Document:

Exhibit
10.13

 

SERVICES
AGREEMENT

 

THIS SERVICES AGREEMENT,
is made as of January 1, 2004 (the “Agreement”) by and between MARKWEST
ENERGY GP, L.L.C., a Delaware limited liability company (the “General Partner”)
and MARKWEST HYDROCARBON, INC., a Delaware corporation (“Manager”).

 

A.            Pursuant to
Section 7.6(c) of the Amended and Restated Limited Partnership Agreement,
dated May 24, 2002 (the “Partnership Agreement”) of MarkWest Energy Partners,
L.P., a Delaware limited partnership (the “Partnership”), the General Partner
is authorized to enter into an agreement with any of its Affiliates (as defined
in the Partnership Agreement) to render services to any member of the
Partnership Group (as defined in the Partnership Agreement) in the discharge of
its duties as general partner of the Partnership.

 

B.            The General Partner
desires to engage the Manager to render day-to-day operational, management,
accounting, personnel and related administrative services to the Partnership on
the terms and conditions in this Agreement, and the Manager desires to accept
such engagement.

 

NOW THEREFORE, in
consideration of the mutual agreements herein set forth, the parties hereto
agree as follows:

 

1.       DEFINITIONS.  The following terms have the meanings
assigned them:

 

(a)           “Agreement” means this
Services Agreement.

 

(b)           “Board of Directors”
means the Board of Directors of the General Partner.

 

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

 

(d)           “Conflicts Committee”
shall have the meaning set forth in the Partnership Agreement.

 

(e)           “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended.

 

(f)            “Governing
Instruments” means, with regard to any entity, the articles of incorporation
and bylaws in the case of a corporation, certificate of limited partnership (if
applicable) and the partnership agreement in the case of a general or limited
partnership or the articles of formation and the operating agreement in the
case of a limited liability company.

 

(g)           “Subsidiary” means any
subsidiary of the Partnership.

 

 

2.       APPOINTMENT
AND DUTIES OF THE MANAGER.

 

(a)           The General Partner
hereby appoints the Manager to manage the assets of the Partnership consistent
with the terms of the Partnership Agreement and subject to the further terms
and conditions set forth in this Agreement. 
The Manager hereby agrees to use its commercially reasonable efforts to
perform each of the duties set forth herein. The appointment of the Manager
shall be exclusive to the Manager except to the extent that the Manager
otherwise agrees, in its sole and absolute discretion, and except to the extent
that, the Manager elects to cause the duties of the Manager hereunder to be
provided by third parties pursuant to the terms of this Agreement.

 

(b)           The Manager, in its
capacity as manager of the assets and the day-to-day operations of the
Partnership, at all times will be subject to the supervision and oversight of
the Board of Directors and will have only such functions and authority as the
General Partner may delegate to it including, without limitation, the functions
and authority identified herein and delegated to the Manager hereby. The
Manager will be responsible for the day-to-day operations of the Partnership
and will perform (or cause to be performed) such services and activities relating
to the assets and operations of the Partnership as may be appropriate,
including, without limitation:

 

(i)            conducting
a periodic review of acquisition criteria and parameters for acquisitions,
borrowings and operations related thereto and originating acquisition
opportunities;

 

(ii)           investigation,
analysis and selection of acquisition opportunities;

 

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

 

(iv)          coordinating
and managing operations of any joint venture or co-investment interests held by
the Partnership and conducting all matters with the joint venture or
co-investment partners;

 

(v)           providing
executive and administrative personnel, office space and office services
required in rendering services to the Partnership;

 

(vi)          administering
the day-to-day operations of the Partnership and performing and supervising the
performance of such other administrative functions necessary in the management
of the Partnership as may be agreed upon by the Manager and the Board of
Directors, including, without limitation, the collection of revenues and the
payment of the Partnership’s debts and obligations and maintenance of
appropriate computer services to perform such administrative functions;

 

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(vii)         communicating
on behalf of the Partnership with the holders of any equity or debt securities
of the Partnership as required to satisfy the reporting and other requirements
of any governmental bodies or agencies or trading markets and to maintain
effective relations with such holders;

 

(viii)        counseling
the Partnership regarding the maintenance of its status as a publicly traded
partnership for tax purposes and monitoring compliance with the various tests
and other rules set out in the Code and Treasury Regulations thereunder related
to such status;

 

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

 

(x)            investing
and re-investing any moneys and securities of the Partnership (including,
without limitation, investing in short-term investments pending investment in
operational assets, payment of fees, costs and expenses, or payments of
dividends or distributions to partners of the Partnership) and advising the
Partnership as to its capital structure and capital raising;

 

(xi)           assisting
the Partnership to retain qualified accountants and legal counsel, as
applicable, to assist in developing appropriate accounting procedures,
compliance procedures and testing systems with respect to financial reporting
obligations and compliance with the provisions of the Code applicable to
publicly traded partnerships and to conduct quarterly compliance reviews with
respect thereto;

 

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

 

(xiii)         managing
and administering the Partnership’s rights and obligations under all agreements
with unaffiliated third parties to which the Partnership is a party or by which
the Partnership is bound and monitoring compliance by the Partnership and by
such unaffiliated third parties to such agreements with the terms and
conditions thereof;

 

(xiv)        assisting
the Partnership in complying with all regulatory requirements applicable to the
Partnership in respect of its business activities, including preparing or
causing to be prepared all financial statements required under applicable
regulations and contractual undertakings and all reports and documents required
under the Exchange Act;

 

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

 

(xvi)        handling
and resolving all claims, disputes or controversies (including, without
limitation, all litigation, arbitration, settlement or other

 

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proceedings or
negotiations) with unaffiliated third parties in which the Partnership may be
involved or to which the Partnership may be subject arising out of the
Partnership’s day-to-day operations, subject to such limitations or parameters
as may be imposed from time to time by the Board of Directors;

 

(xvii)       using
commercially reasonable best efforts to cause expenses incurred by or on behalf
of the Partnership to be reasonable or customary and within any budgeted
parameters or expense guidelines as may be set by the Board of Directors from
time to time;

 

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

 

(xix)         using
commercially reasonable best efforts to cause the Partnership to comply with
all applicable laws.

 

(c)           The Manager may retain,
for and on behalf, and at the sole cost and expense, of the Partnership, such
services of accountants, legal counsel, appraisers, insurers, brokers, transfer
agents, registrars, investment banks, financial advisors, banks and other
lenders and others as the Manager deems necessary or advisable in connection
with the management and operations of the Partnership.  The Manager shall also have the right to
cause any of such services as may be appropriate to be rendered by its
employees or affiliates. The Partnership shall pay or reimburse the Manager or
its affiliates performing such services for the cost thereof; provided, that
such costs and reimbursements are reasonable and no greater than those which
would be payable to outside professionals or consultants engaged to perform
such services pursuant to agreements negotiated on an arm’s-length basis.

 

(d)           The Manager shall
prepare, or cause to be prepared, at the sole cost and expense of the
Partnership, all reports, financial or otherwise, with respect to the
Partnership reasonably required by the Board of Directors in order for the
Partnership to comply with its Governing Instruments or any other materials
required to be filed with any governmental body or agency, and shall prepare,
or cause to be prepared, all materials and data necessary to complete such
reports and other materials including, without limitation, an annual audit of
the Partnership’s books of account by a nationally recognized independent
accounting firm selected by the audit committee of the Board of Directors.

 

(e)           The Manager shall keep
a full and complete account of all costs, expenses and expenditures incurred by
it in connection with the provision of services under this Agreement.  To the extent that the Manager engages in
activities other than the discharge of its responsibilities under this
Agreement, the Manager shall separately account for all such costs, expenses and
expenditures and the Partnership shall not be billed for such costs, expenses
and expenditures.

 

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(f)            The Manager shall
prepare regular reports for the Board of Directors to enable the Board of
Directors to review the Partnership’s operations and compliance with the
guidelines and policies approved by the Board of Directors.

 

3.       REPRESENTATIONS
AND WARRANTIES OF THE PARTIES

 

(a)           Each of the General
Partner and the Manager hereby represents, warrants and covenants to the other
and to the Partnership that the following statements are true and correct as of
the date hereof:

 

(i)            Each of
the General Partner and the Manager is duly incorporated, validly existing and
in good standing under the laws of the jurisdiction of its formation; each of
the General Partner and the Manager has full power and authority to execute and
deliver this Agreement and to perform its obligations hereunder;

 

(ii)           Each of
the General Partner and the Manager has duly executed and delivered this
Agreement, and this Agreement constitutes the legal, valid and binding
obligation of such entity, enforceable against such entity in accordance with
its terms (except as such enforcement may be limited by bankruptcy, insolvency
or similar laws of general application and by the effect of general principles
of equity, regardless of whether considered at law or in equity); and

 

(iii)          The
authorization, execution, delivery and performance of this Agreement by each of
the General Partner and the Manager will not result in a breach, default or
violation of the organizational documents of such entity.

 

(b)           If it shall come to the
attention of either party to this Agreement that the representations and
warranties made by such party in this Section 3 have ceased to be true and
correct in all material respects, such party shall promptly notify the other
party and the Partnership of such fact.

 

4.       DEVOTION OF
TIME; ADDITIONAL ACTIVITIES.

 

(a)           The Manager will
provide a dedicated management team, including a Chief Executive Officer and
such other officers and employees as may be deemed necessary by the Manager, to
provide the management services to be provided by the Manager to the
Partnership hereunder, the members of which team shall have as their
responsibility the management of the Partnership and shall devote such of their
time to the management of the Partnership as the Manager or the Board of
Directors reasonably deems necessary and appropriate, commensurate with the
level of activity of the Partnership from time to time.

