Document:

Exhibit 10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”)
is entered into as of the 21st day of February, 2008, by and among MARKWEST ENERGY PARTNERS, L.P., a Delaware limited
partnership (the “Partnership”), each of the
individuals who are signatories hereto (each, a “Holder”
and collectively, the “Holders”).

 

RECITALS

 

WHEREAS, the Partnership and the Holders are parties to the
Amended and Restated Class B Membership Interest Contribution Agreement,
dated October 26, 2007 (the “Class B Agreement”),
pursuant to which the Partnership will acquire (the “Class B
Acquisition”) the Class B membership interests in MarkWest
Energy GP, L.L.C., a Delaware limited liability company (the “General Partner”), of the Holders
for a combination of cash and Common Units (as defined below);

 

WHEREAS, the Partnership, MarkWest Hydrocarbon, Inc. (“Hydrocarbon”) and MWEP, L.L.C. (“Merger Sub”) have entered into an
Agreement and Plan of Redemption and Merger, dated September 5, 2007 (the “Merger Agreement”), pursuant to
which, (i) Hydrocarbon will redeem a portion of its outstanding shares of
common stock, par value $0.01 per share, of Hydrocarbon and then (ii) Merger
Sub 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
Energy Partners;

 

WHEREAS, the transferability of such Common Units may be
limited by the provisions of Rule 144 under the Securities Act (as defined
below) and the Partnership, in consideration of the execution and delivery by
the Holders of the Class B Agreement, has agreed to provide the Holders
with the registration rights set forth herein.

 

NOW, THEREFORE, in consideration of these premises and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

SECTION 1.                            DEFINITIONS.

 

1.1          Definitions. 
As used in
this Agreement the following terms shall have the following respective
meanings:

 

(a)           “Amended and Restated
Partnership Agreement” means the Third Amended and Restated Partnership
Agreement of the Partnership.

 

(b)           “Business Day” means any day which is not a Saturday,
Sunday or other day on which banks are authorized or required to be closed in
the City of New York.

 

(c)           “Common Units”
means the common units representing limited partner interests of the
Partnership having the rights and obligations specified with respect to Common
Units in the Amended and Restated Partnership Agreement.

 

1

 

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

 

(e)           “Prospectus” means the prospectus included in the
Registration Statement, including all documents incorporated by reference
therein, and each prospectus supplement relating to the offering and sale of
any of the Registrable Securities.

 

(f)            “Register,”
“registered,”
and “registration”  refer to a registration effected by
preparing and filing a registration statement in compliance with the Securities
Act, and the declaration or ordering of effectiveness of such registration
statement or document.

 

(g)           “Registrable
Securities”  means
Common Units acquired by the Holders pursuant to the Class B Acquisition
and any other equity interests of the Partnership issued in respect of such
Common Units as a result of splits, dividends, reclassification,
recapitalizations, mergers, consolidations or similar events; but shall not
include any Common Units acquired by the Holders pursuant to the Merger or
Common Units acquired by any other means prior to, on or subsequent to the date
hereof.  Any Registrable Securities will
cease to be Registrable Securities when (i) such Registrable Securities
have been disposed of pursuant to the Registration Statement or Rule 144
under the Securities Act (or any similar provision then in force under
the Securities Act), (ii) such
Registrable Securities are eligible for resale pursuant to Rule 144(k) (or
any similar provision then in force under the Securities Act)) or (iii) such Registrable
Securities are no longer held by the Holder or its transferees or assignees
permitted under Section 2.5.

 

(h)           “Registration
Expenses”  means
all expenses incurred by the Partnership in complying with Section 2.1
hereof, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Partnership, blue
sky fees and expenses and the expense of any special audits incident to or
required by any such registration (but excluding the compensation of regular
employees of the Partnership which shall be paid in any event by the
Partnership).

 

(i)            “SEC” or “Commission”  means
the Securities and Exchange Commission.

 

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

 

(k)           “Selling Expenses” means all fees and disbursements of
counsel to the Holders and all underwriting discounts, selling commissions and
brokerage fees applicable to the sale of Registrable Securities.

 

(l)            “Underwritten Offering”
means an offering in which Common Units are sold to an underwriter on a firm
commitment basis for reoffering to the public or an offering that is a “bought
deal” with one or more investment banks or any similar offering.

 

2

 

SECTION 2.                            REGISTRATION; RESTRICTIONS ON
TRANSFER.

 

2.1          Registration Rights.

 

(a)           As soon as practicable after the Closing (as defined
in the Class B Agreement), and in any event within forty-five (45) days
after the Closing, the Partnership shall prepare and file with the Commission a
Registration Statement (the “Registration Statement”)
which would permit the secondary resale thereunder of the Registrable
Securities, subject to the terms and conditions of this Agreement.  The Partnership shall use its commercially
reasonable efforts to cause the Registration Statement to become effective no
later than one-hundred fifty (150) days after the date of the Closing; provided, if the Commission notifies the Partnership that it
will not review the Registration Statement and that the Partnership may request
the acceleration of the effectiveness of the Registration Statement, the
Partnership shall request that the staff of the Commission declare the
Registration Statement effective within four (4) Business Days after
receiving such notice of no review from the Commission.  The term “Registration Statement” shall also
include all exhibits and financial statements and schedules and documents
incorporated by reference in such Registration Statement.

 

(b)           The Registration Statement shall cover the resale of
all the Registrable Securities for offering and sale on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act.  The section of the Registration Statement
entitled “Plan of Distribution” shall be prepared in accordance with the
requirements of Item 508 of Regulation S-K promulgated by the Commission under
the Securities Act (“Regulation S-K”)
and shall be in such form as the Partnership and the Holders may reasonably
agree.  The section of the Registration
Statement entitled “Plan of Distribution” shall also state (i) that the
Holders may from time to time make sales of Registrable Securities pursuant to
and in accordance with Rule 144 under the Securities Act and (ii) that
the Holders may from time to time make a private sale of Registrable Securities
directly to the purchasers thereof in a transaction that does not involve any
public offer or sale of Registrable Securities; provided
that in the case of such private sale, the securities so sold shall not
thereafter be subject to resale pursuant to the Registration Statement.

 

2.2          Expenses of Registration.  Except as specifically provided herein, all
Registration Expenses incurred in connection with any registration,
qualification or compliance pursuant to Sections 2.1 and 2.3 herein shall
be borne by the Partnership.  Each Holder
shall pay all Selling Expenses incurred in connection with any registration,
sale or disposition of its Registrable Securities hereunder; provided, the Partnership
shall reimburse each Holder for fees and disbursement of counsel incurred in
connection with the registration of Registrable Securities pursuant to this
Agreement up to a maximum amount of $5,000 per Holder.

 

2.3          Obligations with Respect to Registration.

 

(a)           In connection with the Partnership’s obligations under
Section 2.1 hereof to effect the registration of the Registrable
Securities under the Securities Act, the Partnership shall:

 

(i)            subject to Section 2.3(b), use its commercially
reasonable efforts to cause the Registration Statement to remain effective, and
prepare and file with the Commission 

 

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any amendments and
supplements to the Registration Statement and to the Prospectus used in connection
therewith as may be necessary to keep the Prospectus current and in compliance
in all material respects with the provisions of the Securities Act, until the
earlier to occur of (A) the expiration of a two-year period following the
date of this Agreement or (B) the sale of all of the Registrable
Securities covered by the Registration Statement;

 

(ii)           notify each Holder, (A) when the filing of a
post-effective amendment to the Registration Statement or supplement to the
Prospectus is required, when the same is filed, and in the case of a
post-effective amendment, when the same becomes effective, (B) of any
request by the Commission for any amendment of or supplement to the
Registration Statement or any Prospectus relating thereto and (C) of the
entry of any stop order suspending the effectiveness of such Registration
Statement or of the initiation of any proceedings for that purpose;

 

(iii)         furnish to each Holder a conformed copy of the
Registration Statement as declared effective by the Commission and of each
post-effective amendment thereto, and such number of copies of the final
Prospectus and of each supplement thereto as may reasonably be required to
facilitate the distribution of the Registrable Securities included in such
Registration Statement;

 

(iv)          register or qualify the Registrable Securities covered
by the Registration Statement under such other securities or Blue Sky laws of
such jurisdictions as shall be reasonably requested by the Holders; provided that the Partnership shall not be required in
connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or
jurisdictions; and

 

(v)            cause all of the Registrable Securities covered by
this Agreement to be listed on the New York Stock Exchange or such other
securities exchange or nationally recognized quotation system as the Common
Units may be listed or quoted.

 

(b)           Notwithstanding anything to the contrary contained
herein, if at any time after the filing of the Registration Statement, the
Partnership determines, in its reasonable business judgment, that such
registration and offering could interfere with or otherwise adversely affect
any financing, acquisition, corporate reorganization, or other material
transaction or development involving the Partnership or any of its affiliates
or require the Partnership to disclose matters that otherwise would not be
required to be disclosed at such time, then the Partnership may suspend the
Holders’ use of any Prospectus which is a part of the Registration Statement
(in which event the Holders shall discontinue sales of Registrable Securities
pursuant to the Registration Statement) by giving notice to the Holders.  Any such notice need not specify the reasons
for such suspension if the Partnership determines, in its reasonable business
judgment, that doing so would interfere with or adversely affect such
transaction or development or would result in the disclosure of material
non-public information.  In the event
that such notice is given, then until the Partnership has determined, in its
reasonable business judgment, that such registration and offering would no
longer interfere with the matters described in the preceding sentence and has
given notice thereof to the Holders, the Partnership’s obligations under Section 2.3(a)(i) will
be suspended.  In the event of a
suspension pursuant to this Section 2.3(b), then upon notice from the
Partnership that such suspension is no longer in effect, 

 

4

 

the Holders may
recommence distribution of Registrable Securities.  Notwithstanding anything to the contrary
contained herein, in no event shall any suspension under this Section 2.3(b) exceed
sixty (60) days in any one hundred eighty (180)-day period or ninety (90) days
in any 365 day period.

 

(c)           The Partnership’s obligations under this Agreement
shall be conditioned upon the Holders’ compliance with the following:

 

(i)            each Holder shall cooperate with the Partnership in
connection with the preparation of the Registration Statement, and for so long
as the Partnership is obligated to keep the Registration Statement effective,
such Holder will provide to the Partnership, in writing, for use in the
Registration Statement, all information regarding such Holder as may be
necessary to enable the Partnership to prepare the Registration Statement and
Prospectus covering the Registrable Securities and to maintain the currency and
effectiveness thereof;

 

(ii)           each Holder shall permit the Partnership, underwriters,
agents or broker-dealers of the offering or other distribution and their
respective representatives and agents to examine such documents and records and
shall supply any information as they may reasonably request in connection with
the offering or other distribution in which such Holder proposes to
participate;

 

(iii)         each Holder shall enter into such agreements with the
Partnership and any underwriter, broker-dealer or similar securities industry
professional containing representations, warranties, indemnities and agreements
as are in each case customarily entered into and made by selling
securityholders; and

 

(iv)          on notice from the Partnership of the happening of any
of the events specified in clauses (A), (B) or (C) of Section 2.3(a)(ii),
or that, as set forth in Section 2.3(b), it requires the suspension by the
Holders of the distribution of any of the Registrable Securities, then the
Holders shall cease offering or distributing the Registrable Securities until
such time as the Partnership notifies the Holders that offering and
distribution of the Registrable Securities may recommence; provided,
however, nothing contained herein shall
in any way limit the ability of the Holders to sell Registrable Securities in a
private offering in which such Registrable Securities may be sold in compliance
with the Securities Act without registration.

 

(d)           Notwithstanding any other provision of this Agreement,
no Holder shall be entitled to (i) “demand” rights or similar rights that
would require the Partnership to effect an Underwritten Offering of Registrable
Securities on such Holder’s behalf or (ii) “piggyback” or similar rights
that would require the Partnership to allow such Holder to include Registrable
Securities in an Underwritten Offering undertaken by the Partnership.

 

2.4          Indemnification.

 

(a)           To the extent permitted by law, the Partnership will
indemnify and hold harmless each Holder, the partners, members, officers and
directors of each Holder, any underwriter (as defined in the Securities Act)
for such Holder and each person, if any, who controls such Holder or
underwriter within the meaning of the Securities Act or the Exchange 

 

5

 

Act, against any losses,
claims, damages, or liabilities (joint or several) to which they may become
subject under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a “Violation”)
by the Partnership:  (i) any untrue
statement or alleged untrue statement of a material fact contained in such
Registration Statement or incorporated reference therein, including any
Prospectus contained therein or any amendments or supplements thereto or (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading; and
the Partnership will reimburse each such Holder, partner, member, officer,
director, underwriter or controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided however,
that the indemnity agreement contained in this Section 2.4(a) shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Partnership, which consent shall not be unreasonably withheld, nor shall the
Partnership be liable in any such case for any such loss, claim, damage,
liability or action to the extent that it arises out of or is based upon a
Violation which occurs in reliance upon and in conformity with written
information furnished specifically for use in connection with such registration
by or on behalf of such Holder, partner, member, officer, director, underwriter
or controlling person of such Holder.

 

(b)           To the extent permitted by law, each Holder will, if
Registrable Securities held by such Holder are included in the securities as to
which such registration qualifications or compliance is being effected,
indemnify and hold harmless the Partnership, each of its directors, its
officers and each person, if any, who controls the Partnership within the
meaning of the Securities Act, any underwriter and any other Holder selling
securities under such registration statement or any of such other Holder’s
partners, directors or officers or any person who controls such Holder, against
any losses, claims, damages or liabilities (joint or several) to which the
Partnership or any such director, officer, controlling person, underwriter or
other such Holder, or partner, director, officer or controlling person of such
other Holder may become subject under the Securities Act, the Exchange Act or
other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereto) arise out of or are based upon any
of the following statements:  (i) any
untrue statement or alleged untrue statement of a material fact contained in
such Registration Statement or incorporated reference therein, including any
Prospectus contained therein or any amendments or supplements thereto or (ii) the
omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading
(collectively, a “Holder Violation”), in each
case to the extent (and only to the extent) that such Holder Violation occurs
in reliance upon and in conformity with written information furnished by or on
behalf of such Holder, in Holder’s individual capacity as a Class B
Member, specifically for use in connection with such registration; and each
such Holder will reimburse any legal or other expenses reasonably incurred by
the Partnership or any such director, officer, controlling person, underwriter
or other Holder, or partner, officer, director or controlling person of such
other Holder in connection with investigating or defending any such loss,
claim, damage, liability or action if it is judicially determined that there
was such a Holder Violation; provided, however,
that the indemnity agreement contained in this Section 2.4(b) shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Holder, which consent shall not be unreasonably withheld; provided
further, that in no event 

 

6

 

shall any indemnity under
this Section 2.4 exceed the net
proceeds from the offering received by such Holder.

 

(c)           Promptly after receipt by an indemnified party under
this Section 2.4 of notice of the commencement of any action (including
any governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 2.4,
deliver to the indemnifying party a written notice of the commencement thereof
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however,
that an indemnified party shall have the right to retain its own counsel, with
the fees and expenses thereof to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by
such counsel in such proceeding.   The
failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action shall relieve such indemnifying
party of any liability to the indemnified party under this Section 2.4 to
the extent, and only to the extent, prejudicial to its ability to defend such
action, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 2.4.

 

(d)           If the indemnification provided for in this Section 2.4
is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any losses, claims, damages or liabilities
referred to herein, the indemnifying party, in lieu of indemnifying such
indemnified party thereunder, shall to the extent permitted by applicable law contribute
to the amount paid or payable by such indemnified party as a result of such
loss, claim, damage or liability in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the Violation(s) or
Holder Violation(s) that resulted in such loss, claim, damage or
liability, as well as any other relevant equitable considerations.  The relative fault of the indemnifying party
and of the indemnified party shall be determined by a court of law by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission; provided, that in no event shall any contribution
by a Holder hereunder exceed the net proceeds from the offering received by
such Holder.

 

(e)           The obligations of the Partnership and Holders under
this Section 2.4 shall survive completion of any offering of Registrable
Securities in a registration statement and, with respect to liability arising
from an offering to which this Section 2.4 would apply that is covered by
a registration filed before termination of this Agreement, such
termination.  No indemnifying party, in
the defense of any such claim or litigation, shall, except with the consent of
each indemnified party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation.

 

7

 

2.5          Assignment of Registration
Rights.  The rights to cause the Partnership to register and
maintain the registration of Registrable Securities pursuant to this Section 2
may be assigned by a Holder to a transferee or assignee of Registrable
Securities (for so long as such shares remain Registrable Securities); provided, however, (i) the
transferor shall, within ten (10) days after such transfer, furnish to the
Partnership written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are
being assigned and (ii) such transferee shall agree in writing to be
subject to all of the obligations and restrictions of a Holder as set forth in
this Agreement.

 

SECTION 3.                            MISCELLANEOUS.

 

3.1          Notices. 
All notices and other communications hereunder shall be in writing and
shall be deemed given when delivered personally or by telecopy (upon telephonic
confirmation of receipt) or on the first Business Day following the date of
dispatch if delivered by a recognized next day courier service.  All notices hereunder shall be delivered as
set forth below or pursuant to such other instructions as may be designated in
writing by the party to receive such notice:

 

If to the Partnership,
to:

 

MarkWest Energy
GP, L.L.C.

Attn:  General Counsel

1515 Arapahoe
Street

Tower 2, Suite 700

Denver,
Colorado  80202

Fax:  (303) 290-8769

 

With copies to:

 

Vinson & Elkins L.L.P.

Attn:  Michael J. Swidler

666 Fifth Avenue,
26th Floor

New York, NY  10103

Fax:  (212) 237-0100

 

Andrews Kurth LLP

Attn:  Bill Cooper

1350 I Street,
N.W., Suite 1100

Washington,
D.C.  20005

Fax:  (202) 662-2739

 

8

 

If to a Holder, to:

 

See Attached Schedule 3.1

 

With copies to:

 

3.2          Interpretation. 
The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement, and Section references are to
this Agreement unless otherwise specified. 
Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without
limitation.”  The meanings given to terms
defined herein shall be equally applicable to both the singular and plural
forms of such terms.  The table of
contents and headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.  This Agreement is the product
of negotiation by the parties having the assistance of counsel and other
advisers.  It is the intention of the
parties that this Agreement not be construed more strictly with regard to one
party than with regard to the others.

 

3.3          Counterparts. 
This Agreement may be executed by facsimile and in counterparts, all of
which shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each of the parties and delivered to the
other parties, it being understood that all parties need not sign the same
counterpart.

 

3.4          Entire Agreement. 
This Agreement together with the exhibit hereto, embody the complete
agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written and oral, that
may have related to the subject matter hereof in any way.

 

3.5          Governing Law; Consent to Jurisdiction;
Waiver of Jury Trial.

 

(a)           This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws
thereof.  In addition, each of the
parties hereto (i) consents to submit itself to the personal jurisdiction
of the Court of Chancery of the State of Delaware (and any appellate court of
the State of Delaware) and the Federal courts of the United States of America
located in the State of Delaware in the event any dispute arises out of this
Agreement or the transactions contemplated by this Agreement, (ii) agrees
that it will not attempt to deny or defeat such personal jurisdiction by motion
or other request for leave from any such court and (iii) agrees that it
will not bring any action relating to this Agreement or the 

 

9

 

transactions contemplated
by this Agreement in any court other than the Court of Chancery of the State of
Delaware or a Federal court of the United States of America located in the
State of Delaware.

 

(b)           EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION,
SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS
SECTION 3.5.

 

3.6          Amendment; Waiver. 
This Agreement may not be amended except by an instrument in writing
signed by the Partnership and each Holder. 
Each party may waive any right of such party hereunder by an instrument
in writing signed by such party and delivered to the Partnership and the
Holders.

 

3.7          Remedies.  All rights, powers and remedies provided under this
Agreement or otherwise available in respect hereof at law or in equity shall be
cumulative and not alternative, and the exercise or beginning of the exercise
of any thereof by any party shall not preclude the simultaneous or later
exercise of any other such right, power or remedy by such party.

 

3.8          Severability. 
Any term or provision of this Agreement which is determined by a court
of competent jurisdiction to be invalid or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without rendering invalid or unenforceable the remaining
terms and provisions of this Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction, and if any provision of this Agreement is determined to be so
broad as to be unenforceable, the provision shall be interpreted to be only so
broad as is enforceable, in all cases so long as neither the economic nor legal
substance of the transactions contemplated hereby is affected in any manner
adverse to any party or its equityholders. 
Upon any such determination, the parties shall negotiate in good faith
in an effort to agree upon a suitable and equitable substitute provision to
effect the original intent of the parties as closely as possible and to the end
that the transactions contemplated hereby shall be fulfilled to the maximum
extent possible.

 

3.9          Successors and Assigns; Third Party
Beneficiaries.  Except to the extent provided in Section 2.5,
neither this Agreement nor any of the rights or obligations of any party under
this Agreement shall be assigned, in whole or in part (by operation of law or
otherwise), by any party without the prior written consent of the other parties
hereto.  Subject to the foregoing, this
Agreement shall bind and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and permitted assigns.  Nothing in this Agreement, express or
implied, is intended to confer on any person other than (a) the parties
hereto or (b) the parties 

 

10

 

respective successors and
permitted assigns any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

 

3.10        Holder
Capacity.  Each Holder has entered into this Agreement
solely in such Holder’s capacity as the beneficial owner of Registrable
Securities, including Section 2.4 hereof; provided nothing herein shall in
any way limit or restrict any Holder from taking any action in his or her
capacity as a director or officer of the General Partner or the Partnership or
otherwise fulfilling his or her fiduciary obligations as a director or officer
of the General Partner or the Partnership.

 

[Remainder of this page intentionally
left blank]

 

11

 

IN WITNESS WHEREOF, the parties hereto have executed this REGISTRATION RIGHTS AGREEMENT as of the date set forth in
the first paragraph hereof.

 

	
  MARKWEST ENERGY PARTNERS, L.P.:

  
	
   

  	
   

  	
   

  
	
  By: 

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

  
	
   

  
	
   

  
	
   

  	
  By: 

  	
  /S/ NANCY K. BUESE

  
	
   

  	
   

  	
  Nancy
  K. Buese

  
	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
  HOLDERS:

  
				

 

 

	
  Frank M. Semple

  
	
   

  
	
   

  
	
  /S/ FRANK M. SEMPLE

  

 

 

	
  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 convey 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 conveyed 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 OfficerExhibit 10.3

 

 

CREDIT AGREEMENT

 

among

 

MARKWEST ENERGY PARTNERS, L.P.,

as the Borrower,

 

ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

 

JPMORGAN CHASE BANK, N.A.,

as Co-Syndication Agent

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Co-Syndication Agent

 

FORTIS CAPITAL CORP.,

as Co-Documentation Agent

 

SUNTRUST BANK,

as Co-Documentation Agent

 

U.S. BANK NATIONAL ASSOCIATION,

as Co-Documentation Agent

 

and

 

The Lenders Party Hereto

 

$350,000,000 Revolver Facility

$225,000,000 Term Loan Facility

 

RBC CAPITAL
MARKETS

As Sole Lead Arranger and Sole Book Running Manager

 

Dated as of February 20, 2008

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I.

