Document:

Exhibit
10.1

Execution

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

among

MARKWEST HYDROCARBON, INC.,

as the Borrower,

ROYAL BANK OF CANADA,

as Administrative Agent and Collateral Agent

and

The Lenders Party Hereto

SENIOR
CREDIT FACILITIES

$40,000,000 Revolving Credit Facility

$15,000,000
Unit Acquisition Facility

 

Dated as of
August 18, 2006

 

RBC CAPITAL MARKETS

As Lead Arranger and Sole Bookrunner

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I.

  	
  DEFINITIONS AND ACOUNTING TERMS

  	
  1

  
	
  1.01

  	
  Defined Terms

  	
  1

  
	
  1.02

  	
  Other Interpretive Provisions

  	
  29

  
	
  1.03

  	
  Accounting Terms

  	
  30

  
	
  1.04

  	
  Rounding

  	
  30

  
	
  1.05

  	
  References to Agreements and Laws

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  THE COMMITMENT AND BORROWINGS

  	
  30

  
	
  2.01

  	
  Loans

  	
  30

  
	
  2.02

  	
  Borrowing Base Determinations

  	
  31

  
	
  2.03

  	
  Borrowings, Conversions and Continuations of Loans

  	
  31

  
	
  2.04

  	
  Prepayments

  	
  33

  
	
  2.05

  	
  Reduction or Termination of Commitments

  	
  35

  
	
  2.06

  	
  Repayment of Loans

  	
  36

  
	
  2.07

  	
  Interest

  	
  36

  
	
  2.08

  	
  Fees

  	
  36

  
	
  2.09

  	
  Computation of Interest and Fees

  	
  37

  
	
  2.10

  	
  Evidence of Debt

  	
  37

  
	
  2.11

  	
  Payments Generally

  	
  38

  
	
  2.12

  	
  Sharing of Payments

  	
  40

  
	
  2.13

  	
  Revolving Credit Commitment Increase

  	
  40

  
	
  2.14

  	
  Letters of Credit

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  48

  
	
  3.01

  	
  Taxes

  	
  48

  
	
  3.02

  	
  Illegality

  	
  49

  
	
  3.03

  	
  Inability to Determine Rates

  	
  49

  
	
  3.04

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

  	
  50

  
	
  3.05

  	
  Funding Losses

  	
  50

  
	
  3.06

  	
  Matters Applicable to all Requests for Compensation

  	
  51

  
	
  3.07

  	
  Survival

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  CONDITIONS PRECEDENT

  	
  51

  
	
  4.01

  	
  Conditions Precedent

  	
  51

  
	
  4.02

  	
  Conditions to all Loans and L/C Credit Extension

  	
  54

  
	
  4.03

  	
  Conditions to all Loans to Acquire MLP Units

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REPRESENTATIONS AND WARRANTIES.

  	
  55

  
	
  5.01

  	
  Existence; Qualification and Power; Compliance with
  Laws

  	
  55

  
	
  5.02

  	
  Authorization; No Contravention

  	
  55

  
	
  5.03

  	
  Governmental Authorization

  	
  55

  
	
  5.04

  	
  Binding Effect

  	
  55

  

 

 i
 

 

 

	
  5.05

  	
  Financial Statements; No Material Adverse Effect

  	
  55

  
	
  5.06

  	
  Litigation

  	
  56

  
	
  5.07

  	
  No Default

  	
  56

  
	
  5.08

  	
  Ownership of Property; Liens

  	
  56

  
	
  5.09

  	
  Environmental Compliance

  	
  56

  
	
  5.10

  	
  Insurance

  	
  56

  
	
  5.11

  	
  Taxes

  	
  56

  
	
  5.12

  	
  ERISA Compliance

  	
  57

  
	
  5.13

  	
  Subsidiaries and other Investments

  	
  57

  
	
  5.14

  	
  Margin Regulations; Investment Company Act; Use of
  Proceeds

  	
  57

  
	
  5.15

  	
  Disclosure

  	
  58

  
	
  5.16

  	
  Labor Matters

  	
  58

  
	
  5.17

  	
  Compliance with Laws

  	
  58

  
	
  5.18

  	
  Third Party Approvals

  	
  58

  
	
  5.19

  	
  Solvency

  	
  58

  
	
  5.20

  	
  Collateral

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  AFFIRMATIVE COVENANTS

  	
  59

  
	
  6.01

  	
  Financial Statements

  	
  59

  
	
  6.02

  	
  Certificates; Other Information

  	
  59

  
	
  6.03

  	
  Notices

  	
  60

  
	
  6.04

  	
  Payment of Obligations

  	
  61

  
	
  6.05

  	
  Preservation of Existence, Etc.

  	
  61

  
	
  6.06

  	
  Maintenance of Assets and Business

  	
  61

  
	
  6.07

  	
  Maintenance of Insurance

  	
  61

  
	
  6.08

  	
  Compliance with Laws and Contractual Obligations

  	
  62

  
	
  6.09

  	
  Books and Records

  	
  62

  
	
  6.10

  	
  Inspection Rights

  	
  63

  
	
  6.11

  	
  Compliance with ERISA

  	
  63

  
	
  6.12

  	
  Use of Proceeds

  	
  63

  
	
  6.13

  	
  Material Agreements

  	
  63

  
	
  6.14

  	
  Hedging

  	
  63

  
	
  6.15

  	
  Guaranties

  	
  63

  
	
  6.16

  	
  Further Assurances; Additional Collateral

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  NEGATIVE COVENANTS.

  	
  64

  
	
  7.01

  	
  Liens

  	
  64

  
	
  7.02

  	
  Investments

  	
  66

  
	
  7.03

  	
  Hedging Agreements

  	
  66

  
	
  7.04

  	
  Indebtedness

  	
  66

  
	
  7.05

  	
  Lease Obligations

  	
  67

  
	
  7.06

  	
  Fundamental Changes

  	
  67

  
	
  7.07

  	
  Dispositions

  	
  67

  
	
  7.08

  	
  Restricted Payments; Distributions and Redemptions

  	
  68

  
	
  7.09

  	
  ERISA

  	
  68

  
	
  7.10

  	
  Nature of Business; Capital Expenditures; Risk
  Management

  	
  68

  
	
  7.11

  	
  Transactions with Affiliates

  	
  68

  

 

 ii
 

 

 

	
  7.12

  	
  Burdensome Agreements

  	
  68

  
	
  7.13

  	
  Use of Proceeds

  	
  69

  
	
  7.14

  	
  Material Agreements

  	
  69

  
	
  7.15

  	
  Financial Covenants

  	
  69

  
	
  7.16

  	
  Minimum Collateral Coverage Ratio

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
  69

  
	
  8.01

  	
  Events of Default

  	
  69

  
	
  8.02

  	
  Remedies Upon Event of Default

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  AGENTS

  	
  73

  
	
  9.01

  	
  Appointment and Authorization of Agents

  	
  73

  
	
  9.02

  	
  Delegation of Duties

  	
  74

  
	
  9.03

  	
  Default; Collateral

  	
  74

  
	
  9.04

  	
  Liability of Agents

  	
  75

  
	
  9.05

  	
  Reliance by Administrative Agent

  	
  76

  
	
  9.06

  	
  Notice of Default

  	
  76

  
	
  9.07

  	
  Credit Decision; Disclosure of Information by
  Administrative Agent

  	
  77

  
	
  9.08

  	
  Indemnification of Agents

  	
  77

  
	
  9.09

  	
  Agent in its Individual Capacity

  	
  77

  
	
  9.10

  	
  Successor Agents

  	
  78

  
	
  9.11

  	
  Other Agents; Arranger

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS.

  	
  79

  
	
  10.01

  	
  Amendments, Release of Collateral, Etc

  	
  79

  
	
  10.02

  	
  Notices and Other Communications; Facsimile Copies

  	
  81

  
	
  10.03

  	
  No Waiver; Cumulative Remedies

  	
  82

  
	
  10.04

  	
  Attorney Costs; Expenses and Taxes

  	
  82

  
	
  10.05

  	
  Indemnification

  	
  82

  
	
  10.06

  	
  Payments Set Aside

  	
  83

  
	
  10.07

  	
  Successors and Assigns

  	
  83

  
	
  10.08

  	
  Confidentiality

  	
  86

  
	
  10.09

  	
  Set-off

  	
  86

  
	
  10.10

  	
  Interest Rate Limitation

  	
  87

  
	
  10.11

  	
  Counterparts

  	
  87

  
	
  10.12

  	
  Integration

  	
  87

  
	
  10.13

  	
  Survival of Representations and Warranties

  	
  87

  
	
  10.14

  	
  Severability

  	
  88

  
	
  10.15

  	
  Foreign Lenders

  	
  88

  
	
  10.16

  	
  Governing Law

  	
  88

  
	
  10.17

  	
  Waiver of Right to Trial by Jury, Etc

  	
  89

  
	
  10.18

  	
  Termination of Commitments Under Original Credit
  Agreement

  	
  90

  
	
  10.19

  	
  No Novations, Etc.

  	
  90

  
	
  10.20

  	
  ENTIRE AGREEMENT

  	
  90

  

 

 iii
 

 

 

SCHEDULES

2.01                           Commitments

5.13                           Subsidiaries and other Equity Investments

7.01                           Existing Liens

7.12                           Agreements Restricting Liens on Leasehold
Interests

10.02                     Addresses for Notices to Borrower, Guarantors and Administrative Agent

EXHIBITS

	
  Exhibit:

  	
   

  	
  Form of:

  
	
   

  	
   

  	
   

  
	
  A-1

  	
   

  	
  Borrowing Notice

  
	
  A-2

  	
   

  	
  Conversion/Continuation Notice

  
	
  B-1

  	
   

  	
  Revolving Credit Note

  
	
  B-2

  	
   

  	
  Unit Acquisition Note

  
	
  C-1

  	
   

  	
  Compliance Certificate pursuant to Section 6.02(a)

  
	
  C-2

  	
   

  	
  Borrowing Base

  
	
  D

  	
   

  	
  Assignment and Assumption

  
	
  E

  	
   

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

  

 

 iv

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of
August 18, 2006, among MARKWEST HYDROCARBON, INC., a Delaware corporation (the “Borrower”), each lender from time to
time party hereto (collectively, the “Lenders”
and individually, a “Lender”),
and ROYAL BANK OF CANADA,  as
Administrative Agent and L/C Issuer.

PRELIMINARY
STATEMENTS

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

(2)           The
Original Credit Agreement was amended and restated in its entirety by a First
Amended and Restated Credit Agreement dated January 31, 2006 among Borrower,
Royal Bank, as administrative agent, and the Original Lenders, providing for a
senior credit facility of $25,000,000, as amended by a First Amendment to First
Amended and Restated Credit Agreement dated March 23, 2006 (as amended, the “First Amended and Restated Credit Agreement”).

(3)           The
Borrower, Royal Bank, US Bank and Bank of Oklahoma have agreed to amend and restate
in its entirety the First Amended and Restated Credit Agreement on the terms
and conditions set forth herein and to extend, renew, increase and rearrange
the indebtedness outstanding under the First Amended and Restated Credit
Agreement (but not to repay or pay off such indebtedness) and in connection
therewith to have a new lender, SunTrust Bank, become party hereto and Lender
hereunder.

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

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

1.01        Defined Terms.

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

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

 1
 

 

 

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

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

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

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

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 Domestic MarkWest Inc. Operating
Subsidiary 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 Domestic MarkWest Inc. Operating Subsidiary
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 Domestic MarkWest Inc. Operating Subsidiary
with another Person if Borrower or any Domestic MarkWest Inc. Operating
Subsidiary is the surviving entity, provided
that, in any merger involving a Wholly-Owned Domestic MarkWest
Inc. Operating Subsidiary and another Domestic MarkWest Inc. Operating
Subsidiary, a Wholly-Owned Domestic MarkWest Inc. Operating Subsidiary
shall be the survivor.

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

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

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

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

Agent
means individually the Administrative Agent and the Collateral Agent and “Agents” collectively means both of
them.

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

 2
 

 

 

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

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

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

Agreement means this Second Amended and Restated
Credit Agreement.

Amended and
Restated Guaranty means the
Second Amended and Restated Guaranty 
made by each Guarantor as of August 18, 2006 in favor of the Administrative
Agent on behalf of the Lenders, in form and substance reasonably acceptable to
the Administrative Agent, as it may be amended from time to time.

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

Revolving Credit Commitment and Revolving Credit Loans and Letters of
Credit

 

	
  Pricing

  Level

  	
   

  	
  Revolving

  Credit

  Utilization

  Percentage

  	
   

  	
  Letter of Credit and

  Eurodollar Rate

  + (bps)*

  	
   

  	
  Base Rate + (bps)*

  	
   

  	
  Revolving Credit

  Commitment Fee

  + (bps)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Less than 50%

  	
   

  	
  150.0

  	
   

  	
  50.0

  	
   

  	
  37.5

  	
   

  
	
  2

  	
   

  	
  50% or more but less than 75%

  	
   

  	
  200.0

  	
   

  	
  100.0

  	
   

  	
  50.0

  	
   

  
	
  3

  	
   

  	
  75% or more but less than 100%

  	
   

  	
  250.0

  	
   

  	
  150.0

  	
   

  	
  50.0

  	
   

  
	
  4

  	
   

  	
  100% or more

  	
   

  	
  275.0

  	
   

  	
  175.0

  	
   

  	
  50.0

  	
   

  

 

*If
at any time the Aggregate Revolving Credit Commitment is increased pursuant to Section 2.13, the Applicable Rate
for Revolving Credit Loans and Letters of Credit (but not the Revolving Credit
Commitment Fee which remains unchanged) will be increased by 0.50% per annum
(50 basis points) over the amounts set forth above.

 3
 

 

 

(b)  with respect to the Unit Acquisition
Facility, the Applicable Margin for Eurodollar Rate Loans shall be the sum of
the Eurodollar Rate plus 350 bps, the Applicable Margin for Base Rate Loans
shall be the sum of the Base Rate plus 250 bps and for the Unit Acquisition
Commitment Fee, 50 bps.

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

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

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

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

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

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

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

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

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

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

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

Borrower
Affiliate means the
Borrower and its Subsidiaries.

 4
 

 

 

Borrowing
means, as the context may require, a Revolving Credit Borrowing, a Unit
Acquisition Borrowing or both and “Borrowings”
means all Revolving Credit Borrowings, Unit Acquisition Borrowings or both.

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

Borrowing Base Liquidity Reserve
means an amount equal to $6,000,000,
except as otherwise revised pursuant to Section 2.02(c).

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

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

bps means basis points or
0.01% per annum.

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

Cash Equivalents means:

(a)           United States Dollars;

(b)           direct general
obligations, or obligations of, or obligations fully and unconditionally
guaranteed as to the timely payment of principal and interest by, the United

 5
 

 

 

States
or any agency or instrumentality thereof having remaining maturities of not
more than 13 months, but excluding any such securities whose terms do not
provide for payment of a fixed dollar amount upon maturity or call for
redemptions;

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

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

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

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

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

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

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

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

Change in Law
means (a) the adoption of any Law after the Second Restatement Date, (b) any
change in any Law or in the interpretation or application thereof by any
Governmental Authority after the Second Restatement Date 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 Second Restatement
Date.

Chesapeake Agreements
means the Kenova Operating Agreement, Gas Processing Agreement and amendment
no. 1 thereto originally between Borrower and Columbia Natural Resources, Inc.,
predecessor-in-interest to Chesapeake Energy Corporation.

Code means the Internal Revenue Code of 1986.