 

(b)           The Manager hereby
agrees that neither the Manager nor any entity controlled by or under common
control with the Manager shall provide services to any company or other entity
whose business, investment policies, guidelines or plan targets is
substantially similar to that of the Partnership.  The Partnership shall have the benefit of

 

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Manager’s best judgment
and effort in rendering services and, in furtherance of the foregoing, (i) the
Manager shall not undertake activities that, in its judgment, will
substantially adversely affect the performance of its obligations under this
Agreement and (ii) without the written consent of the Conflicts Committee, the
Manager shall not undertake activities that are in competition with any line of
business conducted by the Partnership.

 

(c)           Except to the extent
set forth in Section 4(a) or 4(b) above, nothing herein shall prevent the
Manager or any of its affiliates or any of the officers and employees of any of
the foregoing from engaging in other businesses or from rendering services of
any kind to any other person or entity.

 

(d)           Stockholders, officers,
employees and agents of the Manager or affiliates of the Manager may serve as
directors, officers, employees, agents, nominees or signatories for the
Partnership or any Subsidiary, to the extent permitted by their Governing
Instruments, as from time to time amended, or by any resolutions duly adopted
by the Board of Directors pursuant to the General Partner’s Governing
Instruments.

 

5.       AGENCY.  The Manager shall act as agent of the
Partnership in operating, acquiring, financing and disposing of assets,
disbursing and collecting the Partnership’s funds, paying the debts and
fulfilling the obligations of the Partnership, supervising the performance of
professionals engaged by or on behalf of the Partnership and handling,
prosecuting and settling any claims of or against the Partnership, the Board of
Directors, holders of the Partnership’s securities or the Partnership’s
representatives or properties.

 

6.       BANK
ACCOUNTS. At the direction of the Board of Directors, the Manager may establish
and/or maintain one or more bank accounts in the name of the Partnership or any
Subsidiary (any such account, a “Partnership Account”), and may collect and
deposit funds into any such Partnership Account or Partnership Accounts, and
disburse funds from any such Partnership Account or Partnership Accounts, under
such terms and conditions as the Board of Directors may approve; and the
Manager shall from time to time render appropriate accountings of such
collections and payments to the Board of Directors and, upon request, to the
auditors of the Partnership or any Subsidiary.

 

7.       RECORDS;
CONFIDENTIALITY.  The Manager shall
maintain appropriate books of accounts and records relating to services
performed under this Agreement, and such books of account and records shall be
accessible for inspection by representatives of the Partnership or any
Subsidiary at any time during normal business hours upon one (1) business day’s
advance written notice. The Manager shall keep confidential any and all
information obtained in connection with the services rendered under this
Agreement and shall not disclose any such information to nonaffiliated third
parties except with the prior written consent of the Board of Directors.

 

8.       COMPENSATION.  During the term of this Agreement, the
Manager will receive an annual management fee (the “Management Fee”) equal to
$5,000.

 

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9.       EXPENSES OF
THE PARTNERSHIP.  The Partnership shall
pay all of its expenses and shall reimburse the Manager for documented expenses
of the Manager incurred on its behalf (collectively, the “Expenses”). Expenses
include all costs and expenses which are expressly designated elsewhere in this
Agreement as the Partnership’s, together with the following:

 

(a)           expenses in connection
with the transaction costs incident to the acquisition, disposition and
financing of Partnership assets;

 

(b)           such portion of the
wages and salaries of the Manager’s officers and employees as is directly
proportionate to the amount of working time actually devoted by such officers
and employees to the business and affairs of the Partnership;

 

(c)           travel and other
out-of-pocket expenses incurred by officers, employees and agents of the
Manager in connection with the purchase, financing, refinancing, operating,
sale or other disposition of any Partnership asset;

 

(d)           costs of legal,
accounting, tax, auditing, administrative and other similar services rendered
for the Partnership by providers retained by the Manager or, if provided by the
Manager’s employees, the actual expenses incurred but in any event in amounts
that are no greater than those which would be payable to outside professionals
or consultants engaged to perform such services pursuant to agreements
negotiated on an arm’s-length basis;

 

(e)           the cost of liability
insurance to indemnify the General Partner’s directors and officers;

 

(f)            compensation and
expenses of the Partnership’s custodian and transfer agent, if any;

 

(g)           costs associated with
the establishment and maintenance of any credit facilities and other
indebtedness of the Partnership (including commitment fees, legal fees, closing
and other costs) or with any securities offerings of the Partnership;

 

(h)           costs associated with
any computer software or hardware that is used for the Partnership;

 

(i)            costs and expenses
incurred in contracting with third parties, including affiliates of the
Manager, for the operation of assets of the Partnership;

 

(j)            all other costs and
expenses relating to the Partnership’s business and operations fees;

 

(k)           all insurance costs
incurred in connection with the operation of the Partnership’s business except
for the costs attributable to the insurance that the Manager elects to carry
for itself and its employees;

 

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(l)            expenses relating to
any office or office facilities maintained for the Partnership separate from
the office or offices of the Manager;

 

(m)          a proportionate
allocation of expenses related to any office or office maintained by the
Manager and used to conduct the business and affairs of the Partnership;

 

(n)           expenses connected with
the payments of interest, dividends or distributions in cash or any other form
made or caused to be made by the Board of Directors to or on account of the
holders of securities of the Partnership or its Subsidiaries;

 

(o)           expenses connected with
communications to holders of securities of the Partnership or its Subsidiaries
and other bookkeeping and clerical work necessary in maintaining relations with
holders of such securities and in complying with the continuous reporting and
other requirements of governmental bodies or agencies, including, without
limitation, all costs of preparing and filing required reports with the
Securities and Exchange Commission, the costs payable by the Partnership to any
transfer agent and registrar in connection with the listing and/or trading of
the Partnership’s units on any exchange, the fees payable by the Partnership to
any such exchange in connection with its listing, costs of preparing, printing
and mailing the Partnership’s annual report to its unitholders; and

 

(p)           all other expenses
actually incurred by the Manager which are reasonably necessary for the
performance by the Manager of its duties and functions under this Agreement.

 

The Partnership have no
obligation to reimburse the Manager for any expenses incurred by the Manager
other than the those set forth in the foregoing paragraphs (a) through (p).

 

10.     CALCULATIONS OF
EXPENSES.  The Manager shall prepare a
statement documenting the Expenses incurred by the Manager on behalf of the
Partnership during each calendar month, and shall deliver such statement to the
Partnership within 20 days after the end of each calendar month. Expenses
incurred by the Manager on behalf of the Partnership shall be reimbursed
monthly to the Manager on the first business day of the month immediately
following the date of delivery of such statement.

 

11.     LIMITS OF
MANAGER RESPONSIBILITY; INDEMNIFICATION.

 

(a)           The Manager assumes no
responsibility under this Agreement other than to render the services called
for under this Agreement in good faith and shall not be responsible for any
action of the Board of Directors in following or declining to follow any advice
or recommendations of the Manager. The Manager, its stockholders, directors,
officers and employees will not be liable to the Partnership or any Subsidiary,
to the Board of Directors, or the Partnership’s or any Subsidiary’s
equityholders or partners for any acts or omissions by the Manager, its
stockholders, directors, officers or employees, pursuant to or in accordance
with this Agreement, except by reason of acts constituting bad faith, willful
misconduct, gross negligence or reckless disregard of the

 

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Manager’s duties under
this Agreement. The Partnership shall, to the full extent lawful, reimburse,
indemnify and hold the Manager and its stockholders, directors, officers and
employees (each, an “Indemnified Party”), harmless of and from any and all
expenses, losses, damages, liabilities, demands, charges and claims of any
nature whatsoever (including attorneys’ fees) in respect of or arising from any
acts or omissions of such Indemnified Party made in good faith in the
performance of the Manager’s duties under this Agreement and not constituting
such Indemnified Party’s bad faith, willful misconduct, gross negligence or
reckless disregard of the Manager’s duties under this Agreement.   Notwithstanding the foregoing provisions of
this paragraph (a), the Partnership shall not be obligated to reimburse,
indemnify and hold any Indemnified Party harmless if such indemnification would
not be permitted under the terms and provisions of Partnership Agreement.

 

(b)           The Manager shall, to
the full extent lawful, reimburse, indemnify and hold the Partnership, its
partners, the General Partner, its officers and employees and each other
Person, if any, controlling the Partnership (each, a “Partnership Indemnified
Party”), harmless of and from any and all expenses, losses, damages,
liabilities, demands, charges and claims of any nature whatsoever (including
attorneys’ fees) in respect of or arising from the Manager’s bad faith, willful
misconduct, gross negligence or reckless disregard of its duties under this
Agreement.

 

12.     NO JOINT
VENTURE.  Nothing in this Agreement
shall be construed to make the Partnership and the Manager partners or joint
venturers or impose any liability as such on either of them.

 

13.     TERM;
TERMINATION AND RENEWAL.

 

(a)           This Agreement shall
become effective as of January 1, 2004 and shall have a one-year term,
remaining in full force and effect through and until December 31,
2004.  This Agreement shall terminate as
of such year-end unless renewed by the Board of Directors (with the approval of
the Conflicts Committee) pursuant to Section 13(b) below.  Upon any such renewal, this Agreement shall
be renewed for a successive one-year term and terminate at the end thereof,
unless subsequently renewed by the Board of Directors (with the approval of the
Conflicts Committee) pursuant to Section 13(b) below.  This Agreement may be terminated by either
party prior to expiration of its term pursuant to Section 15 below.

 

(b)           If the Board of
Directors (with the approval of the Conflicts Committee) elects to renew this
Agreement at the expiration of the original term, or any succeeding one-year
term after such renewal as set forth in Section 13(a) above, the Board of
Directors shall deliver to the Manager prior written notice of its intention to
renew this Agreement not less than 60 days prior to the expiration of the then
existing term.  If the Board of
Directors (with the approval of the Conflicts Committee) elects not to renew
this Agreement pursuant to this Section 13(b), the Agreement shall
terminate upon the expiration of the then existing term, and the Manager shall
cease to provide services under this Agreement as of such date.