  	
  DEFINITIONS AND ACCOUNTING TERMS

  	
  1

  
	
  1.01

  	
  Defined
  Terms

  	
  1

  
	
  1.02

  	
  Other
  Interpretive Provisions

  	
  25

  
	
  1.03

  	
  Accounting
  Terms

  	
  26

  
	
  1.04

  	
  Rounding

  	
  26

  
	
  1.05

  	
  References
  to Agreements and Laws

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II.

  	
  THE COMMITMENTS AND BORROWINGS

  	
  26

  
	
  2.01

  	
  Revolver
  Loans

  	
  26

  
	
  2.02

  	
  Term
  Loans

  	
  26

  
	
  2.03

  	
  Borrowings,
  Conversions and Continuations of Loans

  	
  27

  
	
  2.04

  	
  Prepayments

  	
  28

  
	
  2.05

  	
  Reduction
  or Termination of Commitments

  	
  30

  
	
  2.06

  	
  Repayment
  of Loans

  	
  31

  
	
  2.07

  	
  Interest

  	
  31

  
	
  2.08

  	
  Fees

  	
  31

  
	
  2.09

  	
  Computation
  of Interest and Fees

  	
  32

  
	
  2.10

  	
  Evidence
  of Debt

  	
  32

  
	
  2.11

  	
  Payments
  Generally

  	
  32

  
	
  2.12

  	
  Sharing
  of Payments

  	
  35

  
	
  2.13

  	
  Pari
  Passu Lien Securing Lender Hedging Agreements and Banking Service Obligations

  	
  35

  
	
  2.14

  	
  Letters
  of Credit

  	
  35

  
	
  2.15

  	
  Aggregate
  Revolver Commitment Increase

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  43

  
	
  3.01

  	
  Taxes

  	
  43

  
	
  3.02

  	
  Illegality

  	
  45

  
	
  3.03

  	
  Inability
  to Determine Rates

  	
  45

  
	
  3.04

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

  	
  46

  
	
  3.05

  	
  Compensation
  for Losses

  	
  46

  
	
  3.06

  	
  Matters
  Applicable to all Requests for Compensation

  	
  47

  
	
  3.07

  	
  Survival

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV.

  	
  CONDITIONS PRECEDENT

  	
  47

  
	
  4.01

  	
  Conditions
  Precedent

  	
  47

  
	
  4.02

  	
  Conditions
  to all Loans and L/C Credit Extension

  	
  51

  
	
  4.03

  	
  Conditions
  Precedent to Funding Loans for Permitted Acquisitions

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REPRESENTATIONS AND WARRANTIES

  	
  51

  
	
  5.01

  	
  Existence;
  Qualification and Power; Compliance with Laws

  	
  52

  
	
  5.02

  	
  Authorization;
  No Contravention

  	
  52

  
	
  5.03

  	
  Governmental
  Authorization

  	
  52

  

 

i

 

	
  5.04

  	
  Binding
  Effect

  	
  52

  
	
  5.05

  	
  Financial
  Statements; No Material Adverse Effect

  	
  53

  
	
  5.06

  	
  Litigation

  	
  53

  
	
  5.07

  	
  No
  Default

  	
  53

  
	
  5.08

  	
  Ownership
  of Property; Liens

  	
  53

  
	
  5.09

  	
  Environmental
  Compliance

  	
  53

  
	
  5.10

  	
  Insurance

  	
  54

  
	
  5.11

  	
  Taxes

  	
  54

  
	
  5.12

  	
  ERISA
  Compliance

  	
  54

  
	
  5.13

  	
  Subsidiaries
  and other Investments

  	
  54

  
	
  5.14

  	
  Margin Regulations; Investment
  Company Act; Use of Proceeds

  	
  55

  
	
  5.15

  	
  Disclosure

  	
  55

  
	
  5.16

  	
  Labor
  Matters

  	
  55

  
	
  5.17

  	
  Compliance
  with Laws

  	
  55

  
	
  5.18

  	
  Third
  Party Approvals

  	
  55

  
	
  5.19

  	
  Solvency

  	
  55

  
	
  5.20

  	
  Collateral

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI.

  	
  AFFIRMATIVE COVENANTS

  	
  56

  
	
  6.01

  	
  Financial
  Statements

  	
  56

  
	
  6.02

  	
  Certificates;
  Other Information

  	
  57

  
	
  6.03

  	
  Notices

  	
  57

  
	
  6.04

  	
  Payment
  of Obligations

  	
  58

  
	
  6.05

  	
  Preservation
  of Existence, Etc.

  	
  58

  
	
  6.06

  	
  Maintenance
  of Assets and Business

  	
  58

  
	
  6.07

  	
  Maintenance
  of Insurance

  	
  59

  
	
  6.08

  	
  Compliance
  with Laws and Contractual Obligations

  	
  59

  
	
  6.09

  	
  Books and
  Records

  	
  59

  
	
  6.10

  	
  Inspection
  Rights

  	
  59

  
	
  6.11

  	
  Compliance
  with ERISA

  	
  59

  
	
  6.12

  	
  Use of
  Proceeds

  	
  60

  
	
  6.13

  	
  Material
  Agreements

  	
  60

  
	
  6.15

  	
  Guaranties

  	
  60

  
	
  6.15

  	
  Further
  Assurances; Additional Collateral

  	
  60

  
	
  6.16

  	
  Clean
  Down Period

  	
  61

  
	
  6.17

  	
  Fiscal
  Year

  	
  61

  
	
  6.18

  	
  Merger
  Transaction

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  	
  NEGATIVE COVENANTS

  	
  61

  
	
  7.01

  	
  Liens

  	
  61

  
	
  7.02

  	
  Investments

  	
  62

  
	
  7.03

  	
  Hedging
  Agreements

  	
  63

  
	
  7.04

  	
  Indebtedness

  	
  63

  
	
  7.05

  	
  Lease
  Obligations

  	
  64

  
	
  7.06

  	
  Fundamental
  Changes

  	
  64

  
	
  7.07

  	
  Dispositions

  	
  65

  
	
  7.08

  	
  Restricted
  Payments; Distributions and Redemptions

  	
  65

  
	
  7.09

  	
  ERISA

  	
  66

  

 

ii

 

	
  7.10

  	
  Nature of
  Business; Capital Expenditures; Risk Management

  	
  66

  
	
  7.11

  	
  Transactions
  with Affiliates

  	
  66

  
	
  7.12

  	
  Burdensome
  Agreements

  	
  66

  
	
  7.13

  	
  Use of
  Proceeds

  	
  66

  
	
  7.14

  	
  Material
  Agreements

  	
  66

  
	
  7.15

  	
  Financial
  Covenants

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII.

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
  68

  
	
  8.01

  	
  Events of
  Default

  	
  68

  
	
  8.02

  	
  Remedies
  Upon Event of Default

  	
  71

  
	
  8.03

  	
  Application
  of Funds

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX.

  	
  ADMINISTRATIVE AGENT

  	
  72

  
	
  9.01

  	
  Appointment
  and Authorization of Agents; Lender Hedging Agreements

  	
  72

  
	
  9.02

  	
  Delegation
  of Duties

  	
  72

  
	
  9.03

  	
  Default;
  Collateral

  	
  73

  
	
  9.04

  	
  Liability
  of Agents

  	
  75

  
	
  9.05

  	
  Reliance
  by Administrative Agent

  	
  75

  
	
  9.06

  	
  Notice of
  Default

  	
  76

  
	
  9.07

  	
  Credit
  Decision; Disclosure of Information by Administrative Agent

  	
  76

  
	
  9.08

  	
  Indemnification
  of Agents

  	
  76

  
	
  9.09

  	
  Administrative
  Agent in its Individual Capacity

  	
  77

  
	
  9.10

  	
  Successor
  Administrative Agent and Collateral Agent

  	
  77

  
	
  9.11

  	
  Syndication
  Agents; Other Agents; Arranger

  	
  78

  
	
  9.12

  	
  Administrative
  Agent May File Proof of Claim

  	
  78

  
	
  9.13

  	
  Lender
  Hedging Agreements

  	
  79

  
	
  9.14

  	
  Banking
  Services

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS

  	
  79

  
	
  10.01

  	
  Amendments,
  Release of Collateral, Etc.

  	
  79

  
	
  10.02

  	
  Notices
  and Other Communications; Facsimile Copies

  	
  82

  
	
  10.03

  	
  No
  Waiver; Cumulative Remedies

  	
  83

  
	
  10.04

  	
  Attorney
  Costs; Expenses and Taxes

  	
  83

  
	
  10.05

  	
  Indemnification

  	
  83

  
	
  10.06

  	
  Payments
  Set Aside

  	
  84

  
	
  10.07

  	
  Successors
  and Assigns

  	
  85

  
	
  10.08

  	
  Confidentiality

  	
  87

  
	
  10.09

  	
  Set-off

  	
  88

  
	
  10.10

  	
  Interest
  Rate Limitation

  	
  88

  
	
  10.11

  	
  Counterparts

  	
  89

  
	
  10.12

  	
  Integration

  	
  89

  
	
  10.13

  	
  Survival
  of Representations and Warranties

  	
  89

  
	
  10.14

  	
  Severability

  	
  89

  
	
  10.15

  	
  Governing Law

  	
  89

  
	
  10.16

  	
  Waiver of
  Right to Trial by Jury, Etc.

  	
  90

  
	
  10.17

  	
  No
  General Partner Liability Until Consummation of Merger Transaction

  	
  91

  
	
  10.18

  	
  ENTIRE AGREEMENT

  	
  91

  
				

 

iii

 

 

SCHEDULES

 

2.01                           Commitments

5.13                           Subsidiaries and other
Equity Investments

7.01                           Existing Liens

7.04                           Indebtedness

7.12                           Agreements Restricting Liens
on Leasehold Interests

10.02                     Addresses for Notices to
Borrower, Guarantors and Administrative Agent

 

EXHIBITS

 

	
  Exhibit:

  	
   

  	
  Form of:

  
	
   

  	
   

  	
   

  
	
  A-1

  	
   

  	
  Borrowing Notice

  
	
  A-2

  	
   

  	
  Conversion/Continuation Notice

  
	
  A-3

  	
   

  	
  Repayment/Prepayment Notice

  
	
  B-1

  	
   

  	
  Revolver Note

  
	
  B-2

  	
   

  	
  Term Note

  
	
  C

  	
   

  	
  Compliance Certificate pursuant to Section 6.02(a)

  
	
  D

  	
   

  	
  Assignment and Assumption

  
	
  E

  	
   

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

  

 

iv

 

CREDIT
AGREEMENT

 

THIS CREDIT AGREEMENT is
entered into as of February 20, 2008, among MARKWEST ENERGY PARTNERS,
L.P., a Delaware limited partnership (the “Borrower”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, “Lender”), ROYAL BANK
OF CANADA, as Administrative Agent and Collateral Agent and as L/C Issuer,
JPMORGAN CHASE BANK, N.A. as Co-Syndication Agent, WACHOVIA BANK NATIONAL
ASSOCIATION, as Co-Syndication Agent, FORTIS CAPITAL CORP., as Co-Documentation
Agent, SUNTRUST BANK, as Co-Documentation Agent and U.S. NATIONAL BANK, as
Co-Documentation Agent.

 

PRELIMINARY STATEMENTS

 

The Borrower has requested
that the Lenders provide a secured term loan facility and a secured revolving
credit facility, and the Lenders are willing to do so on the terms and
conditions set forth herein.

 

In consideration of the
mutual covenants and agreements herein contained, the parties covenant and
agree as follows:

 

ARTICLE I. 

DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined Terms.

 

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

 

Accurate Applicable Rate has the meaning specified in
the definition of “Applicable Rate”.

 

Acquisition means any transaction or series of related
transactions for the purpose of, or resulting in, directly or indirectly, (a) the
acquisition by the Borrower or any of its Subsidiaries of all or substantially
all of the assets located in the United States of a Person or of any business
or division of a Person; (b) the acquisition by the Borrower or any of its
Subsidiaries of more than 50% of any class of Voting Stock (or similar ownership
interests) of any Domestic Person; or (c) a merger, consolidation,
amalgamation, or other combination by the Borrower or any of its Subsidiaries
with another Person if the Borrower or any of its Subsidiaries is the surviving
entity, provided that, (i) in
any merger involving the Borrower, the Borrower must be the surviving entity;
and (ii) in any merger involving a Wholly-Owned Subsidiary and another
Subsidiary, a Wholly-Owned Subsidiary shall be the survivor.

 

Acquisition Adjustment
Period means, if the Borrower makes a Permitted
Acquisition for a purchase price in excess of $50,000,000, the period from the
date such Permitted Acquisition is closed until the earliest of (i) the
closing of a secondary equity offering by the Borrower, (ii) the last day of
the third fiscal quarter following the closing date of such Permitted
Acquisition and (iii) 270 days from the date such Permitted Acquisition is
closed; provided that another Acquisition
Adjustment Period shall not commence until the current Acquisition Adjustment
Period shall have terminated and there shall have been at least one fiscal
quarter when there was no Acquisition Adjustment Period in effect and during
such fiscal quarter when no Acquisition Adjustment Period was in effect the
Borrower was in compliance with Section 7.15.

 

1

 

Adjusted Consolidated
EBITDA means, for the period of determination, the sum of (i) Consolidated
EBITDA plus (ii) Material Project Consolidated EBITDA Adjustments.

 

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

 

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

 

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

 

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

 

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

 

Agents means collectively the Administrative Agent, the
Collateral Agent, the Syndication Agents and the Documentation Agents and Agent individually
means any of them.

 

Agent-Related Persons means the Administrative
Agent (including any successor administrative agent), the Collateral Agent
(including any successor collateral agent), the Syndication Agent (including
any successor Syndication Agent), the Documentation Agents (including any
successor documentation agents) and their respective Affiliates (including the
officers, directors, employees, agents and attorneys-in-fact of such Person).

 

Aggregate Commitments means the sum of (i) the
Aggregate Revolver Commitments, which as of the Closing Date are $350,000,000 and (ii) the Aggregate Term Loan
Commitments, which as of the Closing Date are $225,000,000,
for a total Aggregate Commitments as of the Closing Date of $575,000,000.

 

Aggregate Revolver
Commitments has the meaning specified in the definition of “Revolver Commitment”.

 

Aggregate Term Loan
Commitments has the meaning specified in the definition of “Term Loan Commitment”.

 

Agreement has the
meaning specified in the introductory paragraph hereof.

 

Applicable Rate means (a) with respect
to the Revolver Loans, commitment fees, Letters of Credit and Term Loans, the
following percentages per annum set forth in the table below, on any date of 

 

2

 

determination,
with respect to the Type of Credit Extension or commitment fee that corresponds
to the Total Leverage Ratio at such date of determination, as calculated based
on the quarterly Compliance Certificate most recently delivered pursuant to Section 6.02(a):

 

	
  Pricing Level

  	
   

  	
  Total Leverage Ratio

  	
   

  	
  Commitment

  Fee

  + (basis points)

  	
   

  	
  Letter of Credit and Eurodollar Rate

  + (basis points)

  	
   

  	
  Base Rate

  + (basis points)

  	
   

  
	
  1

  	
   

  	
  Less than 3.75 to 1.00

  	
   

  	
  30.0

  	
   

  	
  150.0

  	
   

  	
  50.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Less than 4.25 to 1.00 but equal to or greater than
  3.75 to 1.00

  	
   

  	
  37.5

  	
   

  	
  175.0

  	
   

  	
  75.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Less than 4.75 to 1.00 but equal to or greater than
  4.25 to 1.00

  	
   

  	
  37.5

  	
   

  	
  200.0

  	
   

  	
  100.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  4.75 to 1.00 or greater

  	
   

  	
  50.0

  	
   

  	
  225.0

  	
   

  	
  125.0

  	
   

  

 

During any Acquisition
Adjustment Period, the Applicable Rate for Revolver Loans, Letters of Credit
and Term Loans will increase by 0.50% per annum (50 basis points) over the
amount set forth above.

 

Any increase or decrease in
the Applicable Rate resulting from a change in the Total Leverage Ratio shall
become effective as of the first day of the fiscal quarter of the Borrower
immediately following the date a Compliance Certificate is delivered pursuant to
Section 6.02(a);
provided, however, that if no Compliance Certificate is
delivered during a fiscal quarter when due in accordance with such Section 6.02(a), Pricing Level
4 shall apply as of the first day of such following fiscal quarter.  The Applicable Rate in effect from the
Closing Date through March 31, 2008 shall be based on Pricing Level 1.

 

                In the event that any Compliance
Certificate delivered hereunder is shown to be inaccurate (regardless of
whether this Agreement or any of the Aggregate Commitments are in effect when
such inaccuracy is discovered), and such inaccuracy, if corrected, would have
led to the application of a higher Applicable Rate based upon the foregoing
pricing grid (the “Accurate Applicable Rate”)
for any period that such Compliance Certificate covered, then (i) the
Borrower shall immediately deliver to the Administrative Agent a Compliance
Certificate for such period, (ii) the Applicable Rate shall be adjusted
such that after giving effect to the corrected Compliance Certificate the
Applicable Rate shall be reset to the Accurate Applicable Rate based upon the
foregoing pricing grid for such period as set forth in the foregoing pricing
grid and (iii) if the Accurate Applicable Rate is higher than the
Applicable Rate based upon the foregoing pricing grid, the Borrower shall
immediately pay to the Administrative Agent, for the 

 

3

 

account
of the Lenders, the accrued additional interest, letter of credit fees and
commitment fees owing as a result of such Accurate Applicable Rate for such
period.

 

Approved Fund means any Person (other than a natural
person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by a
Lender, an Affiliate of a Lender, or an entity or an Affiliate of an entity
that administers or manages a Lender.

 

Arranger means RBC Capital Markets in its capacity as sole
lead arranger and sole book running manager.

 

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

 

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

 

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

 

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

 

Available Cash has the meaning
given that term in the Partnership Agreement as in effect on the day the Merger
Transaction is consummated (or if the term “Available Cash” in the Partnership
Agreement is amended after such day, such amended meaning provided
the Administrative Agent and Required Lenders have agreed to adopt such amended
definition for purposes of this Agreement).

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

Borrower has the
meaning specified in the introductory paragraph hereof.

 

Borrowing means a borrowing consisting of simultaneous
Loans of the same Type and having the same Interest Period made by each of the
Lenders pursuant to Section 2.01
and/or Section 2.02.

 

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

 

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

 

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

 

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

 

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

 

Cash Equivalents means:

 

(a)           United States
Dollars;

 

(b)           direct
general obligations, or obligations of, or obligations fully and
unconditionally guaranteed as to the timely payment of principal and interest
by, the United States or any agency or instrumentality thereof having remaining
maturities of not more than 

 

5

 

thirteen (13) months, but excluding any such securities whose terms do
not provide for payment of a fixed dollar amount upon maturity or call for
redemption;

 

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

 

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

 

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

 

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

 

CERCLA means the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. §9601 et
seq.).

 

Change of Control means, after consummation
of the Merger Transaction, (a) the Borrower shall fail to own, directly or
indirectly, or fail to have voting control over, 100% of the equity interests
in Opco, (b) the Borrower shall fail to own, directly or indirectly, or
fail to have voting control over, 100% of the Voting Stock of Hydrocarbon, (c) the
General Partner shall fail to own, directly or indirectly, 100% of the general
partner interest of the Borrower, (d) any Person, entity or group (other
than John Fox and members of his family, Borrower and/or any Subsidiary)
acquires beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act) of 35% or more of the equity interests in the General Partner or (e) any
Person, entity or group (other than John Fox and members of his family)
acquires beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act) of 35% or more of the equity interests in the Borrower.

 

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

 

Class B Membership
Interest Contribution Agreement means that certain Amended
and Restated Class B Membership Interest Contribution Agreement dated as
of October 26, 2007 among Borrower and the sellers named therein.

 

Clean Down Period has the meaning set forth
in Section 6.16.

 

6

 

Closing Date means the date upon which this Agreement has
been executed by the Borrower, the Lenders and the Agents.

 

Code means the
Internal Revenue Code of 1986.

 

Collateral means all property and interests in property
and proceeds thereof now owned or hereafter acquired by any Loan Party and in
or upon which a Lien now or hereafter exists in favor of the Secured Parties, the
Administrative Agent and/or Collateral Agent on behalf of the Secured Parties,
including, but not limited to the Hydrocarbon Intercompany Note and
substantially all of the assets (including stock and other equity interests) of
each Loan Party, whether under this Agreement, the Collateral Documents, or
under any other document executed by any Loan Party and delivered to the
Administrative Agent, Collateral Agent or the Secured Parties.

 

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

 

Collateral Documents means (a) each
Guaranty, Security Agreement and Mortgage and all other guaranties, pledge
agreements, security agreements, deeds of trust, mortgages, chattel mortgages,
assignments, pledges, guaranties, notices of lien, continuation statements,
extension agreements and other similar agreements or instruments executed by
any Loan Party for the benefit of the Secured Parties now or hereafter
delivered to the Collateral Agent, the Administrative Agent or the Secured
Parties pursuant to or in connection with the transactions contemplated hereby,
and all financing statements, fixture filings, transmitting utility filings (or
comparable documents now or hereafter filed in accordance with the Uniform
Commercial Code or comparable Law) against any Loan Party, as debtor, in favor
of the Secured Parties or the Collateral Agent and/or the Administrative Agent
for the benefit of the Secured Parties, as secured party, to secure or
guarantee the payment of any part of the Obligations or the performance of any
other duties and obligations of Borrower under the Loan Documents, whenever
made or delivered, and (b) any amendments, supplements, modifications,
renewals, replacements, consolidations, substitutions, restatements, and
extensions of any of the foregoing.

 

                Commercial
Operation Date means the date on which a Material Project is
substantially complete and commercially operable.

 

Commitments  means
collectively the Revolver Commitments and Term Loan Commitments and
individually either the Revolver Commitments or the Term Loan Commitments.

 

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

 

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

 

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

 

7

 

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

 

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

 

Consolidated Net Income means, for any period, for
the Borrower and its Subsidiaries on a consolidated basis, the net income or
net loss of the Borrower and its Subsidiaries from continuing operations,
provided that there shall be excluded from such net income (to the extent
otherwise included therein): (a) the income (or loss) of any entity (other
than a consolidated Subsidiary) in which the Borrower or any Subsidiary has an
ownership interest, except to the extent that any such income has been actually
received by the Borrower or such Subsidiary in the form of cash dividends or
similar cash distributions (or in the form of a deemed distribution to the
extent cash flow has been utilized to pay for Capital Expenditures in the case
of Starfish Pipeline Company, LLC only and in a maximum annual amount not to exceed
$2,000,000); (b) net extraordinary gains and losses (other than, in the
case of losses, losses resulting from charges against net income to establish
or increase reserves for potential environmental liabilities and reserves for
exposure under rate cases), (c) any gains or losses attributable to
non-cash write-ups or write-downs of assets, (d) proceeds of any insurance
on property, plant or equipment other than business interruption insurance, (e) any
gain or loss, net of taxes, on the sale, retirement or other disposition of
assets (including the capital stock or other equity ownership of any other
Person, but excluding the sale of inventories in the ordinary course of
business), and (f) the cumulative effect of a change in accounting
principles.

 

Consolidated Senior Debt means, as of any date of
determination, for the Borrower and its Subsidiaries on a consolidated basis,
without duplication, the sum of (a) the Outstanding Amount of all Loans
and L/C Obligations, (b) all secured Indebtedness permitted under Section 7.04, and (c) the
Outstanding Amount of all obligations owed to Lenders or Affiliates of Lenders
under Lender Hedging Agreements (exclusive of any mark-to-market adjustment not
requiring any actual cash payment or settlement).

