dissolution or
liquidation of a Person, or (b) a consolidation or merger of a Person with or
into any other corporation other entity or person, or any other corporate
reorganization, in which the equity holders of the affected Person immediately
prior to such consolidation, merger or reorganization, own less than 50% of the
affected Person’s voting power immediately after such consolidation, merger or
reorganization; provided, however, that a “Change
of Control” shall not include (i) any transaction with an Affiliate or
Affiliates of the Company (other than the acquisition by the Partnership of all
of the outstanding capital stock of Hydrocarbon) or any consolidation or merger
effected exclusively to change the domicile of the Company or (ii) the
acquisition by John M. Fox, directly or indirectly, of beneficial ownership of
more than 50% of the voting power of the Company.

 

7

 

(d)           Appeal to Court.  Notwithstanding a determination by a
Reviewing Party chosen pursuant to Section 4(c) that Indemnitees is not
entitled to indemnification with respect to a specific Claim or Proceeding (an “Adverse
Determination”), Indemnitees shall have the right to apply to the Court of
Chancery of Delaware, the court in which that Claim or Proceeding is or was
pending or any other court of competent jurisdiction for the purpose of
enforcing Indemnitees’ right to indemnification pursuant to this Agreement,
provided that Indemnitees shall commence any such Proceeding seeking to enforce
Indemnitees’ right to indemnification within two (2) years following the date
upon which Indemnitees is notified in writing by the General Partner of the
Adverse Determination.  In the event of
any dispute between the parties concerning their respective rights and
obligations hereunder, the General Partner shall have the burden of proving by
clear and convincing evidence that the General Partner and the Partnership are
not obligated to make the payment or advance claimed by Indemnitees.

 

(e)           Presumption of
Success.  The General Partner and the
Partnership acknowledge that a settlement or other disposition short of final
judgment shall be deemed a successful resolution for purposes of Section 4(a)
if it permits a party to avoid expense, delay, distraction, disruption or
uncertainty.  In the event that any
Proceeding to which Indemnitees is a party is resolved in any manner (other
than by adverse judgment against Indemnitees) including, without limitation,
settlement of such Proceeding with or without payment of money or other
consideration, it shall be presumed that Indemnitees has been successful on the
merits or otherwise in such Proceeding. Anyone seeking to overcome this
presumption shall have the burden of proof and the burden of persuasion, by
clear and convincing evidence.

 

(f)            Expenses Related to
this Agreement.  Notwithstanding any
other provision in this Agreement to the contrary, the General Partner and the
Partnership shall indemnify Indemnitees against all Expenses incurred by
Indemnitees in connection with any Proceeding under this Section 4
involving Indemnitees and against all Expenses incurred by Indemnitees in
connection with any other Proceeding between the General Partner and the
Partnership, on one hand, and Indemnitees on the other, involving the
interpretation or enforcement (subject to Section 10) of the rights of
Indemnitees under this Agreement unless a court of competent jurisdiction finds
that each of the claims and/or defenses of Indemnitees in any such Proceeding
was frivolous or made in bad faith.

 

5.             Additional
Indemnification Rights; Non-exclusivity.

 

(a)           Scope. The
General Partner and the Partnership hereby agree to indemnify Indemnitees to
the fullest extent permitted by law, even if such indemnification is not
specifically authorized by the other provisions of this Agreement or any other
agreement, the Organizational Documents of any Covered Entity or by applicable
law.  In the event of any change after
the date of this Agreement in any applicable law, statute or rule which expands
the right of a Delaware corporation or other entity to indemnify a member of
its board of directors or an officer, member, manager, employee, controlling
person, agent or fiduciary, it is the intent of the parties hereto that
Indemnitees shall enjoy by this Agreement the greater benefits afforded by such
change. In the event of any change in any applicable law, statute or rule which
narrows the right of an Delaware corporation or other entity to indemnify a
member of its board of directors or an officer, member, manager, employee,
controlling person, agent or fiduciary, such change, to the extent not
otherwise required by such law, statute or rule to be applied to this
Agreement, shall have no effect on this Agreement or the parties rights and
obligations hereunder except as set forth in Section 9(a) hereof.

 

(b)           Non-exclusivity.  The rights to indemnification, contribution
and advancement of Expenses provided in this Agreement shall not be deemed
exclusive of, but shall be in addition to, any other rights to which
Indemnitees may at any time be entitled under the Organizational Documents of
any Covered Entity, any other agreement, any vote of members or unitholders, as
the case may be, or Disinterested Directors, applicable law or otherwise.  Furthermore, no right or remedy herein conferred
is intended to be exclusive of any other right or remedy, and every other right
and remedy shall be

 

8

 

cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion of any right or remedy hereunder or otherwise shall not prevent the
concurrent assertion of any other right or remedy.  The rights to indemnification, contribution
and advancement of Expenses provided in this Agreement shall continue as to
Indemnitees for any action Indemnitees took or did not take while serving in an
indemnified capacity even though Indemnitees may have ceased to serve in such
capacity.

 

6.             No
Duplication of Payments.

 

The General
Partner and the Partnership shall not be liable under this Agreement to make
any payment of any amount otherwise identifiable hereunder, or for which
advancement is provided hereunder, if and to the extent an Indemnitee has
otherwise actually received such payment, whether pursuant to any insurance
policy, the Organizational Documents of any Covered Entity or otherwise (but
specifically excluding any payment received by the Indemnitees from any
insurance policy maintained by or for the benefit of such Indemnitees (other
than the General Partner) so long as an Indemnitee does not by virtue thereof
actually retain duplicative payments).

 

7.             Mutual
Acknowledgement.

 

Both the
General Partner and the Partnership, on one hand, and Indemnitees on the other
acknowledge that, in certain instances, Federal law or public policy may
override applicable state law and prohibit the General Partner and the
Partnership from indemnifying its directors and officers under this Agreement
or otherwise.  For example, the parties
acknowledge that the SEC has taken the position that indemnification is not
permissible for liabilities arising under certain Federal securities laws, and
Federal legislation prohibits indemnification for certain ERISA
violations.  Indemnitees understands and
acknowledges that the General Partner and the Partnership have undertaken, or
may be required in the future to undertake, with the SEC to submit the question
of indemnification to a court in certain circumstances for a determination of
the right under public policy to indemnify Indemnitees, and any right to
indemnification hereunder shall be subject to, and conditioned upon, any such
required court determination.

 

8.             Liability
Insurance.

 

(a)           Maintenance of
D&O Insurance.  The General
Partner hereby covenants and agrees that, so long as Indemnitees shall continue
to serve as an agent of the General Partner and thereafter so long as
Indemnitees shall be subject to any possible proceeding by reason of the fact
that Indemnitees was an agent of the General Partner, the General Partner,
subject to Section 8(c), shall promptly obtain and maintain in full force
and effect directors’ and officers’ liability insurance (“D&O Insurance”)
in reasonable amounts from established and reputable insurers, and the General
Partner’s Organizational Documents shall at all times provide for
indemnification and exculpation of officers and directors to the fullest extent
permitted under applicable law.

 

(b)           Rights and Benefits.
In all policies of D&O Insurance, Indemnitees shall be named as an insured
in such a manner as to provide Indemnitees the same rights and benefits as are
accorded to the most favorably insured of the General Partner’s officers and
directors.  The General Partner shall
advise Indemnitees as to the general terms of, and the amounts of coverage
provide by, any liability insurance policy described in this Section 8 and
shall promptly notify Indemnitees if, at any time, any such insurance policy
will no longer be maintained or the amount of coverage under any such insurance
policy will be decreased.   The General
Partner shall take all necessary action to cause any such insurer(s) to pay, on
behalf of Indemnitees, all amounts payable as a result of a Proceeding in
accordance with the terms of such policy or policies of D&O Insurance.

 

(c)           Limitation on Required
Maintenance of D&O Insurance. 
Notwithstanding the

 

9

 

foregoing, the General Partner
shall have no obligation to obtain or maintain D&O Insurance if the General
Partner determines in good faith that such insurance is not available on
commercially reasonable terms or Indemnitees is covered by similar insurance
maintained by a subsidiary of the General Partner.

 

(d)           In the event that the
General Partner is also a named insured under any policy of D&O Insurance,
the General Partner hereby covenants and agrees that it will not settle any
Claims in a Proceeding that may be covered by such policy and in which
Indemnitees has or may incur Expenses or Losses without the prior written
consent of Indemnitees.

 

9.             Exceptions.

 

Any other
provision herein to the contrary notwithstanding, the General Partner and the
Partnership shall not be obligated pursuant to the terms of this Agreement to
indemnify Indemnitees:

 

(a)           against any Losses or
Expenses, or advance Expenses to Indemnitees, with respect to Claims initiated
or brought voluntarily by Indemnitees, and not by way of defense (including,
without limitation, affirmative defenses and counterclaims), except (i) Claims
to establish or enforce a right to indemnification, contribution or advancement
with respect to an Indemnification Event, whether under this Agreement, any
other agreement or insurance policy, the Organizational Documents of any
Covered Entity, applicable law or otherwise, (ii) if the Board has approved
specifically the initiation or bringing of such Claim. (iii) if such
indemnification is expressly required to be made by law, or (iv) if such
indemnification is provided by MarkWest Energy GP, L.L.C., in its sole
discretion, pursuant to the powers vested in MarkWest Energy GP, L.L.C. under
the LLC Act or the LP Act;

 

(b)           against any Losses or
Expenses, or advance Expenses to Indemnitees, with respect to any proceeding
instituted by Indemnitees to enforce or interpret this Agreement, if a court of
competent jurisdiction determines that the material assertions made by
Indemnitees in such proceeding were not made in good faith or were frivolous;

 

(c)           for any amounts paid in
settlement of a proceeding unless the General Partner consents to such
settlement, which consent shall not be unreasonably withheld;

 

(d)           against any Losses or
Expenses, or advance Expenses to Indemnitees, with respect to Claims arising
(i) with respect to an accounting of profits made from the purchase and sale
(or sale and purchase) by Indemnitees of securities of the General Partner or
the Partnership within the meaning of Section 16(b) of the Exchange Act or (ii)
pursuant to Sections 304 of the Sarbanes-Oxley Act of 2002, as amended, or any
rule or regulation promulgated pursuant thereto; or

 

(e)           if, and to the extent,
that a court of competent jurisdiction renders a final, unappealable decision
that such indemnification is not lawful.

 

10.          Remedies
of Indemnitees.

 

(a)           Right to Petition
Court.  In the event that Indemnitees
makes a request for payment of Losses and Expenses or a request for an
advancement of Expenses and the General Partner or the Partnership fails to
make such payment or advancement in a timely manner pursuant to the terms of
this Agreement, Indemnitees may petition a court of law to enforce the General
Partner’s and the Partnership’s obligations under this Agreement.

 

(b)           Burden of Proof.  In any judicial proceeding brought under this
Section 10, the General Partner and the Partnership shall have the burden of
proving by clear and convincing evidence that Indemnitees are not entitled to
payment of Losses and Expenses hereunder.