 

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(c)           If the Manager elects
not to renew this Agreement at the expiration of the original term or any such
one-year extension term as set forth in Section 13(a) above, the Manager
shall deliver to the General Partner prior written notice not less than 60 days
prior to the expiration of the then existing term, whereupon this Agreement
shall not be renewed and extended and shall terminate effective on the
anniversary of the date hereof following the delivery of such notice.

 

(d)           If this Agreement is
terminated pursuant to this Section 13, such termination shall be without
any further liability or obligation of either party to the other, subject to
the continuation of  the indemnification
obligations set forth in Section 12 and In addition, Section 11 shall
survive termination of this Agreement.

 

14.     ASSIGNMENT.  This Agreement shall terminate automatically
in the event of its assignment, in whole or in part, by either party, unless
such assignment is consented to in writing by the General Partner after the
prior approval of the Conflicts Committee. 
This Agreement shall not be assigned by the General Partner without the
prior written consent of the Manager.

 

15.     TERMINATION FOR
CAUSE.

 

(a)           The Conflicts Committee
(on behalf of the General Partner) may terminate this Agreement effective upon
30 days prior written notice to the Manager:

 

(i)            upon any
act of fraud, misappropriation of funds, or embezzlement against the
Partnership or other willful violation of this Agreement by the Manager in its
corporate capacity (as distinguished from the acts of any employees of the
Manager which are taken without the complicity of any officer or director of
the Manager) under this Agreement or in the event of any gross negligence on
the part of the Manager in the performance of its duties under this Agreement;

 

(ii)           in the
event that the Manager defaults in the performance or observance of any
material term, condition or covenant contained in this Agreement and such
default shall continue for a period of 30 days after written notice thereof
specifying such default and requesting that the same be remedied is received by
the Manager; or

 

(iii)          if
the Manager (A) files a petition for bankruptcy or otherwise becomes insolvent,
(B) defaults upon (x) any of its outstanding indebtedness or (y) any payment
obligation owing by the Manager (or any affiliate thereof other than a member
of the Partnership Group) to the Partnership (or any other member of the
Partnership Group).

 

(b)           The Manager may
terminate this Agreement effective upon 30 days prior written notice of
termination to the General Partner in the event that the General Partner or the
Partnership defaults in the performance or observance of any material term,
condition or covenant contained in this Agreement and such default shall

 

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continue for a period of
30 days after written notice thereof specifying such default and requesting
that the same be remedied is received by the Board of Directors.

 

(c)           If this Agreement is
terminated pursuant to this Section 15, the provisions of
Section 13(d) above shall apply in the case of such termination.

 

16.     ACTION UPON
TERMINATION.

 

From and after the
effective date of termination of this Agreement, pursuant to Sections 13, 14 or
15, the Manager shall not be entitled to compensation for further services
under this Agreement, but shall be paid all compensation accruing to the date
of termination.  Upon such termination,
the Manager shall forthwith:

 

(a)           after deducting any
accrued compensation and reimbursement for its expenses to which it is then
entitled, pay over to the Partnership all money collected and held for the
account of the Partnership pursuant to this Agreement;

 

(b)           deliver to the Board of
Directors a full accounting, including a statement showing all payments
collected by it and a statement of all money held by it, covering the period
following the date of the last accounting furnished to the Board of Directors
with respect to the Partnership; and

 

(c)           deliver to the Board of
Directors all property and documents of the Partnership or any Subsidiary then
in the custody of the Manager.

 

17.     CONFIDENTIALITY.  During the term of this Agreement, neither
party nor any of their respective Affiliates shall, directly or indirectly,
disclose to any person any information received, obtained or created that is
not in the public domain or generally known in the industry, in any form,
relating to the business and operations of the other party.  Notwithstanding the foregoing, either party
may disclose any information relating to the business and operations of the
other party (upon prior written notice to such other party) if required by law
or applicable stock exchange rule.

 

18.     GENERAL PARTNER
AND CONFLICTS COMMITTEE.

 

(a)           Notwithstanding any
provision in this Agreement, the General Partner is not hereby withdrawing from
the Partnership as a general partner or otherwise.  The General Partner shall remain responsible to the Partnership
for actions taken or omitted by the Manager within the scope of such delegation
as if the General Partner had itself taken or omitted to take any such
actions.  The General Partner’s
responsibility to the Partnership is not expanded or limited by this Agreement
and shall be in effect to the same extent and on the same terms and conditions
as specified in the Partnership Agreement or under Delaware law.  The General Partner shall be entitled to
monitor the Manager’s performance under this Agreement.  The General Partner shall have the right and
power to direct the Manager to take, or to cease from taking, any action that
would constitute a breach of the Partnership Agreement.  The General Partner shall at all times have
access to the books, records and documents of the Partnership and the Manager and

 

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to their officers,
directors and employees to monitor the Manager’s performance under this
Agreement.

 

(b)           The parties acknowledge
that this Agreement has been approved by the Conflicts Committee.   In addition, notwithstanding any other
provision of this Agreement, the parties acknowledge and agree that any
“potential conflict of interest” (within the meaning of the Partnership
Agreement) that arises under this Agreement or as a result of the performance
by the parties of their obligations hereunder (including any action to be taken
by the Board of Directors) shall be resolved in the manner provided in
Section 7.9 of the Partnership Agreement.

 

19.     NOTICES.  Unless expressly provided otherwise in this
Agreement, all notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing and shall be deemed to have
been duly given, made and received when delivered against receipt or upon
actual receipt of (i) personal delivery, (ii) delivery by reputable overnight
courier, (iii) delivery by facsimile transmission against answerback, (iv)
delivery by registered or certified mail, postage prepaid, return receipt
requested, addressed as set forth below:

 

(a)           If to the Partnership
or the General Partner:

 

MarkWest Energy Partners,
L.P. or MarkWest Energy GP, L.L.C.

155 Inverness Drive West,
Suite 200

Englewood, Colorado 80112

Facsimile:  303-290-8769

 

with a
copy to the Chairman of the Conflicts Committee:

 

William
P. Nicoletti

Nicoletti
& Company Inc.

620
Van Beuren Road

Morristown,
NJ 07960

Facsimile:  973-267-9814

 

(b)           If to the Manager:

 

MarkWest
Hydrocarbon, Inc.

155
Inverness Drive West, Suite 200

Englewood,
Colorado 80112

Facsimile:  303-290-8769

 

Either party may alter
the address to which communications or copies are to be sent by giving notice
of such change of address in conformity with the provisions of this
Section 19 for the giving of notice.

 

20.     BINDING NATURE
OF AGREEMENT; SUCCESSORS AND ASSIGNS.  This Agreement shall be binding upon and inure to the benefit of
the parties hereto and 

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their respective heirs,
personal representatives, successors and permitted assigns as provided in this
Agreement.

 

21.     ENTIRE
AGREEMENT.  This Agreement contains the
entire agreement and understanding among the parties hereto with respect to the
subject matter of this Agreement, and supersedes all prior and contemporaneous
agreements, understandings, inducements and conditions, express or implied,
oral or written, of any nature whatsoever with respect to the subject matter of
this Agreement. The express terms of this Agreement control and supersede any
course of performance and/or usage of the trade inconsistent with any of the
terms of this Agreement. This Agreement may not be modified or amended other
than by an agreement in writing.

 

22.     CONTROLLING
LAW.  This Agreement and all questions
relating to its validity, interpretation, performance and enforcement shall be
governed by and construed, interpreted and enforced in accordance with the laws
of the State of Delaware, notwithstanding any Delaware or other conflict-of-law
provisions to the contrary.

 

23.     INDULGENCES,
NOT WAIVERS.  Neither the failure nor
any delay on the part of a party to exercise any right, remedy, power or
privilege under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power
or privilege, nor shall any waiver of any right, remedy, power or privilege
with respect to any occurrence be construed as a waiver of such right, remedy,
power or privilege with respect to any other occurrence. No waiver shall be
effective unless it is in writing and is signed by the party asserted to have
granted such waiver.

 

24.     TITLES NOT TO
AFFECT INTERPRETATION.  The titles of
paragraphs and subparagraphs contained in this Agreement are for convenience
only, and they neither form a part of this Agreement nor are they to be used in
the construction or interpretation of this Agreement.

 

25.     EXECUTION IN
COUNTERPARTS.  This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original as against any party whose signature appears thereon, and all of which
shall together constitute one and the same instrument. This Agreement shall
become binding when one or more counterparts of this Agreement, individually or
taken together, shall bear the signatures of all of the parties reflected
hereon as the signatories.

 

26.     PROVISIONS
SEPARABLE.  The provisions of this
Agreement are independent of and separable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact
that for any reason any other or others of them may be invalid or unenforceable
in whole or in part.

 

13

 

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

 

	
   

  	
  GENERAL PARTNER:

  
	
   

  	
   

  	
   

  
	
   

  	
  MARKWEST ENERGY GP,
  L.L.C.

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald Heppermann

  	
   

  
	
   

  	
   

  	
  Donald Heppermann

  
	
   

  	
   

  	
  Executive Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MANAGER:

  
	
   

  	
   

  	
   

  
	
   

  	
  MARKWEST HYDROCARBON,
  INC.

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Semple

  	
   

  
	
   

  	
   

  	
  Frank Semple

  
	
   

  	
   

  	
  President
  and Chief Executive Officer

  

 

14Exhibit 10.77

 

Execution Copy

 

RESTRUCTURING
AGREEMENT

 

This RESTRUCTURING AGREEMENT, dated as of
October 3, 2003, between Hutchison-Priceline Limited, a company organized under
the laws of the Cayman Islands (the “Company”),
Trio Happiness Limited, a corporation organized under the laws of the British
Virgin Islands (“TH”) and
PCLN Asia, Inc. a corporation organized under the laws of the State of
Delaware, United States of America (“PCLN
SUB”).  The Company, PCLN
SUB and TH are sometimes each referred to herein as a “Party” and, together, as the “Parties”.