 

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

 

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

 

Debtor Relief Laws means the Bankruptcy Code
of the United States, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, 

 

8

 

receivership,
insolvency, reorganization, or similar debtor relief Laws of the United States
or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

 

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

 

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

 

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

 

Distribution Loan means a Revolver Loan which
is made in whole or in part for the purpose of (i) paying a Quarterly
Distribution, or (ii) reimbursing the purchase price of partnership units
purchased under the Borrower’s long-term incentive plan, or (iii) reimbursing
the purchase or redemption price of equity interests in the Borrower or any
Guarantor purchased or redeemed from their employees in accordance with Section 7.08(c).

 

Documentation Agent means
individually in its capacity as Co-Documentation Agent hereunder  Fortis Capital Corp., SunTrust Bank and U.S.
Bank National Association and any successor documentation agent and Documentation Agents collectively
means all of them.

 

Dollar and $ means lawful money
of the United States.

 

Domestic Person means any corporation,
general partnership, limited partnership, limited liability company, joint
stock company, trust, unincorporated organization, business association, firm
or joint venture that is organized under the Laws of the United States or any
state thereof or the District of Columbia.

 

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

 

Environmental Law means any applicable Law
that relates to (a) the condition or protection of air, groundwater,
surface water, soil, or other environmental media, (b) the environment,
including natural resources or any activity which affects the environment, (c) the
regulation of any pollutants, contaminants, wastes, substances, and Hazardous
Substances, including, without limitation, CERCLA, the Clean Air Act (42 U.S.C. §
7401 et seq.), the Federal Water Pollution Control Act, as amended by the Clean
Water Act (33 U.S.C. § 1251 et seq.), the Federal Insecticide, Fungicide, and
Rodenticide Act (7 

 

9

 

U.S.C.
§ 136 et seq.), the Emergency Planning and Community Right to Know Act of 1986
(42 U.S.C. § 1100 1 et seq.), the Hazardous Materials Transportation Act (49
U.S.C. § 1801 et seq.), the National Environmental Policy Act of 1969 (42
U.S.C. § 4321 et seq.), the Oil Pollution Act (33 U.S.C. § 2701 et seq.), RCRA,
the Rivers and Harbors Act (33 U.S.C. §401 et seq.), the Safe Drinking Water
Act (42 U.S.C. § 201 and § 300f et seq.), SWDA, the Toxic Substances Control
Act (15 U.S.C. § 2601 et seq.), and analogous state and local Laws, as any of
the foregoing may have been and may be amended or supplemented from time to
time, and any analogous enacted or adopted Law, or (d) the Release or
threatened Release of Hazardous Substances.

 

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

 

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

 

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

 

Escrow Agreement means that
certain Escrow Agreement among Borrower, Administrative Agent and Wells Fargo
Bank, National Association, as escrow agent, pursuant to which the $225,000,000
Term Loan under this Agreement will be funded on the Closing Date for the sole
and exclusive purpose of providing funds for the consummation of the Merger
Transaction on the day following the Closing Date.

 

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

 

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

 

(b)           if
the rate referenced in the preceding subsection (a) does not appear on
such page or service or such page or service shall cease to be
available, the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate on such other page or other 

 

10

 

service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period, determined as
of approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period, or

 

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

 

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

 

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

 

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

 

Exchange Act means the
Securities Exchange Act of 1934.

 

Exchange Agreement means that
certain Exchange Agreement, dated as of September 5, 2007, by and among
Borrower, Hydrocarbon and General Partner.

 

Existing Letters of Credit
means: means: (i) that certain standby letter of credit no.
1135/S24144 issued by Royal Bank of Canada to Flint Hills Resources, L.P., as
beneficiary, for the account of MarkWest Energy Operating Company, L.L.C. in
the face amount of $16,000,000 and having an expiration date of August 9,
2008; (ii) that certain standby letter of credit no. 1135/S24224 issued by
Royal Bank of Canada to Linde, as beneficiary, for the account of MarkWest
Energy Operating Company, L.L.C. in the face amount of $7,400,000 and having an
expiration date of March 17, 2008; (iii) that certain standby letter
of credit no. 1135/S22951 issued by Royal Bank of Canada to Park Central
Property, LLC, as beneficiary, for the account of MarkWest Energy Operating
Company, L.L.C. in the face amount of $1,000,000 and having an expiration date
of April 13, 2008; (iv) that certain standby letter of credit no.
1135/S23071 issued by Royal Bank of Canada to James River Insurance Company, as
beneficiary, for the account of MarkWest Energy Operating Company, L.L.C. in
the face amount of $300,000 and having an expiration date of November 1,
2008; (v) that certain standby letter of credit no. 1135/S22888 issued by
Royal Bank of Canada to James River Insurance Company, as beneficiary, for the
account of MarkWest Energy Operating Company, L.L.C. in the face amount of
$300,000 and having an expiration date of January 23, 2009; and (vi) 
that certain standby letter of credit no. 1185/S22614 issued by Royal Bank of
Canada to Equitable Production Company, as beneficiary, for the account of
MarkWest Hydrocarbon, Inc. in the face amount of $6,000,000 and having an
expiration date of September 30, 2008.

 

Facility means collectively the Revolver Facility and the
Term Facility.

 

Federal Funds Rate means, for any day, the rate
per annum (rounded upwards to the nearest 1/100 of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers on such day, as
published by 

 

11

 

the
Federal Reserve Bank on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate charged to the Administrative Agent on such day on such
transactions as determined by the Administrative Agent.

 

Fiscal Year means each year
beginning January 1st and ending the following December 31st.

 

Foreign Lender  means each Lender that is a “foreign
corporation, partnership or trust” within the meaning of the Code.

 

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

 

General Partner means MarkWest Energy GP,
L.L.C., the general partner of the Borrower.

 

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

 

Guarantors means each and every Subsidiary of Borrower,
including Hydrocarbon and Opco and all other existing and future Subsidiaries
of Borrower, whether direct or indirect, which undertake to be liable for all
or any part of the Obligations by execution of a Guaranty, or otherwise.

 

Guaranty means a Guaranty now or hereafter made by any
Guarantor in favor of the Administrative Agent and/or Collateral Agent on
behalf of the Secured Parties.

 

Guaranty Obligation means, as to any Person, (a) any
obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other payment obligation of
another Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of
such Person, direct or indirect, (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other payment
obligation, (ii) to purchase or lease property, securities or services for
the purpose of assuring the obligee in respect of such Indebtedness or other
payment 

 

12

 

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

 

Hazardous Substance means any substance that
poses a threat to, or is regulated to protect, human health, safety, public
welfare, or the environment, including without limitation: (a) any “hazardous
substance,” pollutant” or “contaminant,” and any “petroleum” or “natural gas
liquids” as those terms are defined or used under Section 101 of CERCLA, (b) “solid waste” as
defined in the SWDA, (c) asbestos or a material containing asbestos, (d) any
material that contains lead or lead-based paint, (e) any item or equipment
that contains or is contaminated by polychlorinated biphenyls, (f) any
radioactive material, (g) urea formaldehyde, (h) putrescible materials,
(i) infectious materials, (j) toxic microorganisms, including mold,
or (k) any substance the presence or Release of which requires reporting,
investigation or remediation under any Environmental Law.

 

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

 

HSR Act means the Hart-Scott-Rodino
Antitrust Improvements Act of 1976.

 

Hydrocarbon means MarkWest Hydrocarbon, Inc.,
a Delaware corporation, which upon consummation of the Merger Transaction will
become a Wholly-Owned Subsidiary of Borrower.

 

Hydrocarbon  Credit Agreement means that certain
Second Amended and Restated Credit Agreement dated as of August 18, 2006
among Hydrocarbon, as borrower, Royal Bank of Canada, as administrative agent
and collateral agent, the agents party thereto and the lenders party thereto.

 

Hydrocarbon Intercompany
Note means that certain $225,000,000 promissory note
executed by Hydrocarbon payable to the order of the Borrower, subordinated to
payment of the Obligations, and pledged by the Borrower to the Administrative
Agent and Collateral Agent as collateral security for the Obligations.

 

Increase Effective Date has the meaning
set forth in Section 2.15(d).

 

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

 

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

 

13

 

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

 

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

 

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

 

(e)           Capital
Leases and Synthetic Lease Obligations; and

 

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

 

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

 

Indemnified Liabilities has the
meaning set forth in Section 10.05.

 

Indemnitees has the
meaning set forth in Section 10.05.

 

Insurance Payment means any payment by an insurance company or
other surety on account of property damage or casualty loss to any property of
the Borrower or any of its Subsidiaries.

 

Interest Coverage Ratio means, as of any date of
determination, the ratio of (a) Adjusted Consolidated EBITDA for the
period of the four prior fiscal quarters ending on such date to (b) the
sum of (i) Consolidated Interest Charges during such period and (ii) imputed
interest charges on Synthetic Lease Obligations, of the Borrower and its
Subsidiaries during such period.

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

IRS means the
United States Internal Revenue Service.

 

ISDA means the
International Swaps and Derivatives Association, Inc.

 

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

 

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

 

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

 

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

 

15

 

L/C Issuer means Royal Bank of Canada in its capacity
as issuer of Letters of Credit hereunder, or any successor issuer of Letters of
Credit hereunder which is a Revolver Lender or an Affiliate of a Revolver
Lender.

 

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

 

Lender has the meaning specified in the introductory
paragraph hereof and, as the context requires, includes the L/C Issuer and may
refer to either a Revolver Lender, a Term Lender or both.

 

Lender Counterparties has the
meaning set forth in Section 10.01(e).

 

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

 

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

 

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

 

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

 

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

 

Letter of Credit Sublimit means an amount equal to
the lesser of (i) the Aggregate Revolver Commitments and (ii) $100,000,000.

 

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

 

Loan means collectively Revolver Loans and Term Loans
and individually either a Revolver Loan or a Term Loan.

 

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

 

16

 

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

 

Master Agreement has the meaning
set forth in the definition of “Swap Contract.”

 

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

 

Material Agreements means any contract material
to the business of the Borrower to which the Borrower or any of its
Subsidiaries is a party, including any contract with Hydrocarbon relating to
the business of the Borrower or Opco.  “Material Agreement”
means each of such Material Agreements.

 

Material Project means the construction or
expansion of any capital project of Borrower or any Subsidiary, the aggregate
capital cost of which exceeds $20,000,000.

 

Material Project
Consolidated EBITDA Adjustment has the meaning specified
in Section 7.15(e).

 

Maturity Date means (a) February 20, 2013, or (b) such
earlier effective date of any other termination, cancellation, or acceleration
of the Commitments under this Agreement.

 

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

 

Merger and Redemption
Agreement means that certain Agreement and Plan of Redemption
and Merger, dated as of September 5, 2007, by and among  Borrower, Hydrocarbon and Merger Sub.

 

Merger Sub  means MWEP,
L.L.C., a Delaware limited liability company and Wholly-Owned Subsidiary of
Borrower, which upon consummation of the Merger Transaction will cease to exist
and Hydrocarbon will be the survivor and continuing entity.

 

Merger Transaction means (i) the
redemption by Hydrocarbon of a portion of its outstanding shares of common
stock, (ii)  the merger of Merger Sub with and into Hydrocarbon, with
Hydrocarbon being the surviving entity and becoming a direct Wholly-Owned
Subsidiary of Borrower pursuant to the Merger and Redemption Agreement, (iii) the
acquisition by the Borrower from Hydrocarbon of common units in Borrower in
exchange for other equity in Borrower, pursuant to the Exchange Agreement, (iv) the
acquisition by the Borrower from the General Partner of all the General Partner’s
incentive distribution rights and the economic interest in the 2% general
partner interest in the Borrower for other equity in Borrower, pursuant to the
Exchange Agreement, and (v) the contribution to the Borrower by certain
current and former management and certain directors of Hydrocarbon and the
General Partner of their Class B membership interest in the General
Partner in exchange for cash and equity in Borrower pursuant to the Class B
Membership Interest Contribution Agreement.

 

17

 

Midstream Businesses means gathering,
transportation, fractionation, processing, marketing, and storage of natural
gas, crude oil, natural gas liquids and other liquid and gaseous hydrocarbons
and businesses closely related to the foregoing.

 

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

 

Mortgaged Properties means collectively all the
Mortgaged Property as defined in the Mortgages and Mortgaged Property
individually means any one of such Mortgaged Properties.

 

Mortgages means the mortgages, deeds of trust, or
similar instruments executed by any of the Loan Parties in favor of
Administrative Agent and/or Collateral Agent, for the benefit of the Secured
Parties, and all supplements, assignments, amendments, and restatements thereto
(or any agreement in substitution therefore, and “Mortgage” means each of such Mortgages).

 

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

 

Net Cash Proceeds means (a) any
Insurance Payment, (b) with respect to any Disposition, cash (including
any cash received by way of deferred payment as and when received) received by
the Borrower or any of its Subsidiaries in connection with and as consideration
therefor, on or after the date of consummation of such transaction, after (i) deduction of Taxes payable
in connection with or as a result of such transaction, and (ii) payment of
all usual and customary brokerage commissions and all other reasonable fees and
expenses related to such transaction (including, without limitation, reasonable
attorneys’ fees and closing costs incurred in connection with such
transaction), and (c) with respect to any Senior Debt Offering, proceeds
of such Senior Debt Offering after payment of all reasonable closing costs and
transaction costs.

 

Non-Consenting Lender has the meaning
set forth in Section 10.01(f).

 

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

 

Notes means collectively the Revolver Notes and the Term
Notes and “Note” means any one of such
promissory notes issued hereunder.

 

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

 

18

 

Opco means MarkWest
Energy Operating Company, L.L.C., a Delaware limited liability company and
Wholly-Owned Subsidiary of Borrower.

 

Opco  Credit Agreement means that certain
Fifth Amended and Restated Credit Agreement dated as of December 29, 2005
among Opco, as borrower, Borrower, as guarantor, Royal Bank of Canada, as
administrative agent and collateral agent, the agents party thereto and the
lenders party thereto, as amended from time to time.

 

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

 

Other Taxes has the
meaning specified in Section 3.01(b).

 

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

 

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

 

Partnership Agreement means the Third Amended and
Restated Agreement of Limited Partnership of the Borrower dated effective as of
February 21, 2008.

 

PBGC means the
Pension Benefit Guaranty Corporation.

 

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

 

Permitted Acquisition means any Acquisition by
the Borrower or any of its Subsidiaries 
resulting in ownership of assets inside the United States, or of equity
interests in a Domestic Person; provided,
however, that the following requirements have been satisfied:

 

19

 

(i)            if
such Acquisition results in the Borrower’s ownership of a Subsidiary, the
Borrower shall have complied with the requirements of Sections 6.14 and 6.15 as of the date
of such Acquisition;

 

(ii)           with
respect to Acquisitions involving acquisitions of an equity interest, such
Acquisition shall have been approved or consented to by the board of directors
or similar governing entity of the Person being acquired; and

 

(iii)          as
of the closing of such Acquisition no Default or Event of Default shall exist
or occur as a result of, and after giving effect to, such Acquisition.

 

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

 

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

 

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

 

Proceeds Account has the
meaning set forth in Section 2.04(b)(ii).

 

Pro Rata Share means, at any date of
determination, (i) for any Term Lender with respect to the Term Loan
Facility, the percentage (carried out to the ninth decimal place) that its Term
Loan bears to the aggregate Outstanding Amount of Term Loans (the “Term Loan Pro Rata Share”), (ii) for
any Revolver Lender with respect to the Revolver Facility,  the percentage (carried out to the ninth
decimal place) that its Revolver Commitment (unless the Revolver Commitments
have been terminated or canceled, in which case its Revolver Loans) bears to
the Aggregate Revolver Commitments (or aggregate Outstanding Amount of Revolver
Loans)(the “Revolver Loan Pro Rata Share”),
and (iii) for any Lender with respect to the Facility, the percentage
(carried out to the ninth decimal place) that its Term Loan plus its Revolver
Commitment (unless the Revolver Commitments have been terminated or canceled,
in which case its Revolver Loans) bears to the aggregate Outstanding Amount of
Term Loans plus Revolver Commitments (or aggregate Outstanding Amount of
Revolver Loans).

 

Quarterly Distributions means the distributions by
the Borrower of Available Cash (as defined in the Partnership Agreement).

 

RCRA means the
Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.).

 

Reduction Amount has the
meaning set forth in the definition of “Triggering Sale”.

 

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

 

Reinvested means used for
Capital Expenditures or Acquisitions in connection with the Midstream Business
of the Borrower or any of its Subsidiaries.

 

Reinvestment Certificate means with
respect to any Triggering Sale, a certificate of a Responsible Officer of the
Borrower delivered pursuant to Section 6.02(e) detailing
how the Reduction 

 

20

 

Amount
corresponding to such Triggering Sale has been Reinvested and the portion of
such Reduction Amount which has not been Reinvested.

 

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

 

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

 

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

 

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

 

Required Lenders means on any date of
determination on and after the date of the initial Borrowing under this
Agreement and prior to the Maturity Date, (A) for matters relating to the
Facility, those Lenders holding more than 50% of the sum of (i) Outstanding
Amount of Term Loans plus (ii) Aggregate Revolver Commitments (or if the
Revolver Commitments have been terminated or canceled, then the Outstanding
Amount of Revolver Loans plus L/C Obligations), (B) for matters relating
solely to the Revolver Facility, those Revolver Lenders holding more than 50%
of the Aggregate Revolver Commitments (or if the Revolver Commitments have been
terminated or canceled, then the Outstanding Amount of Revolver Loans plus L/C
Obligations)(the “Required Revolver Lenders”)
and (C) for matters relating solely to the Term Facility, those Term
Lenders holding more than 50% of the Outstanding Amount of Term Loans (the “Required Term Lenders”).

 

Required Revolver Lenders has the meaning set forth
in the definition of “Required Lenders”.

 

Required Term Lenders has the meaning set forth
in the definition of “Required Lenders”.

 

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

 

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

 

Revolver Commitment means, as to each Revolver
Lender, its obligation to make Revolver Loans to the Borrower pursuant to Section 2.01
and  to purchase participations in L/C
Obligations pursuant to Section 2.14,
in an aggregate principal amount at any one time outstanding not to exceed the
amount stated beside such Revolver Lender’s name on the most-recently amended Schedule 2.01 to this

 

21

 

Agreement
(which amount is subject to increase, reduction, or cancellation in accordance
with the Loan Documents) and collectively for all Revolver Lenders an amount
(subject to increase, reduction or cancellation as herein provided) equal to $350,000,000 (collectively, the Revolver Commitments of all
the Revolver Lenders herein the “Aggregate Revolver Commitments”).

 

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

 

Revolver Loan has the
meaning set forth in Section 2.01.

 

Revolver Loan Pro Rata Share has the
meaning set forth in the definition of “Pro Rata Share”.

 

Revolver Lender  means any Lender having a Revolver
Commitment.

 

Revolver Note means a promissory note of Borrower in
substantially the form of Exhibit B-1,
evidencing the obligation of Borrower to repay the Revolver Loans and all
renewals and extensions of all or any part thereof.

 

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

 

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

 

S&P means Standard &
Poor’s.

 

Secured Parties means the
Lenders party to this Agreement, Lenders and/or any Affiliate of a Lender
providing any Banking Service and the Lenders and/or any Affiliate of a Lender
party to a Lender Hedging Agreement.  The
term “Secured Parties” shall
include a former Lender or an Affiliate of a former Lender that is party to a
Swap Contract with the Borrower or any of its Subsidiaries; provided that such former Lender or Affiliate was a Lender
or an Affiliate of a Lender at the time it entered into such Swap Contract.

 

Security Agreements means, collectively, the
pledge and security agreements, pledge agreements, security agreements,
assignments, and similar instruments, executed by any of the Loan Parties in
favor of the Administrative Agent and/or Collateral Agent for the benefit of
the Secured Parties, and all supplements, assignments, amendments, and
restatements thereto (or any agreement in substitution therefor), and “Security Agreement”
means each of such Security Agreements.

 

Senior Debt Offering means a
private placement or a public sale of senior unsecured promissory notes by the
Borrower or any of its Subsidiaries having a maturity date no earlier than February 20,
2014 and covenants no more restrictive than those set forth in this Agreement.

 

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

 

22

 

Senior Unsecured Notes means
collectively (i) the 6.875% Senior Notes due 2014 of the Borrower and
MarkWest Energy Finance Corporation in the original  principal amount of $225,000,000 issued
pursuant to an Indenture among the Borrower, its Subsidiaries party thereto and
Wells Fargo Bank, National Association, as trustee and (ii) the 8.5%
Senior Notes due 2016 of the Borrower and MarkWest Energy Finance Corporation
in the original  principal amount of
$275,000,000 issued pursuant to an Indenture among the Borrower, its
Subsidiaries party thereto and Wells Fargo Bank, National Association, as
trustee.

 

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

 

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

 

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

 

SWDA means the Solid
Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of
1976 and the Hazardous and Solid Waste Amendments of 1984 (42 U.S.C. § 6901 et
seq.).

 

Syndication Agent means individually in its
capacity as co-syndication agent hereunder JPMorgan Chase Bank, N.A. and
Wachovia Bank, National Association and any successor syndication agent and Syndication Agents collectively
means both of them.

 

Synthetic Lease Obligation means the monetary
obligation of a Person under (a) a so-called synthetic or tax retention
lease, or (b) an agreement for the use or possession of property creating 

 

23

 

obligations
that do not appear on the balance sheet of such Person but which are
depreciated for tax purposes by such Person. 
The amount of any Synthetic Lease Obligation as of any date shall be
deemed to be the amount of Attributable Indebtedness in respect thereof as of
such date.

 

Taxes has the
meaning set forth in Section 3.01(a).

 

Term Lender  means any Lender having a Term Loan
Commitment or Term Loan.

 

Term Loan Commitment means, as to each Term
Lender, its obligation to make Term Loans to the Borrower pursuant to Section 2.02 in
an aggregate principal amount at any one time outstanding not to exceed the
amount stated beside such Term Lender’s name on the most-recently amended Schedule 2.01 to this
Agreement (which amount is subject to increase, reduction, or cancellation in
accordance with the Loan Documents) and collectively for all Term Lenders an
amount (subject to reduction or cancellation as herein provided) equal to $225,000,000 (collectively, the Term Loan Commitments of all
the Term Lenders herein the “Aggregate  Term Loan Commitments”).

 

Term Loan Facility means the term credit
facility as described in and subject to the limitations set forth in Section 2.02.

 

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

 

Term Loan Pro Rata Share has the meaning set forth
in the definition of “Pro Rata Share”.

 

Term Loans means an extension of credit by a Lender to
the Borrower pursuant to Section 2.02.

 

Term Note means a promissory note of the Borrower in
substantially the form of Exhibit B-2,
evidencing the obligation of Borrower to repay the Term Loans and all renewals
and extensions of all or any part thereof.

 

Threshold Amount at any time means an amount
equal to ten (10%) of the Borrower’s consolidated assets measured as of the
close of the then most recent fiscal quarter end.