 

10

 

(c)           Expenses.  The General Partner and the Partnership agree
to reimburse Indemnitees in full for any Expenses incurred by Indemnitees in
connection with investigating, preparing for, litigating, defending or settling
any action brought by Indemnitees under this Section 10, or in connection with
any claim or counterclaim brought by or against the General Partner and the
Partnership in connection therewith.

 

(d)           Validity of
Agreement.  The General Partner and
the Partnership shall be precluded from asserting in any Proceeding, including,
without limitation, an action under this Section 10, that the provisions of
this Agreement are not valid, binding and enforceable or that there is
insufficient consideration for this Agreement and shall stipulate in court that
the General Partner and the Partnership are bound by all the provisions of this
Agreement.

 

(e)           Failure to Act Not a
Defense.  The failure of the General
Partner (including its Board or any committee thereof, Independent Legal
Counsel or, as applicable, members or unitholders) to make a determination
concerning the permissibility of the payment of Losses and Expenses or the
advancement of Expenses under this Agreement shall not be a defense in any
action brought under this Section 10, and shall not create a presumption that
such payment or advancement is not permissible.

 

11.          Survival
of Rights.

 

(a)           All agreements and
obligations of the General Partner and the Partnership contained herein shall
continue during the period Indemnitees is an agent of the General Partner and
shall continue thereafter so long as Indemnitees shall be subject to any possible
claim or threatened, pending or completed action, suit or proceeding, whether
civil, criminal, arbitrational, administrative or investigative, by reason of
the fact that Indemnitees was serving in the capacity referred to herein.

 

(b)           The General Partner and
the Partnership shall require any successor to the General Partner or the
Partnership (whether direct or indirect, by purchase, merger, consolidation or
otherwise) or to all or substantially all of the business or assets of the
General Partner or the Partnership, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent that the General
Partner and the Partnership would be required to perform if no such succession
had taken place.

 

12.          Miscellaneous.

 

(a)           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

 

(b)           Binding Effect;
Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors and assigns (including
with respect to the General Partner or the Partnership, any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the General Partner or the
Partnership) and with respect to Indemnitees, his or her spouse, heirs, and
personal and legal representatives.  The
General Partner and the Partnership shall require and cause any successor or
assign (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all, substantially all, or a substantial part, of the business
and/or assets of the General Partner or the Partnership, to assume and agree to
perform this Agreement in the same manner and to the same extent that the
General Partner and the Partnership would be required to perform if no such
succession or assignment had taken place. 
This Agreement shall continue in effect with respect to Claims relating
to Indemnification Events regardless of whether Indemnitees continues to serve
as a director, officer, employee, controlling person, agent or fiduciary of any
Covered Entity.

 

(c)           Notice.  All notices and other communications required
or permitted hereunder

 

11

 

shall be in writing, shall be
effective when given, and shall in any event be deemed to be given (i) five (5)
days after deposit with the U.S. Postal Service or other applicable postal
service, if delivered by first class mail, postage prepaid, (ii) upon delivery,
if delivered by hand, (iii) one (1) business day after the business day of
deposit with Federal Express or similar, nationally recognized overnight
courier, freight prepaid, or (iv) one (1) business day after the business day
of delivery by confirmed facsimile transmission, if deliverable by facsimile
transmission, with copy by other means permitted hereunder, and addressed, if
to Indemnitees, to Indemnitees’ address or facsimile number (as applicable) as
set forth beneath Indemnitees’ signature to this Agreement, or, if to the
General Partner, at the address or facsimile number (as applicable) of its
principal corporate offices (attention: Secretary), or at such other address or
facsimile number (as applicable) as such party may designate to the other
parties hereto. 

 

(d)           Enforceability.  This Agreement, when executed and delivered
by the General Partner and the Partnership in accordance with the provisions
hereof, shall be a legal, valid and binding obligation of the General Partner and
the Partnership, enforceable against the General Partner and the Partnership in
accordance with its terms.

 

(e)           Consent to
Jurisdiction.  The General Partner,
the Partnership and each Indemnitee hereby irrevocably consents to the
jurisdiction and venue of the federal or state courts located in the State of
Delaware for all purposes in connection with any Proceeding which arises out of
or relates to this Agreement and hereby waives and agrees not to raise any
defense that any such court is an inconvenient forum or any similar claim.

 

(f)            Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any
provision with a single section, paragraph or sentence) are held by a court of
competent jurisdiction to be invalid, void or otherwise unenforceable, and the
remaining provisions shall remain enforceable to the fullest extent permitted
by law.  Furthermore, to the fullest
extent possible, the provisions of this Agreement (including, without limitation,
each portion of this Agreement containing any provision held to be invalid,
void or otherwise unenforceable that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the extent manifested
by the provision held invalid, illegal or unenforceable.

 

(g)           Choice of Law.  This Agreement shall be governed by and its
provisions shall be construed and enforced in accordance with, the laws of the
State of Delaware, without regard to the conflict of laws principles thereof.

 

(h)           Subrogation.  In the event of payment under this Agreement,
the General Partner and the Partnership shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnitees (other than with
respect to any rights of recovery under any insurance policy maintained by the
Indemnitees or by any Person (other than the General Partner or the
Partnership) for and on behalf of the Indemnitees) who shall execute all
documents required and shall do all acts that may be necessary to secure such
rights and to enable the General Partner and the Partnership effectively to
bring suit to enforce such rights.

 

(i)            Amendment and
Termination.  No amendment,
modification, termination or cancellation of this Agreement shall be effective
unless it is in a writing signed by the parties to be bound thereby.  Notice of same shall be provided to all
parties hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

(j)            No Construction as
Employment Agreement.  Nothing
contained in this Agreement shall be construed as giving Indemnitees any right
to be retained or continue in the employ or service of any Covered Entity.

 

12

 

[signature pages follow]

 

13

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
and as of the day and year first above written.

 

 

	
   

  	
  MarkWest
  Energy GP, L.L.C.

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MarkWest
  Energy Partners, L.P.

  
	
   

  	
  a
  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By
  MarkWest Energy GP, L.L.C. as its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEES:

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

14EXHIBIT 10.1

 

AMENDED AND RESTATED

 

CLASS B MEMBERSHIP INTEREST

CONTRIBUTION AGREEMENT

 

dated as of

 

October 26, 2007

 

by and among

 

MARKWEST ENERGY PARTNERS, L.P.,

 

and

 

THE SELLERS NAMED HEREIN

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
  2

  
	
  Section 1.2

  	
  Rules of Construction

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
  CONTRIBUTION OF
  CLASS B INTERESTS; CLOSING

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Contribution of Class B Interests

  	
  5

  
	
  Section 2.2

  	
  Closing

  	
  5

  
	
  Section 2.3

  	
  Sellers’ Closing Deliveries

  	
  6

  
	
  Section 2.4

  	
  Buyer’s Closing Deliveries

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Representations of the Sellers

  	
  7

  
	
  Section 3.2

  	
  Representations of Buyer

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
  ADDITIONAL
  AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Commercially Reasonable Best Efforts; Further Assurances

  	
  12

  
	
  Section 4.2

  	
  Registration Rights Agreement

  	
  12

  
	
  Section 4.3

  	
  No Solicitation

  	
  12

  
	
  Section 4.4

  	
  Expenses

  	
  12

  
	
  Section 4.5

  	
  Public Announcements

  	
  13

  
	
  Section 4.6

  	
  Reimbursement for Certain Contributions to the Company

  	
  13

  
	
  Section 4.7

  	
  Seller Capacity

  	
  13

  
	
  Section 4.8

  	
  Distributions

  	
  13

  
	
  Section 4.9

  	
  Legends

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
  CLOSING CONDITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Mutual Conditions

  	
  14

  
	
  Section 5.2

  	
  Buyer’s Conditions

  	
  14

  
	
  Section 5.3

  	
  Sellers’ Conditions

  	
  15

  

 

i

 

	
  ARTICLE VI

  	
   

  
	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Termination

  	
  15

  
	
  Section 6.2

  	
  Effect of Termination

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Seller’s Indemnity

  	
  16

  
	
  Section 7.2

  	
  Survival

  	
  16

  
	
  Section 7.3

  	
  Enforcement of this Agreement

  	
  17

  
	
  Section 7.4

  	
  No Waiver Relating to Claims for Fraud or Willful Misconduct

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Notices

  	
  17

  
	
  Section 8.2

  	
  Waiver and Amendment; Entire Agreement

  	
  18

  
	
  Section 8.3

  	
  Binding Effect and Assignment

  	
  19

  
	
  Section 8.4

  	
  Severability

  	
  19

  
	
  Section 8.5

  	
  Headings

  	
  19

  
	
  Section 8.6

  	
  Governing Law; Jurisdiction

  	
  19

  
	
  Section 8.7

  	
  Waiver of Jury Trial

  	
  20

  
	
  Section 8.8

  	
  Negotiated Agreement

  	
  20

  
	
  Section 8.9

  	
  Counterparts

  	
  20

  
	
  Section 8.10

  	
  No Act or Failure to Act

  	
  20

  

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  —

  	
  Form of
  Assignment for Class B Membership Interest

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  —

  	
  Form of
  Seller’s Closing Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  —

  	
  Form of
  FIRPTA Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  —

  	
  Form of
  Buyer’s Closing Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  —

  	
  Form of
  Registration Rights Agreement

  

 

ii

 

AMENDED AND RESTATED

 

CLASS B MEMBERSHIP INTEREST

 

CONTRIBUTION AGREEMENT

 

THIS AMENDED
AND RESTATED CLASS B MEMBERSHIP INTEREST CONTRIBUTION AGREEMENT, dated as
of October 26, 2007 (this “Agreement”), is entered into by and among
each of the Sellers listed in Schedule 2.1 attached hereto (each
referred to herein as a “Seller” and collectively, the “Sellers”),
and MarkWest Energy Partners, L.P., a Delaware limited partnership (“Buyer”).
The Sellers and the Buyer are collectively referred to herein as the “Parties,”
with each a “Party.”