 

W I T N E S S E T H:

 

WHEREAS, on June 27, 2000 (i) TH, a
wholly-owned subsidiary of Hutchison Whampoa Limited (“Hutchison”), PCLN SUB and the Company
entered into a Securityholders’ Agreement (the “Securityholders’ Agreement”); (ii) the Company and PCLN
SUB entered into a Note Purchase Agreement (the “Note Purchase Agreement”), pursuant to which, the Company
issued and sold a 6% Convertible Note to PCLN SUB for $11,110,000 (the “PCLN
SUB Convertible Note”);
(iii) priceline.com Incorporated (“Priceline”),
of which PCLN SUB is a wholly owned subsidiary and the Company entered into a
Technology License Agreement (the “Priceline
License Agreement”), (iv) Priceline and the Company entered into
a Services Agreement (the “Priceline
Services Agreement”), (v) Priceline and the Company entered into
a Trademark License Agreement (the “Priceline
Trademark Agreement”), (vi) Hutchison Whampoa Enterprises
Limited (“HWE”), a company
organized under the laws of the British Virgin Islands, and the Company entered
into a Trademark License Agreement (the “Hutchison
License Agreement”), (vii) TH and the Company entered into a
Services Agreement (the “TH Services
Agreement”), (viii) TH and the Company entered into a Share
Purchase Agreement (the “Share Purchase
Agreement”); and (ix) pursuant to the Share Purchase Agreement,
TH purchased 8,888,000 Existing Shares (the “Existing TH Shares”). 
Pursuant to these agreements, the parties thereto agreed among other
things, to capitalize and operate the Company using the demand collection
system of Priceline for the purpose of conducting an Internet-based business in
Bangladesh, Bhutan, Brunei, Cambodia, Hong Kong, Taiwan, the People’s Republic
of China, North Korea, South Korea, Singapore, Sri-Lanka, Thailand, Laos,
Macau, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Pakistan, Papua New
Guinea, Tibet, Vietnam, Indonesia, the Philippines and India (the “Territory”); and

 

WHEREAS, on February 15, 2001 (i) TH
purchased a 6% Convertible Note (the “TH
Convertible Note”) from the Company in exchange for $ 9,522,858
pursuant to a Note Purchase Agreement between TH and the Company (the “TH Note Purchase Agreement”), (ii) the
Company, PCLN SUB and TH entered into an agreement to amend the Securityholders’
Agreement (the “Supplemental
Securityholders’ Agreement”), (iii) Priceline and the Company
entered into an agreement to amend the Priceline Trademark Agreement (the “Supplemental Priceline Trademark Agreement”),
(iv) Priceline and the Company entered into an agreement to amend the Priceline
Services Agreement (the “Supplemental
Priceline Services Agreement”) and (v) Priceline and the Company
entered into an agreement to amend the Priceline License Agreement (the “Supplemental Priceline License Agreement”);
and

 

 

WHEREAS, in order to induce PCLN SUB to
convert the Convertible Note and to induce TH to convert the TH Convertible
Note, the Company shall at Closing (as hereinafter defined) reduce the
conversion price of each of the Conversion Note and TH Conversion Note from
$1.25 per Existing Share to $1.00 per Existing Share.

 

WHEREAS, 
at Closing but prior to the Sub-division PCLN SUB will convert the PCLN
SUB Convertible Note into 11,110,000 Existing Shares (the “PCLN Conversion Shares”) and TH will
convert the TH Convertible Note into 9,522,858 Existing Shares (the “TH Conversion Shares”) both at
conversion price of $1.00 per Existing Share. 
Upon such conversions, all interest accrued on the PCLN SUB Convertible
Note and the TH Convertible Note shall be deemed to be waived by PCLN SUB and
TH, respectively, and the PCLN SUB Convertible Note and the TH Convertible Note
shall be cancelled;

 

WHEREAS, at Closing but immediately after the
conversion referred to in the preceding paragraph, PCLN SUB and TH will pass
shareholders’ resolutions of the Company to among other things, effect the
Sub-division and increase the authorized share capital of the Company from
$30,000,000 to $36,000,000 by the creation of an additional 30,000,000 Shares;
and

 

WHEREAS, as a result of the Sub-division,
immediately prior to the purchase of Shares referred to in the next paragraph
below, the Existing TH Shares and the TH Conversion Shares will, in the
aggregate become 92,054,290 Shares (the “TH
Exchange Shares”) and the PCLN Conversion Shares will become
55,550,000 Shares (the “PCLN Exchange
Shares”); and

 

WHEREAS, immediately after the Sub-division,
TH will subscribe for 18,410,858 new Shares (the “TH Shares”) for cash at par plus a premium of $0.80 per
Share, i.e. a subscription  price of
$1.00 per Share, and the Company will re-purchase the TH Exchange Shares from
TH for cash at par value of $0.20 per Share; and

 

WHEREAS, contemporaneously with the
transactions referred to in the preceding paragraph, PCLN SUB will subscribe for
11,110,000 new Shares (the “PCLN Shares”)
for cash at par plus a premium of $0.80 per Share, i.e. at a subscription price
of $1.00 per Share, and the Company will re-purchase the PCLN Exchange Shares
from PCLN SUB for cash at par value of $0.20 per Share; and

 

WHEREAS, the Company will issue and allot to
TH 19,665,610 Shares (the “New TH Shares”)
at par credited as fully paid in satisfaction of $3,933,122 of the
shareholder’s loan owed to TH by the Company as of 30 September 2003; and

 

WHEREAS, subject to the terms and conditions
set forth herein, the Company desires to grant to TH, and TH desires to receive
from the Company, an option to subscribe for from time to time on or prior to
31 March 2004, up to 979,390 new Shares (the “TH
Option Shares”)  at par
value of $0.20 per TH Option Share; and

 

WHEREAS, contemporaneously with the
re-purchase of the PCLN Exchange Shares, the Company will issue and allot to
PCLN SUB 6,198,585 new Shares at par credited as fully paid in satisfaction of
$1,239,717 owed to Priceline by the Company as of December 31, 2002 (the “Priceline Shares”) pursuant to the
Priceline License Agreement, the Priceline Trademark Agreement and the
Priceline Services Agreement; and

 

2

 

WHEREAS, contemporaneously with the
re-purchase of the TH Exchange Shares, the Company will issue to TH 54,100,495
new Shares at par credited as fully paid in satisfaction of all amounts owed to
TH by the Company as of December 31, 2002 
(such amounts being $10,820,099) (the “TH Services Shares”) pursuant to the TH Services
Agreement; and

 

WHEREAS, immediately after the issuance of
the Priceline Shares and the TH Services Shares, PCLN SUB and TH will pass
shareholders’ resolutions of the Company to reduce the authorized share capital
to $24,530,000 (consisting of 122,650,000 Shares) by the cancellation of
57,350,000 Shares of the Company’s authorized share capital which have not yet
been subscribed or agreed to be subscribed by any person, thereby allowing
13,164,452 Shares being authorised but unissued; and

 

WHEREAS, at Closing, the Company, TH and PCLN
SUB will enter into an Amended and Restated Securityholders’ Agreement (the “Amended and Restated Securityholders’ Agreement”)
as of 1 January 2003 to amend and restate the Securityholders’ Agreement, as
supplemented by the Supplemental Securityholders’ Agreement; and

 

WHEREAS, at Closing, the Company and
Priceline will enter into an Amended and Restated Services Agreement (the “Amended and Restated Priceline Services Agreement”)
as of 1 January 2003 to amend and restate the Priceline Services Agreement, as
supplemented by the Supplemental Priceline Services Agreement;

 

WHEREAS, at Closing, the Company and
Priceline will enter into a Second Supplemental Agreement to Technology License
Agreement (the “Second Supplemental
Priceline License Agreement”) as of 1 January 2003 to amend and
restate the Priceline License Agreement, as supplemented by the Supplemental
Priceline License Agreement; and

 

WHEREAS, contemporaneously with entering into
this Agreement, the Company and TH will enter into a supplemental agreement
(the “Supplemental TH Services Agreement”)
as of 1 January 2003 to amend the TH Services Agreement; and

 

NOW, THEREFORE, in consideration of the
premises and of the mutual covenants and agreements hereinafter set forth, the
Parties hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1.                                   Certain
Defined Terms.  As used in this Agreement,
the following terms shall have the following meanings:

 

“Amended
and Restated Priceline Services Agreement” has the meaning
specified in the Recitals.

 

“Amended
and Restated Securityholders’ Agreement” has the meaning
specified in the Recitals.

 

“Affiliate”
has the meaning specified in Rule 12b-2 promulgated under the Exchange Act.

 

3

 

“Agreement”
means this Restructuring Agreement and all amendments made hereto in accordance
with the provisions hereof.

 

“Ancillary
Agreements” means the Amended and Restated Securityholders’ Agreement,
the Amended and Restated Priceline Services Agreement, the Second Supplemental
Priceline License Agreement and the Supplemental TH Services Agreement all made
as of 1 January 2003.

 

“A. S.
Watson” means A.S. Watson & Company, Limited, a company incorporated
in Hong Kong.

 

“A. S.
Watson Confirmation” means a confirmation of A.S. Watson
executed or to be executed in the form or substantially in the form set out in Exhibit
D.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on
which banks in the City of New York, State of New York, United States of
America or Hong Kong are authorized or required to be closed.

 

“Closing”
has the meaning specified in Section 2.2.

 

“Closing
Date” has the meaning specified in Section 2.2(a).

 

“Company”
has the meaning specified in the Preamble.

 

“Directors”
means the directors for the time being of the Company.

 

“Encumbrance”
means any security interest, pledge, mortgage, lien, charge, adverse claim of
ownership or use, or other encumbrance of any kind.

 

“Exchange
Act” means the United States Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

 

“Exercise
Price” has the meaning specified in Section 2.1(b).

 

“Existing
Shares” means the issued and unissued ordinary shares of $1.00
par value each in the capital of the Company.

 

“Existing
TH Shares” has the meaning specified in the Recitals.