 

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

 

                Triggering Sale means receipt of any
Insurance Payment and any Disposition (including sales of stock or other equity
interests of Subsidiaries) (other than a Disposition permitted by Section 7.07(a) or
(b) or
any Disposition relating directly to the Merger Transaction) by the Borrower or
any Subsidiary of the Borrower to any other Person (other than to the Borrower
or to a Wholly-Owned Subsidiary of the Borrower) with respect to which the Net
Cash Proceeds realized by the Borrower or any Subsidiary for such Disposition,
when aggregated with the Net Cash Proceeds from all such other Dispositions by
the Borrower or any of its Subsidiaries occurring since the Closing Date and
all Insurance Payments received by the Borrower or any of its Subsidiaries
since the Closing Date, equals or exceeds the Threshold Amount. The portion of
the Net Cash Proceeds in excess of the Threshold Amount is herein called the “Reduction Amount.”

 

24

 

Triggering Sale Certificate means with
respect to any Triggering Sale, a certificate of a Responsible Officer of the
Borrower delivered pursuant to Section 6.02(d) identifying
such Triggering Sale and specifying the date of receipt by the Borrower or any of
its Subsidiaries of Net Cash Proceeds realized by the Borrower or any
Subsidiary from a Disposition or from any Insurance Payment and specifying the
amount thereof and the Reduction Amount, if any.

 

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

 

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

 

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

 

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

 

USA Patriot Act means the Uniting And
Strengthening America By Providing Appropriate Tools Required To Intercept And
Obstruct Terrorism Act of 2001.

 

Voting Stock means the capital stock (or equivalent
thereof) of any class or kind, of a Person, the holders of which are entitled
to vote for the election of directors, managers, or other voting members of the
governing body of such Person.

 

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

 

1.02        Other Interpretive Provisions.

 

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

 

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

 

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

 

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

 

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

 

25

 

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

 

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

 

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

 

1.04        Rounding.  Any financial ratios required to be
maintained by the Borrower pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).

 

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

 

ARTICLE II.

THE COMMITMENTS AND BORROWINGS

 

2.01        Revolver Loans.  Subject to and in reliance upon the terms,
conditions, representations, and warranties in the Loan Documents, each
Revolver Lender severally, but not jointly, agrees to make revolving loans
(each such Loan a “Revolver
Loan”) to Borrower from time to time on any Business Day during
the period from the Closing Date to the Maturity Date, in an aggregate amount
not to exceed at any time outstanding the amount of such Revolver Lender’s
Revolver Loan Pro Rata Share of one or more Borrowings not to exceed, when
aggregated with such Revolver Lender’s Revolver Loan Pro Rata Share of the
Outstanding Amount of the L/C Obligations, such Revolver Lender’s Revolver Commitment.   Such Borrowings may be repaid and reborrowed
from time to time in accordance with the terms and provisions of the Loan
Documents; provided that, each
such Borrowing must occur on a Business Day and no later than the Business Day
immediately preceding the Maturity Date.

 

2.02        Term Loans.   Subject to and in reliance upon the
terms, conditions, representations, and warranties in the Loan Documents, each
Term Lender severally, but not jointly, agrees to make Term Loans to Borrower
in a single disbursement on the Closing Date (but in no event or under any
circumstances later than February 29, 2008) in an aggregate amount not to
exceed at any time outstanding the amount of such Term Lender’s Term Loan Pro
Rata Share of the Term Loan Commitment. 
If all or a portion of the Term Loan Principal Debt is paid or prepaid,
then the amount so paid or prepaid may not be reborrowed. Any portion of the
Term Loan Commitment that remains undisbursed after the initial 

 

26

 

disbursement under the Term
Loan Facility shall be reduced to zero and canceled on the date of such initial
disbursement.

 

2.03        Borrowings, Conversions and
Continuations of Loans.

 

(a)           Each Borrowing, each conversion of Loans from one Type to
the other, and each continuation of Loans as the same Type shall be made upon
the Borrower’s irrevocable notice to the Administrative Agent, which may be
given by telephone.  Each such notice
must be received by the Administrative Agent not later than 11:00 a.m., New
York time, (i) three Business Days prior to the requested date of any
Borrowing of, conversion to, or continuation of, Eurodollar Rate Loans, and (ii) one
Business Day prior to the conversion of Eurodollar Rate Loans to Base Rate
Loans, or the requested date of any Borrowing of Base Rate Loans.  Each such telephonic notice must be confirmed
promptly by delivery to the Administrative Agent of a written Borrowing Notice,
appropriately completed and signed by an authorized officer of the
Borrower.  Each Borrowing of, conversion
to or continuation of Eurodollar Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof.  Each Borrowing of or conversion to Base Rate
Loans shall be in a principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof.  Each
Borrowing Notice (whether telephonic or written) shall specify (i) whether
the Borrowing, conversion or continuation (as applicable) is under the Revolver
Facility or the Term Loan Facility, (ii) whether the Borrower is
requesting a Borrowing, a conversion of Loans from one Type to the other, or a
continuation of Loans as the same Type, (iii) the requested date of the
Borrowing, conversion or continuation, as the case may be (which shall be a
Business Day), (iv) the principal amount of Loans to be borrowed,
converted or continued, (v) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (vi) if applicable, the duration
of the Interest Period with respect thereto. 
If the Borrower fails to specify a Type of Loan in a Borrowing Notice or
if the Borrower fails to give a timely notice requesting a conversion or
continuation, then the applicable Loans shall be made or continued as, or
converted to, Base Rate Loans.  Any such
automatic conversion to Base Rate Loans shall be effective as of the last day
of the Interest Period then in effect with respect to the applicable Eurodollar
Rate Loans.  If the Borrower requests a
Borrowing of, conversion to, or continuation of, Eurodollar Rate Loans in any
such Borrowing Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of one month.

 

(b)           Following receipt of a Borrowing Notice, the
Administrative Agent shall promptly notify each Lender of its Pro Rata Share of
the applicable Loans, and if no timely notice of a conversion or continuation
is provided by the Borrower, the Administrative Agent shall notify each Lender
of the details of any automatic conversion to Base Rate Loans described in the
preceding subsection.  In the case of a
Borrowing, each Lender shall make the amount of its Loan available to the
Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 11:00 a.m., New York time, on the Business Day
specified in the applicable Borrowing Notice. 
Upon satisfaction of the applicable conditions set forth in Section 4.01 and
Section 4.02 (and Section 4.03, if
applicable), the Administrative Agent shall make all funds so received
available to the Borrower in like funds as received by the Administrative Agent
either by (i) crediting the account of the Borrower on the books of the
Administrative Agent with the amount of such funds or (ii) wire transfer
of such funds, in each case in accordance with instructions provided to the
Administrative Agent by the Borrower; provided,
however, that if, on the date of the Borrowing there are L/C
Borrowings outstanding, then the proceeds of such Borrowing shall be applied, first, to the payment in full of any such
L/C Borrowings, and second, to
the Borrower as provided above and the Borrower hereby irrevocably authorizes
the Administrative Agent to net such amount to pay such L/C Borrowings.

 

27

 

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

 

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

 

(e)           After giving effect to all Borrowings, all conversions of
Loans from one Type to the other, and all continuations of Loans as the same
Type, there shall not be more than six (6) Interest Periods in effect at
any given time with respect to Loans.

 

2.04        Prepayments.

 

(a)           Optional Prepayments.  The Borrower may, upon notice to the
Administrative Agent, at any time or from time to time voluntarily prepay in
whole or in part Loans outstanding under the Revolver Facility and/or the Term
Loan Facility without premium or penalty; provided
that (i) such notice must be received by the Administrative Agent not
later than 11:00 a.m., New York time, (A) three Business Days prior
to any date of prepayment of Eurodollar Rate Loans, and (B) the date of
prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate
Loans shall be in a principal amount of $1,000,000 or a whole multiple of
$500,000 in excess thereof; and (iii) any prepayment of Base Rate Loans
shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in
excess thereof.  Each such notice shall
specify the date and amount of such prepayment and the Type(s) of Loans to
be prepaid.  The Administrative Agent
will promptly notify each Lender of its receipt of each such notice, and of
such Lender’s Pro Rata Share of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.  Any prepayment of a Eurodollar Rate Loan
shall be accompanied by all accrued interest thereon, together with any
additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Pro Rata Shares as
directed by the Borrower or if no such direction is given, first, to repayment of the Term Loan
Principal Debt, until paid in full, and then to repayment of the Revolver
Principal Debt.

 

Unless a Default or Event of
Default has occurred and is continuing or would arise as a result thereof, any
payment or prepayment of the Revolver Loans may be reborrowed by Borrower,
subject to the terms and conditions hereof; but in no event following a payment
or prepayment of  Term Loans may any
amount of the Term Loans so paid or prepaid be reborrowed.

 

(b)           Mandatory Prepayments from Net
Cash Proceeds.

 

(i)            If
any portion of the Reduction Amount from any Triggering Sale (including any
deferred purchase price therefor) has not been Reinvested within one hundred
eighty (180) days from the receipt by the Borrower or any of its Subsidiaries
of such Reduction Amount (including receipt of any deferred payments for any
such Triggering Sale or portion thereof, if and when received), then on the Business
Day following such one hundred eightieth (180th) day the Loans shall be prepaid
in an amount equal to the portion of the Reduction Amount that is not so 

 

28

 

Reinvested, as provided in Section 2.04(b)(iv).  Net Cash Proceeds from Insurance Payments and
Dispositions that equal, when aggregated with Net Cash Proceeds from all
Insurance Payments and Dispositions since the Closing Date, an amount less than
the Threshold Amount shall not be required to be used for mandatory prepayments
pursuant to this Section 2.04(b) or a commitment
reduction pursuant to the second proviso of Section 2.04(b)(iv).

 

(ii)           Subject
to the second proviso of Section 2.04(b)(iv),which
is controlling over the provisions of this Section 2.04(b)(ii) if
the circumstances therein described exist or would exist, upon receipt by the Borrower or any Subsidiary of
any Reduction Amount, the Borrower (A) shall deliver a Triggering Sale
Certificate to the Administrative Agent and each Lender pursuant to Section 6.02(d) and (B) shall,
or shall cause the applicable Subsidiary to, deposit an amount equal to the
Reduction Amount into an account with the Administrative Agent, Collateral
Agent or another Agent, as elected by the Administrative Agent (the “Proceeds Account”); provided, however, that the Borrower shall not be required
to deposit an amount that is more than the sum of the Aggregate Revolver
Commitments plus the Term Loan Principal Debt. 
Such Reduction Amount shall remain in the Proceeds Account until the
earliest of (x) the date such Reduction Amount is Reinvested, (y) the
one hundred eightieth (180th) day following the receipt of such
Reduction Amount or (z) the occurrence of an Event of Default. If such
Reduction Amount has been Reinvested within such one hundred (180) day period
as reflected on the Reinvestment Certificate delivered to the Administrative
Agent pursuant to Section 6.02(e), then
there shall be no required prepayment. 
However, if the Reduction Amount has not been Reinvested within one
hundred (180) days following its receipt by the Borrower or any Subsidiary, on
the Business Day following such one hundred eightieth (180th) day,
the Borrower shall prepay the Loans by the amount of such Reduction Amount not
Reinvested within such one hundred eighty (180) day period, as provided in Section 2.04(b)(iv);
provided,  that if as the result of an Event of Default
the Loans have become due and payable pursuant to Section 8.02
or otherwise, the Administrative Agent may, without notice, apply all funds in
the Proceeds Account to repayment of the Obligations immediately after the
occurrence of such Event of Default.

 

(iii)          If
any Net Cash Proceeds are received by the Borrower or any of its Subsidiaries
from a Senior Debt Offering, the Loans shall be prepaid by the Borrower
immediately after receipt of such Net Cash Proceeds, in an amount equal to the
amount of Net Cash Proceeds received by the Borrower or any of its Subsidiaries
from such Senior Debt Offering, as provided in Section 2.04(b)(iv).

 

(iv)          The
prepayments provided for in this Section 2.04(b) shall be applied as
follows, unless a Default or
Event of Default has occurred and is continuing or would arise as a result
thereof (whereupon the provisions of Section 2.11(d) shall apply): (A) first, as a repayment of the Term Loan
Principal Debt, until paid in full, unless prior to
such prepayment the Required Lenders consent to the Borrower’s use of such Net
Cash Proceeds for an Acquisition approved by the Required Lenders, and (B) second, as a repayment of the Revolver Principal Debt; provided that such repayment of Revolver Principal Debt will
not result in or require a corresponding reduction in the Aggregate Revolver
Commitments; provided further, however, if Net
Cash Proceeds in excess of 25% of Borrower’s consolidated assets (valued as of
the close of the then most recent fiscal quarter-end) are or would be received
in connection with any Triggering Sale and on a pro forma basis the Borrower
would not be in compliance with the financial covenants set forth in Section 7.15 taking such
Triggering Sale (or the events giving rise to such Triggering Sale) into
account, then the Borrower shall use 100% of such Net Cash Proceeds to reduce
pro 

 

29

 

rata Term Loan Principal Debt and the Aggregate Revolver Commitments
(with a corresponding reduction in the Revolver Principal Debt in an amount
equal to the amount by which the Revolver Principal Debt exceeds the reduced
Aggregate Revolver Commitments) until the Revolver Principal Debt is reduced to
zero at which point no further prepayment of Revolver Principal Debt using the
Net Cash Proceeds from such Triggering Sale is required.

 

(v)           All
funds held in the Proceeds Account shall be invested in time deposits or
certificates of deposit issued by the Administrative Agent, Collateral Agent or
Agent holding the Proceeds Account or in Investments that constitute Cash
Equivalents (provided that the maturities thereof shall not exceed 45 days).
All interest and income earned on the amounts held in the Proceeds Account
shall be applied as the other funds held in the Proceeds Account.

 

(vi)          The
Borrower hereby grants to the Administrative Agent and/or Collateral Agent, for
the benefit of the Secured Parties, a lien on, and security interest in and to,
the Proceeds Account and all monies, cash, checks, drafts, certificates of
deposit, instruments, investment property, and other items received by
Administrative Agent and/or Collateral Agent for deposit therein and held
therein, as security for the Obligations. The rights granted by this Section 2.04(b)(vi) shall
be in addition to the rights of the Administrative Agent and Collateral Agent
under any statutory banker’s Lien or the common law right of setoff.

 

(c)           Mandatory Payments/Reductions.  If for any reason the Outstanding Amount of
all Revolver Loans and L/C Obligations at any time exceeds the Aggregate
Revolver Commitments then in effect, the Borrower shall immediately prepay
Revolver Loans and/or Cash Collateralize the L/C Obligations in an aggregate
amount equal to such excess.

 

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

 

2.05        Reduction
or Termination of Commitments.  The Borrower
may, upon notice to the Administrative Agent, terminate the Aggregate Revolver
Commitments or (prior to funding the Term Loan) permanently reduce the
Aggregate Term Loan Commitments or permanently reduce the Aggregate Revolver
Commitments to an amount not less than the sum of the Outstanding Amount of the
then existing (i) Revolver Principal Debt and (ii) L/C Obligations; provided that (i) any such notice
shall be received by the Administrative Agent not later than 11:00 a.m.,
three Business Days prior to the date of termination or reduction, and (ii) any
such partial reduction shall be in an aggregate amount of $10,000,000 or any
whole multiple of $1,000,000 in excess thereof. 
The Administrative Agent shall promptly notify the affected Lenders of
any such notice of reduction or termination. Once reduced in accordance with
this Section, the Aggregate Revolver Commitments or Aggregate Term Loan Commitments,
as the case may be, may not be increased. 
Any reduction of the Aggregate Revolver Commitments shall be applied to
the Revolver Commitment of each Revolver Lender according to its Pro Rata
Share, and any reduction of the Aggregate Term Loan Commitments shall be
applied to the Term Loan Commitment of each Term Lender according to its Pro
Rata Share.  All commitment fees on the
portion of the Aggregate Revolver Commitments so terminated which have accrued
to the effective date of any termination of the Aggregate Revolver Commitments
shall be paid on the effective date of such termination.

 

30

 

2.06        Repayment of Loans.

 

                (a)           Revolver
Loans. The Borrower shall repay to the Revolver Lenders on the Maturity Date
the Revolver Principal Debt outstanding on such date.

 

                (b)           Term
Loans. The Borrower shall repay to the Term Lenders on the Maturity Date
the Term Loan Principal Debt outstanding on such date.

 

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

 

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

 

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

 

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

 

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

 

31

 

(b)           Arranger’s and Administrative Agent’s Fees.   On the Closing Date, the Borrower shall pay
certain fees to the Arranger and Administrative Agent to be shared among them
and the Borrower shall pay certain fees to the Administrative Agent for the
Administrative Agent’s own account as an administrative agency fee, in the
amounts and at the times specified in the letter agreement dated September 4,
2007 (as amended from time to time, the “Agent/Arranger Fee Letter”), among the  Borrower, the Arranger and the Administrative
Agent.  Such fees shall be fully earned
when paid and shall be nonrefundable for any reason whatsoever.  Additionally, Borrower shall pay to the Administrative
Agent for the Administrative Agent’s own account the fees in the amounts and on
the dates specified in the Agent/Arranger Fee Letter.

 

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

 

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

 

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

 

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

 

32

 

11:00 a.m.,
New York time, shall be deemed received on the next succeeding Business Day and
any applicable interest or fee shall continue to accrue.

 

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

 

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

 

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

 

33

 

Obligations
owed to all Lenders (and Affiliates, in the case of Lender Hedging Agreements
or Banking Service Obligations)); and (v) to the payment of the remaining
Obligations, if any, in the order and manner the Required Lenders deem
appropriate.

 

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

 

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

 

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

 

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

 

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

 

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

 

34

 

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

 

2.12        Sharing of Payments.  If, other than as expressly provided
elsewhere herein (including, without limitation, Section 2.04(b)(iv)),
any Lender shall obtain on account of the Loans made by it, or the
participations in the L/C Obligations, any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise) in
excess of its ratable share (or other share contemplated hereunder) thereof,
such Lender shall immediately (a) notify the Administrative Agent, of such
fact, and (b) purchase from the other Lenders such participations in the
Loans made by them, and/or such subparticipations in the participations in L/C
Obligations held by them, as shall be necessary to cause such purchasing Lender
to share the excess payment in respect of such Loan or such participations, as
the case may be, pro rata with each of them; provided,
however, that if all or any portion of such excess payment is
thereafter recovered from the purchasing Lender, such purchase shall to that
extent be rescinded and each other Lender shall repay to the purchasing Lender
the purchase price paid therefor, together with an amount equal to such paying
Lender’s ratable share (according to the proportion of (i) the amount of
such paying Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.  The Borrower agrees that any Lender so
purchasing a participation from another Lender may, to the fullest extent
permitted by Law, exercise all its rights of payment (including the right of
set-off, but subject to Section 10.09)
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.  The Administrative Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of
participations purchased under this Section and will in each case notify
the Lenders following any such purchases or repayments.  Each Lender that purchases a participation
pursuant to this Section shall from and after such purchase have the right
to give all notices, requests, demands, directions and other communications
under this Agreement with respect to the portion of the Obligations purchased
to the same extent as though the purchasing Lender were the original owner of
the Obligations purchased.

 

2.13        Pari Passu Lien Securing Lender Hedging
Agreements and Banking Service Obligations.  All Obligations arising under the Loan
Documents, including, without limitation, Obligations under this Agreement,
Banking Service Obligations and Obligations under any Lender Hedging Agreement
(but not Indebtedness of the Borrower or any of its Subsidiaries owing to any
non-Lender or non-Lender Affiliate which enters into a Swap Contract with the
Borrower or any of its Subsidiaries), shall be secured  pari passu
by the Collateral.  No Lender or any
Affiliate of a Lender shall have any voting rights under any Loan Document as a
result of the existence of obligations owed to it under any such Lender Hedging
Agreement or as a result of any Banking Service Obligation being owed to it.

 

2.14        Letters of Credit.   (a)  The Letter of Credit Commitment.

 

(i)            Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees,
in reliance upon the agreements of the other Revolver Lenders forth in this Section 2.14, (1) from
time to time on any Business Day during the period from the Closing Date until
the Letter of Credit Expiration Date, to issue Letters of Credit for the
account of the Borrower or its Subsidiaries, and to amend or renew Letters of
Credit previously issued by it, in accordance with subsection (b) below,
and (2) to honor drafts under the Letters of Credit; and (B) the
Revolver Lenders severally agree to participate in Letters of Credit issued for
the account of the Borrower 

 

35

 

and its Subsidiaries; provided
that the L/C Issuer shall not be obligated to make any L/C Credit Extension
with respect to any Letter of Credit, and no Revolver Lender shall be obligated
to participate in any Letter of Credit, if as of the date of such L/C Credit
Extension, (x) the Outstanding Amount of all L/C Obligations and all
Revolver Loans would exceed the Aggregate Revolver Commitments, (y) the
aggregate Outstanding Amount of the Revolver Loans of any Revolver Lender, plus such Revolver Lender’s Pro Rata Share
of the Outstanding Amount of all L/C Obligations would exceed such Lender’s
Revolver Commitment, or (z) the Outstanding Amount of the L/C Obligations
would exceed the Letter of Credit Sublimit. 
Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully
revolving, and accordingly the Borrower may, during the foregoing period,
obtain Letters of Credit to replace Letters of Credit that have expired or that
have been drawn upon and reimbursed.  The
Existing Letters of Credit shall be deemed to have been issued pursuant hereto,
and from and after the Closing Date shall be subject to and governed by the
terms and conditions hereof.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

36

 

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

 

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

 

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

 

(iii)          If
the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in it sole and absolute discretion, agree to issue a Letter of
Credit that has automatic renewal provisions (each, an “Evergreen Letter of Credit”);
provided that any such Evergreen
Letter of Credit must permit the L/C Issuer to prevent any such renewal at
least once in each twelve-month period (commencing with the date of issuance of
such Letter of Credit) by giving prior notice to the beneficiary thereof not
later than a day (the “Nonrenewal
Notice Date”) in each such twelve-month period to be agreed upon
at the time such Letter of Credit is issued. 
Unless otherwise directed by the L/C Issuer, the Borrower shall not be
required to make a specific request to the L/C Issuer for any such renewal.  Once an Evergreen Letter of Credit has been
issued, the Revolver Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the renewal of such Letter of Credit at any
time to a date not later than the Letter of Credit Expiration Date; provided, however, that the L/C Issuer
shall not permit any such 

 

37

 

renewal if it has received notice on or before the Business Day
immediately preceding the Nonrenewal Notice Date (1) from the
Administrative Agent that the Required Revolver Lenders have elected not to
permit such renewal or (2) from any Revolver Lender stating that one or
more of the applicable conditions specified in Section 4.02 is not then satisfied
and directing the L/C Issuer not to permit such renewal.  Notwithstanding anything to the contrary
contained herein, the L/C Issuer shall have no obligation to permit the renewal
of any Evergreen Letter of Credit at any time.

 

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

 

(c)           Drawings and Reimbursements;
Funding of Participations.

 

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

 

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

 

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

 

38

 

in respect of its participation in such L/C Borrowing and shall
constitute an L/C Advance from such Revolver Lender in satisfaction of its
participation obligation under this Section 2.14.

 

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

 

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

 

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

 

(d)           Repayment of Participations.

 

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

 

(ii)           If
any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.14(c)(i) is
required to be returned, each Revolver Lender shall pay to the Administrative
Agent for the account of the L/C Issuer its Revolver Loan Pro Rata Share thereof
on demand of the Administrative Agent, plus interest thereon from the date of
such demand to the date such amount is returned by such Revolver Lender, at a
rate per annum equal to the Federal Funds Rate from time to time in effect.