 

WITNESSETH:

 

WHEREAS, Buyer
previously entered into the Class B Membership Interest Contribution Agreement,
dated September 5, 2007 (the “Original Agreement”), with the holders of
Class B Membership Interests named therein (the “Original Sellers”);

 

WHEREAS,
pursuant to Section 8.2 of the Original Agreement, Denney & Denney Capital,
LLLP, a Colorado limited liability limited partnership (“DDC”), has requested
that the Original Agreement be amended to include DDC as a party;

 

WHEREAS,
pursuant to Section 8.2 of the Original Agreement, the Buyer and the Original
Sellers agree to amend, restate and replace the Original Agreement in its
entirety to include DDC as a party to this Agreement and the transactions
contemplated herein;

 

WHEREAS, the
Sellers collectively own all of the outstanding Class B Membership
Interests (as defined below) in the Company, representing, in the aggregate, a
10.3% Membership Interest (as defined below) in MarkWest Energy GP, L.L.C., a
Delaware limited liability company (the “Company”), with each Seller
owning the Class B Membership Interest specified on Schedule 2.1
attached hereto, and MarkWest Hydrocarbon, Inc., a Delaware corporation (“Hydrocarbon”),
owns all of the outstanding Class A Membership Interests (as defined
below) representing a 89.7% Membership Interest 
in the Company;

 

WHEREAS,
subject to the terms and conditions set forth herein, each of the Sellers
desires to contribute to Buyer, and Buyer desires for the Sellers to contribute
to it, their respective Class B Membership Interests in exchange for cash
and common units representing limited partnership interests in the Buyer (“Common
Units”);

 

WHEREAS, as a
material inducement to the Sellers entering into this Agreement, the Buyer has
agreed to enter into a Registration Rights Agreement on the Closing Date and
grant the Sellers certain registration rights as provided therein;

 

WHEREAS, as of
the date hereof, pursuant to the requirements of Section 12.1 of the Company
LLC Agreement (as defined below), in its capacity as the Class A Member of the
Company, Hydrocarbon has consented to the transactions contemplated by this
Agreement; and

 

 

WHEREAS, on
September 5, 2007, the Buyer, Hydrocarbon and MWEP, L.L.C. (“MergerCo”)
have entered into an Agreement and Plan of Redemption and Merger (the “Merger
Agreement”), pursuant to which (i) Hydrocarbon will redeem a portion of its
outstanding shares of common stock (the “Redemption”) and then (ii)
MergerCo will merge (the “Merger”) with and into Hydrocarbon, with
Hydrocarbon surviving, such that following the Redemption and Merger,
Hydrocarbon will be a direct, wholly owned subsidiary of the Buyer.

 

NOW, THEREFORE,
in consideration of the mutual covenants, representations, warranties and
agreements contained herein, and intending to be legally bound hereby, the
parties hereto agree as follow:

 

ARTICLE I

DEFINITIONS

 

Section 1.1                                      Definitions.
In this Agreement, unless
the context otherwise requires, the following terms shall have the following
meanings respectively:

 

“Affiliate,”
when used with respect to a Person, means any other Person that directly or
indirectly controls, is controlled by or is under common control with such
first Person.

 

“Aggregate
Consideration Value,” with respect to a Seller, means the sum of (i) the
cash received by such Seller pursuant to this Agreement plus (ii) the product
of (A) the number of Common Units received by such Seller pursuant to this
Agreement multiplied by (B) the Common Unit Price.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Business
Day” means any day on which commercial banks are generally open for
business in Denver, Colorado other than a Saturday, a Sunday or a day observed
as a holiday in Denver, Colorado under the Laws of the State of Colorado or the
federal Laws of the United States of America.

 

“Buyer”
has the meaning set forth in the Preamble.

 

“Buyer
Disclosure Schedule” means the disclosure schedule prepared by Buyer and
delivered to Sellers as of the date of this Agreement.

 

“Buyer
Indemnified Parties” has the meaning set forth in Section 7.1.

 

“Closing”
has the meaning set forth in Section 2.2.

 

“Closing
Date” has the meaning set forth in Section 2.2.

 

“Class A
Membership Interests” has the meaning assigned to such term in the Company
LLC Agreement.

 

“Class B
Membership Interests” has the meaning assigned to such term in the Company
LLC Agreement.

 

2

 

“Class B
Proposal” has the meaning set forth in Section 4.3.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Common
Unit Price” means $33.32.

 

“Common
Units” has the meaning set forth in the recitals.

 

“Company”
has the meaning set forth in the recitals.

 

“Company
LLC Agreement” means the Amended and Restated Limited Liability Company
Agreement of the Company, dated May 24, 2002, as amended by Amendment
No. 1 thereto, dated effective December 31, 2004, and Amendment No. 2
thereto, dated effective January 19, 2005.

 

“Conflicts
Committee” means the Conflicts Committee of the Board of Directors of the
Company.

 

“Current
Quarter” has the meaning set forth in Section 4.8(b).

 

“control,” and its derivatives,
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person.

 

“Delaware
LLC Act” means Delaware Revised Limited Liability Company Act.

 

“Encumbrances”
means pledges, restrictions on transfer, proxies and voting or other
agreements, liens, claims, charges, mortgages, security interests or other
legal or equitable encumbrances, limitations or restrictions of any nature
whatsoever, other than restrictions on transfer under the Company LLC
Agreement, which have been waived, and federal and state securities laws.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“FIRPTA”
means the Foreign Investment in Real Property Tax Act.

 

“Fox
Support Agreement” means the Voting Agreement, dated the date hereof, among
the Buyer and the Stockholders (as defined therein).

 

“GAAP”
means United States generally accepted accounting principles applied on a
consistent basis during the periods involved.

 

“governing
documents” means, with respect to any person, the certificate or articles
of incorporation, by-laws, articles of organization, limited liability company
agreement, partnership agreement, formation agreement, joint venture agreement,
operating agreement, unanimous equityholder agreement or declaration or other
similar governing documents of such person.

 

“Governmental
Authority” means any (a) multinational, federal, national, provincial,
territorial, state, regional, municipal, local or other government,
governmental or public department, central bank, court, tribunal, arbitral
body, commission, administrative agency, 

 

3

 

board, bureau or agency, domestic or foreign, (b) subdivision, agent,
commission, board, or authority of any of the foregoing, or (c)
quasi-governmental or private body exercising any regulatory, expropriation or
taxing authority under, or for the account of, any of the foregoing, in each
case which has jurisdiction or authority with respect to the applicable party.

 

“GP Capital
Contribution” has the meaning set forth in Section 4.6.

 

“Indemnified
Parties” has the meaning set forth in Section 7.1.

 

“IDRs”
means the Incentive Distribution Rights (as such term in defined in the
Partnership Agreement).

 

“Laws”
means all statutes, regulations, statutory rules, orders, judgments, decrees
and terms and conditions of any grant of approval, permission, authority,
permit or license of any court, Governmental Authority, statutory body or
self-regulatory authority (including the NYSE).

 

“Material
Adverse Effect” means, with respect to Buyer, any effect that (i) is
material and adverse to the financial position, results of operations,
business, assets or prospects of Buyer and its Subsidiaries taken as a whole or
(ii) would materially impair the ability of Buyer to perform its obligations
under this Agreement or otherwise materially threaten or materially impede the
consummation of the transactions contemplated by this Agreement.

 

“Membership
Interests” has the meaning assigned to such term in the Company LLC
Agreement.

 

“Merger”
has the meaning set forth in the recitals.

 

“Merger
Agreement” has the meaning set forth in the recitals.

 

“NYSE”
means the New York Stock Exchange.

 

“Order”
means any judgment, decree, injunction, ruling, award, settlement, stipulation
or orders of a Governmental Authority.

 

“Partnership
Agreement” means the Second Amended and Restated Agreement of Limited
Partnership of Buyer.

 

“Person”
or “person” means any individual, corporation, limited liability
company, limited or general partnership, joint venture, association, joint
stock company, trust, unincorporated organization, government or any agency or
political subdivision thereof or any other entity, or any group comprised of
two or more of the foregoing.

 

“Previously
Disclosed” by Buyer shall mean information set forth in Buyer Disclosure
Schedule.

 

4

 

“Representatives”
means with respect to a Person, its directors, officers, employees, agents and
representatives, including any investment banker, financial advisor, attorney,
accountant or other advisor, agent or representative.

 

“Rights”
shall mean, with respect to any person, securities or obligations convertible
into or exchangeable for, or giving any person any right to subscribe for or
acquire, or any options, calls or commitments relating to, equity securities of
such person.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Seller”
has the meaning set forth in the Preamble.

 

“Subsidiary”
shall mean an Affiliate of a Person that is controlled by such Person directly,
or indirectly through one or more intermediaries.

 

“Tax”
or “Taxes” shall mean any and all taxes, including any interest,
penalties or other additions to tax that may become payable in respect thereof,
imposed by any federal, state, local or foreign government or any agency or
political subdivision of any such government, which taxes shall include,
without limiting the generality of the foregoing, all income or profits taxes,
payroll and employee withholding taxes, unemployment insurance taxes, social
security taxes, severance taxes, license charges, taxes on stock, sales and use
taxes, ad valorem taxes, excise taxes, franchise taxes, gross receipts taxes,
business license taxes, occupation taxes, real and personal property taxes,
stamp taxes, environmental taxes, transfer taxes, workers’ compensation and
other obligations of the same or of a similar nature to any of the foregoing.

 

“Unaffiliated
Common Unitholders” means holders of Common Units other than Hydrocarbon or
holders affiliated with Hydrocarbon or the Company.

 

Section 1.2                                      Rules
of Construction. In
constructing this Agreement:  (a) the
word “includes” and its derivatives means “includes, without limitation” and
corresponding derivative expressions; (b) the currency amounts referred to
herein, unless otherwise specified, are in United States dollars;
(c) whenever this Agreement refers to a number of days, such number shall
refer to calendar days unless business days are specified; (d) unless otherwise
specified, all references in this Agreement to “Article,” “Section,” “Schedule,”
“Disclosure Schedule,” “Exhibit,” “preamble” or “recitals” shall be references
to an Article, Section, “Schedule,” Disclosure Schedule, Exhibit, preamble or
recitals hereto; and (e) whenever the context requires, the words used in
this Agreement shall include the masculine, feminine and neuter and singular
and the plural.

 

ARTICLE II

CONTRIBUTION OF CLASS B INTERESTS; CLOSING

 

Section 2.1                                      Contribution
of Class B Interests. Upon
the terms and subject to the conditions set forth in this Agreement, at the
Closing (as defined below), each Seller agrees, severally and not jointly, to
contribute to the Buyer the Class B Membership Interest specified on Schedule 2.1
attached hereto as owned by such Seller, and the Buyer agrees to accept the
contribution of each such Class B Membership Interest from each Seller and
(a) pay to each 

 

5

 

Seller the amount in
cash and (b) issue to each Seller the number of Common Units, in each case, set
forth opposite the name of such Seller on Schedule 2.1 attached
hereto.

 

Section 2.2                                      Closing.
The closing of the
contribution of the Class B Membership Interests pursuant to this
Agreement (the “Closing”) shall take place concurrently with the closing
of the Merger, subject to satisfaction or waiver of all of the conditions to
each of the respective Parties’ obligations to consummate the contribution of
the Class B Membership Interest hereunder (such date, the “Closing Date”);
provided, that the Buyer shall have given the Sellers three (3) Business Days
(or such shorter period as shall be agreeable to the Parties) prior written
notice of such designated Closing Date. The Closing shall take place at the
offices of Hogan & Hartson LLP, 1200 Seventeenth Street, Suite 1500,
Denver, Colorado 80202.