 

“Hong
Kong” means the Hong Kong Special Administrative Region of the
People’s Republic of China.

 

“Hutchison”
has the meaning specified in the Recitals.

 

“Hutchison
License Agreement” has the meaning specified in the Recitals.

 

“HWE”
has the meaning specified in the Recitals.

 

“Material
Adverse Effect” means, with respect to any Person, any event,
condition, change or effect that (a) individually or in the aggregate, would
reasonably be likely to result in a material adverse effect on the business,
condition (financial or otherwise), assets or results of operations of such
Person or (b) prevents or materially delays the 

 

4

 

consummation
of the transactions contemplated by this Agreement or the Ancillary Agreements.

 

“New TH
Shares” has the meaning specified in the Recitals.

 

“Participation
Warrant Agreement” means the Participation Warrant Agreement
dated 9 April 2002 entered into between the Company and British Airways Plc.

 

“PCLN
Conversion Shares” has the meaning specified in the Recitals.

 

“PCLN
Exchange Shares” has the meaning specified in the Recitals.

 

“PCLN
Shares” has the meaning specified in the Recitals.

 

“PCLN
Subscription Letter” means the Subscription Letter/Agreement to
sell Shares dated as of the date hereof by and between PCLN SUB and the
Company.

 

“PCLN
SUB” has the meaning specified in the Preamble.

 

“PCLN
SUB Convertible Note” has the meaning specified in the Recitals.

 

“Person”
means any individual, firm, corporation, proprietary, public or private
company, partnership, limited liability company, public liability company,
trust or other entity, and shall include any successor (by merger or otherwise)
of such entity.

 

“Priceline”
has the meaning specified in the Recitals.

 

“Priceline
Confirmation” means a confirmation of Priceline executed or to
be executed in the form or substantially in the form set out in Exhibit E.

 

“Priceline
License Agreement” has the meaning specified in the Recitals.

 

“Priceline
Services Agreement” has the meaning specified in the Recitals.

 

“Priceline
Shares” has the meaning specified in the Recitals.

 

“Priceline
Trademark Agreement” has the meaning specified in the Recitals.

 

“Second
Supplemental Priceline License Agreement” has the meaning
specified in the Recitals.

 

“Securityholders’
Agreement” has the meaning specified in the Recitals.

 

“Share
Purchase Agreement” has the meaning specified in the Recitals.

 

“Shares”
shall mean the ordinary shares of $0.20 par value each in the capital of the
Company.

 

“Sub-division”
means the sub-division of each one (1) Existing Share into five (5) Shares to
be effected by way of an ordinary resolution of the members of the Company.

 

5

 

“Supplemental
Priceline Services Agreement” has the meaning specified in the
Recitals.

 

“Supplemental
Priceline Trademark Agreement” has the meaning specified in the
Recitals.

 

“Supplemental TH
Services Agreement” has the meaning specified in the Recitals.

 

“Supplemental
Securityholders’ Agreement” has the meaning specified in the
Recitals.

 

“Territory”
has the meaning specified in the Recitals.

 

“TH”
has the meaning specified in the Preamble.

 

“TH
Conversion Shares” has the meaning specified in the Recitals.

 

“TH
Convertible Note” has the meaning specified in the Recitals.

 

“TH
Exchange Shares” has the meaning specified in the Recitals.

 

“TH
Option” has the meaning specified in Section 2.1(b).

 

“TH
Option Shares” has the meaning specified in the Recitals.

 

“TH
Services Agreement” has the meaning specified in the Recitals.

 

“TH
Services Shares” has the meaning specified in the Recitals.

 

“TH
Shares” has the meaning specified in the Recitals.

 

“TH
Subscription Letter” means the Subscription Letter/Agreement to
sell Shares dated as of the date hereof by and between TH and the Company.

 

“Transactions”
has the meaning specified in Section 2.2(b).

 

“Warrants”
means the warrants issued or to be issued by the Company to British Airways
Plc. pursuant to the terms of the Participation Warrant Agreement.

 

ARTICLE II

 

RESTRUCTURING

 

Section 2.1.

 

(a)                                  The
following shall occur at the Closing:

 

(i)                                     The Company
shall reduce the conversion price of each of the PCLN SUB Convertible Note and
TH Convertible Note from $1.25 per Existing Share 

 

6

 

to
$1.00 per Existing Share.  TH shall
convert the TH Convertible Note into the TH Conversion Shares and the Company
shall issue and allot the TH Conversion Shares at par credit as fully paid to
TH upon conversion of the TH Convertible Note. 
Upon such conversion all interest accrued on the TH Convertible Note
shall deemed to be waived by TH, and the TH Convertible Note shall be
cancelled.

 

(ii)                                  PCLN SUB
shall convert the PCLN SUB Convertible Note into the PCLN Conversion Shares and
the Company shall issue and allot to PCLN SUB the PCLN Conversion Shares at par
credited as fully paid upon conversion of the Convertible Note.  Upon such conversion all interest accrued on
the PCLN SUB Convertible Note shall be deemed to be waived by PCLN SUB, and the
PCLN SUB Convertible Note shall be cancelled.

 

(iii)                               TH and PCLN
SUB shall pass shareholders’ resolutions of the Company to: (i) effect the
Sub-division, (ii) thereafter increase the authorized share capital of the
Company from $30,000,000 to $36,000,000 by the creation of an additional
30,000,000 Shares, and (iii) to authorize the Company to repurchase the TH Exchange
Shares and the PCLN Exchange Shares.

 

(iv)                              Under the
terms and subject to the conditions set forth in this Agreement, the Company
shall issue and allot to TH the New TH Shares at par credited as fully paid in
satisfaction of $3,933,122 of the shareholders’ loan owed to TH by the Company
as of 30 September 2003, and TH will accept the issuance and allotment of the
New TH Shares to it as full payment for such shareholder’s loan, which reflects
all amounts due to TH from the Company through 30 September 2003 other than
pursuant to the TH Services Agreement .

 

(v)                                 Upon the
terms and subject to the conditions set forth in this Agreement, the Company
shall issue and allot to TH the TH Services Shares at par credited as fully
paid in satisfaction of all amounts owed to TH as of December 31, 2002 (such
amounts being $10,820,099) pursuant to the TH Services Agreement, and TH will
accept the issuance of the TH Services Shares to TH as full payment for all
amounts due to TH from the Company through December 31, 2002 pursuant to the TH
Services Agreement.

 

(vi)                              Under the
terms and subject to the conditions set forth in this Agreement, the Company
shall, at the direction of Priceline, issue and allot to PCLN SUB the Priceline
Shares at par credited as fully paid in satisfaction of an aggregate sum of
$1,239,717 owed to Priceline as at December 31, 2002  pursuant to the Priceline Services Agreement, the Priceline
License Agreement and the Priceline Trademark Agreement, and Priceline will
accept the issuance of the Priceline Shares to PCLN SUB as full payment for all
amounts due to Priceline from the Company through December 31, 2002 pursuant to
the Priceline Services Agreement, the Priceline License Agreement and the
Priceline Trademark Agreement.

 

(vii)                           TH will
subscribe for, and the Company will issue and allot to TH, the TH Shares for
cash at par plus a premium of $0.80 per Share, i.e. a subscription  price of $1.00 per Share pursuant to the TH
Subscription Letter.  The aggregate
subscription price payable by TH to the Company for the TH Shares shall be
set-off against the amount payable by the Company to TH for the re-purchase of
the TH Exchange Shares pursuant to paragraph (viii) below.

 

7

 

(viii)                        The Company
will re-purchase from TH, and TH will sell to the Company, the TH Exchange
Shares at par value  of $0.20 per Share
pursuant to the TH Subscription Letter. 
Upon such re-purchase by the Company, the TH Exchange Shares shall be
cancelled.

 

(ix)                                PCLN SUB
will subscribe for, and the Company will issue and allot to PCLN SUB, the PCLN
Shares for cash at par plus a premium of $0.80 per Share, i.e. a subscription
price of $1.00 per Share pursuant to the PCLN Subscription Letter.  The aggregate subscription price payable by
PCLN SUB to the Company for the PCLN Shares shall be set-off against the amount
payable by the Company to PCLN SUB for the re-purchase of the PCLN Exchange
Shares pursuant to paragraph (x) below.

 

(x)                                   The Company
will re-purchase from PCLN SUB, and PCLN SUB will sell to the Company, the PCLN
Exchange Shares at a par value of $0.20 per Share pursuant to the PCLN
Subscription Letter.  Upon such
re-purchase by the Company, the PCLN Exchange Shares shall be cancelled.

 

(xi)                                TH and PCLN
SUB will pass shareholders’ resolutions of the Company to reduce the authorized
share capital of the Company to $24,530,000 (consisting of 122,650,000 Shares
of $0.20 nominal or par value each) by the cancellation of 57,350,000 Shares of
its authorized share capital which have not been subscribed or agreed to be
subscribed by any person thereby allowing 13,164,452 Shares being authorised
and unissued.

 

(xii)                             PCLN SUB
shall procure that one of the two Directors nominated by it shall resign from
his position as a Director, and shall vote its Shares or cause the other
Director nominated by it to approve the appointment of a person nominated by TH
to be a new Director.

 

(xiii)                          (A) The
Parties will enter into the Amended and Restated Securityholders’ Agreement,
(B) the Company and Priceline will enter into the Amended and Restated
Priceline Services Agreement and the Second Supplemental Priceline License
Agreement and (C) the Company and TH will enter into the Supplemental TH
Services Agreement.

 

(b)                                 Upon the
terms and subject to the conditions set forth in this Agreement, at the
Closing, the Company shall grant to TH the right to subscribe for, from time to
time on or prior to 31 March, 2004, up to 979,390 new Shares for cash at par
value  of $0.20 per share (the “Exercise
Price”) (or an aggregate purchase price of $195,878 for all of the TH Option
Shares) (the “TH Option”).