 6
 

 

 

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

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

Collateral Coverage Ratio
means as of any date of determination the ratio of (a) Collateral Value to (b)
Senior Lender Debt.

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

Collateral Value
means (i) for a security, if quotations are available, the closing sale price
of the security on the preceding Business Day or if there is no closing sale
price, any reasonable estimate of the market value of the security as of the
close of business on the preceding Business Day or if any Loans are used to
finance the acquisition of MLP Units, the total cost of such MLP Units
including any commissions charged, (ii) for the general partnership interest in
the MLP pledged by Borrower, the MLP GP Collateral Value  and (iii) for all other Collateral, its good
faith loan value as determined by the Administrative Agent, i.e., an amount (not exceeding 100% of the current market
value of the Collateral) which a bank, exercising sound banking judgment, would
lend without regard to a customer’s other assets held as collateral in
connection with unrelated transactions.

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

Commitment
means as to any Lender, as the context may require, its Revolving Credit
Commitment, its Unit Acquisition Commitment or both and as to all Lenders, as
the context may require, the Aggregate Revolving Credit Commitment, the Aggregate
Unit Acquisition Commitment, or both.

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

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

 7
 

 

 

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

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

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

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

Consolidated Tangible Net Worth means the consolidated net worth (excluding
any Redeemable Preferred Stock) of the Borrower and its Subsidiaries (excluding
the MLP GP, MLP and their Subsidiaries) after subtracting therefrom the
aggregate amount of any Intangible Assets of the Borrower and its Subsidiaries
(excluding the MLP GP, MLP and their Subsidiaries).  Intangible Assets
means the

 8
 

 

 

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

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

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

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

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

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

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

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

Dollar and $ means lawful money of the United States.

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

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

 9
 

 

 

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

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

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

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

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

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

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

 10
 

 

 

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

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

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

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

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

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

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

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

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

(xv)                            if the Administrative Agent believes, in the
exercise of its reasonable judgment, that the prospect of collection of such
Midstream Accounts Receivable is reasonably likely to be

 11
 

 

 

impaired or that the Midstream Accounts
Receivable could reasonably be expected not to be paid by reason of the account
debtor’s financial inability to pay;

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

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

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

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

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

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

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

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

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

 12
 

 

 

(ii)                                  that is not subject to the Administrative
Agent’s Liens, which are perfected as to such Midstream Inventory, or that are
subject to any other Lien whatsoever (other than the Liens described in clauses (d) and (m)
(to the extent clause (viii) below has been
complied with) of Section 7.01; provided that such Permitted Liens (1) are junior in
priority to the Administrative Agent’s Liens and (2) do not impair directly or
indirectly the ability of the Administrative Agent to realize on or obtain the
full benefit of such Midstream Inventory);

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

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

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

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

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

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

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

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

(xi)                                that is Midstream Inventory placed on
consignment;

(xii)                             that is Equitable Pre-Delivered Gas; or

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

 13
 

 

 

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

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

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

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

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

Equity
Offering means on or
after the Second Restatement Date, a private placement or a public sale of
common or preferred shares of capital stock (or other equity interest) of any
Loan Party (or any other sale to the public of commons or preferred capital
stock (or other equity interest) of any Loan Party, including from debt
convertible into equity of any Loan Party).

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

 14
 

 

 

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.

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

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

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

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

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

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

 15

 

 

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

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

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

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

Foreign Lender has the meaning specified in Section 10.15.

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

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

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

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

Governmental
Authority means any
nation or government, any state or other political subdivision thereof, any
agency, authority, instrumentality, regulatory body, court, administrative
tribunal, central

 16
 

 

 

bank or other legal entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

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

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

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

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

 17
 

 

 

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

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

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

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

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

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

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

(e)           Capital Leases and
Synthetic Lease Obligations; and

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

For all purposes hereof, the Indebtedness of any
Person shall include the Indebtedness of any partnership or joint venture in
which such Person is a general partner, unless such Indebtedness is expressly
made non-recourse to such Person except for customary exceptions
acceptable to the Required Lenders.  The
amount of any Capital Lease or Synthetic Lease Obligation 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 Deposit
Account has the
meaning set forth in Section
6.07(b).

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 MarkWest Inc. Subsidiary.

 18
 

 

 

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, in the case of all Loans, on the Maturity Date.

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

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

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

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

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

IRS means the United States Internal Revenue
Service.

ISDA means the International Swaps and
Derivatives Association, Inc.

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

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

 19
 

 

 

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

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

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

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

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

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

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

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

Letter of
Credit Expiration Date means the day
that is five days prior to the 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 the Aggregate Commitment and $7,500,000.

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

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

Loan
means, as the context may require, a Revolving Credit Loan, a Unit Acquisition
Loan or both and “Loans” means all Revolving
Credit Loans, Unit Acquisition Loans or both.

 20
 

 

 

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

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

Margin Regulations
means Regulations U, T and X of the Board.

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

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

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

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

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

Maturity Date
means (a) the Stated Maturity Date or (b) such earlier effective date of any
other termination, cancellation, or acceleration of the Aggregate Revolving
Credit Commitment and/or Aggregate Unit Acquisition Commitment 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.

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

 21
 

 

 

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

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

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

MLP Credit Agreement means the Fifth Amended and Restated Credit
Agreement dated as of December 29, 2005 among the MLP Operating Subsidiary, as
borrower, the MLP, as guarantor, Royal Bank of Canada, as administrative agent,
and the other agents and lenders party thereto.

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

MLP GP Collateral Value means the value obtained by reference to the following formula:

MLP GP Collateral Value = (CAD) / CTY x MPI

Where:

CAD means the total distributions paid by MLP to MLP GP during the most
recent fiscal quarter, multiplied by four.

CTY means the total distributions to be paid by MLP on each common unit
of MLP during the most recent fiscal quarter, multiplied by four; and divided
by the average closing price of MLP’s common units for the twenty trading days
preceding the last day of the fiscal quarter.

MPI means Borrower’s membership percentage interest in MLP GP.

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

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

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

 22
 

 

 

MLP Units means common or
subordinated units of limited partnership in the MLP which may be registered or
unregistered under state or federal securities Laws; provided, however, any
subordinated units of limited partnership must convert into common units of
limited partnership in the MLP within eighteen (18) months of their issuance
date.

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

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

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

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

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 any
Loan Party 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), (c) with respect to any Equity
Offering, proceeds of such Equity Offering after payment of all usual and
customary closing costs and transaction costs, and (d) with respect to any
Senior Debt Offering, proceeds of such Senior Debt Offering after payment of
all usual and customary closing costs and transaction costs.

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

Note means, as the context may require, a
Revolving Credit Note, a Unit Acquisition Note or both and “Notes” means all Revolving Credit
Notes, Unit Acquisition Notes or both.

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.

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

Organization
Documents means, (a)
with respect to any corporation, the certificate or articles of incorporation
and the bylaws, (b) with respect to any limited liability company, the
certificate of formation and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other

 23
 

 

 

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, and (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.

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

PBGC means the Pension Benefit Guaranty
Corporation.

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

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

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

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

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

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

Pro Rata
Share means, at any date of determination, for
any Lender in connection with the Revolving Credit Facility, the percentage
(carried out to the ninth decimal place) that its Revolving Credit Commitment
bears to the Aggregate Revolving Credit Commitment, for any Lender in
connection with the Unit Acquisition Facility, the percentage (carried out to
the ninth decimal place) that its Unit Acquisition Commitment bears to the
Aggregate Unit Acquisition Commitment, and otherwise for any Lender the
percentage (carried out to the ninth decimal place) that its Commitment bears
to the Commitment of all the Lenders.

 24
 

 

 

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

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
Domestic MarkWest Inc, Operating Subsidiary.

Reinvestment Certificate means with respect to any Triggering Sale, a
certificate of a Responsible Officer of the Borrower delivered pursuant to Section 6.02(f) detailing how the
Reduction 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 Second Restatement Date and prior to the
Maturity Date, those Lenders holding more than 66 2/3% of the sum of (i) the
Aggregate Revolving Credit Commitment plus (ii) the Aggregate Unit Acquisition
Commitment and on any date of determination on or after the Maturity Date,
those Lenders holding more than 66 2/3% of the sum of (x) the Outstanding
Amount of Revolving Credit Loans plus (y) the
Outstanding Amount of L/C Obligations plus (z) the Outstanding Amount of Unit
Acquisition Loans.

Required Unit
Acquisition Lenders means on any
date of determination on and after the Second Restatement Date and prior to the
Maturity Date, those Lenders holding more than 66 2/3% of the Aggregate Unit
Acquisition Commitment and on any date of determination on or after the
Maturity Date, those Lenders holding more than 66 2/3% of the Outstanding
Amount of Unit Acquisition Loans.

Required
Revolving Credit Lenders means on any
date of determination on and after the Second Restatement Date and prior to the
Maturity Date, those Lenders holding more than 66 2/3% of the Aggregate
Revolving Credit Commitment and on any date of determination on or after the
Maturity Date, those Lenders holding more than 66 2/3% of the sum of (x) the
Outstanding Amount of Revolving Credit Loans plus
(y) the Outstanding Amount of L/C Obligations.

 25
 

 

 

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.

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

Revolving
Credit Commitment means, as to
each Lender, its obligation to make Revolving Credit  Loans to the Borrower pursuant to Section 2.01(a), 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 Lender’s name under the column headed “Revolving Credit
Commitment” on Schedule
2.01 (which amount is subject to increase, reduction, or
cancellation in accordance with the Loan Documents) and collectively for all
Lenders an amount (subject to reduction or cancellation as herein provided)
equal to $40,000,000 (collectively,
the Revolving Credit Commitments of all the Lenders herein the “Aggregate Revolving Credit  Commitment”).

Revolving
Credit Commitment Fee means a fee
payable pursuant to Section 2.08(a).

Revolving
Credit Commitment Increase Effective Date
has the meaning set forth in Section 2.13(d).

Revolving Credit Facility
means the revolving credit facility as described in and subject to the
limitations set forth in Section 2.01(a).

Revolving Credit Facility Usage
means, at the time in question, the aggregate Outstanding Amount of Revolving
Credit Loans and existing LC Obligations at such time.

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

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

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

 26
 

 

 

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

S&P
means Standard & Poor’s.

Second Restatement Date
means August 21, 2006, the date on which all conditions specified in Sections 4.01 and 4.02 were satisfied.

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

Senior Debt
Offering means a
private placement or a public sale of senior unsecured promissory notes by the
Borrower or any MarkWest Inc. Operating Subsidiary.

Senior Lender Debt
means as of any date of determination, the Outstanding Amount of all Loans and
L/C Obligations hereunder.

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

Stated Maturity Date means August 21, 2009.

Subsidiary
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the Voting Stock (other
than Voting Stock 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

 27
 

 

 

any date on or after the date such Swap Contracts have
been closed out and termination value(s) determined in accordance therewith,
such termination value(s), and (b) for any date prior to the date referenced in
clause (a) the amount(s) determined as the mark-to-market value(s)
for such Swap Contracts, as determined based upon one or more mid-market
or other readily available quotations provided by any recognized dealer in such
Swap Contracts (which may include any Lender).

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

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

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.

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)) by any Loan
Party 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 any Loan Party for such Disposition and from any Insurance
Payments, when aggregated with the Net Cash Proceeds from all such other
Dispositions by the Borrower and the other Loan Parties occurring since the Second
Restatement Date and all Insurance Payments received by the Borrower and the
other Loan Parties since the Second Restatement 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.”

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(e) identifying such Triggering Sale and specifying the date
of receipt by the Borrower or another Loan Party of Net Cash Proceeds realized
by any Loan Party 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.

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

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

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

 28
 

 

 

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

Unit
Acquisition Commitment means, as to
each Lender, its obligation to make Unit Acquisition  Loans to the Borrower pursuant to Section 2.01(b) in an
aggregate principal amount at any one time outstanding not to exceed the amount
stated beside such Lender’s name under the column headed “Unit Acquisition
Commitment” on Schedule
2.01 (which amount is subject to increase, reduction, or
cancellation in accordance with the Loan Documents) and collectively for all
Lenders an amount (subject to reduction or cancellation as herein provided)
equal to $15,000,000 (collectively,
the Unit Acquisition Commitments of all the Lenders herein the “Aggregate Unit Acquisition  Commitment”).

Unit Acquisition Commitment Fee
means a fee payable pursuant to Section 2.08(b).

Unit Acquisition Facility
means the revolving credit facility as described in and subject to the
limitations set forth in Section 2.01(b).

Unit
Acquisition Loan means an
extension of credit by a Lender to the Borrower pursuant to Section 2.01(b).

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

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).

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.

 29
 

 

 

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

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

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

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

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

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

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

ARTICLE II.

THE COMMITMENT AND BORROWINGS

2.01        Loans.  Subject to and in reliance upon the terms,
conditions, representations, and warranties in the Loan Documents, each Lender
severally, but not jointly, agrees to make the following revolving loans:

(a)           Revolving
Credit Loans.  Each Lender severally,
but not jointly, agrees to make Revolving Credit Loans to Borrower from time to
time on any Business Day during the period from the Second Restatement Date to
the Maturity Date, in an aggregate amount not to exceed at any time outstanding
the amount of such Lender’s Pro Rata Share of one or more Revolving Credit
Borrowings not to exceed, when aggregated with the Outstanding Amount of the
L/C Obligations, such Lender’s Revolving Credit Commitment.  Revolving Credit 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 Revolving Credit Borrowing must occur on a Business Day and no later
than the Business Day immediately preceding the Maturity Date.  No Lender shall be obligated to make any
Revolving Credit

 30
 

 

 

Loan if the Outstanding Amount of all L/C Obligations
and all Revolving Credit Loans would exceed the lesser of (i) the Borrowing
Base and (ii) the Aggregate Revolving Credit Commitment.

(b)           Unit
Acquisition Loans.  Each Lender
severally, but not jointly, agrees to make Unit Acquisition Loans to Borrower
from time to time on any Business Day during the period from the Second
Restatement Date to the Maturity Date, in an aggregate amount not to exceed at
any time outstanding the amount of such Lender’s Pro Rata Share of one or more
Unit Acquisition Borrowings not to exceed such Lender’s Unit Acquisition
Commitment.  Unit Acquisition 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 Unit Acquisition Borrowing must occur on a Business
Day and no later than the Business Day immediately preceding the Maturity
Date.  No Lender shall be obligated to
make any Unit Acquisition Loan if the Outstanding Amount of all Unit
Acquisition Loans would exceed the Aggregate Unit Acquisition Commitment.

2.02        Borrowing
Base Determinations.

(a)           The
Borrowing Base (the “Borrowing Base”)
shall be equal to the lesser of (x) the sum of (1) seventy-five percent (75%)
of the Eligible Midstream Accounts Receivable, plus
(2) seventy-five percent (75%) of Unhedged Eligible Midstream Inventory, plus (3) eighty-five percent (85%) of the Hedged Eligible
Midstream Inventory minus (4) the
Borrowing Base Liquidity Reserve and (y) $40,000,000 minus
the Borrowing Base Liquidity Reserve. 
The Borrowing Base shall be determined each month by reference to the
most recent Borrowing Base Report delivered to the Administrative Agent (absent
any error in such Borrowing Base Report) which shall be effective as of the
date such Borrowing Base Report is required to be delivered pursuant to Section 6.02(c).