 

39

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(f)            Role of L/C Issuer.  Each Lender and the Borrower agree that, in
paying any drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document.  No Agent-Related Person nor any of the
respective correspondents, participants or assignees of the L/C Issuer shall be
liable to any Lender for (i) any action taken or omitted in connection
herewith at the request or with the approval of the requisite Lenders or the
requisite Required Lenders, as applicable, (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or 

 

40

 

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

 

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

 

(h)           Applicability of ISP98 or UCP 600.  Unless otherwise expressly agreed by the L/C
Issuer and the Borrower when (i) a standby Letter of Credit is issued (including
any such agreement applicable to an Existing Letter of Credit), the rules of
the “International Standby Practices 1998” published by the Institute of
International Banking Law & Practice (or such later version thereof as
may be in effect at the time of issuance) shall apply to each Letter of Credit
and (ii) a documentary or commercial Letter of Credit is issued (including
any such agreement applicable to an Existing Letter of Credit), the Uniform
Customs and Practice for Documentary Credits (UCP 600)(or such later version
thereof as may be in effect at the time of issuance) shall apply to each Letter
of Credit.

 

(i)            Letter of Credit Fees.  The Borrower shall pay to the Administrative
Agent for the account of each Revolver Lender in accordance with its Revolver
Loan Pro Rata Share a Letter of Credit fee for each Letter of Credit issued
equal to the Applicable Rate times the actual daily undrawn amount under each
Letter of Credit.  Such fee for each
Letter of Credit shall be due and payable on the last Business Day of each
March, June, September and December, commencing with the first such date
to occur after the issuance of such Letter of Credit, and on the Letter of
Credit Expiration Date.

 

(j)            Fronting Fee and Documentary and Processing Charges
Payable to L/C Issuer.  The Borrower
shall pay directly to the L/C Issuer for its own account a fronting fee in an
amount with respect to each Letter of Credit issued equal to the greater of (i) $500
or (ii) 1⁄4 of 1% calculated on the face amount thereof.   Such fronting fee for each Letter of Credit
shall be due and payable on the last Business 

 

41

 

Day
of each March, June, September and December, commencing with the first
such date to occur after the issuance of such Letter of Credit, and on the
Letter of Credit Expiration Date.  The
Borrower shall also pay directly to the L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of the L/C Issuer relating to letters of
credit as from time to time in effect. 
Such fees and charges are due and payable on demand and are
nonrefundable.

 

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

 

2.15        Aggregate Revolver Commitment Increase.

 

(a)  Request for Increase.  Upon
notice to the Administrative Agent and subject to the Administrative Agent’s
consent (which shall not be unreasonably withheld or delayed), the Borrower may
request, from time to time, an increase in the Aggregate Revolver Commitments
by an amount for all such requests not exceeding $200,000,000;
provided that any such request for an
increase in the Aggregate Revolver Commitments shall be in a minimum amount of $25,000,000; and provided further that any such increased
Aggregate Revolver Commitments shall be secured pari passu with the
Obligations.  At the time of sending such
notice, the Borrower (in consultation with the Administrative Agent) shall
specify the time period within which each Revolver Lender that is invited to
participate in the increased Revolver Facility is requested to respond (which
shall in no event be less than 10 Business Days from the date of delivery of
such notice).  The Borrower may also
invite additional Eligible Assignees reasonably acceptable to the Arranger and
the Administrative Agent to become Revolver Lenders pursuant to a joinder
agreement in form and substance satisfactory to the Administrative Agent and
its counsel.

 

(b)           Revolver
Lender Elections to Increase.  Each Revolver Lender and each
additional Eligible Assignee invited to participate shall notify the
Administrative Agent within such time period whether or not it agrees to
participate in the increase in the Aggregate Revolver Commitments (such
election to be at the sole discretion of each such Revolver Lender and
additional Eligible Assignee) and, if so, by what amount).  Any Revolver Lender or additional Eligible
Assignee not responding within such time period shall be deemed to have
declined to participate in the increase in the Aggregate Revolver Commitments.

 

(c)           Notification
by Administrative Agent.  The Administrative Agent shall notify
the Borrower, each Revolver Lender and each additional Eligible Assignee of the
responses to the request made hereunder to increase the Aggregate Revolver
Commitments.

 

(d)           Effective
Date and Allocations.  If the Aggregate Revolver Commitments are
increased in accordance with this Section, the Administrative Agent and the
Borrower shall determine the effective date (the “Increase
Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly
notify the Borrower, the Revolver Lenders and additional Eligible Assignees in
writing of the final allocation of such increase and the Increase Effective
Date.

 

(e)           Conditions
to Effectiveness of Increase.  As conditions precedent to such
increase, the terms and documentation in respect thereof shall be satisfactory
to the Arranger and the Administrative Agent and the Borrower shall deliver to
the Administrative Agent a certificate of each Loan Party dated as of the
Increase Effective Date signed by a Responsible Officer of such Loan Party (i) certifying
and attaching the resolutions adopted by such Loan Party approving or
consenting to such increase, and (ii) in the case of the Borrower,
certifying that, before and after giving effect to such increase, (A) no
Default or 

 

42

 

Event of Default exists or
would exist immediately after giving effect to the increase in the Aggregate
Revolving Commitments, (B) the representations and warranties contained in
Article V and the other Loan
Documents are true and correct in all material respects on and as of the
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct in all material respects as of such earlier date, and except that
for purposes of this Section 2.15,
the representations and warranties contained in subsections
(a) and (b) of
Section 5.05 shall be deemed to
refer to the most recent financial statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01, and (C) all
financial covenants in Section 7.15
would be satisfied on a pro forma basis as of the most recent testing date and
on the Increase Effective Date after giving effect to actual Credit Extensions
on the Increase Effective Date.  
Additionally, as a condition precedent to such increase the
Administrative Agent may require an opinion from counsel to each Loan Party and
the General Partner, in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.

 

(f)            Conflicting Provisions.  This Section shall
supersede any provisions in Sections 2.12
or 10.01 to the contrary.

 

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

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

 

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

 

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

 

43

 

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

 

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

 

(e)           As soon as practicable after any
payment of indemnified Taxes or Other Taxes by any Borrower to a Governmental
Authority, such Borrower shall deliver to the Administrative Agent the original
or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(f)            Any Foreign Lender that is entitled
to an exemption from or reduction of withholding tax under the Law of the
jurisdiction in which Borrower is resident for tax purposes, or any treaty to
which such jurisdiction is a party, with respect to payments hereunder or under
any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable Law or
reasonably requested by the Borrower or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable Law, or
reasonably requested by Borrower, as will permit such payments to be made
without withholding or at a reduced rate of withholding.  In addition, any Lender, if requested by the
Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by applicable Law or reasonably requested by the Borrower or the
Administrative Agent as will enable the Borrower or the Administrative Agent to
determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

 

Without
limiting the generality of the foregoing, in the event that Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

 

(i)            duly
completed copies of IRS Form W-8BEN claiming eligibility for benefits of
an income tax treaty to which the United States is a party;

 

(ii)           duly
completed copies of IRS Form W-8ECI;

 

(iii)          in
the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a
certificate to the effect that such Foreign Lender is not (A) a “bank”
within the meaning of section 881(c)(3)(A) of the Code, (B) a “10
percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of
the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) duly completed copies of IRS Form W-8BEN;
or

 

44

 

(iv)          any
other form prescribed by applicable Law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together
with such supplementary documentation as may be prescribed by applicable Law to
permit the Borrower to determine the withholding or deduction required to be
made.

 

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

 

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

 

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

 

45

 

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

 

(a)           If any Lender or the L/C Issuer determines that as a
result of a Change in Law, or such Lender’s or such L/C Issuer’s compliance
therewith, there shall be any increase in the cost to such Lender or such L/C
Issuer of agreeing to make or making, funding or maintaining Eurodollar Rate
Loans or to increase the cost to such Lender or the L/C Issuer of participating
in, issuing or maintaining any Letter of Credit, or a reduction in the amount
received or receivable by such Lender or L/C Issuer in connection with any of
the foregoing (excluding for purposes of this subsection (a) any such
increased costs or reduction in amount resulting from (i) Taxes or Other
Taxes (as to which Section 3.01
shall govern), (ii) changes in the basis of taxation of overall net income
or overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender or
L/C Issuer is organized or has its Lending Office, and (iii) reserve
requirements contemplated by Section 3.04(c) utilized, as to Eurodollar
Rate Loans, in the determination of the Eurodollar Rate), then from time to
time upon demand of such Lender or L/C Issuer (with a copy of such demand to
the Administrative Agent), the Borrower shall pay to such Lender or L/C Issuer,
as the case may be, such additional amounts as will compensate such Lender or
L/C Issuer for such increased cost or reduction.

 

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

 

(c)           The Borrower shall pay to each Lender, as long as such
Lender shall be required under regulations of the Board to maintain reserves
with respect to liabilities or assets consisting of or including Eurocurrency
funds or deposits (currently known as “Eurocurrency liabilities”), without proration
or offset, additional costs on the unpaid principal amount of each Eurodollar
Rate Loan equal to the actual costs of such reserves allocated to such Loan by
such Lender (as determined by such Lender in good faith, which determination
shall be conclusive), which shall be due and payable on each date on which
interest is payable on such Loan; provided
the Borrower shall have received at least 15 days’ prior notice (with a copy to
the Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 15 days
prior to the relevant Interest Payment Date, such additional interest shall be
due and payable 15 days from receipt of such notice.

 

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

 

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

 

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

 

46

 

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

 

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

 

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

 

ARTICLE IV.

CONDITIONS PRECEDENT

 

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

 

(a)           Execution and delivery of the Escrow Agreement, in form
and substance satisfactory to the Administrative Agent, and satisfactory
evidence that the conditions precedent to consummation of the Merger
Transaction (other than payment of amounts to be paid by Borrower in connection
therewith) have been (or contemporaneously with the payment of amounts from the
escrow account established pursuant to the Escrow Agreement, will be) consummated
consistent with the material terms of the Merger and Redemption Agreement, with
no material amendments or waivers not consented to by the Arranger.

 

 (b)          Satisfactory
evidence that (i) all amounts (other than fees and expenses which shall be
paid) owing by Hydrocarbon under the Hydrocarbon Credit Agreement have been (or
contemporaneously with the initial funding under this Agreement, will be) fully
repaid and any outstanding letters of credit thereunder have been either cash
collateralized or deemed to have been issued under this Agreement and all
commitments thereunder have been terminated and all liens securing obligations
thereunder have been released, and (ii)  all amounts (other than fees and
expenses which shall be paid) owing by Opco under the Opco Credit Agreement
have been (or contemporaneously with the initial funding under this Agreement,
will be) fully repaid and any outstanding letters of credit thereunder have
been either cash collateralized or deemed to have been issued under this Agreement
and all commitments thereunder have been terminated and all liens securing
obligations thereunder have been released, in each case in form and substance
satisfactory to the Administrative Agent.

 

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

 

47

 

(i)            executed
counterparts of this Agreement, the Guaranty, the Security Agreements, the
Mortgages and all other Collateral Documents, as deemed advisable by the
Administrative Agent or its counsel, each dated as of the Closing Date; provided, however, the security interests granted in certain
Collateral may be perfected up to 30 days after the Closing Date, with such
additional extensions of time thereafter as may be granted by the
Administrative Agent in its reasonable discretion;

 

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

 

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

 

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

 

(v)           a
certificate signed by a Responsible Officer of the Borrower certifying (A) that
the representations and warranties contained in Article V are true and correct in
all material respects on and as of the Closing Date, (B) that no default
or event of default had occurred and was continuing under the Opco Credit
Agreement as of the Closing Date, (C) that no default or event of default
had occurred and was continuing under the Hydrocarbon Credit Agreement as of
the Closing Date, (D) that no Default or Event of Default has occurred and
is continuing under this Agreement as of the Closing Date after giving effect
to the initial Credit Extension hereunder, (E) there has not occurred any
event, circumstance or condition that (i) is or could reasonably be
expected to be material and adverse to the financial position, results of
operations, business or assets of Hydrocarbon and its Subsidiaries, taken as a
whole, or Borrower and its Subsidiaries, taken as a whole, or (ii) materially
impairs or could reasonably be expected to materially impair the ability of
Hydrocarbon or Borrower to perform its respective obligations under the Merger
and Redemption Agreement or otherwise materially threaten or materially impede
the consummation of the Merger Transaction; provided, however, that the foregoing shall not be deemed to include
the impact of (w) circumstances generally affecting Persons engaged in the
gathering, processing or fractionation of natural gas, (x) the natural gas
pipeline, treating and processing industry generally (including the price of
natural gas and the cost associated with the drilling and/or production of
natural gas), (y) any general market, economic, financial or political
conditions in the United States, or outbreak of hostilities or war, or (z) the
effects of the Merger Transaction and compliance by either the Borrower or
Hydrocarbon with the provisions of the Merger and Redemption Agreement on the
financial position, results of operations, business or assets of either such
party and its subsidiaries, so long as, in the case of clauses (w), (x) or
(y), the impact on the Borrower or Hydrocarbon is not disproportionately
adverse as compared to others in the industry, (F) that as of the Closing
Date there are no material environmental or material legal issues affecting any
Loan Party or any of the Collateral, (G) all necessary governmental,
equity holder and third party consents and approvals necessary or required for
the consummation 

 

48

 

of the Merger Transaction have been obtained and all applicable waiting
periods, including under the HSR Act, have expired or terminated without any
action being taken by any Governmental Authority, equity holder or third party
that could restrain, prevent or impose any material adverse conditions on
Borrower or any of its Subsidiaries or that could seek or threaten any of the
foregoing, (H) all necessary governmental and third party approvals
necessary or required for any Loan Party to enter into this Agreement or any of
the Loan Documents has been obtained, (I) except as previously disclosed
by the Borrower in writing, there is no litigation, investigation or proceeding
known to and affecting the General Partner, Borrower or any other Loan Party
for which the Borrower is required to give notice pursuant to Section 6.03(c) (or,
if there is any such litigation, investigation or proceeding, then a notice
containing the information required by Section 6.03(c) shall be given
concurrently with the delivery of the certificate given pursuant to this clause
(v)), and (J) that no action, suit, investigation or proceeding is pending
or to his knowledge, threatened in any court or before any arbitrator or
Governmental Authority by or against the General Partner, the Borrower or any
of their respective properties, that (y) could reasonably be expected to
materially and adversely affect the Borrower and the Guarantors, taken as a
whole, or (z) seeks to affect or pertains to any transaction contemplated
hereby or the ability of the Borrower or any Guarantor to perform its
obligations under the Loan Documents;

 

(vi)          a
certificate of a Responsible Officer (a) of the Borrower demonstrating compliance
with all financial covenants on a pro forma basis for the quarter ended December 31,
2007 and (b) of the Borrower as to the satisfaction of all conditions
specified in this Section 4.01
and Section 4.02;

 

(vii)         a
certificate from the chief financial officer of the Borrower, in form and
substance satisfactory to the Administrative Agent, certifying that the
Borrower and the other Loan Parties on a consolidated basis are not “insolvent”
(as such term is used and defined in (i) the United States Bankruptcy Code
and (ii) the Texas Uniform Fraudulent Transfer Act, Tex. Bus. &
Com. Code Ann. §24.003) immediately after giving effect to the Merger
Transaction and the initial Credit Extensions hereunder;

 

(viii)        an
opinion from (a) Hogan & Hartson, L.L.P., counsel to each Loan
Party and the General Partner, in form and substance satisfactory to the
Administrative Agent and its counsel and (b) local counsel in each of the
States of Kentucky, Michigan, New Mexico, Oklahoma and West Virginia, as to the
Mortgage filed in such State, in form and substance satisfactory to the
Administrative Agent and its counsel;

 

(x)            the
Administrative Agent being reasonably assured that no legal basis exists for
any Governmental Authority to restrict, prevent or impose any material adverse
condition on the Borrower or any Subsidiary in connection with the Merger
Transaction; and

 

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

 

(c)           Any fees due and
payable at the Closing Date shall have been paid including, without limitation,
payment of fees and expenses pursuant to the Agent/Arranger Fee Letter.

 

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

 

49

 

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

 

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

 

(ii)           funds
sufficient to pay any filing or recording tax or fee in connection with any and
all UCC-1 financing statements, UCC-3 amendments and UCC-3 termination
statements, and funds sufficient to pay any filing fees and mortgage taxes
associated with the filing of the Mortgages;

 

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

 

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

 

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

 

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

 

(g)           The Administrative Agent’s receipt (with sufficient copies
for all Lenders) of the certificate of formation of the Borrower, together with
all amendments, certified by an appropriate governmental officer in its
jurisdiction of organization, as well as any other information required by Section 326
of the USA Patriot Act or necessary for the Administrative Agent or any Lender
to verify the identity of Borrower as required by Section 326 of the USA
Patriot Act.

 

(h)           The Administrative Agent’s receipt of executed copies of
(together with all exhibits, schedules and annexes thereto) (i) the Merger
and Redemption Agreement, (ii) the Exchange Agreement, (iii) the Class B
Membership Interest Contribution Agreement, and (iv) any other documents,
instruments or certificates relating to the Merger Transaction.

 

(i)            The Closing Date and the initial funding under this
Agreement shall occur on or before February 29, 2008.

 

50

 

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

 

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

 

(a)           The representations and warranties of the Loan Parties
contained in Article V,
or which are contained in any document furnished at any time under or in
connection herewith, including, but not limited to the Collateral Documents,
shall be true and correct in all material respects on and as of the date such
Loan is made, continued or converted, as applicable, or such Letter of Credit
is issued except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date.

 

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

 

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

 

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

 

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

 

4.03        Conditions Precedent to Funding Loans
for Permitted Acquisitions.  The obligation of each Revolver Lender to
fund its portion of any Revolver Loan to finance a Permitted Acquisition shall
be subject to (i) satisfaction of the conditions precedent set forth in Section 4.02 and (ii) the
additional condition precedent that if the purchase price for such Permitted
Acquisition exceeds $50,000,000,
then the Borrower shall deliver to the Administrative Agent and the Revolver
Lenders at least five Business Days before any requested funding of a Revolver
Loan to fund such Permitted Acquisition (a) audited financial statements
pertaining to the Person or business proposed to be acquired (or if audited
financial statements are not available, copies of historical financial
statements satisfactory in form and substance to the Agents pertaining to the
Person or business proposed to be acquired) and (b) a certificate
demonstrating pro forma compliance with the financial covenants set forth in Section 7.15.

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

 

Each of the Borrower and
each of the Guarantors by its execution of the Guaranty, respectively,
represents and warrants to the Administrative Agent and the Lenders that:

 

51

 

                5.01        Existence; Qualification and Power; Compliance with Laws.  Upon consummation of the Merger Transaction,
Hydrocarbon will own 100% of the General Partner and the General Partner will
have zero economic interest in the Borrower. 
The General Partner, the Borrower, Opco, Hydrocarbon and each other Loan
Party (a) is a corporation, partnership or limited liability company duly
organized or formed, validly existing and in good standing under the Laws of
the jurisdiction of its incorporation or organization, (b) has all
requisite power and authority and all governmental licenses, authorizations,
consents and approvals to own its assets, carry on its business and to execute,
deliver, and perform its obligations under the Loan Documents to which it is a
party, (c) is duly qualified and is licensed and in good standing under
the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or
license, (d) is in compliance with all Laws, except in each case referred
to in clause (c) or this clause (d), to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect, (e) is
not a Person (I) whose property or interest in property is blocked or
subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23,
2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), or (II) who
engages in any dealings or transactions prohibited by Section 2 of such
executive order, or is otherwise associated with any such person in any manner
violative of Section 2, or (II) on the list of Specially Designated
Nationals and Blocked Persons or subject to the limitations or prohibitions
under any other U.S. Department of Treasury’s Office of Foreign Assets Control
regulation or executive order, and (f) is in compliance, in all material
respects, with (A) the Trading with the Enemy Act, as amended, and each of
the foreign assets control regulations of the United States Treasury Department
(31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation
or executive order relating thereto, and (B) the USA Patriot Act.  No part of the proceeds of the Loans or L/C
Credit Extensions will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

 

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

 

                5.03        Governmental Authorization.  No approval, consent, exemption, authorization,
or other action by, or notice to, or filing with, any Governmental Authority,
except for (i) the filings in connection with the granting of security
interests pursuant to the Collateral Documents, is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document, (ii) filings
with the Department of Justice and the Federal Trade Commission under the HSR
Act in connection with the Merger Transaction and (iii) filings with the
Securities and Exchange Commission in connection with the Merger Transaction.

 

                5.04        Binding Effect.  This Agreement has been, and each other Loan
Document, when delivered hereunder, will have been duly executed and delivered
by each Loan Party that is party thereto. 
This Agreement constitutes, and each other Loan Document when so
delivered will constitute, a legal, 

 

 

52

 

valid and binding obligation
of such Loan Party, enforceable against each Loan Party that is party thereto
in accordance with its terms.

 

                5.05        Financial Statements; No Material
Adverse Effect.

 

(a)           The audited financial statements delivered to the Lenders
pursuant to Section 6.01 or
otherwise were prepared in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein.  Such financial statements: (i) fairly
present the financial condition of the entities therein named and their
respective Subsidiaries as of the date thereof and their results of operations
for the period covered thereby in accordance in all material respects with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; and (ii) show all material Indebtedness and other
liabilities, direct or contingent, of the entities therein named and their
Subsidiaries as of the date thereof, including liabilities for taxes, material
commitments and Indebtedness in accordance with GAAP consistently applied
throughout the period covered thereby.

 

(b)           Since December 31, 2006, there has been no event or
circumstance that has or could reasonably be expected to have a Material
Adverse Effect.

 

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

 

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

 

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

 

                5.09        Environmental Compliance.  The Borrower has reasonably concluded that (a) there
are no claims alleging potential liability under or responsibility for
violation of any Environmental Law except any such claims that could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect, (b) there is no environmental condition or circumstance,
such as the presence or Release of any Hazardous Substance, on any property
owned, operated or used the Borrower or any other Loan Party that could
reasonably be expected to have a Material Adverse Effect, and (c) there is
no violation of or by the Borrower or any other Loan Party of any Environmental
Law, except for such violations as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

 

53

 

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

 

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

 

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

 

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

 

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

 

(c)           (i)            No
ERISA Event has occurred or is reasonably expected to occur that could
reasonably be expected to have a Material Adverse Effect; (ii) no Pension
Plan has any Unfunded Pension Liability that (when aggregated with any other
Unfunded Pension Liability) has resulted or could reasonably be expected to
result in a Material Adverse Effect; and (iii) neither the Borrower nor
any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA that could
reasonably be expected to have a Material Adverse Effect.

 

                5.13        Subsidiaries and other Investments.  As of the Closing Date the Borrower will have
no Subsidiaries other than those specifically disclosed in Schedule 5.13, all of
the outstanding equity interests in such Subsidiaries have been validly issued,
are fully paid and non-assessable, and the Borrower will have no equity
investment in any other corporation or other entity other than those
specifically disclosed in Schedule
5.13.