 

(c)                                  The Exercise
Price shall be subject to appropriate adjustment so as to protect the rights of
TH upon the occurrence on or after the date hereof of any stock dividend, stock
split, reverse split, recapitalization, reclassification, merger, combination,
consolidation or other similar transaction. 
Upon each occurrence of any event described in the immediately preceding
sentence, the Exercise Price in effect immediately prior to such event shall be
adjusted (and any other appropriate actions shall be taken by the Company), so
that TH, upon any exercise of the TH Option, shall be entitled to receive the
number of Shares or other property, including cash or securities, that TH would
have owned or would have been entitled to receive upon or by reason of any of
the events described above, had the 

 

8

 

TH
Option been exercised immediately prior to the date of such event, or if such
event has a record date, then the record date applicable to such event.  An adjustment made pursuant to the
immediately preceding sentence shall become effective retroactively to the
close of business on the day upon which such event is effected.

 

(d)                                 TH and PCLN
SUB hereby grant their approval pursuant to Section 3.07 of the
Securityholders’ Agreement (as supplemented by the Supplemental
Securityholders’ Agreement) for each of the transactions contemplated under
Section 2.1(a), (b) and (c) above.

 

Section 2.2.                                   Closing.

 

(a)                                  Upon the
terms and subject to the conditions set forth in this Agreement, the
transactions provided for in Section 2.1 shall take place at a closing (the “Closing”) to be held at 8:00 a.m., Hong
Kong time, on the date hereof.  The Closing
shall take place simultaneously at the offices of Baker & McKenzie located
at Hutchison House, 14th Floor, 10 Harcourt Road, Hong Kong and
Blank Rome LLP located at One Logan Square, Philadelphia, Pennsylvania, United
States of America.  The date on which
the Closing actually occurs is referred to herein as the “Closing Date”.

 

(b)                                 The
transactions contemplated by this Agreement and the Ancillary Agreements (the “Transactions”) are intended by the
Parties to be consummated substantially simultaneously; and if any of the
Transactions is not consummated on the Closing Date in accordance with the
terms and subject to the conditions set forth herein, then each Party shall
take, or cause to be taken, all actions, and do, or cause to be done, all
things, in each case, that are necessary to dissolve and invalidate all
Transactions; provided, however, that no provision hereof is intended to
relieve any Party of its liability, or in any way preclude or limit the rights
or remedies of any other Party, in each case, in connection with any breach of
this Agreement by any Party.

 

Section 2.3.                                   Closing
Deliveries by the Company.  At
the Closing, the Company shall deliver to TH and PCLN SUB:

 

(a)                                  in the case
of TH, the TH Shares, the New TH Shares and the TH Services Shares; and in the
case of PCLN SUB, the PCLN Shares and the Priceline Shares;

 

(b)                                 the
agreements and documents listed in Exhibit A, in each case, duly
executed by a duly authorized officer of each party indicated in such Exhibit;
and

 

(c)                                  a true and
correct copy of a certificate of a Director of the Company certifying as to (i)
the resolutions duly and validly adopted by its Board of Directors or its
shareholders (as appropriate), evidencing (A) in the case of TH, the issuance
of the TH Conversion Shares, the TH Shares, the New TH Shares and the TH
Services Shares and the re-purchase of TH Exchange Shares; and in the case of
PCLN SUB, the issuance of the PCLN Conversion Shares, the PCLN Shares and the
Priceline Shares and the re-purchase of the PCLN Exchange Shares; (B) the
Sub-division and the increase in the authorized share capital of the Company to
$36,000,000 and the subsequent decrease in the authorized share capital of the
Company to $24,530,000 (consisting of 122,650,000 Shares of $0.20 nominal 

 

9

 

or
par value each), by the cancellation of 57,350,000 Shares of the Company’s
authorized share capital which have not been subscribed or agreed to be
subscribed by any person; (C) the authorization of the grant of the TH Option
and any subsequent issue of the TH Option Shares pursuant thereto, and the
reduction of the conversion price for the TH Convertible Note and the PCLN SUB
Convertible Note pursuant to this Agreement; and (D) the authorization of the
execution and delivery of this Agreement and each agreement and document listed
in Exhibit A to which it is a party and the consummation of the
transactions contemplated hereby and thereby, and (ii) the incumbency and
specimen signature of each officer of the Company executing this Agreement and
each agreement and document listed in Exhibit A to which it is a party,
and any other document delivered in connection herewith.

 

Section 2.4.                                   Closing
Deliveries by TH.  At the Closing, TH shall
deliver:

 

(a)                                  to each of the
Company and PCLN SUB the agreements and documents listed in Exhibit B,
in each case duly executed by a duly authorized officer  of each party indicated in such Exhibit; and

 

(b)                                 to each of
the Company and PCLN SUB, a true and correct copy of a certificate of a
Director of each of A. S. Watson and TH certifying as to (i) the resolutions
duly and validly adopted by its Board of Directors, evidencing the
authorization of the execution and delivery of such of this Agreement and each
agreement and document listed in Exhibit B to which it is a party, and
the consummation of the transactions contemplated hereby and thereby, and (ii)
the incumbency and specimen signature of each officer of TH or A.S. Watson, as
the case may be, executing this Agreement and each agreement and document
listed in Exhibit B to which it is a party, and any other document
delivered by it in connection therewith.

 

Section 2.5.                                   Closing
Deliveries by PCLN SUB.  At
the Closing, PCLN SUB shall deliver:

 

(a)                                  to the
Company and TH, the agreement and documents listed in Exhibit C, in each
case, duly executed by a duly authorized officer of each party indicated in
such Exhibit; and

 

(b)                                 a true and
correct copy of a certificate of the Secretary of each of PCLN SUB and
Priceline certifying as to (i) the resolutions duly and validly adopted by its
Board of Directors evidencing the authorization of the execution and delivery
of this Agreement and each agreement and document listed on Exhibit C to
which it is a party and the consummation of the transactions contemplated
hereby and thereby and (ii) the incumbency and specimen signature of each
officer of PCLN SUB or Priceline, as the case may be, executing this Agreement
and each agreement and document listed on Exhibit C to which it is a
party, and any other document delivered in connection herewith.

 

Section 2.6.                                   Further
Assurances. Each of the Company, TH and PCLN SUB shall use its reasonable
efforts to take, or cause to be taken, all appropriate action, and to do, or
cause to be done, all things necessary, proper or advisable under applicable
laws to consummate and make effective the transactions contemplated hereunder,
including using reasonable efforts to obtain all licenses, permits, consents,
approvals, authorizations, qualifications and orders of competent governmental
entities.  Without limiting the
generality of the foregoing, each of the Company, TH and PCLN SUB shall, when
required in order to 

 

10

 

effect
the transactions contemplated hereunder, make all necessary filings, and
thereafter make any other required or appropriate submissions and shall supply
as promptly as practicable to the appropriate governmental entity any
additional information and documentary material that may be requested.  Each of the Company, TH and PCLN SUB shall
cooperate with the other when required in order to effect the transactions
contemplated hereunder.

 

Section 2.7.                                   Exercise of
TH Option.  TH shall provide to the
Company and PCLN SUB at least five (5) Business Days’ prior written notice of
any exercise of the TH Option, indicating the number of TH Option Shares TH
intends to subscribe for and the date on which such subscription shall be
made.  On the date of any such exercise,
TH shall deliver to the Company, by wire transfer of immediately available
funds to an account specified by the Company, cash in an amount equal to the
Exercise Price prevailing at the time multiplied by the number of TH Option
Shares being purchased, and the Company shall (i) issue and allot to TH the TH
Option Shares being subscribed for, such shares shall  be issued as fully paid and shall be free from any Encumbrance,
and (ii) deliver to TH, a share certificate or share certificate(s) as may be
requested by TH representing the TH Option Shares being subscribed for.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to TH and
PCLN SUB as follows:

 

Section 3.1.                                   Organization.  The Company is a company duly incorporated,
validly existing and in good standing under the laws of the Cayman Islands.

 

Section 3.2.                                   Corporate
Authority and Due Authorization.

 

(a)                                  The Company
has full power and authority to execute, deliver and perform this Agreement;
and

 

(b)                                 This
Agreement has been duly and validly authorized, executed and delivered by the
Company and constitutes a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except that (i)
the enforceability hereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect affecting
creditors’ rights and (ii) the remedy of specific performance and injunctive
and other forms of equitable relief may be subject to certain equitable
defenses and to the discretion of the court before which any proceedings
therefor may be brought.

 

Section 3.3.                                   Share
Capital of Company.  As of the Closing, after
giving effect to the Transactions, the authorized share capital of the Company
shall be $24,530,000 divided into 122,650,000 Shares, and the outstanding
issued share capital of the Company shall consist of 109,485,548 Shares and (i)
there are no other outstanding Shares or other securities of the Company, (ii)
except for the Warrants and the TH Option, no subscription, warrant, option,
convertible security or other right (contingent or otherwise) to purchase or
otherwise acquire, directly or indirectly, any Shares or other securities of
the Company is 

 

11

 

authorized
or outstanding, (iii) except for the Participation Warrant Agreement, there is
no commitment or offer of the Company to issue any such subscription, warrant,
option, convertible security or other such right or to issue or distribute to
holders of any Shares or other securities any evidences of indebtedness or
assets of the Company, and (iv) the Company has no obligation (contingent or
otherwise) to purchase, redeem or otherwise acquire, directly or indirectly,
any Shares or other securities or any interest therein or to pay any dividend
or make any other distribution in respect thereof.

 

Section 3.4.                                   No Conflict.  Assuming that all consents, approvals,
authorizations, orders, other actions, filings and notifications described in
Section 3.5 have been obtained, and save and except in relation to the
Securityholders’ Agreement (as amended) the compliance with which is hereby
expressly waived, the execution, delivery and performance of this Agreement by
the Company does not and will not (i) violate, conflict with or result in the
breach of any provision of its organizational documents, (ii) conflict with or
violate any law, governmental regulation or governmental order applicable to it
or any of its assets, properties or businesses or (iii) conflict with, result
in any breach of, constitute a default (or event which, with the giving of
notice or lapse of time, or both, would become a default) under, require any
consent under, or give to others any rights of termination, amendment,
acceleration, suspension, revocation or cancellation of, or result in the
creation of any Encumbrance on any of the Company’s assets or properties
pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other instrument or arrangement to
which the Company is a party or by which any of its assets or properties is
bound or affected.