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

(c)           The
Borrowing Base Liquidity Reserve is an amount agreed to by the Borrower and the
Lenders to provide liquidity to the Borrower in connection with restructuring
the Chesapeake Agreements.  Upon Borrower’s
delivery to the Administrative Agent of satisfactory evidence that the
Chesapeake Agreements have been restructured so that in the reasonable judgment
of the Administrative Agent it is no longer necessary to maintain the Borrowing
Base Liquidity Reserve, the Borrowing Base Liquidity Reserve will be reduced to
zero and such reduction will be confirmed by the Administrative Agent in
writing delivered to the Borrower and Lenders.

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

 31
 

 

 

by an authorized officer of the Borrower.  Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of
$500,000 or a whole multiple of $500,000 in excess thereof.  Each Borrowing of or conversion to Base Rate
Loans shall be in a principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof.  Each
Borrowing Notice (whether telephonic or written) shall specify (i) whether the
Borrower is requesting a Borrowing, a conversion of Loans from one Type to the
other, or a continuation of Loans as the same Type, (ii) the requested date of
the Borrowing, conversion or continuation, as the case may be (which shall be a
Business Day), (iii) the principal amount of Loans to be borrowed, converted or
continued and if a Borrowing, whether such Loans are Revolving Credit Loans or
Unit Acquisition Loans, (iv) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of the
Interest Period with respect thereto.  If
the Borrower fails to specify a Type of Loan in a Borrowing Notice or if the
Borrower fails to give a timely notice requesting a conversion or continuation,
then the applicable Loans shall be made or continued as, or converted to, Base
Rate Loans.  Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurodollar Rate
Loans.  If the Borrower requests a
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any
such Borrowing Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of one month.

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

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

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

(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 five (5) Interest Periods in effect at any given time with respect to
Loans.

 32
 

 

 

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 Revolving
Credit Facility and/or the Unit Acquisition 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
$500,000 or a whole multiple of $500,000 in excess thereof; and (iii) any
prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof. 
Each such notice shall specify the date and amount of such prepayment
and the Type(s) of Loans to be prepaid. 
The Administrative Agent will promptly notify each Lender of its receipt
of each such notice, and of such Lender’s Pro Rata Share of such
prepayment.  If such notice is given by
the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein.  Any prepayment of a Eurodollar
Rate Loan shall be accompanied by all accrued interest thereon, together with
any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Pro Rata Shares as
directed by the Borrower or if no such direction is given, first, to the repayment in full of any L/C
Borrowings, second, to the repayment of the Unit
Acquisition Loans, until paid in full, and third, to
repayment of the Revolving Credit Loans.

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

(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 Borrower or any other Loan Party 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 Unit Acquisition Loans and the Revolving
Credit Loans shall be prepaid, in an amount equal to the portion of the
Reduction Amount that is not so Reinvested, as provided in Section 2.04(b)(v).  Net Cash Proceeds from Insurance
Payments and Dispositions that equal, when aggregated with Net Cash Proceeds
from all Insurance Payments and Dispositions since the Second Restatement Date,
an amount less than the Threshold Amount shall not be required to be used for
mandatory prepayments of the Unit Acquisition Loans and the Revolving Credit
Loans pursuant to this Section
2.04(b(v)).

(ii)           Upon receipt by any
Loan Party 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(e) and (B) shall, or
shall cause the applicable Loan Party to, deposit an amount equal to the
Reduction Amount into an account with the Administrative Agent or another
Lender, as elected by the Administrative Agent (the “Proceeds
Account”); provided, however,
that the Borrower or such Loan Party shall not be required to deposit an amount
that is more than the sum of the Aggregate Revolving Credit Commitment plus the Aggregate Unit Acquisition

 33
 

 

 

Commitment.  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(f),
then the Unit Acquisition Loans and the Revolving Credit Loans are not required
to be prepaid.  However, if the Reduction
Amount has not been Reinvested within one hundred (180) days following its
receipt by any Loan Party, on the Business Day following such one hundred
eightieth (180th) day, the Unit Acquisition Loans and the
Revolving Credit Loans shall be prepaid, in an amount equal to the portion of
the Reduction Amount that is not so Reinvested, as provided in Section 2.04(b)(v); provided, further, that if as the result of an Event of
Default the Revolving Credit Loans and Unit Acquisition 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 any Loan Party from an Equity Offering, the Unit
Acquisition Loans and the Revolving Credit 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 such other
Loan Party from such Equity Offering, as provided in Section 2.04(b)(v).

(iv)          If Net Cash Proceeds
are received by any Loan Party from a Senior Debt Offering, the Unit
Acquisition Loans and the Revolving Credit Loans shall be prepaid, immediately
upon receipt of such Net Cash Proceeds, in an amount equal to the amount of Net
Cash Proceeds received by the Borrower or such other Loan Party from such
Senior Debt Offering, as provided in Section 2.04(b)(v).

 (v)          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 any L/C
Borrowing, (B) second as a repayment of the Unit Acquisition Loan, until paid
in full, and (C) third, as a repayment of the
Revolving Credit Loan, until paid in full; provided that
such repayment of the Unit Acquisition Loan and/or Revolving Credit Loan will
not result in or require a corresponding reduction in the Aggregate Unit
Acquisition Commitment or Aggregate Revolving Credit Commitment, respectively.

(vi)          All funds held in
the Proceeds Account shall be invested in time deposits or certificates of
deposit issued by the Administrative Agent 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.

(vii)         The Borrower hereby
grants to the Administrative Agent, for the benefit of the Lenders, 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 for deposit therein and held
therein, as security for the Obligations. The

 34
 

 

 

rights
granted by this Section 2.04(b)(vii) shall be
in addition to the rights of the Administrative Agent under any statutory banker’s
Lien or the common law right of setoff.

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

(d)           Mandatory
Payments/Reductions of Unit Acquisition Loans.  If for any reason the Outstanding Amount of
all Unit Acquisition Loans at any time exceeds the Aggregate Unit Acquisition
Commitment then in effect, the Borrower shall immediately prepay Unit
Acquisition Loans in an aggregate amount equal to such excess.

(e)           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.

(a)           Revolving
Credit Commitment. The Borrower may, upon notice to the Administrative
Agent, terminate the Aggregate Revolving Credit Commitment or permanently
reduce the Aggregate Revolving Credit Commitment prior to the Maturity Date to
an amount not less than the sum of the Outstanding Amount of the then existing
(i) Revolving Credit Loans 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., five Business Days prior to the
date of termination or reduction, and (ii) any such partial reduction shall be
in an aggregate amount of $1,000,000 or any whole multiple of $500,000 in
excess thereof.   The Administrative
Agent shall promptly notify the Lenders of any such notice of reduction or
termination.  Once reduced in accordance
with this Section, the Aggregate Revolving Credit Commitment may not be
increased.  Any reduction of the
Aggregate Revolving Credit Commitment shall be applied to the Revolving Credit
Commitment of each Lender according to its Pro Rata Share thereof.  The Revolving Credit Commitment Fee on the
portion of the Aggregate Revolving Credit Commitment so terminated which has
accrued to the effective date of any termination of the Aggregate Revolving
Credit Commitment shall at Administrative Agent’s option either be paid on the
effective date of such termination or on the date when such Revolving Credit
Commitment Fee would otherwise be due.

(b)           Unit
Acquisition Commitment. The Borrower may, upon notice to the Administrative
Agent, terminate the Aggregate Unit Acquisition Commitment or permanently
reduce the Aggregate Unit Acquisition Commitment prior to the Maturity Date to
an amount not less than the Outstanding Amount of the Unit Acquisition Loans; provided that (i) any such notice shall be
received by the Administrative Agent not later than 11:00 a.m., five Business
Days prior to the date of termination or reduction, and (ii) any such partial
reduction shall be in an aggregate amount of $1,000,000 or any whole multiple
of $500,000 in excess thereof.   The
Administrative Agent shall promptly notify the Lenders of any such notice of
reduction or termination.  Once reduced
in accordance with this Section, the Aggregate Unit Acquisition Commitment may
not be increased.  Any reduction of the
Aggregate Unit Acquisition Commitment shall be applied to the Unit Acquisition
Commitment of each Lender according to its Pro Rata Share thereof.  The Unit Acquisition Commitment Fee on the portion
of the Aggregate Unit

 35

 

 

Acquisition Commitment so terminated which has
accrued to the effective date of any termination of the Aggregate Unit
Acquisition Commitment shall at Administrative Agent’s option either be paid on
the effective date of such termination or on the date when such Unit
Acquisition Commitment Fee would otherwise be due.

2.06        Repayment of Loans.  The Borrower shall repay to the Lenders on
the Maturity Date the aggregate Outstanding Amount of Revolving Credit Loans
and Unit Acquisition Loans 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)           Revolving
Credit Commitment Fee.  The Borrower
shall pay to the Administrative Agent for the account of each Lender in
accordance with its Pro Rata Share of the Aggregate Revolving Credit
Commitment, a commitment fee (“Revolving Credit
Commitment Fee”) equal to the Applicable Rate for Revolving
Credit Loans times the actual daily amount by which the Aggregate
Revolving Credit 

 36
 

 

 

Commitment (subject to reduction pursuant to Section 2.05) exceeds the sum of (i)
the Outstanding Amount of Revolving Credit Loans plus (ii) the Outstanding
Amount of L/C Obligations.  The Revolving
Credit Commitment Fee shall accrue at all times from the Second Restatement
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 Second Restatement Date,
and on the Maturity Date.  The Revolving
Credit Commitment Fee shall be calculated quarterly in arrears.  The Revolving Credit Commitment Fee shall
accrue at all times, including at any time during which one or more of the
conditions in Article IV
is not met.

(b)           Unit
Acquisition Commitment Fee.  The
Borrower shall pay to the Administrative Agent for the account of each Lender
in accordance with its Pro Rata Share of the Aggregate Unit Acquisition
Commitment, a commitment fee (“Unit Acquisition
Commitment Fee”) equal to the Applicable Rate for Unit
Acquisition Loans times the actual daily amount by which the Aggregate Unit
Acquisition Commitment (subject to reduction pursuant to Section
2.05) exceeds the Outstanding Amount of Unit Acquisition
Loans.  The Unit Acquisition Commitment
Fee shall accrue at all times from the Second Restatement 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 Second Restatement Date, and on the Maturity
Date.  The Unit Acquisition Commitment
Fee shall be calculated quarterly in arrears. 
The Unit Acquisition 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.

(c)           Arranger’s
and Administrative Agent’s Fees.  On
the Second Restatement Date, the Borrower shall pay certain fees to the
Arranger and Administrative Agent to be shared between them and the Borrower
shall pay certain fees to the Administrative Agent for the Administrative Agent’s
own account as an administrative agency fee, in the amounts and at the times
specified in the letter agreement dated July 12, 2006 (the “Agent/Arranger Fee Letter”),
between the Borrower, the Arranger and the Administrative Agent.  Such fees shall be fully earned when paid and
shall be nonrefundable for any reason whatsoever.  Additionally, Borrower shall pay to the
Administrative Agent for the Administrative Agent’s own account the fees in the
amounts and on the dates specified in the Agent/Arranger Fee Letter.

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

2.10        Evidence of Debt.

(a)           The
Loans made by each Lender shall be evidenced by one or more accounts or records
maintained by such Lender and by the Administrative Agent in the ordinary
course of business.  The accounts or
records maintained by the Administrative Agent and each Lender shall be
conclusive absent manifest error of the amount of the Loans made by the Lenders
to the Borrower and the interest and payments thereon.  Any failure so to record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the Loans or the

 37
 

 

 

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

2.11        Payments Generally.

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

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

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

(d)           If
at any time insufficient funds are received by and available to the
Administrative Agent to pay fully the Obligations, or if a Default or Event of
Default exists, any payment or prepayment shall be applied in the following
order: (i) to the payment of enforcement expenses incurred by the
Administrative Agent, including Attorney Costs; (ii) to the ratable payment of
all other fees, expenses, and indemnities for which the Administrative Agent or
Lenders have not been paid or reimbursed in accordance with the Loan Documents
(as used in this Section
2.11(d)(ii), a “ratable payment” for any Lender or the Administrative
Agent shall be, on any date of determination, that proportion which the portion
of the total fees, expenses, and indemnities owed to such Lender or the
Administrative Agent bears to the total aggregate fees and indemnities owed to
all Lenders and the Administrative Agent on such date of determination); (iii)
to the ratable payment of accrued and unpaid interest on the Outstanding

 38
 

 

 

Amount of Loans (as used in this Section 2.11(d)(iii),
“ratable payment”
means, for any Lender, on any date of determination, that proportion which the
accrued and unpaid interest on the Outstanding Amount of Loans owed to such
Lender bears to the total accrued and unpaid interest on the Outstanding Amount
of Loans owed to all Lenders); (iv) to the ratable payment of the Outstanding
Amount of Loans (as used in this Section 2.11(d)(iv), “ratable payment”
means for any Lender, on any date of determination, that proportion which the
Outstanding Amount of Loans owed to such Lender bears to the Outstanding Amount
of Loans owed to all Lenders); (v) to Cash Collateralize the Letters of Credit;
and (vi) to the payment of the remaining Obligations, if any, in the order and
manner the Required Lenders deem appropriate.

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

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

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

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

(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

 39
 

 

 

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 and to fund participations in Letters of Credit on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to
do so on such date, and no Lender shall be responsible for the failure of any
other Lender to so make its Loan or purchase its participation.

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

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

2.13        Revolving Credit Commitment Increase.

(a)           Request
for Increase.  Provided no Default or Event of Default has
occurred and is continuing, that there is availability under the Borrowing
Base, and that the Administrative Agent consents thereto (which consent shall
not be unreasonably withheld or delayed), upon notice to the Administrative
Agent (which shall promptly notify the Lenders), the Borrower may request an
increase in the Aggregate Revolving Credit Commitment by a total amount not
exceeding $25,000,000; provided that
any Revolving Credit Borrowings utilizing such increase in the Aggregate
Revolving Credit Commitment shall be used solely for the purpose of financing
Borrower’s acquisition of additional MLP Units; provided
further that the minimum requested Aggregate Revolving Credit
Commitment increase shall be no less than $12,500,000; and provided
further that any such increased Aggregate Revolving Credit

 40
 

 

 

Commitment 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 Lender is requested to respond (which
shall in no event be less than 15 Business Days from the date of delivery of
such notice to the Lenders).

(b)           Lender
Elections to Increase.  Each Lender shall notify the
Administrative Agent within such time period whether or not it agrees to
increase its Revolving Credit Commitment and, if so, whether by an amount equal
to, greater than, or less than its Pro Rata Share of such requested
increase.  Any Lender not responding within
such time period shall be deemed to have declined to increase its Revolving
Credit Commitment.

(c)           Notification
by Administrative Agent; Additional Lenders.  The Administrative
Agent shall notify the Borrower and each Lender of the Lenders’ responses to
the request made hereunder to increase the Revolving Credit Commitment.  To achieve the full amount of a requested
increase and subject to the approval of the Administrative Agent and the L/C
Issuer (which approvals shall not be unreasonably withheld or delayed), the
Borrower may also invite additional Eligible Assignees to become Lenders
pursuant to a joinder agreement in form and substance satisfactory to the
Administrative Agent and its counsel. 
The Borrower shall have 30 calendar days from the date the
Administrative Agent notifies the Borrower of the Lenders’ responses to the
request to increase the Revolving Credit Commitment to invite additional
Eligible Assignees and have them enter into a joinder agreement.

(d)           Effective
Date and Allocations.  If the Aggregate Revolving Credit Commitment
is increased in accordance with this Section, the Administrative Agent and the
Borrower shall determine the effective date (the “Revolving
Credit Commitment Increase Effective Date”) and the final
allocation of such increase.  The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
final allocation of such increase and the Revolving Credit Commitment Increase
Effective Date.