 

Section 2.3                                      Sellers’
Closing Deliveries. At the
Closing, each of the Sellers shall deliver, or cause to be delivered, to the
Buyer the following:

 

(a)                                  a
duly executed Assignment in substantially the form attached hereto as Exhibit A,
transferring the Class B Membership Interest of such Seller;

 

(b)                                 a
closing certificate, substantially in the form attached as Exhibit B,
duly executed by, or on behalf of, such Seller;

 

(c)                                  a
FIRPTA certificate, in the form attached hereto as Exhibit C duly
executed by, or on behalf of, such Seller (i) stating that such Seller is
not a foreign individual, foreign corporation, foreign partnership, foreign
trust or foreign estate, (ii) providing such Seller’s U.S. Employer
Identification Number and (iii) providing such Seller’s address;

 

(d)                                 the
Registration Rights Agreement, in the form attached hereto as Exhibit E
duly executed by, or on behalf of, such Seller; and

 

(e)                                  such
other certificates, instruments of conveyance or contribution and documents as
may be reasonably requested by the Buyer prior to the Closing Date to carry out
the intent and purposes of this Agreement.

 

Section 2.4                                      Buyer’s
Closing Deliveries. At the
Closing, Buyer shall deliver, or cause to be delivered, to each of the Sellers
the following:

 

(a)                                  the
full amount in cash set forth opposite the name of such Seller on Schedule 2.1
by wire transfer of immediately available funds to the respective accounts
designated in writing by such Seller at least two (2) Business Days prior to
Closing;

 

(b)                                 a
duly executed certificate, countersigned by the appropriate officer(s) of the
Company, representing the number of Common Units set forth opposite the name of
such Seller on Schedule 2.1 hereto;

 

(c)                                  a
closing certificate, substantially in the form attached as Exhibit D,
duly executed by, or on behalf of, Buyer;

 

6

 

(d)                                 the
Registration Rights Agreement, in the form attached hereto as Exhibit E
duly executed by, or on behalf of, Buyer;

 

(e)                                  a
long-form certificate of good standing of recent date of Buyer; and

 

(f)                                    such
other certificates, instruments of conveyance or contribution and documents as
may be reasonably requested by such Seller prior to the Closing Date to carry
out the intent and purposes of this Agreement.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.1                                      Representations
of the Sellers. Each Seller
hereby represents and warrants, severally and not jointly, to Buyer that:

 

(a)                                  Organization; Authorization; Validity of Agreement; Necessary Action.
This Agreement has been duly executed and delivered by such Seller and
constitutes a legal, valid and binding agreement of such Seller, enforceable
against such Seller in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equitable principles.

 

(b)                                 Ownership. Such Seller’s Class B Membership Interest
is, and on the Closing Date will be, owned beneficially and of record by such
Seller and, to the best knowledge of such Seller, has been duly authorized and
is validly issued, fully paid (to the extent required under the Company LLC
Agreement) and non-assessable (except as provided under the Delaware LLC Act or
the Company LLC Agreement). Such Seller has good and marketable title to such
Seller’s Class B Membership Interest, free and clear of any Encumbrances,
including any liens for Taxes. Such Seller has and will have at all times
through the Closing Date sole voting power, sole power of disposition and sole
power to agree to all of the matters set forth in this Agreement, in each case
with respect to such Seller’s Class B Membership Interest at all times
through the Closing Date.

 

(c)                                  No Violation. Neither the execution and delivery of this
Agreement by such Seller, the performance by such Seller of such Seller’s
obligations under this Agreement, nor the consummation by such Seller of the
transactions contemplated hereby nor compliance by such Seller with any of the
provisions herein will (i) result in the creation of any Encumbrance upon the
Class B Membership Interest or (ii) violate any Orders or Laws applicable
to such Seller or any of such Seller’s properties, rights or assets.

 

(d)                                 Consents and Approvals. No consent, approval, Order or
authorization of, or registration, declaration or filing with, any Governmental
Authority is necessary to be obtained or made by such Seller in connection with
such Seller’s execution, delivery and performance of this Agreement or the
consummation by such Seller of the transactions contemplated by this Agreement.

 

(e)                                  Absence of Litigation. There is no action, litigation or
proceeding pending and no Order of any Governmental Authority outstanding nor,
to the knowledge of such Seller, is

 

7

 

any such
action, litigation, proceeding or Order threatened, against such Seller or such
Seller’s Class B Membership Interest which may prevent or materially delay
such Seller from performing such Seller’s obligations under this Agreement or
consummating the transactions contemplated hereby on a timely basis.

 

(f)                                    Brokerage and Finder’s Fee. No fees or commissions will be
payable by such Seller to any broker, finder, or investment banker with respect
to the disposition or contribution of any of such Seller’s Class B
Membership Interest or the consummation of the transactions contemplated by
this Agreement.

 

(g)                                 No Side Agreements. Except for this Agreement and the
agreements contemplated by this Agreement and the Merger Agreement (if and to
the extent such Seller is a party to any such agreements), there are no other
agreements by, among or between such Seller or any of such Seller’s Affiliates,
on the other hand, and the Company or its Affiliates, on the other hand, with
respect to the transactions contemplated hereby.

 

(h)                                 Community Property. Except for DDC, each Seller is a natural
person. Except in the case of Jan Kindrick and Kevin Kubat, each Seller that is
a natural person is domiciled and residing in the State of Colorado, and such
Seller’s Class B Membership Interest is not subject to community property
rights. Kevin Kubat is domiciled and residing in the State of Oklahoma and such
Seller’s Class B Membership Interest is not subject to community property
rights. Jan Kindrick is domiciled and residing in the State of Texas and such
Seller’s Class B Membership Interest may be subject to community property
rights.

 

(i)                                     Investment Intent; Investment Experience; Restricted Securities.
In acquiring the Common Units hereunder, such Seller is not offering or
selling, and shall not offer or sell the Common Units, in connection with any
distribution of any of such Common Units, and such Seller shall not participate
in any such undertaking or in any underwriting of such an undertaking, except
in compliance with applicable federal and state securities Laws. Such Seller
acknowledges that Seller can bear the economic risk of such Seller’s investment
in the Common Units, and has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of an
investment in the Common Units. Such Seller is an “accredited investor” as such
term is defined in Regulation D under the Securities Act. Such Seller
understands that none of the Common Units received pursuant to this Agreement
shall have been registered pursuant to the Securities Act or any applicable
state securities Laws, that all of such Common Units shall be characterized as “restricted
securities” under federal securities Laws and that under such Laws and
applicable regulations none of such Common Units can be sold or otherwise
disposed of without registration under the Securities Act or an exemption
therefrom.

 

(j)                                     Limitation of Representations and Warranties. EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS SECTION 3.1, SUCH
SELLER IS NOT MAKING ANY OTHER REPRESENTATIONS OR WARRANTIES, WRITTEN OR ORAL,
STATUTORY, EXPRESS OR IMPLIED.

 

Section 3.2                                      Representations
of Buyer. Except as set
forth in a section of the Buyer Disclosure Schedule delivered concurrently
herewith corresponding to the applicable sections of 

 

8

 

this Section 3.2
to which such disclosure applies, Buyer hereby represents and warrants to each
Seller that:

 

(a)                                  Organization; Qualification. Buyer has the requisite power
and authority to execute and deliver this Agreement, to carry out its
obligations hereunder and to consummate the transactions contemplated hereby. The
execution and delivery by Buyer of this Agreement, its performance of its
obligations hereunder and the consummation of the transactions contemplated
hereby have been duly and validly authorized by Buyer and no other actions or
proceedings on the part of Buyer to authorize the execution and delivery of
this Agreement, the performance by Buyer of the obligations hereunder or the
consummation of the transactions contemplated hereby. This Agreement has been
duly executed and delivered by Buyer and constitutes a legal, valid and binding
agreement of Buyer, enforceable against Buyer in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equitable principles.

 

(b)                                 No Violations. Neither the execution and delivery of this
Agreement by Buyer, the performance by Buyer of its obligations under this
Agreement, nor the consummation by Buyer of the transactions contemplated
hereby nor compliance by Buyer with any of the provisions herein will (i)
result in a violation or breach of or conflict with the Partnership Agreement
or Buyer’s certificate of limited partnership, (ii) result in a violation or
breach of or conflict with any provisions of, or constitute a default (or an
event which, with notice or lapse of time or both, would constitute a default)
under, or result in the termination, cancellation of, or give rise to a right
of purchase under, or accelerate the performance required by, or result in a
right of termination or acceleration under, or result in the creation of any
Encumbrance upon any of the properties, rights or assets owned or operated by
Buyer, or result in being declared void, voidable, or without further binding
effect, or otherwise result in a detriment to Buyer under any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, deed of trust,
license, contract, lease, agreement or other instrument or obligation of any
kind to which Buyer is a party or by which Buyer or any of Buyer’s properties,
rights or assets may be bound, (iii) violate any Orders or Laws applicable to
Buyer or any of Buyer’s properties, rights or assets, except in the case of
clauses (ii) and (iii) as would not have a Material Adverse Effect.

 

(c)                                  Consents and Approvals. No consent, approval, Order or
authorization of, or registration, declaration or filing with, any Governmental
Authority is necessary to be obtained or made by Buyer in connection with Buyer’s
execution, delivery and performance of this Agreement or the consummation by
Buyer of the transactions contemplated by this Agreement, except as provided
under Section 4.2, or as would not have a Material Adverse Effect.

 

(d)                                 Absence of Litigation. There is no action, litigation or
proceeding pending and no Order of any Governmental Authority outstanding nor,
to the knowledge of Buyer, is any such action, litigation, proceeding or Order
threatened, against Buyer which may prevent or materially delay Buyer from
performing Buyer’s obligations under this Agreement or consummating the
transactions contemplated hereby on a timely basis, except as would not have a
Material Adverse Effect.

 

9

 

(e)                                  Independent Investigation. Buyer has conducted its own
independent investigation, review and analysis of the business, operations,
assets, liabilities, results of operations, financial condition and prospects
of the Company which investigation, review and analysis was done by Buyer and,
to the extent Buyer deemed necessary or appropriate, by its representatives.

 

(f)                                    Investment Intent; Investment Experience; Restricted Securities.
In acquiring the Class B Membership Interests, Buyer is not offering or
selling, and shall not offer or sell the Class B Membership Interests, in
connection with any distribution of any of such Class B Membership
Interests, and Buyer shall not participate in any such undertaking or in any
underwriting of such an undertaking, except in compliance with applicable
federal and state securities Laws. Buyer acknowledges that it can bear the
economic risk of its investment in the Class B Membership Interests, and
has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of an investment in the Class B
Membership Interests. Buyer is an “accredited investor” as such term is defined
in Regulation D under the Securities Act. Buyer understands that none of the
Class B Membership Interests shall have been registered pursuant to the
Securities Act or any applicable state securities Laws, that all of such
Class B Membership Interests shall be characterized as “restricted
securities” under federal securities Laws and that under such Laws and
applicable regulations none of such Class B Membership Interests can be
sold or otherwise disposed of without registration under the Securities Act or
an exemption therefrom.