 

Section 3.5.                                   Governmental
Consents and Approvals.  The
execution, delivery and performance of this Agreement by the Company does not
and will not require any consent, approval, authorization or other order of,
action by, filing with or notification to, any governmental authority, other
than such, the failure of which to obtain or make would not, individually or in
the aggregate, have a Material Adverse Effect on the Company, TH or PCLN SUB.

 

Section 3.6.                                   Compliance
with Laws.  The Company is in
compliance with all requirements of applicable law and all orders issued by any
court or governmental authority against the Company in all respects, except to
the extent that the failure to comply with such requirements of law or orders
would not, individually or in the aggregate, have a Material Adverse Effect on
the Company, TH or PCLN SUB.

 

Section 3.7.                                   Litigation
and Governmental Proceedings. 
There is no litigation or governmental or administrative proceeding or
investigation pending or, to the knowledge of the Company, threatened against
the Company or any officer, director or employee, nor has there occurred any
event, nor does there exist any condition on the basis of which any such claim
may be asserted against the Company, except for litigation, proceedings,
investigations, events and claims which would not, individually or in the
aggregate, have a Material Adverse Effect on the Company, TH or PCLN SUB.

 

Section 3.8.                                   Brokers.  No Person is entitled to any brokerage,
finder’s or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
the Company.

 

12

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF TH

 

TH represents and warrants to the Company and
PCLN SUB as follows:

 

Section 4.1.                                   Organization. TH is a
corporation duly organized, validly existing and in good standing under the
laws of the British Virgin Islands.

 

Section 4.2.                                   Corporate
Authority.

 

(a)                                  TH has full
power and authority to execute, deliver and perform this Agreement; and

 

(b)                                 This
Agreement has been duly and validly authorized, executed and delivered by TH
and constitutes a valid and binding obligation of TH, enforceable against TH in
accordance with its terms, except that (i) the enforceability hereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws now or hereafter in effect affecting creditors’ rights and (ii) the remedy
of specific performance and injunctive and other forms of equitable relief may
be subject to certain equitable defenses and to the discretion of the court
before which any proceedings therefor may be brought.

 

Section 4.3.                                   No Conflict.  Assuming that all consents, approvals,
authorizations, orders, other actions, filings and notifications described in
Section 4.4 have been obtained, and save and except in relation to the
Securityholders’ Agreement (as amended) the compliance with which is hereby
expressly waived, the execution, delivery and performance of this Agreement by
TH does not and will not (i) violate, conflict with or result in the breach of
any provision of its organizational documents, (ii) conflict with or violate
any law, governmental regulation or governmental order applicable to TH or any
of its assets, properties or businesses or (iii) conflict with, result in any
breach of, constitute a default (or event which, with the giving of notice or
lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration,
suspension, revocation or cancellation of, or result in the creation of any
Encumbrance on any of TH’s assets or properties pursuant to, any note, bond,
mortgage or indenture, contract, agreement, lease, sublease, license, permit,
franchise or other instrument or arrangement to which TH is a party or by which
any of its assets or properties is bound or affected.

 

Section 4.4.                                   Governmental
Consents and Approvals.  The
execution, delivery and performance of this Agreement by TH does not and will
not require any consent, approval, authorization or other order of, action by,
filing with or notification to, any governmental authority other than such, the
failure of which to obtain or make would not, individually or in the aggregate,
have a Material Adverse Effect on the Company, TH or PCLN SUB.

 

Section 4.5.                                   Brokers.  No Person is entitled to any brokerage,
finder’s or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
TH.

 

13

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES OF PCLN SUB

 

PCLN SUB represents and warrants to the
Company and TH as follows:

 

Section 5.1.                                   Organization. PCLN SUB
is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware, United States of America.

 

Section 5.2.                                   Corporate Authority.

 

(a)                                  PCLN SUB has
full power and authority to execute, deliver and perform this Agreement; and

 

(b)                                 This
Agreement and the Ancillary Agreements have been duly and validly authorized,
executed and delivered by PCLN SUB and constitute valid and binding obligations
of PCLN SUB, enforceable against PCLN SUB in accordance with their respective
terms, except that (i) the enforceability hereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect affecting creditors’ rights and (ii) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject
to certain equitable defenses and to the discretion of the court before which
any proceedings therefor may be brought.

 

Section 5.3.                                   No Conflict.  Assuming that all consents, approvals,
authorizations, orders, other actions, filings and notifications described in
Section 5.4 have been obtained, and save and except in relation to the
Securityholders’ Agreement (as amended) the compliance with which is hereby
expressly waived , the execution, delivery and performance of this Agreement by
PCLN SUB does not and will not (i) violate, conflict with or result in the
breach of any provision of its organizational documents, (ii) conflict with or
violate any law, governmental regulation or governmental order applicable to
PCLN SUB or any of its assets, properties or businesses or (iii) conflict with,
result in any breach of, constitute a default (or event which, with the giving
of notice or lapse of time, or both, would become a default) under, require any
consent under, or give to others any rights of termination, amendment,
acceleration, suspension, revocation or cancellation of, or result in the
creation of any Encumbrance on any of PCLN SUB’s assets or properties pursuant
to, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other instrument or arrangement to
which PCLN SUB is a party or by which any of its assets or properties is bound
or affected.

 

Section 5.4.                                   Governmental
Consents and Approvals.  The
execution, delivery and performance of this Agreement by PCLN SUB does not and
will not require any consent, approval, authorization or other order of, action
by, filing with or notification to, any governmental authority other than such,
the failure of which to obtain or make would not, individually or in the
aggregate, have a Material Adverse Effect on the Company, TH or PCLN SUB.

 

Section 5.5.                                   Brokers.  No Person is entitled to any brokerage,
finder’s or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
PCLN SUB.

 

14

 

ARTICLE VI

 

MISCELLANEOUS

 

Section 6.1.                                   Specific
Performance.  The Parties acknowledge and
agree that in the event of any breach of this Agreement, the non-breaching
Party would be irreparably harmed and could not be made whole solely by
monetary damages.  The Parties hereby
agree that in addition to any other remedy to which any Party may be entitled
at law or in equity, to the extent permitted by applicable law, the Parties
shall be entitled to obtain an injunction or compel specific performance of
this Agreement in any action instituted in any Court.

 

Section 6.2.                                   Interpretation.  The headings and captions in this Agreement
are for convenience of reference only and shall not control or affect the
meaning or construction of any provisions hereof.  When used in this Agreement, (i) the word “dollar” and the symbol “$” shall refer to the lawful currency of
the United States of America and (ii) the words “including” and “include”
shall be deemed followed by the words “without limitation.”

 

Section 6.3.                                   Notices.  All notices and other communications
required or permitted to be given hereunder shall be in writing and shall be
(a) delivered by hand, (b) delivered by a reputable commercial overnight
delivery service or (c) transmitted by facsimile, in each case, sent to the
address or telecopier number set below. 
Such notices shall be effective: 
(i) in the case of hand deliveries, when received; (ii) in the case of
an overnight delivery service, when received; and (iii) in the case of
facsimile transmission, when electronic confirmation of receipt is received by
the sender.  Any Party may change its
address and telecopy number by written notice to the other Party in accordance
with this provision, provided that such notice shall be effective only upon
receipt.

 

If to the Company, to:

 

Hutchison-Priceline Limited

Suite 408, 4th Floor, Lincoln House

Taikoo Place

979 King’s Road

Hong Kong

Telecopy:                                           (852)
3192-0777

Attention:                                         Chief
Executive Officer

 

with a copy to:

 

priceline.com Incorporated

800 Connecticut Avenue

Norwalk, Connecticut 06854

U.S.A.

Telecopy:                                           (1)
203-299-8915

Attention:                                         General
Counsel

 

15

 

If to TH, to:

 

Trio Happiness Limited

P.O. Box 957

Offshore Incorporation Centre

Road Town, Tortola

The British Virgin Islands

Telecopy:                                           (852)
2693-4404

Attention:                                         Managing
Director

 

with copies to:

 

A.S. Watson & Company, Limited, at:

 

(1)                                Watson House

1-5 Wo Liu Hang Road

Fo Tan, Shatin

New Territories

Hong Kong

Telecopy:                                           (852)
2693-4404

Attention:                                         Managing
Director

 

(2)                                  22/F,
Hutchison House,

10 Harcourt Road,

Hong Kong

Telecopy: (852) 2128 1778

Attention: The Company Secretary

 

if to PCLN SUB, to:

 

PCLN ASIA, INC.

c/o priceline.com Incorporated

800 Connecticut Avenue

Norwalk, Connecticut 06854

U.S.A.

Telecopy:                                           (1)
203-299-8915

Attention:                                         General
Counsel

 

with a copy to:

 

priceline.com Incorporated

800 Connecticut Avenue

Norwalk, Connecticut 06854

U.S.A.

Telecopy:                                           (1)
203-299-8915

Attention:                                         General
Counsel

 

with a copy to:

 

Blank Rome LLP

One Logan Square

 

16

 

Philadelphia, Pennsylvania 19103

U.S.A.