(e)           Conditions
to Effectiveness of Revolving Credit Commitment Increase.  As a
condition precedent to increasing the Revolving Credit Commitment, the Borrower
shall deliver to the Administrative Agent a certificate of each Loan Party
dated as of the Revolving Credit Commitment Increase Effective Date (in
sufficient copies for each Lender) 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) the
representations and warranties contained in Article
V and the other Loan Documents are true and correct on and as of
the Revolving Credit Commitment 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 as of such earlier date, and except
that for purposes of this Section 2.13,
the representations and warranties contained in Section
5.05(a) shall be deemed to refer to the most recent financial statements
furnished pursuant to clauses (a)
and (b), respectively, of Section 6.01, and (B) no
Default exists.  The Borrower shall
prepay any Revolving Credit Loans outstanding to a particular Lender on the
Revolving Credit Commitment Increase Effective Date (and pay any additional
amounts required pursuant to Section 3.05)
to the extent necessary to keep the outstanding Revolving Credit Loans ratable
with any revised Pro Rata Shares arising from any nonratable increase in the
Revolving Credit Commitments under this Section.

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

 41
 

 

 

2.14        Letters of Credit.

(a)           The
Letter of Credit Commitment.

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

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

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

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

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

 42
 

 

 

(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.

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

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

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

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(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 Lenders shall be deemed to have
authorized (but may not require) the L/C Issuer to permit the renewal of such
Letter of Credit at any time to a date not later than the Letter of Credit
Expiration Date; provided, however,
that the L/C Issuer shall not permit any such renewal if it has received notice
on or before the 5th Business Day immediately preceding the
Nonrenewal Notice Date (1) from the Administrative Agent that the Required
Revolving Credit Lenders have elected not to permit such renewal or (2) from
any Lender stating that one or more of the applicable conditions specified in Section 4.02 is not
then satisfied and directing the L/C Issuer not to permit such renewal.  Notwithstanding anything to the contrary
contained herein, the L/C Issuer shall have no obligation to permit the renewal
of any Evergreen Letter of Credit at any time.

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

(c)           Drawings
and Reimbursements; Funding of Participations.

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

(ii)           Each Lender
(including the Lender acting as L/C Issuer) shall upon any notice pursuant to Section 2.14(c)(i)
make funds available to the Administrative Agent for the account of the L/C
Issuer at the Administrative Agent’s Office in an amount equal to its Pro Rata
Share of the Unreimbursed Amount not later than 11:00 a.m., New York time, on
the Business Day

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specified
in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section
2.14(c)(iii), each Lender that so makes funds available shall be
deemed to have made a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the L/C Issuer.

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

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

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

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

(d)           Repayment of Participations.

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

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any
payment of interest thereon, the Administrative Agent will distribute to such
Lender its Pro Rata Share thereof in the same funds as those received by the
Administrative Agent.

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

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

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

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

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

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

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

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

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

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

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

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

 47
 

 

 

of such Letter of Credit, and on the Letter of Credit
Expiration Date.  If there is any change
in the Applicable Rate during any quarter, the actual daily undrawn amount of
each Letter of Credit shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate was in
effect.

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

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

ARTICLE III.

TAXES, YIELD
PROTECTION AND ILLEGALITY

3.01        Taxes.

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

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

 48
 

 

 

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

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

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

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

 49
 

 

 

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

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

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

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

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

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

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

 50
 

 

 

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 Commitment and payment in full of all the other
Obligations.

ARTICLE IV.

CONDITIONS PRECEDENT

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

(a)           The
Administrative Agent’s receipt of the following, each of which shall be
originals or facsimiles (followed promptly by originals) and unless otherwise
specified, each properly executed by an authorized officer of the signing Loan
Party or other Person party thereto, each dated August 18, 2006 (or, in the
case of certificates of governmental officials, a recent date before August 18,
2006), and each in form and substance satisfactory to the Administrative Agent
and its legal counsel:

(i)            executed
counterparts of this Agreement, the Amended and Restated Guaranty, and such
other Collateral Documents, as amended and restated, as deemed advisable by the
Administrative Agent or its counsel, each dated as of August 18, 2006;

(ii)           Notes executed by
the Borrower in favor of each Lender requesting such Notes, each Revolving
Credit Note in a principal amount equal to such Lender’s Revolving Credit
Commitment, each Unit Acquisition Note in a principal amount equal to such
Lender’s Unit Acquisition Commitment, and each Note dated as of August 18,
2006;

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

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

(v)           a certificate signed
by a Responsible Officer of the Borrower certifying (A) that the
representations and warranties contained in Article V are true and correct in all
respects on

 51
 

 

 

and
as of August 18, 2006, (B) that no Default or Event of Default has occurred and
is continuing under the Original Credit Agreement as of August 18, 2006 and no
Default or Event of Default has occurred and is continuing under this Agreement
as of August 18, 2006 or will exist immediately after funding the initial Loan
under this Agreement, (C) since December 31, 2005 there has occurred no
material adverse change in the business, assets, liabilities (actual or
contingent), operations, or condition (financial or otherwise) or prospects of
the Borrower and Guarantors, taken as a whole, (D) that as of August 18, 2006
there are no material environmental or material legal issues affecting any Loan
Party or any of the Collateral, (E) all necessary governmental and third party
approvals necessary or required for any Loan Party to enter into this Agreement
or any of the Loan Documents have been obtained, (F) there is no litigation,
investigation or proceeding known to and affecting any Loan Party for which the
Borrower is required to give notice pursuant to Section 6.03(c) (or, if there is any
such litigation, investigation or proceeding, then a notice containing the
information required by Section
6.03(c) shall be given concurrently with the delivery of the
certificate given pursuant to this clause (v)), and (G) no action, suit,
investigation or proceeding is pending or, to Borrower’s knowledge, threatened
in any court or before any arbitrator or governmental authority by or against
the Borrower, or any Loan Party or any of their respective properties, that (y)
could reasonably be expected to materially and adversely affect any Loan Party,
taken as a whole, or (z) seeks to affect or pertains to any transaction
contemplated hereby or the ability of any Loan Party to perform its obligations
under the Loan Documents;

(vi)          a certificate of a
Responsible Officer of the Borrower (a) as to the satisfaction of all
conditions specified in this Section 4.01 and Section 4.02,(b) attaching an updated four year stand
alone financial forecast for the Borrower for its 2006, 2007, 2008 and 2009
fiscal years, and
(c) attaching any amendments, modifications or supplements to any Material
Agreement entered into on or after the date of the Original Credit Agreement;

(vii)         a Borrowing Base
Report from a Responsible Officer of the Borrower as of the most recent
month-end available;

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

(ix)           a Compliance
Certificate from a Responsible Officer of the Borrower as of June 30, 2006
demonstrating compliance with all financial covenants for the quarter ended
June 30, 2006;

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

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

(b)           Satisfactory
evidence in form and substance satisfactory to the Administrative Agent that
all amounts (other than fees and expenses which shall be paid) owing under the
Original Credit

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Agreement have been, or concurrently with the closing
of this Agreement will be, refinanced (but not repaid or extinguished) and all
commitments of the lenders thereunder shall have terminated and all security
interests granted thereunder or in connection therewith have been assigned,
conveyed, and carried forward to secure the Obligations under this Agreement.

(c)           Any
fees due and payable at the Restatement 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 Second Restatement Date.

(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;

(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, MLP Units, or membership interests pledged pursuant
thereto, which certificates shall in each case be accompanied by undated stock
powers duly executed in blank, or, if any securities pledged pursuant thereto
are uncertificated securities, confirmation and evidence satisfactory to the
Administrative Agent that the security interest in such uncertificated
securities has been transferred to and perfected by the Administrative Agent or
Collateral Agent for the benefit of the Lenders in accordance with the UCC; 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 or Collateral Agent’s ability to preserve
and protect its interests in and access to the Collateral, have been taken.

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

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

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

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

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

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

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

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

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

(f)            The
Borrower shall have delivered to the Administrative Agent Federal Reserve Form
U-1 provided for in the Margin Regulations, which shall contain statements
that, in the judgment of the Administrative Agent, permit the transactions
contemplated hereby to be made in accordance with the Margin Regulations.

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

4.03        Conditions to all Loans to Acquire MLP
Units. 
The obligation of each Lender to fund its portion of (a) any Unit
Acquisition Loan or (b) any Revolving Credit Loan funded out of an increase in
the Aggregate Revolving Credit Commitment pursuant to Section
2.13 shall be subject to the additional condition precedent that
the Borrower confirm in writing in the Borrowing Notice that either (i) the MLP
Operating Subsidiary or any of its Subsidiaries shall have made Permitted
Acquisitions (as defined in the MLP Credit Agreement) in excess of $40,000,000 or (ii) the MLP Operating
Subsidiary or any of its

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Subsidiaries shall have made Capital
Expenditures (as defined in the MLP Credit Agreement) in excess of $40,000,000.

ARTICLE V.

REPRESENTATIONS
AND WARRANTIES

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

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

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

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

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

5.05        Financial
Statements; No Material Adverse Effect.

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

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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, 2005, there has been no event or circumstance that has or could
reasonably be expected to have a Material Adverse Effect.

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

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

5.08        Ownership of Property; Liens.  From and after August 18, 2006, (a) each Loan
Party has good title to, or valid leasehold interests in, all its real and
personal property necessary or used in the ordinary conduct of its business,
except for such defects in title as would not, individually or in the
aggregate, have a Material Adverse Effect, and (b) the property of the Borrower
and Loan Parties is subject to no Liens, other than Permitted Liens.

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

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

5.11        Taxes.  The Borrower and the Borrower Affiliates have
filed all federal, state and other material tax returns and reports required to
be filed, and have paid all federal, state and other material taxes,
assessments, fees and other governmental charges levied or imposed upon them or
their properties, income or assets otherwise due and payable, except those
which are being contested in good faith by appropriate proceedings and for which
adequate reserves have been provided in accordance with GAAP.

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There is no proposed tax assessment against any
Borrower Affiliate or any of their respective Subsidiaries that would, if made,
have a Material Adverse Effect.

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

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

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

(c)           (i)            No ERISA Event has occurred or is
reasonably expected to occur that could reasonably be expected to have a
Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension Liability
that (when aggregated with any other Unfunded Pension Liability) has resulted
or could reasonably be expected to result in a Material Adverse Effect; and
(iii) neither the Borrower nor any 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 Second Restatement Date the
Borrower (i) will have no Subsidiaries (other than Excluded MLP Entities) other
than those specifically disclosed in Schedule 5.13, (ii) will have no equity
investment in any other corporation or other entity other than those
specifically disclosed in Schedule
5.13, and (iii) will have no other Investments except as disclosed
in Schedule 5.13.

5.14        Margin
Regulations; Investment Company Act; Use of Proceeds.

(a)           The
Loans will not conflict with or violate the Margin Regulations.

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

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

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

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

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

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

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

5.20        Collateral.

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

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

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

ARTICLE VI.

AFFIRMATIVE
COVENANTS

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

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

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

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

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

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

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

(b)           promptly
after the same are available, copies of each annual report, proxy or financial
statement or other report or written communication sent to the equity owners of
the Borrower, and copies

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of all annual, regular, periodic and special reports
and registration statements which the Borrower may file or be required to file
with the Securities and Exchange Commission under Section 13 or 15(d)
of the Securities Exchange Act of 1934, and not otherwise required to be
delivered to the Administrative Agent pursuant hereto;

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

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

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

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

(g)           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 any Loan Party, or any audit of any of
them.

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

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

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

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

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

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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.

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 Second Restatement Date a
certificate or certificates of insurance from the applicable insurance company
evidencing the existence of insurance required to be maintained by this
Agreement and the other Loan Documents and evidencing that Administrative Agent
is listed as sole loss payee on property insurance (except as to properties
owned by the MLP or a Subsidiary of the MLP) and the Administrative Agent and
Lenders are additional insureds on liability insurance, and (ii) upon request
of the Administrative Agent, furnish to each Lender at reasonable intervals a
certificate of a Responsible Officer of the Borrower setting forth the nature
and extent of all insurance maintained in accordance with this Section.

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

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

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

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.

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

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

6.12        Use
of Proceeds.  Use proceeds of (A) the Revolving Credit
Facility to (i) refinance Indebtedness outstanding under the Original Credit
Agreement, (ii) finance inventory and accounts receivable of the Borrower and
Guarantors, (iii) issue Letters of Credit, and (iv) pay fees, costs and
expenses owed pursuant to this Agreement; provided, however,
no proceeds of any Revolving Credit Loans or Letters of Credit may be paid,
advanced, lent, given or contributed to the MLP GP, the MLP or any of their
Subsidiaries except (a) in connection with bona fide business transactions and
(b) except for the acquisition of MLP Units from proceeds of the increase in
the Aggregate Revolving Credit Commitment pursuant to Section
2.13 and (B) the Unit Acquisition Facility to finance the
acquisition of MLP Units; provided further,
no proceeds of any Loans or Letters of Credit may paid, advanced, lent, given
or contributed to the MLP GP or the MLP or any of their Subsidiaries for the
purpose of enabling the MLP to pay distributions to its partners.

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

6.14        Hedging.  Upon the
Administrative Agent’s request, the Borrower shall implement hedging
arrangements for the MLP Units owned by Borrower in form and substance
satisfactory to the Administrative Agent.

6.15        Guaranties.  As an inducement to the Administrative Agent
and Lenders to enter into this Agreement, each Subsidiary of Borrower (other
than Excluded MLP Entities) shall execute a Guaranty in connection with this
Agreement, in the substantially in the form and upon the terms of Exhibit E.  In addition, at the time of the formation or
acquisition of any Subsidiary of the Borrower (other than Excluded MLP
Entities), cause such Subsidiary to execute and deliver to the Administrative
Agent (a) a Guaranty substantially in the form and upon the terms of Exhibit E, providing
for the guaranty of payment and performance of the Obligations, (b) Collateral
Documents in form and substance satisfactory to the Administrative Agent
creating liens and security interests in all assets and properties of such
Subsidiary and in the equity interests in such Subsidiary, and (c) certified
copies of such Subsidiary’s Organization Documents and opinions of counsel with
respect to such Subsidiary and such Guaranty, and

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(d) such other documents and instruments as may be
required with respect to such Subsidiary pursuant to Section 6.16.

6.16        Further Assurances; Additional Collateral.

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

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

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

ARTICLE VII.

NEGATIVE
COVENANTS

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

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

(a)           Liens
pursuant to any Loan Document;

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

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

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

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

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

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

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

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

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

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

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

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

(n)           Liens
incurred in the ordinary course of business in connection with margin
requirements under Swap Contracts where a Lender or Lender Affiliate is a
counterparty, not to exceed in the aggregate $6,000,000
at any time outstanding; provided if
granted on property subject to a Lien securing the Obligations, such Lien is
subordinated to the Lien securing the Obligations on terms satisfactory to the
Administrative Agent.

7.02        Investments.  Make or own any Investments,
except:

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

(b)           Cash
Equivalents;

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

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

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

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

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

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

(a)           Indebtedness
incurred pursuant to the Loan Documents;

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

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

(d)           Indebtedness
of the Borrower and the Loan Parties in respect of purchase money obligations
for fixed or capital assets within the limitations set forth in Section 7.01(k); provided,

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however, that the
aggregate amount of such Indebtedness at any one time outstanding shall not
exceed $1,000,000.00; and

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

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

7.05        Lease Obligations.  Create or suffer to exist any obligations for
the payment of rent for any property under lease or agreement to lease, except for operating leases (other than those constituting
Synthetic Lease Obligations) entered into or assumed by any Loan Party in the
ordinary course of business prior to August 18, 2006; provided that, such operating leases will
not require the payment of an aggregate amount of payments in excess of
(excluding escalations resulting from a rise in the consumer price or similar
index) $500,000 during the full
remaining term of such leases, exclusive of expenses for maintenance, repairs,
insurance taxes, assessments and similar changes.