 

(g)                                 Capitalization. As of the date hereof, there are 36,500,455
Common Units issued and outstanding, and all of such Common Units and the
limited partner interests represented thereby were duly authorized and validly
issued in accordance with the Partnership Agreement and are fully paid (to the
extent required under the Partnership Agreement) and nonassessable (except as
such nonassessability may be affected by the Delaware LP Act and the
Partnership Agreement). As of the date hereof, the Company owns a 2.0% general
partner interest in the Buyer and all of the IDRs, and such general partner
interest was duly authorized and validly issued in accordance with the
Partnership Agreement. As of the date hereof, except as Previously Disclosed in
Schedule 3.2(g) of the Buyer Disclosure Schedule, Buyer has no
equity securities authorized and reserved for issuance, Buyer does not have any
Rights issued or outstanding with respect to its equity securities, and Buyer
does not have any commitment to authorize, issue or sell any such equity
securities or Rights, except pursuant to this Agreement and the Merger
Agreement. The number of Common Units that are issuable upon exercise of any
employee or director options to purchase Common Units or Subordinated Units as
of the date hereof are Previously Disclosed in Schedule 3.2(g) of
the Buyer Disclosure Schedule. At Closing, the Common Units issued to each
Seller hereunder and the limited partner interests represented thereby will be
duly authorized and validly issued in accordance with the Partnership Agreement
and will be fully paid (to the extent required under the Partnership Agreement)
and nonassessable (except as such nonassessability may be affected by the
Delaware LP Act and the Partnership Agreement).

 

(h)                                 Financial Reports and SEC Documents. Buyer’s annual report
on Form 10-K for the fiscal year ended December 31, 2006, and all other
reports, registration statements, definitive proxy statements or information
statements filed or to be filed by Buyer or any of its Subsidiaries subsequent
to December 31, 2004 under the Securities Act, or under Sections 13(a), 

 

10

 

13(c), 14 and
15(d) of the Exchange Act, in the form filed, or to be filed (collectively, its
“SEC Documents”), with the SEC (i) complied or will comply in all
material respects as to form with the applicable requirements under the
Securities Act or the Exchange Act, as the case may be, and (ii) did not and
will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
made therein, in light of the circumstances under which they were made, not
misleading; and each of the balance sheets contained in or incorporated by
reference into any such SEC Document (including the related notes and schedules
thereto) fairly presents the financial position of the Buyer as of its date,
and each of the statements of income and changes in partners’ equity and cash
flows in such SEC Documents (including any related notes and schedules thereto)
fairly presents the results of operations, changes in partners’ equity and
changes in cash flow of Buyer for the periods to which it relates, in each case
in accordance with GAAP consistently applied during the periods involved,
except in each case as may be noted therein, subject to normal year-end audit
adjustments in the case of unaudited statements. Except as and to the extent
set forth on its balance sheet as of December 31, 2006 (or such later date of
any balance sheet filed with the SEC as an SEC Document), as of such date,
neither Buyer nor any of its Subsidiaries had any liabilities or obligations of
any nature (whether accrued, absolute, contingent or otherwise) that would be
required to be reflected on, or reserved against in, a balance sheet or in the
notes thereto prepared in accordance with GAAP consistently applied.

 

(i)                                     No Brokers. No action has been taken by Buyer that would
give rise to any valid claim against any party hereto for a brokerage
commission, finder’s fee or other like payment with respect to the transactions
contemplated by this Agreement, excluding, fees to be paid by Buyer to Lehman
Brothers Inc. and RBC Capital Markets in connection with the transactions
contemplated by the Merger Agreement and this Agreement.

 

(j)                                     No Material Adverse Change. Except as disclosed in its SEC
Documents filed with the SEC on or before the date hereof, since December 31,
2006, (i) Buyer and its Subsidiaries have conducted their respective businesses
in the ordinary and usual course (excluding the incurrence of expenses related
to this Agreement and the transactions contemplated hereby), (ii) Buyer has not
made any material change in its accounting methods, principles or practices or
its Tax methods, practices or elections and (iii) no event has occurred or
circumstance arisen that, individually or taken together with all other facts,
circumstances and events is reasonably likely to result in a Material Adverse
Effect.

 

(k)                                  Conflicts Committee Action. At a meeting duly called and held, the
Conflicts Committee determined that this Agreement and the transactions
contemplated hereby, together with the Merger Agreement and the transaction
contemplated thereby, are fair and reasonable to, and in the best interests of,
the Unaffiliated Common Unitholders and the Partnership, and recommended that
the Board of Directors of the Company approve this Agreement and the
transactions contemplated hereby.

 

(l)                                     Energy Partners Fairness Opinion. Lehman Brothers Inc. has
delivered to the Conflicts Committee its written opinion dated September 5,
2007, that as of such date, the Redemption/Merger Consideration paid in the
Redemption and the Merger and the consideration paid to the Sellers pursuant to
this Agreement, in the aggregate, are fair, from a financial point of view, to
the Unaffiliated Common Unitholders.

 

11

 

(m)                               Limitation of Representations and Warranties. EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS SECTION 3.2, BUYER
IS NOT MAKING ANY OTHER REPRESENTATIONS OR WARRANTIES, WRITTEN OR ORAL,
STATUTORY, EXPRESS OR IMPLIED.

 

ARTICLE IV

ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS

 

Section 4.1                                      Commercially
Reasonable Best Efforts; Further Assurances. From and after the date hereof, upon the terms and subject
to the conditions hereof, the Buyer and each Seller shall use its or his
commercially reasonable best efforts to take, or cause to be taken, all
appropriate action, and to do or cause to be done, all things necessary, proper
or advisable under applicable Laws to consummate and make effective the
transactions contemplated by this Agreement. Without limiting the foregoing but
subject to the other terms of this Agreement, the parties hereto agree that,
from time to time, whether before, at or after the Closing Date, each of them
will execute and deliver, or cause to be executed and delivered, such
instruments of assignment, transfer, contribution, conveyance, endorsement,
direction or authorization as may be necessary to consummate and make effective
such transactions.

 

Section 4.2                                      Registration
Rights Agreement. On the
Closing Date, Buyer and each of the Sellers shall execute and deliver the
Registration Rights Agreement, in the form attached hereto as Exhibit E
pursuant to which Buyer will agree to grant certain registration rights to the
Sellers with respect to Common Units issued to the Sellers pursuant to this
Agreement.

 

Section 4.3                                      No
Solicitation. Each Seller
agrees that Seller will not, and shall use his or its reasonable best efforts
to cause such Seller’s Representatives not to, directly or indirectly through
another Person, (i) solicit, initiate or encourage or facilitate, any proposal
to acquire all or a portion of such Seller’s Class B Membership Interest
(a “Class B Proposal”) or the making or consummation thereof, (ii)
enter into, continue or otherwise participate in any discussions or
negotiations regarding, or furnish to any person any information in connection
with, or otherwise cooperate in any way with, any such Class B Proposal,
(iii) waive, terminate, modify or fail to enforce any provision of any “standstill”
or similar obligation of any person other than Buyer, (iv) approve, adopt or
recommend, or publicly propose to approve, adopt or recommend, execute or enter
into, any letter of intent, memorandum of understanding, agreement in
principle, merger agreement, acquisition agreement, option agreement, joint
venture agreement, partnership agreement, or other similar contract or any
tender or exchange offer providing for, with respect to, or in connection with,
any such Class B Proposal or (v) agree or publicly propose to do any of
the foregoing. Without limiting the foregoing, it is agreed that any violation
of the restrictions set forth in the preceding sentence by any Representative
of a Seller shall be a breach of this Section 4.3 by such Seller. Each
Seller hereby represents that, as of the date hereof, such Seller is not
engaged in any discussions or negotiations with respect to any Class B
Proposal other than with Buyer and agrees not to, and shall use best efforts to
cause such Seller’s Representatives to, immediately cease and cause to be
terminated all existing discussions or negotiations with any Person conducted
heretofore with respect to any Class B Proposal and will take commercially
reasonable steps to inform such Seller’s Representatives of the obligations
undertaken by such Seller pursuant to this Agreement, including this Section 4.3.

 

12

 

Section 4.4                                      Expenses.
Whether or not the
transactions contemplated by this Agreement are consummated, all reasonable and
documented costs and expenses incurred of the Sellers in connection with this
Agreement, including legal fees, accounting fees, financial advisory fees and other
professional and non-professional fees and expenses of the Sellers, up to a
maximum of $10,000 per Seller, shall be reimbursed or paid by the Buyer, except
to the extent otherwise provided in this Agreement.

 

Section 4.5                                      Public
Announcements. No Seller will
issue any press release or other written statement for general circulation or
otherwise make a public announcement relating to the transactions contemplated
hereby without the prior approval of the Buyer and the Conflicts Committee.

 

Section 4.6                                      Reimbursement
for Certain Contributions to the Company. If after the date of this Agreement and prior to the Closing
Date, the Buyer issues Common Units or other equity securities other than
pursuant to this Agreement and, in connection therewith, any Seller makes one
or more capital contributions to the Company pursuant to Section 3.5 of
the Company LLC Agreement in connection with the Company’s obligation to make a
capital contribution to the Buyer pursuant to Section 5.2(b) of the
Partnership Agreement (a “GP Capital Contribution”), such Seller shall
promptly give notice to the Buyer thereof and provide such other documents,
information and materials as the Buyer may reasonably request documenting such
GP Capital Contribution, and upon Closing, Buyer shall reimburse each Seller
for the amount of any GP Capital Contribution made by such Seller.

 

Section 4.7                                      Seller
Capacity. Each Seller has
entered into this Agreement solely in the capacity as the beneficial owner of
such Seller’s Class B Membership Interest; provided nothing herein shall in any
way restrict or limit any Seller from taking any action in such Seller’s
capacity as a director or officer of the Company or of Hydrocarbon or otherwise
fulfilling his or her fiduciary obligations as director or officer of the
Company or of Hydrocarbon.

 

Section 4.8                                      Distributions.

 

(a)                                  Prior to Closing. Until the Closing Date, all Class B
Members shall continue to be entitled to distributions to be paid pursuant to
the Company LLC Agreement.

 

(b)       
Payment in Lieu of Final
Quarterly Distribution.

 

(1)       
If the Closing Date occurs during a calendar quarter before the Company has
made a Company Distribution to the Class B Membership Interests in respect of
the previous  calendar quarter, the
Partnership shall pay to each Seller who has contributed such Seller’s Class B
Membership Interest to Buyer at Closing pursuant to this Agreement:

 

 (A)                           within five days after
making its quarterly distribution in respect of such previous quarter, an
amount equal to the remainder of (i) such Seller’s Hypothetical Company
Distribution Amount for such previous quarter less
(ii) such Aggregate Common Unit Distribution Amount paid to such
Seller for such previous quarter, and

 

(B)                                within
five days after making its next quarterly distribution (i.e. its quarterly
distribution in respect of the calendar quarter in which the Closing Date
occurs

 

13

 

(the “Current Quarter”)), an amount
equal to the remainder of (i) the sum of (I) the product of (a) such Seller’s
Hypothetical Company Distribution Amount for the Current Quarter times (b) the
Pro Rata GP Quarterly Period, plus (II) the
product of (x) such Seller’s Aggregate Common Units Distribution Amount for the
Current Quarter times (y) the Pro Rata LP Unit Quarterly Period; less (ii) the Aggregate Common Units Distribution Amount for
the Current Quarter.