 

 

54

 

                5.14        Margin Regulations; Investment Company
Act; Use of Proceeds

 

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

 

(b)           Neither the Borrower nor any other Loan Party, no Person
controlling the Borrower or any other Loan Party, or any Subsidiary
thereof  is or is required to be
registered as an “investment company”
under the Investment Company Act of 1940.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

55

 

giving effect to the
transactions contemplated by this Agreement and the Merger and Redemption
Agreement.

 

                5.20        Collateral.

 

                (a)  The provisions of each of the Collateral
Documents are effective to create in favor of the Administrative Agent and/or
Collateral Agent, for the benefit of the Secured Parties, a legal valid and
enforceable first priority Lien in all right, title and interest of each Loan
Party in the Collateral described therein, except as otherwise permitted
hereunder; and financing statements have been filed in the offices in all of
the jurisdictions listed in the schedule to all Security Agreements and
Mortgages.

 

(b)           All representations and warranties of each Loan Party
thereto contained in the Collateral Documents are true and correct in all
material respects (it being understood that any such representations and
warranties that relate to a specific date or period of time shall be limited
for the purposes of this Section 5.20
to such date or period of time).

 

(c)           None of the terms or provisions of any indenture
(including without limitation any indenture relating to the Senior Unsecured
Notes), mortgage, deed of trust, agreement or other instrument to which the
Borrower or any other Loan Party is a party or by which the Borrower or any
other Loan Party or the property of the Borrower or any other Loan Party is
bound prohibit the filing or recordation of any of the Loan Documents or any
other action which is necessary or appropriate in connection with the
perfection of the Liens on material assets evidenced and created by any of the
Loan Documents.

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

 

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

 

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

 

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

 

(b)           as soon as available, but in any event within 45 days
after the end of each of the first three fiscal quarters of each fiscal year of
the Borrower, an unaudited consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such fiscal quarter, and the related statements
of income and cash flows for such fiscal quarter and for the portion of the
Borrower’s and its consolidated 

 

 

56

 

Subsidiaries’
fiscal year then ended, setting forth in each case in comparative form the
figures for the corresponding fiscal quarter of the previous fiscal year of the
Borrower and its Subsidiaries on a consolidated basis and the corresponding
portion of the previous fiscal year of the Borrower and its Subsidiaries on a
consolidated basis, all in reasonable detail and certified by a Responsible
Officer of the Borrower, as applicable, as fairly presenting the financial
condition, results of operations and cash flows of the Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP, subject only to
normal year-end audit adjustments and the absence of footnotes; and

 

(c)           within 45 days after the end of each Fiscal Year, Borrower
shall deliver a one year projection/budget for the Borrower and its
Subsidiaries on a consolidated basis for the year following such Fiscal Year.

 

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

 

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

 

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

 

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

 

(d)           no later than ten (10) days after the Borrower or any
Subsidiary’s receipt of any Net Cash Proceeds resulting from a Triggering Sale,
a Triggering Sale Certificate relating to such Triggering Sale;

 

(e)           no later than ten (10) days after the Borrower or any
Subsidiary has Reinvested any Reduction Amount, a Reinvestment Certificate
describing the amount, date and particulars relating to the Reduction Amount so
Reinvested; and

 

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

 

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

 

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

 

 

57

 

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

 

(c)           of any litigation, investigation or proceeding known to
and affecting the Borrower or any other Loan Party in which (i) the amount
involved exceeds (individually or collectively) $3,500,000, or (ii) injunctive
relief or other relief is sought, which could be reasonably expected to have a
Material Adverse Effect; and

 

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

 

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

 

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

 

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

 

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

 

 

58

 

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

 

(b)           Borrower will, and will cause its Subsidiaries to, comply
with Section 2.04(b) forthwith
upon receipt of any Insurance Payment.

 

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

 

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

 

                6.10        Inspection Rights.  Permit representatives and independent
contractors of the Administrative Agent and each Lender to visit and inspect
any of its properties, to examine its corporate, financial and operating
records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its directors, officers, and independent
public accountants, at such reasonable times during normal business hours and
as often as may be reasonably desired, upon reasonable advance notice to the
Borrower at the expense of the Administrative Agent or inspecting Lender, as
applicable; provided, however,
that when an Event of Default exists the Administrative Agent or any Lender (or
any of their respective representatives or independent contractors) may do any
of the foregoing at the expense of the Borrower at any time during normal
business hours and without advance notice.  
Additionally, Administrative Agent may, at the request of the Required
Lenders, conduct or cause to be conducted a commercial field examination of the
Borrower’s and its Subsidiaries’ financial and accounting records and Borrower
shall pay the cost of such commercial field examination if such field
examination occurs after the occurrence and during the continuation of an Event
of Default.

 

                6.11        Compliance with ERISA.  With respect to each Plan maintained by the
Borrower or any of its Subsidiaries, do each of the following: (a) maintain
each Plan in compliance in all material respects with the applicable provisions
of ERISA, the Code and other federal or state Laws, (b) cause each Plan
which is qualified under Section 401(a) of
the Code to maintain such qualification; and (c) make all required
contributions to any Plan subject to Section 412
of the Code, except to the extent
that 

 

 

59

 

noncompliance, with respect
to each event listed above, could not be reasonably expected to have a Material
Adverse Effect

 

                6.12        Use of Proceeds.   Use proceeds of:

 

                (a)           the Term Loan Facility to fund the escrow account
established pursuant to the Escrow Agreement to finance the Borrower’s direct
or indirect purchase or redemption of equity of Hydrocarbon pursuant to the
Merger and Redemption Agreement and to pay related fees and expenses;

 

                (b)           the Revolver Facility to (i) refinance Hydrocarbon’s
Indebtedness outstanding under the Hydrocarbon Credit Agreement, (ii) refinance
Opco’s Indebtedness outstanding under the Opco Credit Agreement, (iii) finance
working capital requirements and other general corporate purposes of the
Borrower and its Subsidiaries, (iv) issue Letters of Credit, (v) finance
Permitted Acquisitions and Capital Expenditures by the Borrower and its
Subsidiaries subject to compliance with this Agreement, including Sections 7.02 and 7.10, (vi) fund
Quarterly Distributions to the extent permitted by Section 7.08(b) in
an amount not to exceed during any twelve consecutive month period the product
obtained by multiplying the total number of Borrower common and Class A
units outstanding by $0.75, and (vii) pay fees, costs and expenses owed
pursuant to this Agreement.

 

                6.13        Material Agreements.  
Enforce the obligations of parties to the Material Agreements, except
where such failure could not reasonably be expected to have a Material Adverse
Effect.

 

                6.14        Guaranties.  As an inducement to the Administrative Agent
and Lenders to enter into this Agreement, the Borrower shall cause each
Subsidiary to execute and deliver to the Administrative Agent a Guaranty
executed by such Subsidiary, in form and substance reasonably acceptable to the
Administrative Agent providing for the guaranty of payment and performance of the
Obligations. In addition, within thirty (30) days after the formation or
acquisition of any Subsidiary, cause such Subsidiary to execute and deliver to
the Administrative Agent (a) a Guaranty executed by such Subsidiary, in
form and substance reasonably acceptable to the Administrative Agent providing
for the guaranty of payment and performance of the Obligations, (b) Collateral
Documents in form and substance satisfactory to the Administrative Agent
creating liens and security interests in all assets and properties of such
Subsidiary and in the equity interests in such Subsidiary, and (c) certified
copies of such Subsidiary’s Organization Documents and if requested by the
Administrative Agent, opinions of counsel with respect to such Subsidiary and
such Guaranty, and (d) such other documents and instruments as may be
required with respect to such Subsidiary pursuant to Section 6.15.

 

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

 

(b)           In connection with the actions required pursuant to the
foregoing subsection (a), the Borrower shall cause each of its Subsidiaries to
execute and deliver such stock certificates, blank stock powers, evidence of
corporate authorization, opinions of counsel, current valuations, evidence of
title, title opinions, title insurance and other documents, and shall use
commercially reasonable efforts to obtain 

 

 

60

 

landlord
and mortgagee waivers and third party consents, as shall be requested by the
Administrative Agent, in each case in form and substance satisfactory to the
Administrative Agent.

 

(c)           The Liens required by this Section 6.15
shall be first priority perfected Liens in favor of the Administrative Agent
and/or Collateral Agent, for the benefit of the Secured Parties, subject to no
other Liens except Permitted Liens of the type described in Section 7.01
(other than Section 7.01(h)).  If the Administrative Agent shall determine
that, as of any date, the Borrower shall have failed to comply with this Section 6.15, the Administrative Agent
may (and at the direction of the Required Lenders, shall) notify the Borrower
in writing of such failure and, within 30 days from and after receipt of such written
notice by the Borrower, the Borrower shall execute and deliver or shall cause
to be executed and delivered to the Administrative Agent and/or Collateral
Agent supplemental or additional Loan Documents, in form and substance
satisfactory to the Administrative Agent and its counsel, securing payment of
the Notes and the other Obligations and covering additional assets and
properties not then encumbered by any Loan Documents (together with such other
information, as may be requested by the Administrative Agent, each of which
shall be in form and substance reasonably satisfactory to the Administrative
Agent) such that the Administrative Agent and/or Collateral Agent shall have
received currently effective duly executed and perfected Collateral Documents encumbering
substantially all of the assets of the Borrower and its Subsidiaries as
required by Section 6.15(a).

 

6.16        Clean Down
Period.  During each calendar year during the term of this Agreement, there shall
be a period of fifteen (15) consecutive days (the “Clean Down Period”)
during which (a) there are no Distribution Loans outstanding, and (b) no
Distribution Loans will be made.

 

6.17        Fiscal Year.
The Borrower shall maintain its December 31
fiscal year end

 

6.18        Merger
Transaction. The Merger Transaction
shall be consummated on February 21, 2008; provided, if not consummated on
such date for whatever reason, the Merger Transaction will be consummated no
later than February 29, 2008.

 

ARTICLE VII.

NEGATIVE COVENANTS

 

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

 

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

 

(a)           Liens pursuant to any Loan Document;

 

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

 

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

 

 

61

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

                7.02        Investments.  Make or own any Investments, except:

 

(a)           Investments existing on the Closing
Date and listed in Section (b) of  Schedule 5.13;

 

(b)           Cash Equivalents;

 

 

62

 

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

 

(d)           Investments by the Borrower and its Subsidiaries in any
Subsidiary of the Borrower that, prior to such Investment, is a Guarantor;

 

(e)           Acquisition of equity of Hydrocarbon
pursuant to the Merger and Redemption Agreement;

 

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

 

(g)           Permitted Acquisitions by the
Borrower or its Subsidiaries.

 

                7.03        Hedging Agreements.  Enter into any Swap Contracts other than in
the ordinary course of business for the purpose of protecting against
fluctuations in interest rates, commodity prices, or foreign exchange rates and
not for purposes of speculation; provided
that the Swap Contract shall not contain any provision exonerating the
non-defaulting party from its obligation to make payments on outstanding
transactions to the defaulting party; provided further,
any Swap Contract that is not a Lender Hedging Agreement cannot be secured by
any Lien on any assets of the Borrower or any of its Affiliates or by any
margin or cash collateral (but a Letter of Credit under this Agreement may be
used to secure the obligation of the Borrower or any Subsidiary under a Swap
Contract that is not a Lender Hedging Agreement);  provided further, no Lender Hedging Agreement may be secured
by any Lien on any asset or property of the Borrower or any of its Affiliates
other than the Lien created pursuant to the Collateral Documents and any
additional margin or cash collateral for any Lender Hedging Agreement is
strictly prohibited.

 

                7.04        Indebtedness.

 

Create,
incur, or assume any Indebtedness except:

 

(a)           Indebtedness incurred pursuant to the
Loan Documents;

 

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

 

(c)           Indebtedness listed on Schedule 7.04 to this Agreement;

 

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

 

(e)           Indebtedness of the Borrower and its Subsidiaries in
respect of purchase money obligations for fixed or capital assets within the
limitations set forth in Section 7.01(k);
provided, however, that the
aggregate amount of such Indebtedness at any one time outstanding shall not
exceed $50,000,000;

 

 

63

 

(f)            Indebtedness of the Borrower and its Subsidiaries in
connection with any Senior Debt Offering; provided Net
Cash Proceeds of such Senior Debt Offering are applied as set forth in Section 2.04(b)(iv);

 

(g)           Other unsecured Indebtedness of the Borrower and its
Subsidiaries not to exceed $30,000,000
in the aggregate principal amount outstanding at any time; and

 

(h)           Indebtedness of the Borrower pursuant to the Senior
Unsecured Notes.

 

Provided, that if any
Indebtedness is incurred pursuant to this Section 7.04, both before and after such
Indebtedness is created, incurred or assumed, no Default or Event of Default
shall exist and the Borrower, after giving effect to the incurrence of such
Indebtedness on a pro forma basis, shall be in compliance with Sections 7.15(a), (b) and (c) as
of the most recently ended fiscal quarter of the Borrower.

 

                7.05        Lease Obligations.  Create or suffer to exist any obligations for
the payment of rent for any property under operating leases or agreements to
lease, except for (i) operating leases (or Capital Lease obligations) for
compressors and compression equipment and services having an annual aggregate
payment amount not to exceed $25,000,000 annually (excluding escalations
resulting from a rise in the consumer price or similar index), exclusive of
expenses for maintenance, repairs, insurance, taxes assessments and similar
charges; (ii) such other non-compressor and non-compression equipment and
services operating leases (or Capital Lease obligations) having an annual
aggregate payment amount not to exceed $10,000,000
(excluding escalations resulting from a rise in the consumer price or similar
index), exclusive of expenses for maintenance, repairs, insurance, taxes,
assessments and similar charges, and (iii) other operating leases (other
than those constituting Synthetic Lease Obligations) entered into or assumed by
the Borrower or any of its Subsidiaries prior to the Closing Date or after the
Closing Date in the ordinary course of business or entered into or assumed in
connection with any Permitted Acquisition; provided
that, such other operating leases described in clause (iii) above will not
require the payment of an aggregate amount of payments in excess of (excluding
escalations resulting from a rise in the consumer price or similar index) $10,000,000 annually, exclusive of
expenses for maintenance, repairs, insurance, taxes, assessments and similar
charges.

 

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

 

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

 

(b)           any Subsidiary may merge with (i) the Borrower; provided that the Borrower shall be the
continuing or surviving Person, or (ii) any one or more Subsidiaries; provided that when any Wholly-Owned
Subsidiary is merging with another Subsidiary, a Wholly-Owned Subsidiary shall
be the continuing or surviving Person;

 

(c)           any Person (other than the Borrower or a Subsidiary of the
Borrower) may merge into any Subsidiary; provided
that such Subsidiary is the surviving entity;

 

 

64

 

(d)           any Subsidiary may sell all or substantially all of its
assets (upon voluntary liquidation or otherwise), to the Borrower or to another
Subsidiary; provided that if the seller in such
transaction is a Wholly Owned Subsidiary, then the purchaser must also be a
Wholly Owned Subsidiary; and

 

(e)           Hydrocarbon may merge into the Merger Sub and be the
surviving entity.

 

                7.07        Dispositions.

 

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

 

(a)           Dispositions by the Borrower or its Subsidiaries of
inventory in the ordinary course of business;

 

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

 

(c)           other Dispositions for fair market value; provided no Default or Event of Default
then exists or arises as a result thereof; and provided
that if the Disposition is for cash and a prepayment is required by Section 2.04(b)(i),
the Borrower shall make such prepayment in accordance with such Section; or

 

(d)           Dispositions by the Borrower or its Subsidiaries relating
directly to the Merger Transaction.

 

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

 

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

 

(b)           the Borrower may (i) declare and make Quarterly
Distributions of Available Cash to the extent such Quarterly Distributions in
any fiscal quarter do not exceed, in the aggregate, Available Cash for the
immediately preceding fiscal quarter and are made in accordance with the
Partnership Agreement, and (ii) purchase Borrower’s limited partnership
units under the Borrower’s Long-Term Incentive Plan in accordance with, and as
defined in, the Partnership Agreement; provided,
that at the time each such Quarterly Distribution or purchase is made no
Default or Event of Default exists or would result therefrom;

 

(c)           the Borrower and any Guarantor may make redemptions of, or
purchase equity interest in, the Borrower or any Guarantor from employees of
the Borrower or such Guarantor; provided,
that at the time any purchase or redemption is made no Default or Event of
Default exists or would result therefrom; provided
further that the aggregate amount expended in any consecutive
12-month period for purchases or redemptions pursuant to this subsection (c) above
shall not exceed $3,000,000; and

 

(d)           Hydrocarbon may redeem its common stock pursuant to the
Redemption and Merger Agreement.

 

 

65

 

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

 

                7.10        Nature of Business; Capital Expenditures; Risk Management.  Engage in any line of business other than the
Midstream Business or make any Capital Expenditures or Permitted Acquisitions
permitted by Section 7.02(g) except
in connection with the Midstream Business. 
In addition to the foregoing, the Borrower may not engage in any
business other than the ownership of Hydrocarbon, Opco and MarkWest Energy
Finance Corporation and the operation of the Borrower.  Without the written approval of the
Administrative Agent, the Borrower will not materially change its risk
management policy.

 

                7.11        Transactions with Affiliates.  Sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (i) transactions between or among the Borrower and its
Wholly-Owned Subsidiaries not involving any other Affiliate, and (ii) any
Restricted Payment permitted by Section 7.08, and (iii) in the ordinary course
of business at prices and on terms and conditions not less favorable to the
Borrower or such Subsidiary, as applicable, than could be obtained on an arm’s
length basis from unrelated third parties.

 

                7.12        Burdensome Agreements.  Enter into any Contractual Obligation that
limits the ability of any Subsidiary to make Restricted Payments to the
Borrower or to otherwise transfer property to the Borrower.  Notwithstanding the foregoing, (i) documents
governing a Capitalized Lease or a purchase money Lien or a pre-acquisition
Lien permitted by Sections
7.01(i), (j) and (k) may prohibit other Liens on the
asset encumbered by such Lien, (ii) the Lenders acknowledge that the real
estate leases described on Schedule
7.12 restrict or prohibit Liens on the Borrower’s or its
Subsidiary’s leasehold interest, and (iii) customary non-assignment
provisions or other restrictions on Liens contained in licenses, joint venture
agreements or other contracts entered into in the ordinary course of business
shall not violate this Section 7.12.

 

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

 

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

 

 

66

 

7.15        Financial
Covenants.

 

(a)           Interest
Coverage Ratio.  Permit the
Interest Coverage Ratio at any fiscal quarter-end to be less than 2.75 to 1.0.

 

(b)           Total
Leverage Ratio.  Permit the
Total Leverage Ratio at any fiscal quarter-end to be greater than 5.25 to 1.0 unless such quarter-end occurs during any Acquisition
Adjustment Period, in which case the Total Leverage Ratio cannot be greater
than 5.75 to 1.0.

 

 (c)          Senior Leverage Ratio.  Permit
the Senior Leverage Ratio at any fiscal quarter-end to be greater than 3.75 to
1.0 unless such quarter-end occurs during
any Acquisition Adjustment Period, in which case the Senior Leverage Ratio
cannot be greater than 4.25 to 1.0.

 

(d)           Adjustments
for Acquisitions.  For
purposes of determining compliance with Sections 7.15(a), (b) and (c), to take
into account Hydrocarbon becoming a Subsidiary of the Borrower as well as
Permitted Acquisitions occurring after the Closing Date:

 

(i)            Consolidated
EBITDA shall be calculated after giving effect, on a pro forma basis (in a
manner reasonably acceptable to the Administrative Agent) for the four
consecutive fiscal quarters most recently completed, to the acquisition of
Hydrocarbon as a Subsidiary of the Borrower and any Permitted Acquisition
occurring during such period, as if such acquisition of Hydrocarbon or
Permitted Acquisition occurred on the first day of such period.

 

(ii)           If,
in connection with the acquisition of Hydrocarbon as a Subsidiary of the Borrower
or a Permitted Acquisition, any Indebtedness is incurred or assumed by the
Borrower or any of its Subsidiaries, then Consolidated Interest Charges shall
be calculated, on a pro forma basis (in a manner reasonably acceptable to the
Administrative Agent) for the four quarters most recently completed, as if such
Indebtedness had been incurred on the first day of such period.

 

(e)           Adjustments for Material
Projects. For purposes of determining compliance with Sections 7.15(a), (b)  and (c) in the event the
Borrower or any of its consolidated Subsidiaries undertakes a Material Project,
a Material Project Consolidated EBITDA Adjustment may be made at Borrower’s
option. As used herein a  “Material Project Consolidated EBITDA Adjustment”
means, with respect to each Material Project:

 

(i)            prior
to the Commercial Operation Date of a Material Project (but including the
fiscal quarter in which such Commercial Operation Date occurs), a percentage
(equal to the then-current completion percentage of such Material Project) of
an amount to be approved by the Administrative Agent as the projected
Consolidated EBITDA of the Borrower attributable to such Material Project for
the first 12-month period following the scheduled Commercial Operation Date of
such Material Project (such amount to be determined based on contracts relating
to such Material Project, the creditworthiness of the other parties to such
contracts, and projected revenues from such contracts, capital costs and
expenses, scheduled Commercial Operation Date, and other factors reasonably
deemed appropriate by the Administrative Agent), which may, at the Borrower’s
option, be added to actual Consolidated EBITDA for the fiscal quarter in which
construction of such Material Project commences and for each fiscal quarter
thereafter until the Commercial Operation Date of such Material Project
(including the fiscal quarter in which such Commercial Operation Date occurs,
but net of any actual Consolidated EBITDA of the Borrower 

 

 

67

 

attributable to such
Material Project following such Commercial Operation Date); provided that if the actual Commercial Operation Date does
not occur by the scheduled Commercial Operation Date, then the foregoing amount
shall be reduced, for quarters ending after the scheduled Commercial Operation
Date to (but excluding) the first full quarter after its actual Commercial
Operation Date, by the following percentage amounts depending on the period of
delay (based on the period of actual delay or then-estimated delay, whichever
is longer): (i) 90 days or less, 0%, (ii) longer than 90 days, but
not more than 180 days, 25%, (iii) longer than 180 days but not more than
270 days, 50%, and (iv) longer than 270 days, 100%; and

 

(ii)           beginning
with the first full fiscal quarter following the Commercial Operation Date of a
Material Project and for the two immediately succeeding fiscal quarters, an
amount to be approved by the Administrative Agent as the projected Consolidated
EBITDA of the Borrower attributable to such Material Project (determined in the
same manner as set forth in clause (i) above) for the balance of the four
full fiscal quarter period following such Commercial Operation Date, which may,
at Borrower’s option, be added to actual Consolidated EBITDA for such fiscal
quarters (but net of any actual Consolidated EBITDA of the Borrower
attributable to such Material Project following such Commercial Operation
Date).

 

                (iii)          Notwithstanding the foregoing: (A) no
such additions shall be allowed with respect to any Material Project unless: (y) not
later than 30 days prior to the delivery of any Compliance Certificate required
by the terms and provisions of Section 6.02(a) to
the extent Material Project Consolidated EBITDA Adjustments will be made to
Adjusted Consolidated EBITDA in determining compliance with this Section 7.15, the Borrower
shall have delivered to the Administrative Agent written pro forma projections
of Consolidated EBITDA of the Borrower (or its consolidated Subsidiary)
attributable to such Material Project, and (z) prior to the date such
Compliance Certificate is required to be delivered, the Administrative Agent
shall have approved (such approval not to be unreasonably withheld, conditioned
or delayed) such projections and shall have received such other information and
documentation as the Administrative Agent may reasonably request, all in form
and substance reasonably satisfactory to the Administrative Agent, and (B) the
aggregate amount of all Material Project Consolidated EBITDA Adjustments during
any period shall be limited to 15% of the total actual Consolidated EBITDA of
the Borrower and its consolidated Subsidiaries for such period (which total
actual Consolidated EBITDA shall be determined without including any Material
Project Consolidated EBITDA Adjustments).