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

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

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

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

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

7.07        Dispositions.

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

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

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

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

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

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

(b)           (i) the Borrower may declare and make Restricted Payments
if after giving pro forma effect to such Restricted Payment, such Restricted
Payment, together with all prior Restricted Payments made by Borrower on or
after June 30, 2006, do not exceed the sum of (A) cash and Cash Equivalents on
the Borrower’s balance sheet on a stand-alone basis as of the most recent
fiscal quarter end plus (B) 50% of
Borrower’s Consolidated Net Income on a stand-alone basis (including cash
distributions received from the MLP) commencing with the fiscal quarter
beginning July 1, 2006 and (ii) any Guarantor may make redemptions of, or
purchase equity interest in, the Borrower or any Guarantor from employees of
the Borrower or such Guarantor; provided,
that at the time each Restricted Payment is made or any purchase or redemption
is made no Default or Event of Default exists or would result therefrom; provided further that the aggregate amount
expended in any consecutive 12-month period for purchases or redemptions
pursuant to clause (ii) above shall not exceed $100,000.

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

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

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

7.12        Burdensome Agreements.  Enter into any Contractual Obligation that
limits the ability of any Subsidiary (other than Excluded MLP Entities) to make
Restricted Payments to the Borrower or to otherwise transfer property to the
Borrower.  Notwithstanding the foregoing,
(i) documents governing a

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Capital Lease or a purchase money Lien permitted by Sections 7.01(j) and (k) may prohibit
other Liens on the asset encumbered by such Lien, and (ii) the Lenders
acknowledge that the real estate leases described on Schedule 7.12
restrict or prohibit Liens on the Borrower’s or a Loan Party’s leasehold
interest.

7.13        Use of Proceeds.  Use the proceeds of any Loan or Letter of
Credit for purposes other than those permitted by Section 6.12.

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

7.15        Financial Covenants.

(a)           Leverage Ratio.  Permit the Leverage Ratio at any fiscal
quarter-end to be greater than 4.0 to 1.0;
provided if more than $5,000,000 is advanced under the
Unit Acquisition Facility or if the Aggregate Revolving Credit Commitment is
increased pursuant to Section 2.13,
then in such event the Borrower will not permit the Leverage Ratio at any fiscal
quarter-end to be greater than 5.50 to 1.0;
provided further that the Borrower will
not permit the Leverage Ratio at any fiscal quarter-end to be greater than 4.75 to 1.0 if more than $5,000,000 of Unit Acquisition Loans
remain outstanding nine (9) months after the Borrowing of such Unit Acquisition
Loans or if more than $5,000,000
of Revolving Credit Loans funded out of an increase in the Aggregate Revolving
Credit Commitment pursuant to Section 2.13
remain outstanding nine (9) months after the Borrowing of such Revolving Credit
Loans; and provided further that the Borrower will
not permit the Leverage Ratio at any fiscal quarter-end to be greater than 4.00 to 1.0 if more than $5,000,000 of Unit Acquisition Loans
remain outstanding eighteen (18) months after the Borrowing of such Unit
Acquisition Loans or if more than $5,000,000
of Revolving Credit Loans funded out of an increase in the Aggregate Revolving
Credit Commitment pursuant to Section 2.13
remain outstanding eighteen (18) months after the Borrowing of such Revolving
Credit Loans.

(b)           Minimum Tangible Net Worth.  Permit the Consolidated Tangible Net Worth of
the Borrower and its Subsidiaries (other than Excluded MLP Entities) as of the
end of any fiscal quarter to be less than the sum of (i) $30,000,000 plus (ii)
50% of Consolidated Net Income (if positive) earned or accrued on or after July
1, 2006 plus (iii) 100% of net proceeds of all equity issued by the Borrower
subsequent to the Second Restatement Date.

7.16        Minimum Collateral Coverage Ratio.  Permit at any time the Collateral Coverage
Ratio to be less than 2.0 to 1.0.

ARTICLE VIII.

EVENTS OF
DEFAULT AND REMEDIES

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

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(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

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

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

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

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

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

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

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

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

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

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

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

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(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 Borrower or any of its Subsidiaries to perform
its obligations under a Material Agreement and (y) result in a Material Adverse
Effect hereunder; or

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

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

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

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

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

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

provided, however,
that upon the occurrence of any event specified in subsection (f) of Section 8.01, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to
make L/C Credit Extensions shall automatically terminate, the unpaid principal
amount of all outstanding Loans and all interest and other amounts as aforesaid
shall automatically become due and payable, and an amount equal to the then
Outstanding Amount of all L/C Obligations shall be deemed to be forthwith due
and owing by the Borrower to the L/C Issuer and the Lenders as of the date of
such occurrence and the Borrower’s obligation to pay such amounts shall be
absolute and unconditional, without regard to whether any

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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.

ARTICLE IX.

AGENTS

9.01        Appointment and Authorization of Agents.
(a) Each Lender hereby irrevocably (subject to Section 9.10(a)) 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. 
Each Lender hereby irrevocably (subject to Section 9.10(b)) appoints, designates
and authorizes the Collateral Agent to take such action on its behalf under the
provisions of each Collateral Document and to exercise such powers and perform
such duties as are expressly delegated to it by the terms of this Agreement or
any Collateral 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, neither
the Administrative Agent nor the Collateral Agent shall have any duties or
responsibilities, except those expressly set forth herein, nor shall any 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 any 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 or
Collateral Agent is not intended to connote any fiduciary or other implied (or
express) obligations arising under agency doctrine of any applicable Law.  Instead, such term is used merely as a matter
of market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.

(b)           The
Collateral Agent shall act on behalf of the Lenders with respect to the Collateral
and Collateral Documents until such time (and except for so long) as the
Administrative Agent may agree at the request of the Required Lenders to act
for the Collateral Agent with respect thereto; provided,
however, that the Collateral Agent 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 Collateral Agent in
connection with the Collateral and Collateral Documents as fully as if the term
“Administrative Agent” as used in this Article IX included the Collateral Agent with
respect to such acts or omissions, and (ii) as additionally provided herein
with respect to the Collateral Agent.

(c)           The
L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith until such time (and
except for so long) as the Administrative Agent may agree at the request of the
Required Revolving Credit 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

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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.

9.02        Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document by or through agents,
employees or attorneys-in-fact and shall be entitled to advice of
counsel and other consultants or experts concerning all matters pertaining to
such duties.  The 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.  All rights of
action under the Loan Documents and all right to the Collateral, if any,
hereunder may be enforced by the Administrative Agent and any suit or
proceeding instituted by the Administrative Agent in furtherance of such
enforcement shall be brought in its name as the Administrative Agent without
the necessity of joining as plaintiffs or defendants any other Agent or Lender,
and the recovery of any judgment shall be for the benefit of the Lenders
subject to the expenses of the Administrative Agent.  In actions with respect to any property of
any Loan Party, the Administrative Agent is acting for the ratable benefit of
each Lender.  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.

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

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

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

(e)           The
Administrative Agent shall not 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 herein or pursuant thereto
have been properly or sufficiently or lawfully created, perfected, protected,
or

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enforced, or are entitled to any particular priority,
or to exercise at all or in any particular manner or under any duty of care,
disclosure, or fidelity, or to continue exercising, any of the Rights granted
or available to the Administrative Agent in this Section 9.03 or in any of the Collateral
Documents; it being understood and agreed that in respect of the Collateral, or
any act, omission, or event related thereto, the Administrative Agent may act
in any manner it may deem appropriate, in its sole discretion, given the
Administrative Agent’s own interest in the Collateral as one of the Lenders and
that the Administrative Agent shall not have any duty or liability whatsoever
to any Lender, other than to act without gross negligence or willful
misconduct.

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

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

9.04        Liability of Agents.  No Agent-Related Person shall (a) be
liable for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Loan Document or the transactions
contemplated hereby (except for its own gross negligence or willful misconduct
in connection with its duties expressly set forth herein), or (b) be
responsible in any manner to any Lender or participant for any recital,
statement, representation or warranty made by any Loan Party or any officer
thereof, contained herein or in any other Loan Document, or in any certificate,
report, statement or other document referred to or provided for in, or received
by Administrative Agent under or in connection with, this Agreement or any
other Loan Document, or the validity, effectiveness,

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

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

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

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(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 Agents and Arranger 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 or the
Arranger 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 or all Lenders, as the case may be,
shall be deemed to constitute gross negligence or willful misconduct for
purposes of this Section. Without limitation of the foregoing, each Lender
shall reimburse the Agents upon demand for such Lender’s ratable share of any
costs or out-of-pocket expenses (including Attorney Costs) incurred by such
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 such Agent
is not reimbursed for such expenses by or on behalf of the Borrower. The
undertaking in this Section shall survive termination of the Commitment, the
payment of all Obligations hereunder and the resignation or replacement of such
Agent.

9.09        Agent in its
Individual Capacity. The L/C
Issuer, each Agent and its Affiliates may make loans to, accept deposits from,
acquire equity interests in and generally engage in any kind of

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banking, trust, financial advisory,
underwriting or other business with each of the Loan Parties and their
respective Affiliates as though such Agent were not an Agent or the L/C Issuer
hereunder and without notice to or consent of the Lenders. The Lenders
acknowledge that, pursuant to such activities, the Agents or their 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 Agents shall be under no
obligation to provide such information to them. With respect to its Loans, each
Agent and the L/C Issuer 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 Agent or the L/C Issuer, and the terms “Lender” and “Lenders” include each Agent and the L/C Issuer in its
individual capacity.

9.10        Successor
Agents. (a)  The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders with a copy of such notice to the Collateral Agent and 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 conditioned, 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 10.03 and 10.13 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. If no successor administrative agent
has accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

(b)           The Collateral Agent may resign as
Collateral Agent upon 30 days’ notice to the Lenders with a copy of such notice
to the Administrative Agent and Borrower. If the Collateral Agent resigns under
this Agreement, the Required Lenders shall appoint from among the Lenders a successor
collateral agent for the Lenders which successor collateral 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
conditioned, withheld or delayed). If no successor collateral agent is
appointed prior to the effective date of the resignation of the Collateral
Agent, the Collateral Agent may appoint, after consulting with the Lenders and
the Borrower, a successor collateral agent from among the Lenders. Upon the
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 10.03
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. If no successor Collateral
Agent has accepted appointment as

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Collateral Agent by the date which is 30
days following a retiring Collateral Agent’s notice of resignation, the
retiring Collateral Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Collateral
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

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

ARTICLE X.

MISCELLANEOUS

10.01      Amendments, Release of Collateral, Etc.

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

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

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

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

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

(v)           change the Pro Rata
Share of any Lender except for reductions in a Lender’s Pro Rata Share
resulting from an increase in the Aggregate Revolving Credit Commitment
pursuant

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to
Section 2.13 and such Lender’s
failure to wholly or proportionately participate in such increase;

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

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

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

(d)           If
all outstanding Loans and other Obligations have been indefeasibly paid in full
and the Commitment has terminated or have been reduced to zero, the
Administrative Agent agrees to, and the Lenders hereby instruct the
Administrative Agent to, at the Borrower’s expense, execute and authorize such
releases of the 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

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to
make any payments to the Administrative Agent or any Lender required by any
Loan Document to the extent accruing, or relating to an event occurring, prior
to such termination.

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

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

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

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

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notices
to and other communications with the Agents may be recorded by such Agent, and
each of the parties hereto hereby consents to such recording.

10.03      No Waiver;
Cumulative Remedies. No failure by
any Lender or 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 Agents for all reasonable costs and expenses
incurred in connection with the development, preparation, negotiation,
syndication, administration and execution of this Agreement and the other Loan
Documents, including the filing, recording, refiling or rerecording of any
pledge agreement and any Security Agreement and/or any UCC financing statements
relating thereto and all amendments, supplements and modifications to any
thereof and any and all other documents or instruments of further assurance
required to be filed or recorded or refiled or rerecorded by the terms hereof
or of any mortgage, any pledge agreement or any security agreement, and any
amendment, waiver, consent or other modification of the provisions hereof and
thereof (whether or not the transactions contemplated hereby or thereby are
consummated), and the consummation and administration of the transactions
contemplated hereby and thereby, including all Attorney Costs, and (b) to pay
or reimburse the Agents and each Lender for all costs and expenses incurred in
connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including
all such costs and expenses incurred during any workout or restructuring in
respect of the Obligations and during any legal proceeding, including any
proceeding under any Debtor Relief Law), including all Attorney Costs. The
foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other
out-of-pocket expenses incurred by any Agent and the cost of independent public
accountants and other outside experts retained by any Agent or any Lender. The
agreements in this Section shall survive the termination of the Commitment 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 Agents, the Arranger, each Lender, the L/C Issuer and their
respective Affiliates, directors, officers, employees, counsel, agents and
attorneys-in-fact (collectively the “Indemnitees”) from and against: (a) any and
all claims, demands, actions or causes of action that are asserted against any
Indemnitee by any Person (other than the Administrative Agent or any Lender)
relating directly or indirectly to a claim, demand, action or cause of action that
such Person asserts or may assert against any Loan Party, any Affiliate of any
Loan Party or any of their respective officers or directors, arising out of or
relating to, the Loan Documents, the Commitment, 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 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 Collateral Agent or the replacement of any Lender) be
asserted or imposed against any Indemnitee by any Person or by any Loan Party,
arising out of or relating to, the Loan Documents, the Commitment, the use or
contemplated use of the proceeds of any Loans, or the

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relationship of any Loan Party, the
Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuer
under this Agreement or any other Loan Document; (c) without limiting the
foregoing, any and all claims, demands, actions or causes of action, judgments
and orders, penalties and fines that are asserted or imposed against any
Indemnitee, (i) under the application of any Environmental Law applicable to
the Borrower or any of its Subsidiaries or any of their properties or assets,
including the treatment or disposal of Hazardous Substances on any of their
properties or assets, (ii) as a result of the breach or non-compliance by the
Borrower or any Subsidiary with any Environmental Law applicable to the
Borrower or any Subsidiary, (iii) due to past ownership by the Borrower or any
Subsidiary of any of their properties or assets or past activity on any of
their properties or assets which, though lawful and fully permissible at the
time, could result in present liability, (iv) due to the presence, use,
storage, treatment or disposal of Hazardous Substances on or under, or the
escape, seepage, leakage, spillage, discharge, emission or Release from, any of
the properties owned or operated by the Borrower or any Subsidiary (including
any liability asserted or arising under any Environmental Law), regardless of
whether caused by, or within the control of, the Borrower or such Subsidiary,
or (v) due to any other environmental, health or safety condition in connection
with the Loan Documents; (d) any administrative or investigative proceeding by
any Governmental Authority arising out of or related to a claim, demand, action
or cause of action described in subsection (a), (b) or (c) above; and (e) any
and all liabilities (including liabilities under indemnities), losses, costs,
damages or expenses (including Attorney Costs and settlement costs) that any
Indemnitee suffers or incurs as a result of the assertion of any foregoing
claim, demand, action, cause of action or proceeding, or as a result of the
preparation of any defense in connection with any foregoing claim, demand,
action, cause of action or proceeding, in all cases, WHETHER OR NOT ARISING OUT OF THE
STRICT LIABILITY OR NEGLIGENCE OF AN INDEMNITEE, and whether or
not an Indemnitee is a party to such claim, demand, action, cause of action or
proceeding (all the foregoing, collectively, the “Indemnified Liabilities”); provided that no Indemnitee shall be
entitled to indemnification for any claim to the extent caused by its own gross
negligence or willful misconduct. The agreements in this Section shall survive
and continue for the benefit of the Indemnitees at all times after the Borrower’s
acceptance of the Lenders’ Commitment under this Agreement, whether or not the
Second Restatement Date shall occur and shall survive the termination of the
Commitment 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 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

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

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

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

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

(e)           A
Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 3.01 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 10.15 as though it were a Lender.