 

(2)                                  If
the Closing Date occurs during a calendar quarter after the Company has made a
Company Distribution to the Class B Membership Interests in respect of the
previous calendar quarter, the Partnership shall, within five days of making
its next quarterly distribution (i.e. its
quarterly distribution in respect of the Current Quarter), pay to each Seller
who has contributed such Seller’s Class B Membership Interest to Buyer at
Closing pursuant to this Agreement, an amount equal to the remainder of: (i)
the sum of (I) the product of (a) such Seller’s Hypothetical Company
Distribution Amount for the Current Quarter times (b) the Pro Rata GP Quarterly
Period, plus (II) the product of (x) such Seller’s
Aggregate Common Units Distribution Amount for the Current Quarter times (y)
the Pro Rata LP Unit Quarterly Period; less (ii) the
Aggregate Common Units Distribution Amount for the Current Quarter.

 

The following
terms used in this Section 4.8(b) shall have the definitions assigned to them:

 

“Aggregate Common Unit Distribution Amount,” with respect to a Seller,
means the aggregate amount of the distributions by the Partnership for such
calendar quarter in respect of the Common Units issued to such Seller pursuant
to this Agreement, regardless of whether such Seller subsequently sells or
otherwise disposes of any of such Common Units;

 

“Company Distribution” means the quarterly distribution payable by the
Company to its Members of the amounts distributed to the Company by the
Partnership each quarter in respect of the Company’s general partner interest
and incentive distribution rights pursuant to the terms and provisions of the
Partnership Agreement as in effect on the date of this Agreement;

 

“Hypothetical Company Distribution Amount,” with respect to a Seller,
means the product of (i) such Seller’s Pro Rata Interest times (ii) an amount equal to 10.3% of the
amount that would have been payable by the Partnership to the Company for such
calendar quarter in respect of the Company’s general partner interest and
incentive distribution rights pursuant to the terms and provisions of the
Partnership Agreement as in effect on the date of this Agreement. The
Hypothetical Company Distribution Amount for the Current Quarter
under clauses (1)(B) and (2) above, shall be calculated based on the total
number of outstanding Common Units outstanding immediately prior to the
Closing Date, and the actual distribution declared by the Partnership for that
Current Quarter;

 

”Pro Rata GP Quarterly Period,” is a fraction, the numerator of which
is the number of days in the period beginning from the first day of the
calendar quarter in which the Closing Date occurs and ending the day of the
Closing Date, and the denominator of which is the total number of days in the
calendar quarter in which the Closing Date occurs.

 

14

 

“Pro Rata Interest,” with respect to a Seller, is a fraction, the
numerator of which is such Seller’s Class B Membership Interest percentage, as
set forth on Schedule 2.1, and the denominator of which is 10.3%.

 

“Pro Rata LP Unit Quarterly Period,” is a fraction, the numerator of
which is the number of days in the period beginning from the day after the
Closing Date and ending the last day of the calendar quarter in which the
Closing Date occurs, and the denominator of which is the total number of days
in the calendar quarter in which the Closing Date occurs.

 

Section 4.9                                      Legends.
The certificate or
certificates representing the Common Units issued pursuant to Section 2.1(b)
shall bear a legend that such shares have not been registered under the
Securities Act or any state securities.

 

ARTICLE V

CLOSING CONDITIONS

 

Section 5.1                                      Mutual
Conditions. The respective
obligation of the Buyer and each of the Sellers to consummate the contribution
of the Class B Membership Interests by the Sellers, and the issuance of the
Common Units and payment of cash by Buyer as contemplated in Section 2.1 above
shall be subject to the satisfaction on or prior to the Closing Date of each of
the following conditions (any or all of which may be waived by a particular
Party on behalf of itself in writing, in whole or in part, to the extent
permitted by applicable Law):

 

(a)                                  no
order, decree or injunction of any court or agency of competent jurisdiction
shall be in effect, and no Law shall have been enacted or adopted, that
enjoins, prohibits or makes illegal consummation of any of the transactions
contemplated hereby, and no action, proceeding or investigation by any
Governmental Authority with respect to this Agreement or the transactions
contemplated hereby shall be pending that seeks to restrain, enjoin, prohibit
or delay consummation of such transaction or to impose any material
restrictions or requirements thereon or Buyer or any Seller with respect
thereto; provided, however,
that prior to invoking this condition, each party shall have complied fully
with its obligations under Section 4.1;

 

(b)                                 all
filings required to be made prior to the Closing Date with, and all other
consents, approvals, permits and authorizations required to be obtained prior to
the Closing Date from, any Governmental Authority in connection with the
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby by the parties hereto or their Affiliates
shall have been made or obtained;

 

(c)                                  the
Buyer and Hydrocarbon shall have concurrently closed the Merger.

 

Section 5.2                                      Buyer’s
Conditions. The obligation
of Buyer to consummate the contribution of the Class B Membership Interests by
the Sellers, and the issuance of the Common Units and payment of cash by Buyer
as contemplated in Section 2.1 above shall be subject to the satisfaction on or
prior to the Closing Date of each of the following conditions with respect to
each Seller individually and not the Sellers jointly (any or all of which may
be waived by the Buyer in writing, in whole or in part, to the extent permitted
by applicable Law):

 

15

 

(a)                                  the
representations and warranties of such Seller contained in this Agreement that
are qualified by materiality or Material Adverse Effect shall be true and
correct when made and as of the Closing Date and all other representations and
warranties shall be true and correct in all material respects when made and as
of the Closing Date, in each case as though made at and as of the Closing Date
(except that representations made as of a specific date shall be required to be
true and correct as of such date only);

 

(b)                                 such
Seller shall have performed and complied with the covenants and agreements
contained in this Agreement that are required to be performed and complied with
by such Seller on or prior to the Closing Date; and

 

(c)                                  such
Seller shall have delivered to Buyer all of the documents, certificates and
other instruments required to be delivered under, and otherwise complied with
the provisions of, Section 2.3.

 

Section 5.3                                      Sellers’
Conditions. The respective
obligation of each Seller to consummate the contribution of such Seller’s Class
B Membership Interest, and receive the Common Units and payment of cash by
Buyer as contemplated in Section 2.1 above shall be subject to the satisfaction
on or prior to the Closing Date of each of the following conditions (any or all
of which may be waived by the applicable Seller on behalf of such Seller in
writing, in whole or in part, to the extent permitted by applicable Law):

 

(a)                                  the
representations and warranties of Buyer contained in this Agreement that are
qualified by materiality or Material Adverse Effect shall be true and correct
when made and as of the Closing Date and all other representations and
warranties shall be true and correct in all material respects when made and as
of the Closing Date, in each case as though made at and as of the Closing Date
(except that representations made as of a specific date shall be required to be
true and correct as of such date only);

 

(b)                                 Buyer
shall have performed and complied with the covenants and agreements contained
in this Agreement that are required to be performed and complied with by Buyer
on or prior to the Closing Date; and

 

(c)                                  Buyer
shall have delivered to each Seller all of the documents, certificates and
other instruments required to be delivered under, and otherwise complied with
the provisions of, Section 2.4.

 

ARTICLE VI

TERMINATION

 

Section 6.1                                      Termination.
Notwithstanding anything
herein to the contrary, this Agreement may be terminated at any time prior to
Closing:

 

(a)                                  by
the mutual consent of Buyer and any Seller on behalf of such Seller in a
written instrument;

 

16

 

(b)                                 by
Buyer, or any Seller on behalf of such Seller, after February 27, 2008, if the
Closing has not occurred by such date; provided that
as of such date the terminating party is not in default under this Agreement;

 

(c)                                  if
a statute, rule, order, decree or regulation shall have been enacted or
promulgated, or if any action shall have been taken by any Governmental
Authority of competent jurisdiction which permanently restrains, precludes,
enjoins or otherwise prohibits the consummation of the transactions
contemplated by this Agreement or makes the transactions contemplated by this
Agreement illegal;

 

(d)                                 by
either the Buyer, on the one hand, or any Seller (solely with respect to such
Seller) on the other hand, in writing without prejudice to other rights and
remedies which the terminating party or its Affiliates may have (provided the
terminating party and its Affiliates are not otherwise in material default or
breach of this Agreement, or have not failed or refused to close without
justification hereunder), if the other party (i) has materially failed to
perform its covenants or agreements contained herein required to be performed
on or prior to the Closing Date, or (ii) has materially breached any of its
representations or warranties contained herein; provided,
however, that in the case of clause (i)
or (ii), the defaulting party shall have a period of thirty (30) days following
written notice from the non-defaulting party to cure any breach of this
Agreement, if such breach is curable; or

 

(e)                                  automatically,
without any action on the part of Buyer or any Seller, at any time prior to
Closing, upon the public announcement of the termination of the Merger
Agreement.

 

Section 6.2                                      Effect
of Termination. If a party
terminates this Agreement as provided in Section 6.1 above, such
termination shall be without liability and none of the provisions of this
Agreement shall remain effective or enforceable, except for those contained in Section
4.4, this Section 6.2 and Article VIII. Notwithstanding
and in addition to the foregoing, in the event that this Agreement is
terminated pursuant to Section 6.1(d) or if any party is otherwise
in breach of this Agreement, (a) such breaching party or parties shall remain
liable for its or their obligations under Article VII and (b) such
termination shall not relieve such breaching party of any liability for a
willful breach of any covenant or agreement under this Agreement or be deemed a
waiver of any available remedy (including specific performance, if available)
for any such breach.

 

ARTICLE VII

INDEMNIFICATION

 

Section 7.1                                      Seller’s
Indemnity. Each Seller,
severally and not jointly, shall indemnify and hold harmless Buyer and its
respective officers, directors and employees (the “Buyer Indemnified Parties”)
from any and all claims, liabilities, damages, penalties, judgments,
assessments, losses, costs, expenses, including reasonable attorneys’ fees and
expenses, incurred by Buyer in seeking indemnification under this Agreement in
connection with the breach of a representation or warranty set forth in paragraphs
(a) through (i) of Section 3.1 by such Seller. The liability
of each Seller under this Section 7.1 shall not exceed 50% of the
Aggregate Consideration Value received by such Seller pursuant to this
Agreement.

 

17

 

Section 7.2                                      Survival.
In the event of termination
of this Agreement pursuant to Section 6.1, all rights and obligations of the
parties hereto under this Agreement shall terminate, except the provisions of Section 4.4,
Section 6.2, this Article VII, and Article VIII shall
survive such termination; provided that nothing herein shall relieve any party
hereto from any liability for any material breach by such party of any of its
representations, warranties, covenants or agreements set forth in this
Agreement and all rights and remedies of a nonbreaching party under this
Agreement in the case of such a material breach, at law or in equity, shall be
preserved. In the event the Closing occurs, the representations and warranties
of Seller and Buyer contained in paragraphs (a) through (i) of Section
3.1 shall survive the Closing indefinitely. Other than the obligations
contained in paragraphs (a) through (i) of Section 3.1, Section
4.1, Section 4.2, Section 4.4, Section 4.6, Section
4.8(b), this Article VII and Article VIII of this Agreement,
none of the representations, warranties, agreements, covenants or obligations
in this Agreement or in any instrument delivered pursuant to this Agreement
shall survive the Closing.