Telecopy: 
(214) 832-5479

Attention: 
Ronald Fisher

 

Section 6.4.                                   Governing
Law; Forum; Service of Process. 
This Agreement shall be governed by and construed in accordance with the
laws of England and Wales (without giving effect to conflicts of law
principles) as to all matters, including validity, construction, effect,
performance and remedies of and under this Agreement.  Venue in any and all suits, actions and proceedings between or
among any of the Parties hereto and relating to the subject matter of this
Agreement shall be in the courts located in and for England and Wales (the “Courts”), which shall have exclusive
jurisdiction for such purpose, and each of the Company, TH and PCLN SUB hereby
irrevocably submits to the exclusive jurisdiction of such Courts and
irrevocably waives the defense of an inconvenient forum to the maintenance of
any such suit, action or proceeding. 
Service of process may be made in any manner recognized by such Courts.  Each of the Parties hereby irrevocably
waives its right to a jury trial arising out of any dispute in connection with
this Agreement or the transactions contemplated hereby.

 

Section 6.5.                                   Severability.  The invalidity, illegality or
unenforceability of one or more of the clauses or provisions of this Agreement
in any jurisdiction shall not affect the validity, legality or enforceability
of the remainder of this Agreement in such jurisdiction or the validity,
legality or enforceability of this Agreement, including any such clause or
provision in any other jurisdiction, it being intended that all rights and
obligations of the Parties hereunder shall be enforceable to the fullest extent
permitted by law.

 

Section 6.6.                                   Successors;
Assigns; Third-Party Beneficiaries. 
This Agreement is intended solely for the benefit of the Parties hereto
and their successors and permitted assigns, and does not confer any rights or
remedies, whether legal or equitable, on any other third person or entity, and
no person who is not for the time being a party to this Agreement shall have
any right under the Contracts (Rights of Third Parties) Act 1999 to enforce any
term of this Agreement; provided, however, that no Party may
assign any of its rights, duties or obligations hereunder without the prior
written consent of the other Party.

 

Section 6.7.                                   Amendment.  This Agreement may not be amended, modified
or supplemented unless such modification is in writing and signed by the
Parties hereto.

 

Section 6.8.                                   Waiver.  No waiver (whether express or implied) of
any default or breach of or by any Party to this Agreement shall be effective
unless evidenced by a writing signed by the Party against which such waiver is
sought to be enforced.  No such waiver
for any purpose shall constitute a waiver of any other or subsequent default or
breach, or for any other purpose.

 

Section 6.9.                                   Counterparts.  This Agreement may be executed in
counterparts, which may be delivered by facsimile transmission, each of which
shall be deemed an original, but all of which together shall constitute one and
the same Agreement.

 

Section 6.10.                             Entire
Agreement.  This Agreement, together
with the Ancillary Agreements, constitutes the entire agreement and
understanding of the Parties 

 

17

 

hereto
in respect of the subject matter contained herein, and there are no
restrictions, promises, representations, warranties, covenants, conditions or
undertakings with respect to the subject matter hereof, other than those
expressly set forth or referred to herein. 
All other agreements between or among the Parties that are not being
amended or otherwise modified in connection with the Transactions shall remain
in full force and effect in accordance with their respective terms.

 

– Signature
Page Follows –

 

18

 

IN WITNESS WHEREOF, the Parties hereto have
caused this Restructuring Agreement to be duly executed and delivered by their
respective signatories hereunto duly authorized as of the date first above
written.

 

 

	
   

  	
  HUTCHISON-PRICELINE LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ian Wade

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 
  Ian Wade

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRIO HAPPINESS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin So

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 
  Martin So

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PCLN ASIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mitch Truwit

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 
  Mitch Truwit

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 
  President

  	
   

  

 

 

Agreed and acknowledged as to Section
2.1(a)(vi)

 

PRICELINE.COM INCORPORATED

 

	
  By:

  	
  /s/ Robert J. Mylod

  	
   

  	
   

  
	
   

  	
  Name: 
  Robert Mylod

  	
   

  	
   

  
	
   

  	
  Title: 
  CFO

  	
   

  	
   

  
					

 

19

 

Exhibit A

 

1.                                       Amended and
Restated Securityholders’ Agreement duly executed by the Company.

 

2.                                       Amended and
Restated Priceline Services Agreement duly executed by the Company.

 

3.                                       Second
Supplemental Priceline License Agreement duly executed by the Company.

 

4.                                       Supplemental
TH Services Agreement duly executed by the Company.

 

5.                                       Share
certificate representing the PCLN Shares.

 

6.                                       Share
certificate representing the TH Shares.

 

7.                                       Share
certificate representing the Priceline Shares.

 

8.                                       Share
certificate representing the TH Services Shares.

 

9.                                       Share
certificate representing the New TH Shares.

 

10.                                 TH
Subscription Letter duly executed by the Company.

 

11.                                 PCLN
Subscription Letter duly executed by the Company.

 

A-1

 

Exhibit B

 

1.                                       Amended and
Restated Securityholders’ Agreement duly executed by TH.

 

2.                                       Supplemental
TH Services Agreement duly executed by TH.

 

3.                                       A.S. Watson
Confirmation duly executed by A.S. Watson.

 

4.                                       Cancelled TH
Convertible Note.

 

5.                                       TH
Subscription Letter duly executed by TH.

 

B-1

 

Exhibit C

 

1.                                       Amended and
Restated Securityholders’ Agreement, duly executed by PCLN SUB.

 

2.                                       Amended and
Restated Priceline Services Agreement, duly executed by Priceline.

 

3.                                       Second
Supplemental Priceline License Agreement, duly executed by Priceline.

 

4.                                       Priceline
Confirmation, duly executed by Priceline.

 

5.                                       Cancelled
Convertible Note.

 

6.                                       PCLN
Subscription Letter duly executed by PCLN SUB.

 

C-1

 

Exhibit D

 

Form of Confirmation
of A. S. Watson

 

[Letterhead of A. S. Watson]

 

To:                              Hutchison-Priceline
Limited

PCLN ASIA, INC.

 

[·] 2003

 

 

Dear Sirs,

 

Guaranty dated 27 June 2000
in relation to a

Securityholders’ Agreement
dated 27 June 2000 (as amended);

Amended and Restated
Securityholders’ Agreement dated [·] 2003

 

We refer to:

 

(a)                                  a
securityholders’ agreement dated 27 June 2000 made between yourselves and Trio
Happiness Limited (“TH”), which
was supplemented by a supplemental agreement dated 15 February 2001
(collectively the “Securityholders’ Agreement”);

 

(b)                                 our guaranty
(the “Guaranty”) dated 27 June
2000 in favour of yourselves;

 

(c)                                  an amended
and restated securityholders’ agreement (the “Amended
and Restated Securityholders’ Agreement”) dated [·] 2003 and made
between each of the parties to the Securityholders’ Agreement.

 

Terms defined in the Amended and Restated
Securityholders’ Agreement shall have the same meanings when used herein.

 

In consideration of the Company and PCLN SUB
agreeing to amend and restate the Securityholders’ Agreement on the terms set
out in the Amended and Restated Securityholders’ Agreement, we hereby confirm
our consent to the terms of the Amended and Restated Securityholders’ Agreement
and to the amendments to the Securityholders’ Agreement to be effected pursuant
thereto.

 

We hereby confirm and undertake that our
obligations under the Guaranty continue in full force and effect, and are not
and will not be affected, discharged or varied by the execution of the Amended
and Restated Securityholders’ Agreement, save that, with effect from the date
of the Amended and Restated Securityholders’ Agreement, references in the
Guaranty to the Securityholders’ Agreement shall be deemed to be references to
the Amended and Restated Securityholders’ Agreement.  We further confirm that our obligations under the Guaranty shall,
with effect from the date of the Amended and Restated Securityholders’
Agreement, 

 

D-1

 

extend in all respects to the obligations of
TH under the Amended and Restated Securityholders’ Agreement.

 

This letter is governed by the laws of Hong
Kong and should be construed accordingly.

 

Yours faithfully,

for and on behalf of

A.S. WATSON & COMPANY,
LIMITED

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

D-2

 

Exhibit E

 

Form of Confirmation
of Priceline

 

[Letterhead of Priceline]

 

To:                              Hutchison-Priceline
Limited

Trio Happiness Limited

 

[·] 2003

 

Dear Sirs,

 

Guaranty dated 27 June 2000
in relation to a

Securityholders’ Agreement
dated 27 June 2000 (as amended);

Amended and Restated
Securityholders’ Agreement dated [·] 
2003

 

We refer to:

 

(a)                                  a
securityholders’ agreement dated 27 June 2000 made between yourselves and PCLN
ASIA, INC. (“PCLN SUB”), which was
supplemented by a supplemental agreement dated 15 February 2001 (collectively,
the “Securityholders’ Agreement”);

 

(b)                                 our guaranty
(the “Guaranty”) dated 27 June
2000 in favour of yourselves;

 

(c)                                  an amended
and restated securityholders’ agreement (the “Amended
and Restated Securityholders’ Agreement”) dated [·] 2003 and made
between each of the parties to the Securityholders’ Agreement.

 

Terms defined in the Amended and Restated
Securityholders’ Agreement shall have the same meanings when used herein.

 

In consideration of the Company and TH
agreeing to the amendment to the Securityholders’ Agreement on the terms set
out in the Amended and Restated Securityholders’ Agreement, we hereby confirm
our consent to the terms of the Amended and Restated Securityholders’  Agreement and to the amendments to the
Securityholders’ Agreement to be effected pursuant thereto.

 

We hereby confirm and undertake that our
obligations under the Guaranty continue in full force and effect, and are not
and will not be affected, discharged or varied by the execution of the Amended
and Restated Securityholders’ Agreement, save that, with effect from the date
of the Amended and Restated Securityholders’ Agreement, references in the
Guaranty to the Securityholders’ Agreement shall be deemed to be references to
the Amended and Restated Securityholders’ Agreement.  We further confirm that our obligations under the Guaranty shall,
with effect from the date of the Amended and Restated Securityholders’
Agreement, 

 

E-1

 

extend in all respects to the obligations of
PCLN SUB under the Amended and Restated Securityholders’ Agreement.

 

This letter is governed by the laws of the
State of New York and should be construed accordingly.

 

Yours faithfully,

for and on behalf of

PRICELINE.COM INCORPORATED

 

 

	
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