(f)            Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement (including under its 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 clause (i) of the proviso to the
first sentence of Section
10.07(b)), the Borrower shall be

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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 any 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 an Agent or the Lenders in writing as
confidential; provided that any
Lender may disclose any such information (a) as has become generally available
to the public, (b) as may be required or appropriate in any report, statement
or testimony submitted to or required by any municipal, state or federal
regulatory body having or claiming to have jurisdiction over such Lender or
submitted to or required by the Board or the Federal Deposit Insurance Corporation
or similar organizations (whether in the United States or elsewhere) or their
successors, (c) as may be required or appropriate in response to any summons or
subpoena in connection with any litigation, (d) in order to comply with any Law
applicable to such Lender, (e) to any Eligible Assignee of or Participant in,
or any prospective Eligible Assignee of or Participant in, any of its rights or
obligations under this Agreement; provided
that such Eligible Assignee or Participant or prospective Eligible Assignee or
Participant executes an agreement containing provisions substantially similar
to those contained in this Section
10.08, (f) in connection with the exercise of any remedy by such
Lender following an Event of Default pertaining to the Loan Documents, (g) in
connection with any litigation involving such Lender pertaining to the Loan
Documents, (h) to any Lender or any Agent, or (i) to any Affiliate of any
Lender (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such information and obligated
to keep such information confidential).

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 any 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

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the Administrative Agent after any such
set-off and application made by such Lender; provided,
however, that the failure to give such notice shall not affect the
validity of such set-off and application.

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

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

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.

 87
 

 

 

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

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

10.16      Governing Law.

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

(b)           EACH
LOAN PARTY AND OTHER PARTY HERETO, AND EACH GUARANTOR, BY EXECUTION OF A
GUARANTY, AGREES AS TO THIS SECTION 10.16(b). ANY LEGAL ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN

 88
 

 

 

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

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

 89
 

 

 

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

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

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

[REMAINDER OF PAGE INTENTIONALLY BLANK;

SIGNATURES BEGIN ON NEXT
PAGE]

 90

 

 

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

	
   

  	
  MARKWEST HYDROCARBON, INC.,

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ James G. Ivey

  	
   

  
	
   

  	
   

  	
  James G. Ivey

  	
   

  
	
   

  	
   

  	
  Senior Vice
  President and

  
	
   

  	
   

  	
  Chief Financial
  Officer

  

 

 Signature Page 1
 

 

 

	
   

  	
  ROYAL BANK OF CANADA,

  
	
   

  	
  as Administrative Agent and Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Gail Watkin

  	
   

  
	
   

  	
   

  	
  Gail Watkin

  
	
   

  	
   

  	
  Manager, Agency

  

 

 Signature Page 2
 

 

 

	
   

  	
  ROYAL BANK OF CANADA, as Lender

  
	
   

  	
  and L/C Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Jason York

  	
   

  
	
   

  	
   

  	
  Jason York

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 Signature Page 3
 

 

 

	
   

  	
  SUNTRUST BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Joseph
  M. McCreery

  	
   

  
	
   

  	
   

  	
  Joseph M.
  McCreery

  	
   

  
	
   

  	
   

  	
  Director

  	
   

  

 

 Signature Page 4
 

 

 

 

	
   

  	
  BANK
  OF OKLAHOMA, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Monica
  Morton

  	
   

  
	
   

  	
   

  	
  Monica Morton

  
	
   

  	
   

  	
  Commercial
  Banking Officer

  
	
   

  	
   

  	
   

  
					

 

 Signature Page 5
 

 

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Justin M.
  Alexander

  	
   

  
	
   

  	
   

  	
  Justin M.
  Alexander

  	
   

  
	
   

  	
   

  	
  Vice President

  	
   

  

 

 Signature Page 6

 

SCHEDULE
2.01

COMMITMENTS

	
  Lender

  	
   

  	
  Revolving Credit

  Commitments

  	
   

  	
  Unit Acquisition

  Commitments

  	
   

  	
          Total Commitment

  	
   

  
	
  Royal Bank of Canada

  	
   

  	
  $

  	
  14,545,454.55

  	
   

  	
  $

  	
  5,454,545.45

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  4,090,909.09

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  U.S. Bank National
  Association

  	
   

  	
  $

  	
  7,272,727.27

  	
   

  	
  $

  	
  2,727,272.73

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Bank of Oklahoma, N.A.

  	
   

  	
  $

  	
  7,272,727.27

  	
   

  	
  $

  	
  2,727,272.73

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  Total Commitment:

  	
   

  	
  $

  	
  40,000,000.00

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  	
  55,000,000.00

  	
   

  

 

 

SCHEDULE
5.13

SUBSIDIARIES

AND OTHER EQUITY INVESTMENTS

(a)           Subsidiaries
as of the Second Restatement Date:

	
  Name

  	
   

  	
  Jurisdiction of Organization

  	
   

  	
  Ownership

  
	
  MarkWest Energy GP, L.L.C.

  	
   

  	
  Delaware

  	
   

  	
  89.2% owned by the Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MarkWest Michigan, Inc.

  	
   

  	
  Colorado

  	
   

  	
  100% owned by the Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MarkWest Resources, Inc.

  	
   

  	
  Colorado

  	
   

  	
  100% owned by the Borrower

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Matrex, L.L.C.

  	
   

  	
  Michigan

  	
   

  	
  100% owned by MarkWest Resources, Inc.

  

 

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

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

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

(c)                                  Other Investments as of the Second
Restatement Date:

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

 

 1

 

SCHEDULE
7.01

EXISTING LIENS

	
  Debtor

  	
   

  	
  Creditor

  	
   

  	
  Asset Secured

  	
   

  	
  Filing Jurisdiction

  
	
  Borrower

  	
   

  	
  LaSalle National Leasing Corporation

  	
   

  	
  54 Trinity 60-337 railcars

  	
   

  	
  Delaware, Colorado

  
	
  Borrower

  	
   

  	
  LaSalle National Leasing Corporation

  	
   

  	
  5 Trinity 60-337 railcars

  	
   

  	
  Delaware, Colorado

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  1 Ariel compressor

  	
   

  	
  Delaware, Colorado

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

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

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  Inter-Tel Leasing

  	
   

  	
  Axxess telephone system

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  LaSalle National Leasing Corporation

  	
   

  	
  54 Trinity 60-337 railcars (in lieu filing)

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  2 Superior compressors and related equipment

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  1 gas compressor and related equipment

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  US Bancorp Equipment Finance, Inc.

  	
   

  	
  1 gas compressor and related equipment

  	
   

  	
  Delaware

  
	
  Borrower

  	
   

  	
  Equitable Production Company

  	
   

  	
  Equitable Pre-Delivered Gas

  	
   

  	
  Delaware

  

 

 

SCHEDULE 7.12

AGREEMENTS RESTRICTING LIENS ON LEASEHOLD
INTERESTS

Lease Agreement between Equitable Production
Company and MW Energy Appalachia, LLC

 

SCHEDULE 10.02

ADDRESSES FOR NOTICES TO BORROWER,

GUARANTORS AND ADMINISTRATIVE AGENT

ADDRESS FOR NOTICES TO BORROWER

MARKWEST
HYDROCARBON, INC.

1515
Arapahoe Street

Tower
2, Suite 700

Denver,
Colorado 80202-2126

Attn:
General Counsel

Telephone:
(303) 925-9200

Facsimile: (303) 290-8769

ADDRESS FOR NOTICES TO GUARANTORS

[Name
of Guarantor]

1515
Arapahoe Street

Tower
2, Suite 700

Denver,
Colorado 80202-2126

Attn:
General Counsel

Telephone:
(303) 925-9200

Facsimile: (303) 290-8769

ADDRESSES FOR ROYAL BANK OF CANADA

Royal Bank of Canada’s Lending Office:

Royal
Bank of Canada

New
York Branch

One
Liberty Plaza, 3rd Floor

New
York, New York 10006-1404

Attention:
Manager, Loans Administration

Telephone:
(212) 428-6332

Facsimile: (212) 428-2372

For matters related to letters of credit:

Attention:
Manager, Trade Products

Telephone:
(212) 428-6235

Facsimile: (212) 428-3015

 1
 

 

 

in each case with a copy to:

Royal
Bank of Canada

2800
Post Oak Boulevard

3900
Williams Tower

Houston,
Texas 77056

Attention:
Jason York

Telephone:
(713) 403-5679

Facsimile:
(713) 403-5624

Electronic Mail: Jason.York@rbccm.com

Administrative Agent’s and Collateral Agent’s Office:

Royal
Bank of Canada

Agency
Services Group

Royal
Bank Plaza

P.
O. Box 50, 200 Bay Street

12th Floor, South Tower

Toronto,
Ontario M5J 2W7

Attention:
Manager Agency

Telephone:
(416) 842-3901

Facsimile: (416) 842-4023

Wiring Instructions:

JPMorgan
Chase Bank, New York, New York

ABA
021-000021

For
account Royal Bank of Canada, New York

Swift
Code: ROYCUS3X

A/C
920-1033363

For
further credit to A/C 2937464, Transit 1269

RBCCM
Agency Services, New York

Ref:
MarkWest Hydrocarbon

Attn: Agency Services

 

 2

 

EXHIBIT
A-1

FORM OF
BORROWING NOTICE

Date:
                        ,          

To:          Royal
Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

Reference
is made to that certain Second Amended and Restated Credit Agreement, dated as
of August 18, 2006 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein
defined), among MarkWest Hydrocarbon, Inc., a Delaware corporation (the “Borrower”), Royal
Bank of Canada, as Administrative Agent, and the Lenders from time to time
party thereto.

The undersigned hereby
requests a revolving loan:

I.              REVOLVING
CREDIT FACILITY

1.             Status Information for the Revolving Credit Facility

(a)                                  Amount of Aggregate Revolving Credit
Commitment: $40,000,000 (prior to Revolving
Credit Commitment Increase Effective Date) OR $                    
(after Revolving Credit Commitment Increase Effective Date)

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

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

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

2.             Amount of Revolving Credit Borrowing: $

3(a).        Initial Borrowing Base as of June 30, 2006: $                        
OR

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

4.             Requested date of Revolving Credit Borrowing:                               ,
200  .

5.             Requested Type of Loan for Revolving Credit Borrowing
and applicable

Dollar amount:

(a)                                  Base Rate Loan for $

(b)                                 Eurodollar Rate Loan with Interest Period of:

 1
 

 

 

	
  (i)

  	
   

  	
  one
  month for

  	
   

  	
  $

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  two
  months for

  	
   

  	
  $

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  three
  months for

  	
   

  	
  $

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  six months for

  	
   

  	
  $

  	
   

  	
   

  

 

6.             Purpose of Revolving Credit Loan:

o Finance accounts receivable and/or inventory

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

o Finance purchase of MLP Units (in an amount
not to exceed the increase in the Aggregate Revolving Credit Commitment after
the Revolving Credit Commitment Increase Effective Date)

II.            UNIT
ACQUISITION FACILITY

1.             Status Information for the Unit Acquisition Facility

(a)                                  Amount of Aggregate Unit Acquisition
Commitment: $15,000,000

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

(c)                                  Principal amount of Unit Acquisition Loans
available to be borrowed (1(a) minus 1(b)): $           

2.             Amount of Unit Acquisition Borrowing: $           

3              Requested date of Unit Acquisition Borrowing:                               ,
200  .

4.             Requested Type of Loan for Unit Acquisition Borrowing
and applicable

Dollar amount:

(a)                                  Base Rate Loan for $

(b)                                 Eurodollar Rate Loan with Interest Period of:

	
  (i)

  	
   

  	
  one
  month for

  	
   

  	
  $

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  two
  months for

  	
   

  	
  $

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  three
  months for

  	
   

  	
  $

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  six months for

  	
   

  	
  $

  	
   

  	
   

  

 

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

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

 2
 

 

 

(b)           if applicable, the amount of the
requested Revolving Credit Borrowing, when added to Revolving Credit Loans
outstanding prior to the requested Revolving Credit Borrowing and Letters of
Credit outstanding prior to the requested Revolving Credit Borrowing, will not
exceed the Borrowing Base referred to in Section 1.3.
above;

(c)           if applicable, the amount of the
requested Unit Acquisition Borrowing, when added to Unit Acquisition Loans
outstanding prior to the requested Unit Acquisition Borrowing, will not exceed
the Aggregate Unit Acquisition Commitment referred to in Section
II.1(a) above;

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

(e)           if a Borrowing of a Unit Acquisition
Loan or Borrowing of a Revolving Credit Loan to be funded out of an increase in
the Aggregate Revolving Credit Commitment pursuant to
Section 2.13 is requested hereby, Borrower represents and
warrants that either (i) the MLP Operating Subsidiary or any of its
Subsidiaries has made Permitted Acquisitions (as defined in the MLP Credit
Agreement) in excess of $40,000,000
or (ii) the MLP Operating Subsidiary or any of its Subsidiaries has made
Capital Expenditures(as defined in the MLP Credit Agreement) in excess of $40,000,000.

The
Borrowing requested herein complies with Sections 2.01, Sections 2.02 and 2.03 of the
Agreement, as applicable.  Accompanying
this Borrowing Notice is a Statement of Purpose For an Extension of Credit
Secured by Margin Stock (Federal Reserve Form U-1) duly executed by a
Responsible Officer of the Borrower which is true and correct in all respects.

	
   

  	
  MARKWEST HYDROCARBON, INC.,

  
	
   

  	
  a Delaware
  corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 3

 

EXHIBIT A-2

FORM OF
CONVERSION/CONTINUATION NOTICE

Date:                               ,
        

TO:         Royal
Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

Reference
is made to that certain Second Amended and Restated Credit Agreement, dated as
of August 18, 2006 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Agreement;” the terms defined therein
being used herein as therein defined), among MarkWest Hydrocarbon, Inc., a
Delaware corporation (the “Borrower”),
Royal Bank of Canada, as Administrative Agent, and the Lenders from time to
time party thereto.

The undersigned hereby
requests:

I.              REVOLVING CREDIT FACILITY

	
  1.

  	
   

  	
  Amount of [conversion] [continuation]of Revolving
  Credit Loans: $                    

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Existing rate:

  	
   

  	
  Check applicable blank

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Base Rate

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Eurodollar Rate Loan with Interest Period of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  one month

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  two months

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

  	
  three months

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
  (iv)

  	
   

  	
  six months

  	
   

  	
  o

  

 

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

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

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

5.                                       Requested Type of Loan and applicable Dollar
amount:

(a)                                  Base Rate Loan for $                    

(b)                                 Eurodollar Rate Loan with Interest Period of:

(i)            one month for       $                    

 1
 

 

(ii)                                  two months for               $                    

(iii)                               three months for        $                    

(iv)                              six months for                     $                    

II.            UNIT ACQUISITION
FACILITY

	
  1.