 

Section 7.3                                      Enforcement
of this Agreement. The
parties hereto acknowledge and agree that an award of money damages would be
inadequate for any breach of this Agreement by any party and any such breach
would cause the non-breaching parties irreparable harm. Accordingly, the
parties hereto agree that, in the event of any breach or threatened breach of
this Agreement by one of the parties, the parties will also be entitled,
without the requirement of posting a bond or other security, to equitable
relief, including injunctive relief and specific performance, provided such
party is not in material default hereunder. Such remedies will not be the
exclusive remedies for any breach of this Agreement but will be in addition to
all other remedies available at law or equity to each of the parties.

 

Section 7.4                                      No
Waiver Relating to Claims for Fraud or Willful Misconduct. The liability of any party under
this Article VII shall be in addition to, and not exclusive of, any
other liability that such party may have at law or in equity based on such
party’s (a) fraudulent acts or omissions or (b) willful misconduct. None of the
provisions set forth in this Agreement shall be deemed to be a waiver by or
release of any party of any right or remedy that such party may have at law or
equity based on any other party’s fraudulent acts or omissions or willful
misconduct nor shall any such provisions limit, or be deemed to limit, (i) the
amounts of recovery sought or awarded in any such claim for fraud or willful
misconduct, (ii) the time period during which a claim for fraud or willful
misconduct may be brought, or (iii) the recourse that any such party may seek
against another party with respect to a claim for fraud or willful misconduct.

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.1                                      Notices.
All notices and demands
provided for hereunder shall be in writing and shall be given by regular mail,
registered or certified mail, return receipt requested, facsimile, air courier
guaranteeing overnight delivery, electronic mail or personal delivery to the
address listed below, in the case of Buyer, or the addresses listed in Schedule 8.1,
in the case of the respective Sellers, or to such other address as the Buyer or
a Seller may designate in writing. All notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; when notice that the recipient has read the message, if sent via
electronic mail; upon actual receipt, if sent by registered or certified mail,
return receipt requested, or regular mail, if mailed; when receipt
acknowledged, if sent via facsimile; and upon 

 

18

 

actual receipt when
delivered to an air courier guaranteeing overnight delivery; provided, that
copies to be delivered below or on such schedule shall not be required for
effective notice and shall not constitute notice.

 

If to Buyer,
addressed to:

 

MarkWest
Energy Partners, L.P.

1515 Arapahoe St.

Tower 2, Suite 700

Denver, CO  80202

Attention:  Board of Directors/Conflicts Committee

Telecopy:  (303) 662-8870

 

with a copy
to:

 

MarkWest
Energy Partners, L.P.

1515 Arapahoe St.

Tower 2, Suite 700

Denver, CO  80202

Attention:  General Counsel

Telecopy:  (303) 925-9308

 

with a copy
to:

 

Vinson &
Elkins L.L.P.

666 Fifth Avenue 26th Floor

New York, NY  10103-0040

Attention:  Michael J. Swidler

Telecopy:  (917) 849-5367

 

with a copy
to:

 

Andrews Kurth
LLP

1350 I Street, NW

Suite 1100

Washington, DC 20005

Attention:  Bill Cooper

Telecopy:  (202) 974-9537

 

Section 8.2                                      Waiver
and Amendment; Entire Agreement. Subject to compliance with applicable Law, prior to the Closing, any
provision of this Agreement may be (a) waived in writing by any of the Sellers
individually, or the Conflicts Committee, on behalf of the Buyer, or (b)
amended or modified as to any Seller individually at any time by an agreement
in writing between any such Seller individually, and the Conflicts Committee,
on behalf of the Buyer. Notwithstanding the foregoing, at any time prior to
Closing, upon the request of any two or more Sellers, the Buyer shall amend
this Agreement solely for the purpose of changing the amount of cash to be paid
and/or the number of Common Units to be issued to one or more of the Sellers as

 

19

 

reflected in Schedule
2.1, as the requesting Sellers may request in writing; provided, that any such changes do not increase the total amount of
cash or the total number of Common Units to be issued by the Buyer pursuant to
Section 2.1; and provided, further, that any such amendment shall be
agreed to in writing by the Buyer and each of the affected Sellers.

 

This Agreement
and the agreements contemplated by this Agreement and the Merger Agreement (if
and to the extent a Party is a party thereto) represent the entire
understanding of the parties hereto with reference to the transactions
contemplated hereby and supersedes any and all other oral or written agreements
heretofore made.

 

Section 8.3                                      Binding
Effect and Assignment. This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective permitted successors and assigns. Except as contemplated
in Section 7.1, nothing in this Agreement, express or implied, is
intended to confer upon any person other than the Parties hereto and their
respective permitted successors and assigns, any rights, benefits or
obligations hereunder. No Party hereto may assign, transfer, dispose of or
otherwise alienate this Agreement or any of its rights, interests or
obligations under this Agreement (whether by operation of law or otherwise),
except in the case of a Seller that is a natural person, by probate to such
Seller’s estate; provided that Buyer may assign its rights under this Agreement
to an Affiliate of Buyer, but any such assignment shall not relieve Buyer of
its obligations hereunder. Any attempted assignment, transfer, disposition or
alienation in violation of this Agreement shall be null, void and ineffective.

 

Section 8.4                                      Severability.
If any term or other
provision of this Agreement is invalid, illegal, or incapable of being enforced
by any rule of applicable Law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated by
this Agreement are not affected in any manner materially adverse to any party
hereto. Upon such determination that any term or other provision is invalid,
illegal, or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
parties hereto as closely as possible in a mutually acceptable manner in order
that the transactions contemplated by this Agreement are consummated as
originally contemplated to the fullest extent possible.

 

Section 8.5                                      Headings.
The headings contained in
this Agreement are for reference purposes only and are not part of this
Agreement.

 

Section 8.6                                      Governing
Law; Jurisdiction. This
Agreement shall be governed by, and interpreted in accordance with, the laws of
the State of Delaware, without regard to the conflict of law principles thereof
(except to the extent that mandatory provisions of federal or Delaware law
govern). The parties hereto agree that any suit, action or proceeding seeking
to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall
be brought in any federal court located in the State of Colorado (or state
court if subject matter jurisdiction prevents maintaining an action in federal
court), and each of the Parties hereby irrevocably consents to the jurisdiction
of such courts (and of the appropriate appellate courts therefrom) in any such
suit, action or proceeding and irrevocably waives, to the fullest extent
permitted by law, any objection that it may now or hereafter have to the laying
of the venue of any such suit, action or proceeding in any such court 

 

20

 

or that any such
suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. Process in any such suit, action or proceeding may be
served on any party anywhere in the world, whether within or without the
jurisdiction of any such court. Without limiting the foregoing, each party
agrees that service of process on such Party as provided in Section 8.1
shall be deemed effective service of process on such Party.

 

Section 8.7                                      Waiver
of Jury Trial. EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 8.8                                      Negotiated
Agreement. The provisions of
this Agreement were negotiated by the parties hereto, and this Agreement shall
be deemed to have been drafted by all of the parties hereto.

 

Section 8.9                                      Counterparts.
This Agreement may be
executed in one or more counterparts, each of which shall be deemed to
constitute an original.

 

Section 8.10                                No
Act or Failure to Act. No
act or failure to act shall constitute a breach by Buyer of this Agreement
unless such act or failure to act is expressly approved by the Conflicts
Committee; provided, however, this provision shall not be
applicable in the case of DDC.

 

21

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be signed by their
respective officers hereunto duly authorized, all as of the date first written
above.

 

 

	
   

  	
  MARKWEST ENERGY PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  MarkWest Energy GP, L.L.C., its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ NANCY K. BUESE

  
	
   

  	
  Name:

  	
    Nancy K. Buese

  
	
   

  	
  Title:

  	
    SVP & Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  -OR-

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ FRANK M. SEMPLE

  
	
   

  	
  Name:

  	
    Frank M. Semple

  
	
   

  	
  Title:

  	
    President & Chief Executive
  Officer

  
				

 

 

	
   

  	
  Frank M.
  Semple

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ FRANK M. SEMPLE

  	
   

  
	
   

  	
   

  

 

 

	
   

  	
  John M.
  Fox

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ JOHN M. FOX

  	
   

  
	
   

  	
   

  

 

 

	
   

  	
  Randy S.
  Nickerson

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ RANDY S. NICKERSON

  	
   

  
	
   

  	
   

  

 

 

	
   

  	
  John C.
  Mollenkopf

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ JOHN C. MOLLENKOPF

  	
   

  

 

 

	
   

  	
  Donald
  C. Heppermann

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ DONALD C. HEPPERMANN

  	
   

  

 

 

	
   

  	
  Andrew
  L. Schroeder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ ANDREW L. SCHROEDER

  	
   

  

 

 

	
   

  	
  Jan
  Kindrick

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ JAN KINDRICK

  	
   

  
	
   

  	
   

  
	
   

  	
  I, the spouse of Jan Kindrick, have read and hereby approve the
  foregoing Agreement. In consideration of Buyer granting my spouse the right
  to transfer and contribute his Class B Membership Interest to Buyer on the
  terms and for the consideration set forth in the Agreement, I hereby agree to
  be bound irrevocably by the Agreement and further agree that any community
  property or similar interest that I may have in the Class B Membership
  Interest transferred and assigned or the consideration received shall hereby
  be similarly bound. I hereby appoint my spouse as my attorney-in-fact with
  respect to any amendment or exercise of any right under the Agreement.

  
	
   

  	
   

  
	
   

  	
  Cindy
  Kindrick

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ CINDY KINDRICK

  	
   

  

 

 

	
   

  	
  Kevin Kubat

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ KEVIN KUBAT

  	
   

  

 

 

	
   

  	
  Nancy K.
  Buese

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ NANCY K. BUESE

  	
   

  

 

 

	
   

  	
  C.
  Corwin Bromley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ C. CORWIN BROMLEY

  	
   

  

 

 

	
   

  	
  Denney
  & Denney Capital, LLLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ ARTHUR J. DENNEY

  	
   

  
	
   

  	
   

  	
   Arthur J. Denney

  
	
   

  	
   

  	
   President and Chief Executive Officer

  

 

 

EXHIBIT A

 

ASSIGNMENT

 

                                                 ,
a natural person residing in the state of                        
(the “Seller”), for good and valuable
consideration, receipt of which is hereby acknowledged, and pursuant to the
Amended and Restated Class B Membership Interest Contribution Agreement, dated
as of October 26, 2007, (the “Agreement”)
among the Seller, MarkWest Energy Partners, L.P., a Delaware limited
partnership (“Buyer”), and the other parties
named as Sellers therein, by these presents, contributes, assigns, transfers
and delivers, or will cause to be contributed, assigned, transferred and
delivered, to Buyer all of the Seller’s right, title and interest in and to
Seller’s            %
limited liability company membership interest (the “Subject
Interest”) in MarkWest Energy GP LLC, a Delaware limited liability
company, subject to and in accordance with the terms of the Agreement. All
capitalized terms not otherwise defined herein shall have the definitions given
to such terms in the Agreement.