 

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

 

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

 

(a)           Non-Payment . 
The Borrower fails to pay (i) any amount due under the
Agent/Arranger Fee Letter when and as required to be paid therein, (ii) when
and as required to be paid herein, any amount of principal of any Loan or any
L/C Obligation or (iii) within three Business Days after the same becomes
due, any interest on any Loan, any L/C Obligation, any commitment or other fee
due hereunder (other than a fee specified in the Agent/Arranger Fee Letter), or
any other amount payable hereunder or under any other Loan Document; or

 

 

68

 

(b)           Specific Covenants. 
The Borrower fails to perform or observe any term, covenant or agreement
contained in any of Section 6.03(a),
6.05 (with respect to the Borrower’s existence), 6.12, 6.14, 6.15, 6.18, or Article VII; or

 

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

 

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

 

(e)           Cross-Default. 
(i) The Borrower or any other Loan Party (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness or Guaranty
Obligation (other than Indebtedness under Swap Contracts) having an aggregate
principal amount (or, in the case of a Capitalized Lease or a Synthetic Lease
Obligation, Attributable Indebtedness) (including undrawn or available amounts
and including amounts owing to all creditors under any combined or syndicated credit
arrangement) of more than (individually or collectively) $30,000,000, or (B) fails to observe
or perform any other agreement or condition relating to any such Indebtedness
or Guaranty Obligation or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event occurs, the effect of which default or
other event is to cause, or to permit the holder or holders of such
Indebtedness, the lessor under such Synthetic Lease Obligation or the
beneficiary or beneficiaries of such Guaranty Obligation (or a trustee or agent
on behalf of such holder or holders or beneficiary or beneficiaries) to cause,
with the giving of notice if required, such Indebtedness to be demanded or to
become due or to be repurchased or redeemed (automatically or otherwise) prior
to its stated maturity, or such Guaranty Obligation to become payable or cash
collateral in respect thereof to be demanded; or (ii) (A) there
occurs under any Swap Contract an Early Termination Date (as defined in such
Swap Contract) resulting from any event of default under such Swap Contract as
to which the Borrower or any other Loan Party is the Defaulting Party (as
defined in such Swap Contract) and the Swap Termination Value owed by the
Borrower or any other Loan Party as a result thereof is greater than
(individually or collectively) $30,000,000,
or (B) there occurs under any Swap Contract an Early Termination Date (as
defined in such Swap Contract) resulting from any Termination Event (as so
defined) under such Swap Contract as to which the Borrower or any other Loan
Party is an Affected Party (as so defined) and the amount calculated as being
owed by the Borrower and other Loan Party as a result of such Early Termination
Date is greater than (individually or collectively) $30,000,000 and such amount is not paid when due under such
Swap Contract; or

 

(f)            Insolvency Proceedings, Etc.  (i) The Borrower or any other Loan Party
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property or takes any action to effect any of the
foregoing; or (ii) any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the
application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or (iii) any proceeding
under any Debtor Relief Law relating to any such Person or to all or any part
of its property is instituted 

 

 

69

 

without
the consent of such Person and continues undismissed or unstayed for 60
calendar days, or an order for relief is entered in any such proceeding; or

 

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

 

(h)           Judgments. 
There is entered against the Borrower or any other Loan Party (i) a
final judgment or order for the payment of money in an aggregate amount
exceeding (individually or collectively) $20,000,000
(to the extent not covered by third-party insurance as to which the insurer
does not dispute coverage), or (ii) any non-monetary final judgment that
has or could reasonably be expected to have a Material Adverse Effect and, in
either case, (A) enforcement proceedings are commenced by any creditor
upon such judgment or order, or (B) there is a period of 30 consecutive
days during which a stay of enforcement of such judgment, by reason of a
pending appeal or otherwise, is not in effect; or

 

(i)            ERISA.  (i) If
the Borrower, any other Loan Party or any of their ERISA Affiliates maintains
any Pension Plan or any Multiemployer Plan, an ERISA Event occurs with respect
to a Pension Plan or Multiemployer Plan which has resulted or could reasonably
be expected to result in liability of the Borrower or any other Loan Party
under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess
of $5,000,000, or (ii) if there is any Multiemployer Plan, the Borrower,
any other Loan Party or any ERISA Affiliate thereof fails to pay when due,
after the expiration of any applicable grace period, any installment payment
with respect to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of
$5,000,000; or

 

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

 

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

 

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

 

(m)          Material Agreements. 
(i) Termination of any Material Agreement, or any material
provision of any of the foregoing if such termination could reasonably be
expected to have a Material Adverse Effect and such agreement or provision is
not replaced (prior to such cessation) in a manner satisfactory to the
Administrative Agent; (ii) default by any Person in the performance or
observance of any material term of any Material Agreement which is not cured
within the applicable cure period specified in such Material Agreement, if such
default could reasonably be expected to have a Material Adverse Effect; or (iii) any
event or condition occurs or exists which in the opinion of the Administrative
Agent is reasonably likely to (x) have a material adverse effect on the
ability of a Loan Party to perform its obligations under a Material Agreement
and (y) result in a Material Adverse Effect hereunder; or

 

 

70

 

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

 

8.02        Remedies
Upon Event of Default.  If
any Event of Default occurs, the Administrative Agent shall, at the request of,
or may, with the consent of, the Required Lenders (or in the case of Sections 8.02(a) and (c) below, with the consent of
the Required Revolver Lenders):

 

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

 

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

 

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

 

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

 

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

 

                8.03        Application of Funds.    After the exercise of remedies provided for
in Section 8.02
(or after the Loans have automatically become immediately due and payable and
the L/C Obligations have automatically been required to be Cash Collateralized
as set forth in the proviso to Section 8.02),
any 

 

 

71

 

amounts
received on account of the Obligations shall be applied by the Administrative
Agent as set forth in Section 2.11(d).

 

ARTICLE IX.

ADMINISTRATIVE AGENT

 

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

 

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

 

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

 

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

 

9.02        Delegation
of Duties.  The
Administrative Agent may execute any of its duties under this Agreement or any
other Loan Document by or through agents (including the Collateral Agent), 

 

 

72

 

employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties.  Administrative Agent shall not be responsible
for the negligence or misconduct of any agent or attorney-in-fact that it
selects in the absence of gross negligence or willful misconduct.

 

                9.03        Default; Collateral.  (a) Upon the occurrence and continuance
of a Default or Event of Default, the Lenders agree to promptly confer in order
that Required Lenders or the Lenders, as the case may be, may agree upon a
course of action for the enforcement of the rights of the Lenders; and the
Administrative Agent shall be entitled to refrain from taking any action
(without incurring any liability to any Person for so refraining) unless and until the Administrative Agent
shall have received instructions from Required Lenders or the Lenders, as the
case may be.  All rights of action under
the Loan Documents and all right to the Collateral, if any, hereunder may be
enforced by the Administrative Agent and/or Collateral Agent and any suit or
proceeding instituted by the Administrative Agent and/or Collateral Agent in
furtherance of such enforcement shall be brought in its name as the
Administrative Agent or Collateral Agent without the necessity of joining as
plaintiffs or defendants any other Lender, and the recovery of any judgment
shall be for the benefit of the Lenders (and, with respect to Lender Hedging
Agreements and Banking Services, Affiliates, if applicable) subject to the
expenses of the Administrative Agent and Collateral Agent.  In actions with respect to any property of
the Borrower or any other Loan Party, the Administrative Agent and/or
Collateral Agent is acting for the ratable benefit of each Lender (and, with
respect to Lender Hedging Agreement and Banking Services Affiliates, if
applicable).  Any and all agreements to
subordinate (whether made heretofore or hereafter) other indebtedness or
obligations of Borrower to the Obligations shall be construed as being for the
ratable benefit of each Lender (and, with respect to Lender Hedging Agreement
and Banking Services, Affiliates, if applicable).

 

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

 

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

 

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

 

(e)           Neither the Administrative Agent nor the Collateral Agent
shall have any obligation whatsoever to any Lender or to any other Person to
assure that the Collateral exists or is owned by any Loan Party or is cared
for, protected, or insured or has been encumbered or that the Liens granted to
the Administrative Agent and/or Collateral Agent herein or pursuant thereto
have been properly or 

 

 

73

 

sufficiently
or lawfully created, perfected, protected, or enforced, or are entitled to any
particular priority, or to exercise at all or in any particular manner or under
any duty of care, disclosure, or fidelity, or to continue exercising, any of
the Rights granted or available to the Administrative Agent and/or Collateral
Agent in this Section 9.03
or in any of the Collateral Documents; IT BEING UNDERSTOOD AND
AGREED THAT IN RESPECT OF THE COLLATERAL, OR ANY ACT, OMISSION, OR EVENT
RELATED THERETO, THE ADMINISTRATIVE AGENT AND/OR COLLATERAL AGENT MAY ACT
IN ANY MANNER IT MAY DEEM APPROPRIATE, IN ITS SOLE DISCRETION, GIVEN THE
ADMINISTRATIVE AGENT’S (OR COLLATERAL AGENT’S) OWN INTEREST IN THE COLLATERAL
AS ONE OF THE LENDERS AND THAT NEITHER THE ADMINISTRATIVE AGENT OR COLLATERAL
AGENT SHALL HAVE ANY DUTY OR LIABILITY WHATSOEVER TO ANY LENDER (AND, WITH
RESPECT TO LENDER HEDGING AGREEMENTS AND BANKING SERVICES, AFFILIATES), OTHER
THAN TO ACT WITHOUT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

(f)            The Lenders hereby irrevocably authorize the
Administrative Agent and Collateral Agent, at its option and in its discretion,
to release any Lien granted to or held by the Administrative Agent and/or
Collateral Agent upon any Collateral: (i) constituting property in which
no Loan Party owned an interest at the time the Lien was granted or at any time
thereafter; (ii) constituting property leased to a Loan Party under a
lease which has expired or been terminated in a transaction permitted under the
Loan Document or is about to expire and which has not been, and is not intended
by such Loan Party to be, renewed; and (iii) consisting of an instrument
evidencing Indebtedness pledged to the Administrative Agent and/or Collateral
Agent (for the benefit of the Secured Parties), if the Indebtedness evidenced
thereby has been paid in full.   In
addition, the Lenders irrevocably authorize the Administrative Agent and/or
Collateral Agent to release Liens upon Collateral as contemplated in Section 10.01(c) or
(d), or
if approved, authorized, or ratified in writing by the requisite Lenders.  Upon request by the Administrative Agent or
Collateral Agent at any time, the Lenders will confirm in writing the
Administrative Agents and Collateral Agent’s authority to release particular
types or items of Collateral pursuant to this Section 9.03.

 

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

 

 

74

 

                9.04        Liability of Agents.  NO AGENT-RELATED PERSON
SHALL (A) BE LIABLE FOR ANY ACTION TAKEN OR OMITTED TO BE TAKEN BY ANY OF
THEM UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (EXCEPT FOR ITS OWN GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT IN CONNECTION WITH ITS DUTIES EXPRESSLY SET FORTH HEREIN),
or (b) be responsible in any manner to any Lender or Participant for any
recital, statement, representation or warranty made by any Loan Party or any
officer thereof, contained herein or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for
in, or received by Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document, or for the creation, perfection or priority of any Liens purported to
be created by any of the Loan Documents, or the validity, genuineness,
enforceability, existence, value or sufficiency of any collateral security, or
to make any inquiry respecting the performance by the Borrower of its
obligations hereunder or under any other Loan Document, or for any failure of
any Loan Party or any other party to any Loan Document to perform its
obligations hereunder or thereunder.  No
Agent-Related Person shall be under any obligation to any Lender or participant
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party or
any Affiliate thereof.

 

                9.05        Reliance by Administrative Agent.  (a) The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any writing,
communication, signature, resolution, representation, notice, consent,
certificate, affidavit, letter, telegram, facsimile, electronic mail, telex or
telephone message, statement or other document or conversation believed by it
to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons, and upon advice and statements of legal counsel (including
counsel to any Loan Party), independent accountants and other experts selected
by the Administrative Agent.  The
Administrative Agent shall be fully justified in failing or refusing to take
any action under any Loan Document unless it shall first receive such advice or
concurrence of the requisite Required Lenders as it deems appropriate and, if
it so requests, it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense which may be incurred by it
by reason of taking or continuing to take any such action.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement or any other Loan Document in accordance with a request or consent of
the requisite Required Lenders or all the Lenders, if required hereunder, and
such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and participants. 
Where this Agreement expressly permits or prohibits an action unless the
requisite Required Lenders otherwise determine, the Administrative Agent shall,
and in all other instances, the Administrative Agent may, but shall not be
required to, initiate any solicitation for the consent or a vote of the
requisite Lenders.

 

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

 

 

75

 

 

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

 

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

 

                9.08        Indemnification of Agents.  WHETHER OR NOT THE
TRANSACTIONS CONTEMPLATED HEREBY ARE CONSUMMATED, THE LENDERS SHALL INDEMNIFY
UPON DEMAND EACH AGENT-RELATED PERSON (TO THE EXTENT NOT REIMBURSED BY OR ON
BEHALF OF ANY LOAN PARTY AND WITHOUT LIMITING THE OBLIGATION OF ANY LOAN PARTY
TO DO SO), PRO RATA, AND HOLD HARMLESS EACH AGENT-RELATED PERSON FROM AND
AGAINST ANY AND ALL INDEMNIFIED LIABILITIES INCURRED BY IT; PROVIDED, HOWEVER, THAT NO LENDER
SHALL BE LIABLE FOR THE PAYMENT TO ANY AGENT-RELATED PERSON OF ANY PORTION OF
SUCH INDEMNIFIED LIABILITIES RESULTING FROM SUCH PERSON’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT;  provided,
however, that no action taken in accordance with the directions of
the Required Lenders shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section. 
Without limitation of the foregoing, each Lender shall 

 

 

76

 

reimburse the Administrative
Agent and Collateral Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the
Administrative Agent and Collateral Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent or Collateral Agent is not reimbursed
for such expenses by or on behalf of the Borrower.  The undertaking in this Section shall
survive termination of the Commitments, the payment of all Obligations hereunder
and the resignation or replacement of the Administrative Agent and Collateral
Agent.

 

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

 

                9.10        Successor Administrative Agent and Collateral Agent.  (a)  The Administrative Agent may resign
as Administrative Agent upon 30 days’ notice to the Lenders with a copy of such
notice to the Borrower.  If the
Administrative Agent resigns under this Agreement, the Required Lenders shall
appoint from among the Lenders a successor administrative agent for the Lenders
which successor administrative agent shall be consented to by the Borrower at
all times other than during the existence of an Event of Default (which consent
of the Borrower shall not be unreasonably withheld or delayed).  If no successor administrative agent is
appointed prior to the effective date of the resignation of the Administrative
Agent, the Administrative Agent may appoint, after consulting with the Lenders
and the Borrower, a successor administrative agent from among the Lenders.  Upon the acceptance of its appointment as successor
administrative agent hereunder, such successor administrative agent shall
succeed to all the rights, powers and duties of the retiring Administrative
Agent and the term “Administrative
Agent” shall mean such successor administrative agent and the
retiring Administrative Agent’s appointment, powers and duties as
Administrative Agent shall be terminated. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Article IX and Sections 10.04 and 10.13 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. 
If no successor administrative agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring
Administrative Agent’s notice of resignation, the retiring Administrative Agent’s
resignation shall nevertheless thereupon become effective and the Lenders shall
perform all of the duties of the Administrative Agent hereunder until such
time, if any, as the Required Lenders appoint a successor agent as provided for
above.

 

                (b)           The
Collateral Agent may resign as Collateral Agent upon 30 days’ notice to the
Administrative Agent with a copy of such notice to the Borrower.  If the Collateral Agent resigns under this
Agreement, the Administrative Agent shall designate a successor collateral
agent.  Upon the 

 

 

77

 

acceptance of its
appointment as successor collateral agent hereunder, such successor collateral
agent shall succeed to all the rights, powers and duties of the retiring
Collateral Agent and the term “Collateral Agent” shall mean such successor collateral
agent and the retiring Collateral Agent’s appointment, powers and duties as
Collateral Agent shall be terminated. 
After any retiring Collateral Agent’s resignation hereunder as
Collateral Agent, the provisions of this Article IX and Sections 10.04 and 10.13 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Collateral Agent under this Agreement.

 

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

 

                9.12        Administrative Agent May File Proof of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise

 

(i)            to
file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, L/C Obligations and all other Obligations
that are owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of the Lenders, the L/C Issuer and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.08, 2.14(i) and
(j), 10.04 and 10.05) allowed in such
judicial proceeding; and

 

(ii)           to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

 

and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Lender and the L/C Issuer
to make such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount
due for the reasonable compensation, expenses, disbursements and advances of
the Administrative Agent and its agents and counsel, and any other amounts due
the Administrative Agent under Sections 2.08,
10.04 and 10.05.

 

                Nothing contained herein shall be deemed to authorize
the Administrative Agent to authorize or consent to or accept or adopt on
behalf of any Lender or the L/C Issuer any plan of reorganization, 

 

 

 

78

 

arrangement, adjustment or
composition affecting the Obligations or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any
Lender in any such proceeding.

 

                9.13        Lender Hedging Agreements.  To the extent any Affiliate of a Lender is a
party to a Swap Contract with the Borrower or any of its Subsidiaries and
thereby becomes a beneficiary of the Liens pursuant to the Security Agreements,
Mortgages or any other Collateral Document, such Affiliate of a Lender shall be
deemed to appoint the Administrative Agent and Collateral Agent its nominee and
agent to act for and on behalf of such Affiliate in connection with the Security
Agreements, Mortgages and such Collateral Documents and to be bound by the
terms of this Article IX, Section 10.01(e) and the
last sentence of Section 2.13.

 

                9.14        Banking Services.  To the extent any Affiliate of a Lender
provides any Banking Services and thereby becomes a beneficiary of the Liens
pursuant to the Security Agreements, Mortgages or any other Collateral
Document, such Affiliate of a Lender shall be deemed to appoint the
Administrative Agent and Collateral Agent its nominee and agent to act for and
on behalf of such Affiliate in connection with the Security Agreements,
Mortgages and such Collateral Documents and to be bound by the terms of this Article IX, Section 10.01(e) and the
last sentence of Section 2.13.

 

ARTICLE X.

MISCELLANEOUS

 

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

 

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

 

(ii)           postpone
or delay any date fixed by this Agreement or any other Loan Document for any
payment or mandatory prepayment of principal, interest, fees or other amounts
due to the Lenders (or any of them) hereunder or under any other Loan Document
(except any amendment described in Section 10.01(b) which
can be approved by the requisite Required Lenders);

 

(iii)          reduce
the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing or (subject to clause (ii) of the proviso below) any fees or
other amounts payable hereunder or under any other Loan Document; provided, however, that only the consent
of the Required Lenders shall be necessary to (A) amend the definition of “Default Rate” or to waive any obligation
of the Borrower to pay interest at the Default Rate or (B) to amend any
financial covenant hereunder (or any defined term used therein) even if the
effect of such amendment would be to reduce the rate of interest on any Loan or
L/C Borrowing or to reduce any fee payable hereunder;

 

 

79

 

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

 

(v)           change
the Pro Rata Share of any Lender (except as otherwise results from an increase
in the Aggregate Revolver Commitments pursuant to Section 2.15
which increase is subject to the provisions of Section 2.15
but is not otherwise subject to the consent of the Required Revolver Lenders or
any Revolver Lender);

 

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

 

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

 

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

 

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

 

(c)           Upon any Disposition of Collateral which is permitted
pursuant to the Loan Documents, and upon ten (10) Business Days’ prior
written request by the Borrower (which request must be accompanied by (i) true
and correct copies of all material documents of transfer or disposition,
including any contract of sale, (ii) a preliminary closing statement and
instructions to the title company, if any, (iii) all requested release
instruments in form and substance satisfactory to the Administrative Agent and (iv) if
required, written consent of the requisite Lenders), the Administrative Agent
and/or Collateral Agent shall (and is hereby irrevocably authorized by the
Lenders to) execute such documents as may be necessary to evidence the release
of Liens granted to the Administrative Agent and/or Collateral Agent for the
benefit of the Secured Parties pursuant hereto in such Collateral.   Neither the Administrative Agent nor the
Collateral Agent shall be required to execute any release instruments on terms
which, in the Administrative Agent’s (or Collateral Agent’s) opinion, would
expose the Administrative Agent (or Collateral Agent) to liability or create
any obligation or entail any consequence other than the release of 

 

 

 

80

 

Liens
without recourse or warranty.  No such
release shall impair the Administrative Agent’s or Collateral Agent’s Lien on
the proceeds of sale of such Collateral.

 

(d)           If all outstanding Loans and other Obligations (other than
contingent indemnity obligations) have been indefeasibly paid in full (or, with
respect to L/C Obligations, Cash Collateralized) and the Commitments have
terminated or have been reduced to zero, and, subject to Section 10.01(e) all
Lender Hedging Agreement have terminated, the Administrative Agent and
Collateral Agent each agrees to, and the Lenders hereby instruct the
Administrative Agent and Collateral Agent to, at the Borrower’s expense,
execute and authorize such releases of the Collateral Documents as the Borrower
shall reasonably request and this Agreement shall be deemed terminated except
that such termination shall not relieve the Borrower of any obligation to make
any payments to the Administrative Agent, Collateral Agent or any Lender
required by any Loan Document to the extent accruing, or relating to an event
occurring, prior to such termination.

 

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

 

(f)            In the event that any Lender (a “Non-Consenting
Lender”) fails to consent to any proposed amendment,
modification, termination, waiver or consent with respect to any provision
hereof or of any other Loan Document that requires the approval of all of the
Lenders directly affected thereby or the unanimous approval of all of the
Lenders, in each case in accordance with the terms of this Section 10.01,
the Borrower shall be permitted to replace such Non-Consenting Lender with a
replacement financial institution satisfactory to the Administrative Agent, so
long as the consent of the Required Lenders shall have been obtained with
respect to such amendment, modification, termination, waiver or consent; provided that (i) such replacement does not conflict
with any applicable Law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, (ii) the
replacement financial institution shall purchase, at par, all Loans and other
amounts owing to the Non-Consenting Lender pursuant to the Loan Documents on or
prior to the date of replacement, (iii) the replacement financial
institution shall approve the proposed amendment, modification, termination,
waiver or consent, (iv) the Borrower shall be liable to the Non-Consenting
Lender under Section 3.05 if any
Eurodollar Rate Loan owing to the Non-Consenting Lender shall be purchased
other than on the last day of the Interest Period relating thereto, (v) the
Non-Consenting Lender shall be obligated to make such replacement in accordance
with the provisions of Section 10.07(b) (provided
that the Borrower shall be obligated to pay the recordation and processing fee
referred to therein), (vi) until such time as such replacement shall be
consummated, the Borrower shall pay to the Non-Consenting Lender all additional
amounts (if any) required pursuant to Article III
or Section 10.05, as the case may
be, (vii) the Borrower 

 

 

 

81

 

provides
at least three (3) Business Days’ prior notice to the Non-Consenting
Lender, and (viii) any such replacement shall not be deemed to be a waiver
of any rights that the Borrower, the Administrative Agent or any other Lender
shall have against the Non-Consenting Lender. 
In the event any Non-Consenting Lender fails to execute the agreements
required under Section 10.07(b) in
connection with an assignment pursuant to this Section 10.01,
the Borrower may, upon two (2) Business Days’ prior notice to the
Non-Consenting Lender, execute such agreements on behalf of the Non-Consenting
Lender as such Non-Consenting Lender’s attorney-in-fact pursuant to Section 9.04(g).