  	
   

  	
  Amount of [conversion] [continuation]Unit
  Acquisition Loan: $                    

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Existing rate:

  	
   

  	
  Check applicable blank

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Base Rate

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Eurodollar Rate Loan with Interest Period of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  one month

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  two months

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

  	
  three months

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
  (iv)

  	
   

  	
  six months

  	
   

  	
  o

  

 

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

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

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

5.                                       Requested Type of Loan and applicable Dollar
amount:

	
  

  	
   

  	
  (a)

  	
   

  	
  Base Rate Loan for $                    

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Eurodollar Rate Loan with
  Interest Period of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  one month for

  	
   

  	
  $                    

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  two months for

  	
   

  	
  $                    

  
	
   

  	
   

  	
   

  	
   

  	
  (iii)

  	
   

  	
  three months for

  	
   

  	
  $                    

  
	
   

  	
   

  	
   

  	
   

  	
  (iv)

  	
   

  	
  six months for

  	
   

  	
  $                    

  

 

The
[conversion] [continuation] requested herein complies with Sections 2.01  and 2.03  of the Agreement, as applicable.

	
   

  	
  MARKWEST ENERGY HYDROCARBON, INC.,

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 2

 

EXHIBIT B-1

FORM OF
REVOLVING CREDIT NOTE

	
  $                                          

  	
   

  	
  August
      , 2006

  

 

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

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

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

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

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

 1
 

 

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

	
   

  	
  MARKWEST HYDROCARBON, INC.,

  
	
   

  	
  a Delaware
  corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 2

 

EXHIBIT B-2

FORM OF
UNIT ACQUISITION NOTE

	
  $                                          

  	
   

  	
  August     ,
  2006

  

 

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

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

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

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

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

 1
 

 

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

	
  

  	
  MARKWEST HYDROCARBON, INC.,

  
	
   

  	
  a Delaware corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 2

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

(Pursuant to Section 6.02 of the Credit Agreement)

Financial Statement Date:                       ,
        

To:          Royal
Bank of Canada, as Administrative Agent

Ladies and Gentlemen:

Reference
is made to that certain Second Amended and Restated Credit Agreement, dated as
of August 18, 2006 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Credit
Agreement;”
the terms defined therein being used herein as therein defined), MarkWest
Hydrocarbon, Inc., a Delaware corporation (the “Borrower”), the Lenders from time to
time party thereto, and Royal Bank of Canada, as Administrative Agent.
Capitalized terms used herein but not defined herein shall have the meaning set
forth in the Credit Agreement.

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

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

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

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

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

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

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

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

 1
 

 

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

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

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

	
   

  	
  MARKWEST HYDROCARBON, INC.

  
	
   

  	
  a Delaware
  corporation, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 2
 

 

 

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

SCHEDULE 3

to the Compliance Certificate

($ in 000’s)

	
  I.

  	
  Section
  7.04 – Indebtedness

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

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

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

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

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

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

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Section
  7.08 – Restricted Payments; Distributions and Redemptions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Cash and Cash
  Equivalents as of the Statement Date.

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Borrower’s
  Consolidated Net Income commencing with the fiscal quarter beginning July 1,
  2006 through and including the Statement Date:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C.

  	
  50% of Line
  II.B:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.

  	
  Total of Line
  II.A +Line II.C:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E.

  	
  Total of
  Restricted Payments made on or after July 1, 2006 through and including
  Statement Date:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  F.

  	
  Excess of Line
  II.D over Line II.E:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  G.

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

  	
   

  	
  Yes/No

  Amount of excess: $           

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  Section
  7.15(a) – Leverage Ratio

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

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

  	
   

  	
  $                  

  
							

 

 3
 

 

 

	
  

  	
  B.

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

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

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

  	
   

  	
                    

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Is Leverage Ratio
  greater than 4.0 to 1.0?

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  As an
  alternative to the preceding Leverage Ratio in Line II.D, if more than
  $5,000,000 is outstanding under the Unit Acquisition Facility OR if the
  Aggregate Revolving Credit Commitment has been increased pursuant to Section
  2.13, is the Leverage Ratio greater than 5.50 to 1.0?

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F.

  	
  As an
  alternative to the Leverage Ratios in Lines II.D and II.E, if more than
  $5,000,000 is outstanding under the Unit Acquisition Facility OR if more than
  $5,000,000 of Revolving Credit Loans funded out of an increase in the
  Revolving Credit Commitment pursuant to Section 2.13 is outstanding AND 9
  months or more (but not more than 18 months) have elapsed since the date of
  funding such Loans, is the Leverage Ratio greater than 4.75 to 1.0?

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  G.

  	
  As an
  alternative to the Leverage Ratios in Lines II.D, II.E and II.F, if more than
  $5,000,000 is outstanding under the Unit Acquisition Facility OR if more than
  $5,000,000 of Revolving Credit Loans funded out of an increase in the
  Revolving Credit Commitment pursuant to Section 2.13 is outstanding AND 18
  months or more have elapsed since the date of funding such Loans, is the
  Leverage Ratio greater than 4.00 to 1.0?

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
  Section
  7.15(b) – Minimum Consolidated Tangible Net Worth (as
  calculated pursuant to Credit Agreement)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Initial Required
  Consolidated Tangible Net Worth

  	
   

  	
  $       30,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  50% of
  Consolidated Net Income after July 1, 2006:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  100% of proceeds
  of all equity issued subsequent to Second Restatement Date:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Sum of Line IV.A
  + Line IV.B + Line IV.B):

  	
   

  	
  $                  

  
						

 

 4
 

 

 

	
  

  	
  E.

  	
  Consolidated
  Tangible Net Worth as of Statement Date:

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F.

  	
  Is Line IV.E
  equal to or greater than Line IV.B?

  	
   

  	
  Yes/No

  
	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
  Section
  7.16 – Minimum Collateral Coverage Ratio (as calculated
  pursuant to Credit Agreement)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Market Price of
  Common MLP Units as of Statement Date pledged as Collateral securing
  Obligations

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Market Price of
  Subordinated MLP Units as of Statement Date pledged as Collateral securing
  Obligations

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Midstream
  Accounts Receivable as of Statement Date pledged as Collateral securing
  Obligations

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Midstream
  Inventory as of Statement Date pledged as Collateral securing Obligations

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  Sum of Line V.A.
  + Line V.B. + Line V.C + Line V.D

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F.

  	
  Outstanding
  Amount of Revolving Credit Loans as of Statement Date

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  G.

  	
  L/C Obligations
  as of Statement Date

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  H.

  	
  Outstanding
  Amount of Unit Acquisition Loans as of Statement Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  I.

  	
  Sum of Line V.F
  plus Line V.G plus Line V.H

  	
   

  	
  $                  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  J.

  	
  Is ratio of Line
  V.E to Line V.I at least 2:1?

  	
   

  	
  Yes/No

  

 

 5

 

EXHIBIT C-2

FORM OF BORROWING BASE REPORT

Borrowing Base Report

MARKWEST HYDROCARBON, INC.

Monthly Borrowing Base Report

For the Month Ending               

Calculation of Monthly Borrowing Base and
Excess Revolving Credit Facility Availability

	
  A.

  	
   

  	
  Eligible Midstream Accounts Receivable

  	
   

  	
  $                    

  	
   

  	
  X

  	
   

  	
  75%

  	
   

  	
  $                    

  
	
  B.

  	
   

  	
  Hedged Eligible Midstream Inventory

  	
   

  	
  $                    

  	
   

  	
  X

  	
   

  	
  85%

  	
   

  	
  $                    

  
	
  C.

  	
   

  	
  Unhedged Eligible Midstream Inventory

  	
   

  	
  $                    

  	
   

  	
  X

  	
   

  	
  75%

  	
   

  	
  $                    

  
	
  D.

  	
   

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

  	
   

  	
  $                    

  
	
  E.

  	
   

  	
  Borrowing Base (lower of (i) D or (ii) Revolving
  Credit Commitment (maximum $40,000,000 subject to increase following the
  Revolving Credit Commitment Increase Effective Date) minus Borrowing Base
  Liquidity Reserve

  	
   

  	
  $                    

  
	
  F.

  	
   

  	
  Outstanding Amount of Revolving Credit Loans

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                    

  
	
  G.

  	
   

  	
  Outstanding Amount of L/C Obligations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                    

  
	
  H.

  	
   

  	
  Revolving Credit Facility Usage (F+G)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                    

  
	
  I.

  	
   

  	
  Excess Revolving Credit Facility Availability (E
  minus H)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $                    

  

 

Collateral Coverage Ratio

MARKWEST HYDROCARBON, INC.

Collateral Coverage Ratio Analysis

As of borrowing date:               

	
  A.

  	
   

  	
    Market Price of Common MLP Units

  	
   

  	
  $                    

  
	
  B.

  	
   

  	
    Market Price of Subordinated MLP Units

  	
   

  	
  $                    

  
	
  C.

  	
   

  	
  Midstream Accounts Receivable

  	
   

  	
  $                    

  
	
  D.

  	
   

  	
  Midstream Inventory

  	
   

  	
  $                    

  
	
  E.

  	
   

  	
  Total Collateral (A+B+C+D)

  	
   

  	
  $                    

  
	
  F.

  	
   

  	
  Outstanding Amount of Revolving Credit Loans

  	
   

  	
  $                    

  
	
  G.

  	
   

  	
  Outstanding Amount of L/C Obligations

  	
   

  	
  $                    

  
	
  H.

  	
   

  	
  Outstanding Amount of Unit Acquisition Loans

  	
   

  	
  $                    

  
	
  I.

  	
   

  	
  Total Outstanding Loans and L/C Obligations (F+G+H)

  	
   

  	
  $                    

  
	
  J.

  	
   

  	
  Requested Amount of Loans and L/C Credit Extension

  	
   

  	
  $                    

  
	
  K.

  	
   

  	
  Is ratio of Line E at least 2:1 over the sum of
  Lines I +J?

  	
   

  	
  Yes/No

  

 

- BORROWER CERTIFICATION -

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

 6
 

 

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

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

The undersigned hereby warrants to Royal Bank of
Canada, as Administrative Agent, that this Borrowing Base Report is a correct
statement regarding the Midstream Accounts Receivable and Midstream Inventory
of Borrower and its Domestic MarkWest Inc. Subsidiaries and that the
reconciliation figures are fully and correctly set forth.  Capitalized terms used but not defined herein
shall have the meanings given such terms in the Second Amended and Restated
Credit Agreement dated August 18, 2006 among MarkWest Hydrocarbon, Inc., the
lenders party thereto and Royal Bank of Canada, as Administrative Agent.

	
  

  	
   

  	
  MARKWEST HYDROCARBON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:     Chief Financial
  Officer/Treasurer

  

 

 7

 

EXHIBIT D

FORM OF
ASSIGNMENT AND ASSUMPTION

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

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

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

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

  
	
  3.

  	
   

  	
  Borrower(s):

  	
   

  	
  MarkWest Hydrocarbon, Inc.

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
   

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

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  The $55,000,000 Second Amended and Restated Credit
  Agreement dated as of August 18, 2006 among MarkWest Hydrocarbon, Inc., the
  Lenders parties thereto, and Royal Bank of Canada, as Administrative Agent.

  
	
  6.

  	
   

  	
  Assigned Interest:

  	
   

  	
   

  

 

	
  

  	
   

  	
  Aggregate Amount of

  Commitment/Loans for

  All Lenders*

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned*

  	
   

  	
  Percentage Assigned of

  Commitment/Loans

  	
   

  
	
  Revolving Credit Loans:

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
  Unit Acquisition Loans

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
  Total:

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  

 

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

 

 1
 

 

[7.            Trade Date:                             ]

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

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

	
  

  	
  ASSIGNOR

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

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

Consented to and Accepted:

	
  [NAME OF ADMINISTRATIVE AGENT], as

  
	
  Administrative Agent

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  
	
  [Consented to:]

  
	
   

  
	
  MARKWEST HYDROCARBON, INC.

  
	
  a Delaware corporation

  
	
   

  
	
  By

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
				

 

 2
 

 

ANNEX 1

TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.             Representations
and Warranties.

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

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

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

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

 3
 

 

Assumption by telecopy shall be effective as
delivery of a manually executed counterpart of this Assignment and Assumption.
This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of Texas.

 4

 

Exhibit E

Legal Opinion of Hogan &
Hartson, LLP

August     , 2006

The Lenders (as
defined below) and

The Administrative
Agent (as defined below) and

The Collateral
Agent (as defined below)

c/o Royal Bank of
Canada

Royal Bank Plaza

200 Bay Street

12th Floor, South Tower

Toronto, Ontario
M5J 2W7

Canada

Re: MarkWest
Hydrocarbon, Inc.

Ladies and Gentlemen:

This firm has acted as counsel to MarkWest
Hydrocarbon, Inc., a Delaware corporation (the “Borrower”), MarkWest Energy
G.P., L.L.C., a Delaware limited liability company (the “MLP GP”), MarkWest
Michigan, Inc., a Colorado corporation (“MW Michigan”), MarkWest Resources,
Inc., a Colorado corporation (“MW Resources”) and Matrex, L.L.C., a Michigan
limited liability company (“Matrex,” and, together with the MLP GP, MW Michigan
and MW Resources, the “Guarantors”) in connection with the Second Amended and
Restated Credit Agreement, dated as of August   , 2006 (the “Amended
Credit Agreement”), by and among the Borrower, Royal Bank of Canada, as
Administrative Agent (the “Administrative Agent”) and as Collateral Agent (the “Collateral
Agent”) and each of the parties identified therein as lenders (the “Lenders”),
and the execution and delivery pursuant thereto of (i) a revolving credit
note, dated August   , 2006, in the principal amount of
$14,545,454.55 and a unit acquisition note, dated August   , 2006, in
principal amount of $5,454,545.45, each from the Borrower payable to the order
of Royal Bank of Canada, (ii) a revolving credit note, dated August   ,
2006, in the principal amount of $7,272,727.27 and a unit acquisition note,
dated August   , 2006, in principal amount of $2,727,272.73, each
from the Borrower payable to the order of U.S. Bank National Association,
(iii) a revolving credit note, dated August   , 2006, in
the principal amount of $10,909,090.91 and a unit acquisition note, dated
August   , 2006, in principal amount of $4,090,909.09, each from the
Borrower payable to the order of Suntrust

 1
 

 

Bank,
and (iv) a revolving credit note, dated August   , 2006, in
the principal amount of $7,272,727.27 and a unit acquisition note, dated August
  , 2006, in principal amount of $2,727,272.73, each from the
Borrower payable to the order of the Bank of Oklahoma, N.A. (collectively (i)
through (iv), the “Notes”).  This opinion
letter is furnished to you pursuant to the requirements in Section 4.01(a)(x)
of the Amended Credit Agreement in connection with the closing thereunder on
the date hereof.  Capitalized terms used
herein that are defined in the Amended Credit Agreement shall have the meanings
set forth in the Amended Credit Agreement, unless otherwise defined herein.

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

1.                             Executed
copy of the Amended Credit Agreement.

2.                             Executed
copy of each of the Notes.

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

4.                             Executed
copy of the First Amended and Restated Pledge and Security Agreement, dated as
of August   , 2006 by Borrower in favor of the Administrative
Agent and the Collateral Agent (the “Borrower Pledge Agreement”).

5.                             Executed
copy of the First Amended and Restated Pledge and Security Agreement, dated as
of August   , 2006 by MLP GP in favor of the Administrative
Agent and the Collateral Agent (the “MLP GP Pledge Agreement”).

6.                             Executed
copy of the First Amended and Restated Pledge and Security Agreement, dated as
of August   , 2006 by MW Michigan in favor of the Administrative
Agent and the Collateral Agent (the “MW Michigan Pledge Agreement”).