 

TO HAVE AND TO
HOLD such Subject Interest, as a going concern, unto Buyer and its successors
and assigns to and for its or their use forever.

 

The contribution and assignment of the Subject Interest pursuant to
this Assignment is made free and clear of all Encumbrances.

 

The Seller and the Buyer agree to execute and
deliver such further agreements, instruments, documents of contribution and
assignment, and certificates, and take such further actions as may be reasonably
required to further evidence, confirm and effect the contribution and
assignment of the Subject Interest pursuant to this Assignment.

 

The Seller
hereby constitutes and appoints Buyer, its successors and assigns, the Seller’s
true and lawful attorney and attorneys, with full power of substitution, in the
Seller’s name and stead, by, on behalf of and for the benefit of Buyer, its
successors and assigns, to demand and receive the Subject Interest transferred
hereunder and to give receipts and release for and in respect of the same, and
any part thereof, and from time to time to institute and prosecute in the
Seller’s name, or otherwise, for the benefit of Buyer, its successors and
assigns, any and all proceedings at law, in equity or otherwise, which Buyer,
its successors or assigns, may deem proper for the collection or reduction to
possession of the Subject Interest transferred hereunder or for the collection
and enforcement of any claim or right of any kind hereby contributed, assigned,
transferred, and delivered, or intended so to be, and to do all acts and the
things in relation to the Subject Interest transferred hereunder which Buyer,
its successors or assigns, shall deem desirable, the Seller hereby declaring
that the foregoing powers are coupled with an interest and are and shall be
irrevocable by the Seller in any manner or for any reason whatsoever. Except as
set forth in the Purchase Agreement, this Assignment is made, and is accepted
by Buyer, without warranty of title, express, implied or statutory, and without
recourse.

 

This Assignment shall be
governed and construed in accordance with the substantive laws of the State of
Delaware without reference to principles of conflicts of law.

 

A-1

 

EXHIBIT A

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

A-2

 

EXHIBIT B

 

SELLER CLOSING CERTIFICATE

 

The undersigned                         ,
a natural person residing in the state of
                            
(the “Seller”), hereby certifies to
MarkWest Energy Partners, L.P., a Delaware limited partnership (the “Buyer”), in accordance with the
requirements of Section 5.2(c) of the Amended and Restated Class B Membership
Interest Contribution Agreement, dated October 26, 2007 (the “Agreement”), by and between the
Seller, the Buyer and the other parties named as sellers therein, as follows:

 

1.             The representations
and warranties of the Seller set forth in the Agreement that are qualified by
materiality or Material Adverse Effect were true and correct as of the date of
the Agreement and as of the date hereof and all other representations and
warranties were true and correct in all material respects as of the date of the
Agreement and as of the date hereof (except that representations made as of a
specific date are true and correct as of such date).

 

2.             The Seller has
performed and complied with the covenants and agreements contained in the
Agreement that are required to be performed and complied with by such Seller on
or prior to the date hereof.

 

Capitalized terms not otherwise defined herein shall have those
meanings assigned to them in the Agreement.

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

B-1

 

EXHIBIT C

 

FIRPTA CERTIFICATE

 

Under Section
1445 of the Internal Revenue Code of 1986, as amended, a corporation,
partnership, trust or estate must withhold tax with respect to certain
transfers of property if a holder of an interest in the entity is a foreign
person. To inform MarkWest Energy Partners, L.P. that withholding of tax is not
required upon my disposition of Class B Membership Interests in MarkWest Energy
GP LLC, I,                                     ,
hereby certify the following:

 

1.               I am not a
nonresident alien for purposes of U.S. income taxation;

 

2.               My U.S. taxpayer
identification number (Social Security Number) is                             ;

and

 

3.               My home address is

 

 

I understand
that this certification may be disclosed to the Internal Revenue Service by
MarkWest Energy Partners, L.P. and that any false statement I have made here
could be punished by fine, imprisonment, or both.

 

Under
penalties of perjury I declare that I have examined this certification and to
the best of my knowledge and belief it is true, correct and complete.

 

C-1

 

EXHIBIT D

 

BUYER CLOSING CERTIFICATE

 

MarkWest Energy Partners, L.P., a Delaware limited partnership (the “Buyer”), hereby certifies to the
Sellers (as defined), in accordance with the requirements of Section 5.3(c) of
the Amended and Restated Class B Membership Interest Contribution Agreement,
dated October 26, 2007 (the “Agreement”),
by and between the Buyer and the other parties named as sellers therein (the “Sellers”), as follows:

 

1.             The representations
and warranties of the Buyer set forth in the Agreement that are qualified by
materiality or Material Adverse Effect were true and correct as of the date of
the Agreement and as of the date hereof and all other representations and
warranties were true and correct in all material respects as of the date of the
Agreement and as of the date hereof (except that representations made as of a
specific date are true and correct as of such date).

 

2.             The Buyer has
performed and complied with the covenants and agreements contained in the
Agreement that are required to be performed and complied with by the Buyer on
or prior to the date hereof.

 

Capitalized terms not otherwise defined herein shall have those
meanings assigned to them in the Agreement.

 

D-1

 

EXHIBIT E

 

REGISTRATION RIGHTS AGREEMENT

 

E-1

 

Schedule 2.1

	
  Holder

  	
   

  	
  Class B

  Membership

  Interest

  	
   

  	
  Cash to be received

  pursuant to

  Section 2.1(a)

  	
   

  	
  Common Units to

  be received

  pursuant to

  Section 2.1(b)

  	
   

  	
  Aggregate Value

  of Consideration

  	
   

  
	
  Frank M. Semple

  	
   

  	
  2.00

  	
  %

  	
  $

  	
  4,075,325

  	
   

  	
  183,794

  	
   

  	
  $

  	
  10,188,313

  	
   

  
	
  John M. Fox

  	
   

  	
  1.60

  	
  %

  	
  $

  	
  3,260,260

  	
   

  	
  147,035

  	
   

  	
  $

  	
  8,150,644

  	
   

  
	
  Randy S. Nickerson

  	
   

  	
  1.60

  	
  %

  	
  $

  	
  3,260,260

  	
   

  	
  147,035

  	
   

  	
  $

  	
  8,150,644

  	
   

  
	
  John C. Mollenkopf

  	
   

  	
  1.60

  	
  %

  	
  $

  	
  3,260,260

  	
   

  	
  147,035

  	
   

  	
  $

  	
  8,150,644

  	
   

  
	
  Denney & Denney Capital, LLLP

  	
   

  	
  1.60

  	
  %

  	
  $

  	
  3,260,260

  	
   

  	
  147,035

  	
   

  	
  $

  	
  8,150,644

  	
   

  
	
  Donald C. Heppermann

  	
   

  	
  1.00

  	
  %

  	
  $

  	
  2,037,663

  	
   

  	
  91,897

  	
   

  	
  $

  	
  5,094,157

  	
   

  
	
  Andrew L. Schroeder

  	
   

  	
  0.20

  	
  %

  	
  $

  	
  407,533

  	
   

  	
  18,379

  	
   

  	
  $

  	
  1,018,819

  	
   

  
	
  Jan Kindrick

  	
   

  	
  0.20

  	
  %

  	
  $

  	
  407,533

  	
   

  	
  18,379

  	
   

  	
  $

  	
  1,018,819

  	
   

  
	
  Kevin Kubat

  	
   

  	
  0.20

  	
  %

  	
  $

  	
  407,533

  	
   

  	
  18,379

  	
   

  	
  $

  	
  1,018,819

  	
   

  
	
  Nancy K. Buese

  	
   

  	
  0.20

  	
  %

  	
  $

  	
  407,533

  	
   

  	
  18,379

  	
   

  	
  $

  	
  1,018,819

  	
   

  
	
  C. Corwin Bromley

  	
   

  	
  0.10

  	
  %

  	
  $

  	
  203,766

  	
   

  	
  9,190

  	
   

  	
  $

  	
  509,425

  	
   

  
	
  TOTAL

  	
   

  	
  10.30

  	
  %

  	
  $

  	
  21,016,996

  	
   

  	
  946,146

  	
   

  	
  $

  	
  52,542,582

  	
   

  

 

 

Schedule 8.1

 

Class B Members (“Sellers”)

 

 

NAME & ADDRESS

 

John M.
Fox

 

Donald C.
Heppermann

 

Randy S.
Nickerson

 

John C.
Mollenkopf

 

Frank M.
Semple

 

Denney
& Denney Capital, LLLP

 

Andrew L.
Schroeder

 

Jan
Kindrick

 

Kevin
Kubat

 

Nancy K.
Buese

 

C. Corwin
Bromley

 

Buyer Disclosure Schedule

 

 

BUYER’S DISCLOSURE SCHEDULES

 

to

 

AMENDED AND RESTATED CLASS B MEMBERSHIP INTEREST

CONTRIBUTION AGREEMENT

 

 

                In connection with the Amended and Restated
Class B Membership Interest Contribution Agreement (the “Agreement”), dated as
of October 26, 2007, by and among MARKWEST ENERGY PARTNERS, L.P., a Delaware
limited partnership (the “Buyer”), and the sellers named therein (the
“Sellers”), Buyer hereby delivers the following disclosure schedules to its
covenants, representations and warranties given in the Agreement.  The section numbers in the Disclosure
Schedules correspond to the section numbers in the Agreement; provided, however,
that any information disclosed herein under any schedule, section number or
subsection shall be deemed to be disclosed and incorporated in any other
schedule, section or subsection of the Disclosure Schedules where such
disclosure would be appropriate and reasonably apparent.  Disclosure of any information or document
herein shall expressly not be deemed to constitute an admission by Buyer, or
otherwise imply, that any such matter rises to the level of a Material Adverse
Effect or is otherwise material for purposes of this Agreement or the
Disclosure Schedules.  Capitalized terms
used but not defined herein shall have the same meanings given them in the Agreement.

 

 

SCHEDULE 3.2(g)

CAPITALIZATION

1.                                       Buyer
has reserved 120,650 units for issuance upon vesting of the phantom (notional)
common units (the “Phantom Units”) granted under the MarkWest Energy Partners,
L.P. Long-Term Incentive Plan (the “Plan”).

 

2.                                       Hydrocarbon
and Buyer are committing to implement a long term incentive plan if the Merger
is consummated, which Plan anticipates the issuance of Phantom Units, based on
time and performance vesting over a three year period, to its executive
officers and other key employees as determined by the Board of Directors of the
Company, in order to provide performance and retention incentives and be
competitive with market.  It is Buyer’s
expectation that the Plan will be amended to increase the number of units
authorized under the Plan.

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