 

                10.02      Notices and Other Communications;
Facsimile Copies.

 

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

 

(b)           Effectiveness of Facsimile Documents and Signatures.  Loan Documents may be transmitted and/or
signed by facsimile.  The effectiveness
of any such documents and signatures shall, subject to applicable Law, have the
same force and effect as manually-signed originals and shall be binding on all
Loan Parties, the Administrative Agent and the Lenders.  The Administrative Agent may also require
that any such documents and signatures be confirmed by a manually-signed
original thereof; provided, however,
that the failure to request or deliver the same shall not limit the effectiveness
of any facsimile document or signature.

 

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

 

(d)           Reliance by Administrative Agent and Lenders.  The Administrative Agent and the Lenders
shall be entitled to rely and act upon any notices (including telephonic
Borrowing Notices) purportedly given by or on behalf of the Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified 

 

82

 

herein,
or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof.  The Borrower shall
indemnify each Agent-Related Person and each Lender from all losses, costs,
expenses and liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf of the Borrower.  All telephonic notices to and other
communications with the Administrative Agent may be recorded by the Administrative
Agent, and each of the parties hereto hereby consents to such recording.

 

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

 

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

 

                10.05      Indemnification.  Whether or not the transactions contemplated
hereby are consummated, the Borrower and each Guarantor (by execution of a
Guaranty), jointly and severally, agrees to indemnify, save and hold harmless
each Agent-Related Person, the Administrative Agent, the Collateral Agent, the
Syndication Agents, the Arranger, the Documentation Agents, each Lender, the L/C
Issuer and their respective Affiliates, directors, officers, employees,
counsel, agents and attorneys-in-fact (collectively the “Indemnitees”) from
and against: (a) any and all claims, demands, actions or causes of action
that are asserted against any Indemnitee by any Person (other than the
Administrative Agent or any Lender) relating directly or indirectly to a claim,
demand, action or cause of action that such Person asserts or may assert
against any Loan Party, any Affiliate of any Loan Party or any of their
respective 

 

 

83

 

officers or directors,
arising out of or relating to, the Loan Documents, the Commitments, the use or
contemplated use of the proceeds of any Loans, or the relationship of any Loan
Party, the Administrative Agent, the Collateral Agent, the Syndication Agents,
the Documentation Agents, the Lenders and the L/C Issuer under this Agreement
or any other Loan Document; (b) any and all claims, demands, actions or
causes of action that may at any time (including at any time following
repayment of the Obligations and the resignation of the Administrative Agent or
the replacement of any Lender) be asserted or imposed against any Indemnitee by
any Person or by Borrower or any other Loan Party, arising out of or relating
to, the Loan Documents, the Commitments, the use or contemplated use of the
proceeds of any Loans, or the relationship of any Loan Party, the
Administrative Agent, the Collateral Agent, the Syndication Agents, the
Documentation Agents, the Lenders and the L/C Issuer under this Agreement or
any other Loan Document; (c) without limiting the foregoing, any and all
claims, demands, actions or causes of action, judgments and orders, penalties
and fines that are asserted or imposed against any Indemnitee, (i) under
the application of any Environmental Law applicable to the Borrower or any of
its Subsidiaries or any of their properties or assets, including the treatment
or disposal of Hazardous Substances on any of their properties or assets, (ii) as
a result of the breach or non-compliance by the Borrower or any Subsidiary with
any Environmental Law applicable to the Borrower or any Subsidiary, (iii) due
to past ownership by the Borrower or any Subsidiary of any of their properties
or assets or past activity on any of their properties or assets which, though
lawful and fully permissible at the time, could result in present liability, (iv) due
to the presence, use, storage, treatment or disposal of Hazardous Substances on
or under, or the escape, seepage, leakage, spillage, discharge, emission or
Release from, any of the properties owned or operated by the Borrower or any
Subsidiary (including any liability asserted or arising under any Environmental
Law), regardless of whether caused by, or within the control of, the Borrower
or such Subsidiary, or (v) due to any other environmental, health or
safety condition in connection with the Loan Documents; (d) any
administrative or investigative proceeding by any Governmental Authority
arising out of or related to a claim, demand, action or cause of action
described in subsection (a), (b) or (c) above; and (e) ANY AND ALL LIABILITIES (INCLUDING LIABILITIES UNDER INDEMNITIES),
LOSSES, COSTS, DAMAGES OR EXPENSES (INCLUDING ATTORNEY COSTS AND SETTLEMENT
COSTS) THAT ANY INDEMNITEE SUFFERS OR INCURS AS A RESULT OF THE ASSERTION OF
ANY FOREGOING CLAIM, DEMAND, ACTION, CAUSE OF ACTION OR PROCEEDING, OR AS A
RESULT OF THE PREPARATION OF ANY DEFENSE IN CONNECTION WITH ANY FOREGOING
CLAIM, DEMAND, ACTION, CAUSE OF ACTION OR PROCEEDING, IN ALL CASES,  WHETHER OR NOT ARISING OUT
OF THE STRICT LIABILITY OR NEGLIGENCE OF AN INDEMNITEE, and whether
or not an Indemnitee is a party to such claim, demand, action, cause of action
or proceeding (all the foregoing, collectively, the “Indemnified Liabilities”); provided that no Indemnitee shall be
entitled to indemnification for any claim to the extent caused by its own gross
negligence or willful misconduct.  The
agreements in this Section shall survive and continue for the benefit of
the Indemnitees at all times after the Borrower’s acceptance of the Lenders’
Commitments under this Agreement, whether or not the Closing Date shall occur
and shall survive the termination of the Commitments and repayment of all the
other Obligations.

 

                10.06      Payments Set Aside.  To the extent that the Borrower makes a
payment to the Administrative Agent or any Lender, or the Administrative Agent
or any Lender exercises its right of setoff, and such payment or the proceeds
of such set-off or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to
the extent of such recovery, the obligation or part thereof originally intended
to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such 

 

 

84

 

setoff had not occurred, and
(b) each Lender severally agrees to pay to the Administrative Agent upon
demand its applicable share of any amount so recovered from or repaid by the
Administrative Agent, plus interest thereon from the date of such demand to the
date such payment is made at a rate per annum equal to the Federal Funds Rate
from time to time in effect.

 

                10.07      Successors and Assigns.

 

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

 

(b)           Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its applicable Commitment and the applicable
Loans (including for purposes of this subsection (b), in connection with an
assignment of its Revolver Commitment, participations in L/C Obligations) at
the time owing to it); provided
that:

 

(i) each partial assignment shall be
made as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement with respect to the applicable Loan
or the applicable Commitment assigned; provided, however,
assignments may be non-pro rata as between a Lender’s Revolver Commitment and
Revolver Loans and its Term Loan Commitment and Term Loans;

 

(ii) any assignment of a Commitment must
be approved by the Administrative Agent (and L/C Issuer if the assignment
relates to the Revolver Commitment) unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee); and

 

(iii) the parties to each assignment
shall execute and deliver to the Administrative Agent an Assignment and
Assumption, together with a processing and recordation fee of $3,500, and the
Eligible Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Details Form;

 

provided, however, except in the
case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of  an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund, the aggregate amount of the applicable Commitment (which for
this purpose includes Loans outstanding thereunder) or, if the applicable
Commitment is not then in effect, the outstanding principal balance of the
applicable Loan of the assigning Lender subject to each such assignment
(determined as of the 

 

 

85

 

date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent or, if “Trade Date”
is specified in the Assignment and Assumption, as of the Trade Date) is not
less than $1,000,000 unless each of the Administrative Agent and, so long as no
Default or Event of Default has occurred and is continuing, the Borrower
otherwise consents (Borrower’s consent not to be unreasonably withheld,
conditioned or delayed).

 

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

 

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

 

(d)           Any Lender may at any time, without the consent of, or
notice to, the Borrower or the Administrative Agent, sell participations to any
Person (other than a natural person or the Borrower or any of the Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans (including such Lender’s
participation in L/C Obligations) owing to it); provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such agreement or instrument
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that would (i) postpone any
date upon which any payment of money is scheduled to be paid to such
Participant or (ii) reduce the principal, interest, fees or other amounts
payable to such Participant.  

 

 

86

 

Subject
to subsection (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section.  To the extent permitted by Law, each
Participant also shall be entitled to the benefits of Section 10.09 as
though it were a Lender; provided
such Participant agrees to be subject to Section 2.12 as though it were a Lender.

 

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

 

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

 

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

 

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

 

                10.08      Confidentiality.   Each Lender agrees that it will not disclose
without the prior consent of the Borrower (other than to directors, officers,
employees, auditors, accountants, counsel or other professional advisors of the
Administrative Agent or any Lender) any information with respect to the
Borrower or its Subsidiaries, which is furnished pursuant to this Agreement and
which (i) the Borrower in good faith considers to be confidential and (ii) is
either clearly marked confidential or is designated by the Borrower to the
Administrative Agent or the Lenders in writing as confidential; provided that any Lender may disclose any
such information (a) as has become generally available to the public, (b) as
may be required or appropriate in any report, statement or testimony submitted
to or required by any municipal, state or federal regulatory body having or
claiming to have jurisdiction over such Lender or submitted to or required by
the Board or the Federal Deposit Insurance Corporation or similar organizations
(whether 

 

 

87

 

in the United States or
elsewhere) or any self-regulatory organization or their successors, (c) as
may be required or appropriate in response to any summons or subpoena in
connection with any litigation, (d) in order to comply with any Law
applicable to such Lender, (e) to any Eligible Assignee of or Participant
in, or any prospective Eligible Assignee of or Participant in, any of its
rights or obligations under this Agreement, (f) in connection with the
exercise of any remedy by such Lender following an Event of Default pertaining
to the Loan Documents, (g) in connection with any litigation involving such
Lender pertaining to the Loan Documents, (h) to any Lender or the
Administrative Agent, (i) to any Affiliate of any Lender (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such information and obligated to keep such
information confidential), (j) to a nationally recognized rating agency
that requires access to information regarding the Loan Parties, the Loans and
Loan Documents in connection with ratings issued with respect to a Securitization
(as defined below), (k) to a Person that is an investor or prospective
investor in a Securitization that agrees that its access to information
regarding the Loan Parties and the Loans is solely for purposes of evaluating
an investment in such Securitization, and (l) to a Person that is a
trustee, collateral manager, servicer, noteholder or secured party in a
Securitization in connection with the administration, servicing and reporting
on the assets serving as collateral for such Securitization.  For purposes of this Section, “Securitization” means a public or
private offering by a Lender or any of its Affiliates or their respective
successors and assigns, of securities which represent an interest in, or which
are collateralized, in whole or in part, by the Loans; provided further, that notwithstanding
anything in this Agreement to the contrary, the Borrower, the Administrative
Agent, the Syndication Agents, the Documentation Agents, the L/C Issuer, each
Lender and each Related Party may disclose to any and all Persons, without
limitation of any kind, the tax treatment and tax structure of the transactions
contemplated hereby and all materials of any kind (including opinions or other
tax analysis) that are provided to it relating to such tax treatment and tax
structure; and nothing in the foregoing authorization shall apply to any
disclosure that would constitute a violation of applicable federal or state
securities Laws.

 

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

 

                10.10      Interest Rate Limitation.  Regardless of any provision contained in any
Loan Document, neither the Administrative Agent nor any Lender shall ever be
entitled to contract for, charge, take, reserve, receive, or apply, as interest
on all or any part of the Obligations, any amount in excess of the Maximum
Rate, and, if any Lender ever does so, then such excess shall be deemed a
partial prepayment of principal and treated hereunder as such and any remaining
excess shall be refunded to the Borrower.  
In determining if the interest paid or payable exceeds the Maximum Rate,
the Borrower and the Lenders shall, to the maximum extent permitted under
applicable Law, (a) treat all Borrowings as but a single extension of
credit (and the Lenders and the Borrower agree that such is the case and that 

 

 

88

 

provision herein for
multiple Borrowings is for convenience only), (b) characterize any
nonprincipal payment as an expense, fee, or premium rather than as interest, (c) exclude
voluntary prepayments and the effects thereof, and (d) amortize, prorate,
allocate, and spread the total amount of interest throughout the entire
contemplated term of the Obligations. 
However, if the Obligations are paid and performed in full prior to the
end of the full contemplated term thereof, and if the interest received for the
actual period of existence thereof exceeds the Maximum Amount, the Lenders
shall refund such excess, and, in such event, the Lenders shall not, to the
extent permitted by Law, be subject to any penalties provided by any Laws for
contracting for, charging, taking, reserving or receiving interest in excess of
the Maximum Amount.  To the extent the
Laws of the State of Texas are applicable for purposes of determining the “Maximum Rate” or the “Maximum Amount,” then those terms mean the
“weekly ceiling” from time to
time in effect under Texas Finance Code § 303.001,
as limited by Texas Finance Code § 303.009.  The Borrower agrees that Chapter 346 of the
Texas Finance Code, as amended (which regulates certain revolving credit loan
accounts and revolving tri-party accounts), does not apply to the Obligations.

 

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

 

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

 

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

 

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

 

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

 

 

89

 

(b)           EACH PARTY TO THIS AGREEMENT AND EACH GUARANTOR, BY
EXECUTION OF A GUARANTY, AGREES AS TO THIS SECTION 10.15(b). ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF TEXAS SITTING IN HARRIS COUNTY OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH
LENDER CONSENTS, AND BY EXECUTION OF A GUARANTY, EACH GUARANTOR CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF
THOSE COURTS.  THE BORROWER, EACH GUARANTOR,
THE ADMINISTRATIVE AGENT AND EACH LENDER (1) IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY
LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO, AND (2) IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES
DESIGNATED HEREIN.  THE BORROWER, EACH
GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF
ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER
MEANS PERMITTED BY THE LAW OF SUCH STATE. 
THE BORROWER AND EACH GUARANTOR, BY ITS EXECUTION OF A GUARANTY, HEREBY
IRREVOCABLY APPOINTS NATIONAL REGISTERED AGENTS, INC., WITH AN ADDRESS AT 5
EVERETTE DRIVE, SUITE 107B, WEST WINDSOR, NEW JERSEY 08550 (THE “TEXAS PROCESS AGENT”)
AS PROCESS AGENT IN ITS NAME, PLACE AND STEAD TO RECEIVE AND FORWARD SERVICE OF
ANY AND ALL WRITS, SUMMONSES AND OTHER LEGAL PROCESS IN ANY SUIT, ACTION OR
PROCEEDING BROUGHT IN THE STATE OF TEXAS, AGREES THAT SUCH SERVICE IN ANY SUCH
SUIT, ACTION OR PROCEEDING MAY BE MADE UPON THE TEXAS PROCESS AGENT, AND
AGREES TO TAKE ALL SUCH ACTION AS MAY BE NECESSARY TO CONTINUE SAID
APPOINTMENT IN FULL FORCE AND EFFECT.

 

                10.16      Waiver of Right to Trial by Jury, Etc.  EACH PARTY TO THIS AGREEMENT AND EACH
GUARANTOR, BY EXECUTION OF A GUARANTY, HEREBY (a) EXPRESSLY AND
IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES TO THE LOAN DOCUMENTS OR
ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED
THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE
AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE LOAN PARTIES TO THE WAIVER OF THEIR
RIGHT TO TRIAL BY JURY; AND (b) EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR
RECOVER IN ANY SUCH ACTION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL
DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; PROVIDED THAT THE WAIVER 

 

 

90

 

CONTAINED IN THIS SECTION 10.16(b) SHALL
NOT APPLY TO THE EXTENT THAT THE PARTY AGAINST WHOM DAMAGES ARE SOUGHT HAS
ENGAGED IN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

                10.17      No General Partner Liability Until Consummation of Merger
Transaction.  The
Administrative Agent and the Lenders agree for themselves and their respective
successors and assigns, including any subsequent holder of any Note, that no
claim under this Agreement or under any other Loan Document shall be made
against the General Partner, and that no judgment, order or execution entered
in any suit, action or proceeding, whether legal or equitable, hereunder or on
any other Loan Document shall be obtained or enforced, against the General
Partner or its assets for the purpose of obtaining satisfaction and payment of
amounts owed under this Agreement or any other Loan Document until the Merger
Transaction is consummated.  Nothing in
this Section 10.17,
however, shall be construed so as to prevent the Administrative Agent, any
Lender or any other holder of any Note prior to consummation of the Merger
Transaction from commencing any action, suit or proceeding with respect to or
causing legal papers to be served upon the General Partner for the sole purpose
of obtaining jurisdiction over the Borrower. 
Upon consummation of the Merger Transaction, the General Partner will be
liable as a Guarantor and be a Loan Party.

 

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

 

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SIGNATURES BEGIN ON NEXT PAGE]

 

 

91

 

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

 

	
   

  	
  BORROWER:

  	
  MARKWEST
  ENERGY PARTNERS, L.P.,

  
	
   

  	
   

  	
  a
  Delaware limited partnership,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MarkWest
  Energy GP, L.L.C.,

  its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew L.
  Schroeder

  
	
   

  	
   

  	
  Andrew
  L. Schroeder

  
	
   

  	
   

  	
  Vice
  President and Treasurer

  
						

 

 

 

	
   

   

  	
  ROYAL
  BANK OF CANADA,

  as
  Administrative Agent and Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Renuka
  Gnanaswaran

  
	
   

  	
  Name:

  	
  Renuka
  Gnanaswaran

  
	
   

  	
  Title:
  

  	
  Manager, Agency

  

 

 

 

 

	
   

  	
   

  	
  ROYAL
  BANK OF CANADA,

  	
   

  
	
   

  	
   

  	
  as
  Lender and L/C Issuer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jason York

  
	
   

  	
   

  	
   

  	
  Jason York

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  
					

 

 

 

	
   

  	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  
	
   

  	
   

  	
  as
  Co-Syndication Agent and Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Kenneth J.
  Fatur

  
	
   

  	
   

  	
   

  	
  Kenneth J. Fatur

  
	
   

  	
   

  	
   

  	
  Managing Director

  
					

 

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Co-Syndication Agent and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher L.
  Hewitt

  
	
   

  	
  Name:

  	
  Christopher L. Hewitt

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

 

	
   

  	
  FORTIS
  CAPITAL CORP.,

  	
   

  
	
   

  	
  as
  Co-Documentation Agent and Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Casey Lowary

  
	
   

  	
  Name:

  	
  Casey Lowary

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darrell Holley

  
	
   

  	
  Name:

  	
  Darrell Holley

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
				

 

	
   

  	
   

  
	
   

  	
  SUNTRUST
  BANK,

  
	
   

  	
  as
  Co-Documentation Agent and Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph M. McCreery

  
	
   

  	
  Name:

  	
  Joseph M. McCreery

  
	
   

  	
  Title:

  	
  Director

  
				

 

 

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Co-Documentation Agent and Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kathryn A. Gaiter

  
	
   

  	
  Name:

  	
  Kathryn A. Gaiter

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
				

 

 

 

 

	
   

  	
  WELLS
  FARGO BANK, N.A.,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oleg Kogan

  
	
   

  	
  Name:

  	
  Oleg Kogan

  
	
   

  	
  Title:

  	
  Assistant Vice
  President

  

 

 

	
   

  	
  BNP
  PARIBAS,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory E. George

  
	
   

  	
  Name:

  	
  Gregory E. George

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry Robinson

  
	
   

  	
  Name:

  	
  Larry Robinson

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  CALYON
  NEW YORK BRANCH,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Page Dillehunt

  
	
   

  	
  Name:

  	
  Page Dillehunt

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael D. Willis

  
	
   

  	
  Name:

  	
  Michael D. Willis

  
	
   

  	
  Title:

  	
  Director

  

 

 

 

	
   

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam H. Fey

  
	
   

  	
  Name:

  	
  Adam H. Fey

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
				

 

 

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan LeFevre

  
	
   

  	
  Name:

  	
  Susan LeFevre

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dusan Lazarov

  
	
   

  	
  Name:

  	
  Dusan Lazarov

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  

 

 

	
   

  	
  BANK
  OF SCOTLAND

  
	
   

  	
  NEW
  YORK BRANCH,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karen Weich

  
	
   

  	
  Name:

  	
  Karen Weich

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  

 

 

 

	
   

  	
  MORGAN
  STANLEY BANK,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Daniel Twenge

  
	
   

  	
  Daniel Twenge

  
	
   

  	
  Authorized Signatory

  

 

 

	
   

  	
  WESTLB
  AG,

  
	
   

  	
  NEW
  YORK BRANCH,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jennifer King

  
	
   

  	
  Name:

  	
  Jennifer King

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Vastola

  
	
   

  	
  Name:

  	
  Paul Vastola

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  COMPASS
  BANK,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Murray E. Brasseux

  
	
   

  	
  Name:

  	
  Murray E. Brasseux

  
	
   

  	
  Title:

  	
  Executive Vice
  President

  

 

 

	
   

  	
  CREDIT
  SUISSE, CAYMAN ISLANDS BRANCH

  
	
   

  	
  as
  a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Vanessa Gomez

  
	
   

  	
   

  	
  Vanessa Gomez

  
	
   

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Morenikeji Ajayi

  
	
   

  	
   

  	
  Morenikeji Ajayi

  
	
   

  	
   

  	
  Associate

  
				

 

 

 

	
   

  	
  UNION
  BANK OF CALIFORNIA, N.A.,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy Brendel

  
	
   

  	
  Name:

  	
  Timothy Brendel

  
	
   

  	
  Title:

  	
  Assistant Vice
  President

  

 

 

 

 

	
   

  	
  COMERICA
  BANK,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rebecca L. Wilson

  
	
   

  	
  Name:

  	
  Rebecca L. Wilson

  
	
   

  	
  Title:

  	
  Assistant Vice
  President

  
	
   

   

  	
   

  	
   

  

 

	
   

  	
  NATIXIS,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Louis P. Laville, III

  
	
   

  	
  Name:

  	
  Louis P. Laville, III

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Payer

  
	
   

  	
  Name:

  	
  Daniel Payer

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  GUARANTY
  BANK, FSB,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jim R. Hamilton

  
	
   

  	
  Name:

  	
  Jim R. Hamilton

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

	
   

  	
  AMEGY
  BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Allen Rheem

  
	
   

  	
  Name:

  	
  Allen Rheem

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

	
   

  	
  BANK
  OF OKLAHOMA, N.A.,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael M. Logan

  
	
   

  	
  Name:

  	
  Michael M. Logan

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
				

 

 

	
   

  	
  SOCIÉTÉ
  GÉNÉRALE,

  
	
   

  	
  as
  a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elena Robciuc

  
	
   

  	
  Name:

  	
  Elena Robciuc

  
	
   

  	
  Title:

  	
  Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]