7.                             Executed
copy of the First Amended and Restated Pledge and Security Agreement, dated as
of August   , 2006 by MW Resources in favor of the
Administrative Agent and the Collateral Agent (the “MW Resources Pledge
Agreement”).

8.                             Executed
copy of the First Amended and Restated Pledge and Security Agreement, dated as
of August   , 2006 by Matrex in favor of

 2
 

 

the Administrative
Agent and the Collateral Agent (the “Matrex Pledge Agreement”, collectively
with the Borrower Pledge Agreement, the MLP GP Pledge Agreement, the MW
Michigan Pledge Agreement and the MW Resources Pledge Agreement, the “Pledge
Agreements”).

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

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

11.                       A
certificate of good standing of the Borrower issued by the Secretary of State
of the State of Delaware dated August   , 2006.

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

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

14.                       A
certificate of good standing of the MLP GP issued by the Secretary of State of
the State of Delaware dated August   , 2006.

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

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

17.                       A
certificate of good standing of MW Michigan issued by the Secretary of State of
the State of Colorado dated August   , 2006.

18.                       The
Articles of Incorporation of MW Resources, as certified by the Secretary of
State of the State of Colorado on August   , 2006 and as

 3
 

 

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

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

20.                       A
certificate of good standing of MW Resources issued by the Secretary of State
of the State of Colorado dated August   , 2006.

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

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

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

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

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

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

 4
 

 

27.                       Certain
resolutions of the Board of Directors of MW Resources acting in its own behalf
and acting in its capacity as the managing member of Matrex, adopted by
unanimous written consent dated August   , 2006, as certified by
the Secretary of MW Resources on the date hereof as being complete, accurate
and in effect, relating to, among other things, authorization of the Amended
Guaranty, the MW Resources Pledge Agreement, the Matrex Pledge Agreement and
arrangements in connection therewith.

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

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

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

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

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

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

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

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

 5
 

 

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

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

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

 6
 

 

forth above, is referred
to herein as “Applicable State Law.”)  We
note that the Loan Documents provide that they are to be governed by the
substantive law of the State of Texas. 
Nevertheless, with your permission, we have given the opinions in
paragraphs (f) and (g) as if the Colorado law covered by this opinion letter
were the law governing the Loan Documents. 
We would further point out that we are not admitted to practice law in,
and do not purport to be experts with respect to the laws of, the States of
Texas, Delaware or Michigan.

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

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

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

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

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

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

 7
 

 

the Loan Documents
to which it is a party have been duly authorized by all necessary limited
liability company action of Matrex.

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

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

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

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

 8
 

 

(3) generally
applicable rules of law that limit or affect the enforceability of provisions
that purport to waive or require waiver of (or that otherwise purport to have
the effect of waiving) procedural, judicial or substantive rights or defenses.

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

Very truly yours,

Hogan & Hartson L.L.P.

 9License Amendment

L-024-2006/1

WHEREAS, the National
Institutes of Health (“NIH”), on behalf of the Public Health Service (“PHS”)
and the Department of Health and Human Services (“DHHS”), and NeoPharm, Inc. (“Licensee”)
entered into license agreement (L-024-2006/0; the “Agreement”) effective May
30, 2006 under which HHS Ref. E-173-1992/0 corresponding to US. Patent
5,720,720; entitled “Convection-Enhanced Drug Delivery,” was licensed
nonexclusively to be used for the administration of therapeutics to the central
nervous system, including IL-13PE:38QQR compounds and compositions.

WHEREAS, Licensee desires
to broaden the nonexclusive field of use granted in order for the Agreement to
be in parity with Licensee’s other executed or pending agreements with PHS that
are not limited by indication.

WHEREAS, Licensee desires
to obtain the rights to sublicense the Licensed Patent Rights in conjunction
with the sublicensing of a therapeutic for administration using the Licensed
Process.

WHEREAS, Licensee desires
to extend their benchmarks to better conform to commercialization expectations.

NOW THEREFORE, in
consideration of the foregoing, PHS and Licensee hereby agree to the following
provisions and to amend the Agreement as follows:

All bolded items defined in Agreement remain in effect
under this License Amendment.

Paragraph
1.02 is replaced in its entirety with the following:

	
  1.02

  	
   

  	
  By assignment of rights from PHS employees and other
  inventors, DHHS, on behalf of the United States Government, owns intellectual
  property rights claimed in any United States and/or foreign patent
  applications or patents corresponding to the assigned inventions.  All rights, titles and interests in the
  Licensed Patent Rights are owned by DHHS by assignment of rights from the
  inventors of the Licensed Patent Rights. 
  DHHS also owns any tangible embodiments of these inventions actually
  reduced to practice by PHS.

  
	
   

  	
   

  	
   

  
	
  Paragraph
  2.08 is replaced in its entirety with the following:

  
	
   

  
	
  2.08

  	
   

  	
  “Drug” means any pharmaceutical or pharmaceutical
  composition developed or licensed by Licensee for treating Cancer.

  
	
   

  	
   

  	
   

  
	
  Paragraph
  2.10 is replaced in its entirety with the following:

  
	
   

  	
   

  	
   

  
	
  2.10

  	
   

  	
  “Net Sales” means the total gross receipt for sales
  of Drug administered or recommended for administration using the Licensed
  Process for the treatment of cancer by or on behalf of Licensee and from
  making available to others without sale orother
  dispositions, whether invoiced or not, less returns and allowances, packing
  costs, insurance costs, 

  

 

 

 

	
  

  	
   

  	
  freight out, taxes or excise duties imposed on the
  transaction (if separately
  invoiced), and wholesaler and cash discounts in amounts customarily in the
  trade to the extent actually granted. 
  No deductions shall be made for commissions paid to individuals,
  whether they are with independent sales agencies or regularly employed by
  Licensee, or sublicensees, and on its payroll, or for the cost of
  collections.

  
	
   

  	
   

  	
   

  
	
  Article
  4 — Sublicensing is replaced in its entirety with the following:

  
	
   

  	
   

  	
   

  
	
  4.01

  	
   

  	
  Upon written approval by PHS, which approval shall
  not be unreasonably withheld, Licensee may enter into sublicensing agreements
  under the Licensed Patent Rights provided that said sublicense is also in
  conjunction with the sublicense of Drug.

  
	
   

  	
   

  	
   

  
	
  4.02

  	
   

  	
  Licensee agrees to pay PHS additional sublicensing
  royalties of One and One-half percent (1.5%) but not to exceed Two-Hundred
  Thousand US. Dollars (USD$200,000), on the fair market value of any up-front
  consideration received for granting each sublicense within sixty (60) days of
  the execution of each sublicense.

  
	
   

  	
   

  	
   

  
	
  4.03

  	
   

  	
  Licensee agrees that any
  sublicenses granted by it shall provide that the obligations to PHS under
  Paragraphs 5.01, 8.01, 10.01-10.02,
  12.05 and 13.07-13.08 of this Agreement shall be binding on the sublicensee as if it were a
  party to this Agreement. Licensee further agrees to attach copies of these
  Paragraphs to all sublicense agreements.

  
	
   

  	
   

  	
   

  
	
  4.04

  	
   

  	
  Any sublicenses granted by
  Licensee shall provide for the termination of the sublicense, or the
  conversion to a license directly between such sublicensees and PHS, at the
  option of the sublicensee, upon termination of this Agreement under Article
  13. Such conversion is subject to PHS approval and contingent upon acceptance
  by the sublicensee of the remaining provisions of this Agreement.

  
	
   

  	
   

  	
   

  
	
  4.05

  	
   

  	
  Licensee agrees to forward to PHS
  a copy of each fully executed sublicense agreement postmarked within thirty
  (30) days of the execution of such agreement. To the extent permitted by law,
  PHS agrees to maintain each such sublicense agreement in confidence.

  
	
   

  	
   

  	
   

  
	
  4.06

  	
   

  	
  Licensee agrees to forward
  semi-annually to PHS a copy of progress reports pursuant under Article 9
  received by Licensee from its sublicensees during the preceding half-year
  period as shall be pertinent to a royalty accounting to PHS by Licensee for
  activities under the sublicense.

  
	
   

  	
   

  	
   

  
	
  Paragraph 6.07 is
  replaced in its entirety with the following:

  
	
   

  
	
  6.07

  	
   

  	
  On sales of Drug administered or recommended for
  administration using a Licensed Process by Licensee or its sublicensees made
  in other than an arm’s-length transaction, the value of the Net Sales
  attributed under this Article 6 to such a transaction shall be that which
  would have been received in all arm’s-length transaction, based on sales of
  like quantity and quality products on or about the time of such
  transaction.  This provision applies
  only to commercial sales and excludes all charitable distributions of Drug.

  

 

 2
 

 

 

	
  Paragraph 9.02 is replaced in its
  entirety with the following:

  
	
   

  
	
  9.02

  	
   

  	
  Licensee shall provide written
  annual reports on its product development progress or efforts to
  commercialize under the Commercial Development Plan for each of the Licensed
  Fields of Usewithin sixty (60) days after December 31 or each
  calendar year.  These progress reports
  shall include, but not be limited to: progress on research and development,
  status of applications for regulatory approvals, manufacturing, sublicensing,
  marketing, importing, and sales during the preceding calendar year, as well
  as, plans for the present calendar year. 
  PHS also encourages these reports to include information on any of
  Licensee’s public service activities that relate to the Licensed Patent
  Rights.  If reported progress differs
  from that projected in the Commercial Development Plan and Benchmarks,
  Licensee shall explain the reasons for these differences.  In the annual report, Licensee may propose
  amendments to the Commercial Development Plan, acceptance of which by PHS may
  not be denied unreasonably.  Licensee
  agrees to provide any additional information reasonably required by PHS to
  evaluate Licensee’s performance under this Agreement.  Licensee may amend the Benchmarks at any
  time upon written approval by PHS. PHS shall not unreasonably withhold
  approval of any request of Licensee to extend the time periods of this
  schedule if the request is supported by a reasonable showing by Licensee of
  diligence in its performance under the Commercial Development Plan and toward
  bringing the Licensed Products to the point of Practical Application as
  defined in 37 CFR §404.3(d).  Licensee shall amend the Commercial
  Development Plan and Benchmarks at the request of PHS to address any Licensed
  Fields of Use not specifically addressed in the plan originally submitted.

  
	
   

  	
   

  	
   

  
	
  Paragraphs 12.05
  and 12.06 are replaced in its entirety with the following:

  
	
   

  	
   

  	
   

  
	
  12.05

  	
   

  	
  Licensee shall indemnify and hold
  PHS, its employees, students, fellows, agents, and consultants harmless from
  and against all liability, demands, damages, expenses, and losses, including
  but not limited to death, personal injury, illness, or property damage in
  connection with or arising out of:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the use by or on behalf of
  Licensee, its sublicensees, directors, employees, or third parties of any
  Licensed Patent Rights; or

  
	
   

  	
  (b)

  	
  the design, manufacture,
  distribution, or use of any Licensed Products, Licensed Processes or
  materials by Licensee, or other products or processes developed in connection
  with or arising out of the Licensed Patent Rights.

  
	
   

  	
   

  	
   

  
	
  12.06

  	
   

  	
  Licensee agrees to
  maintain a liability insurance program consistent with sound business
  practice.

  
	
   

  	
   

  	
   

  
	
  Paragraph.13. 08
  is replaced in its entirety with the following:

  
	
   

  	
   

  	
   

  
	
  13.08

  	
   

  	
  Within ninety (90) days of
  expiration or termination of this Agreement under this Article 13, a
  final report shall be submitted by Licensee. Any royalty payments, including
  those incurred but not yet paid (such as the full minimum annual royalty),
  and those related to patent expense, due to PHS shall become immediately due
  and payable upon termination or expiration. 
  If terminated under this Article 13, sublicensees may elect to convert their sublicenses to direct licenses
  with PHS pursuant to Paragraph 4.3. 
  Unless otherwise specifically provided for under this Agreement, upon
  termination or expiration of this Agreement, Licensee shall return all
  Licensed Products or other materials
  included within the Licensed Patent Rights to PHS or provide PHS with
  certification of the destruction thereof.

  

 

 3
 

 

Appendix B — “Licensed
Fields of Use and Territory” is replaced in its entirety with the following:

Licensed Fields of Use:
Nonexclusive for using the licensed Process to administer Drug to treat cancer.

Licensed Territory: The United
States of America including its Territories, Commonwealths and Possessions.

Appendix E — “Benchmarks
and Performance” is replaced in its entirety with the following:

Licensee agrees to the following
Benchmarks for its performance under this Agreement and within thirty (30) days
of achieving a Benchmark, agrees to notify PHS that the Benchmark has been
achieved. Pursuant to these Benchmarks, the efforts of a sublicensee shall be
considered the efforts of Licensee .

·                   By September 30, 2007, Licensee will submit an
application for approval by the U.S. Food and Drug Administration of the use of
convection enhanced delivery for administering Drug in the treatment of cancer.

·                   By April 30, 2008, Licensee will achieve a First
Commercial Sale of Drug administered by or recommended for administration by
convection enhanced delivery.

In all other respects, the
Agreement effective May 30, 2006 remains in full force and effect.

The effective date of this License
Amendment shall be the date when the last party hereto signs.

SIGNATURES BEGIN ON NEXT
PAGE

 4
 

 

SIGNATURE PAGE

For PHS:

	
  /s/ Steven M. Ferguson

  	
   

  	
  08/11/06

  	
   

  
	
  Steven M.
  Ferguson

  	
  Date

  
	
  Director, Division of TechnologyDevelopment and Transfer

  
	
  Office of
  Technology Transfer

  	
   

  
	
  National
  Institutes of Health

  	
   

  

 

Mailing Address for Agreement and License Amendment
notices:

Chief, Monitoring
& Enforcement Branch, DTDT

Office of
Technology Transfer

National
Institutes of Health

6011 Executive Boulevard, Suite 325

Rockville, Maryland 20852-3804 U.S.A

For Licensee (Upon, information and belief, the
undersigned expressly certifies or affirms that the contents of any statements
of Licensee made or referred to in this document are truthful and accurate.):

By:

	
  /s/ Guillermo Herrera

  	
   

  	
  08/21/06

  	
   

  
	
  Signature of
  Authorized Official

  	
  Date

  
	
   

  
	
  Guillermo
  Herrera

  	
   

  	
   

  
	
  Printed Name

  	
   

  
	
   

  	
   

  
	
  CEO, President

  	
   

  	
   

  
	
  Title

  	
   

  
					

 

I.              Official
and Mailing Address for Agreement and License Amendment notices:

NeoPharm

1850
Lakeside Drive

Waukegan, IL  60085

II.                                     Official
and Mailing Address for Financial notices (Licensee’s contact person for
royalty payments)

 5
 

 

 

	
  Timothy P. Walbert

  	
   

  	
   

  	
   

  	 

	
  Name

  	
   

  	 

	
   

  
	
  Executive Vice
  President

  	
   

  	
   

  	 

	
  Title

  	
   

  
						

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Email Address:

  	
  twalbert@neopharm.com

  
	
  Phone:

  	
  (847)406-1710

  
	
  Fax:

  	
  (847) 406-1734

  
			

 

Any false or misleading statements made, presented, or
submitted to the Government, including any relevant omissions, under this
License Amendment and during the course of negotiations of this License
Amendment are subject to all applicable civil and criminal statutes including
Federal statutes 31 U.S.C. §§3801-3812 (civil liability) and 18 U.S.C. §1001
(criminal liability including fine(s) or imprisonment).

 6

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