Exhibit 4.1
MARKWEST ENERGY
PARTNERS, L.P.,
MARKWEST ENERGY FINANCE
CORPORATION, as Issuers,
THE SUBSIDIARIES NAMED
HEREIN, as Subsidiary Guarantors
AND
WELLS FARGO BANK,
NATIONAL ASSOCIATION, as Trustee
8¾% Series A
Senior Notes due 2018
8¾% Series B
Senior Notes due 2018
INDENTURE
Dated as of
April 15, 2008
CROSS-REFERENCE
TABLE*
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Trust Indenture
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|
Indenture
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|
Act Section
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Section(s)
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310
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(a)(1)
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7.10
|
|
|
|
(a)(2)
|
|
7.10
|
|
|
|
(a)(3)
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N.A.
|
|
|
|
(a)(4)
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N.A.
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|
|
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(a)(5)
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7.10
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|
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(b)
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7.10
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|
|
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(c)
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N.A.
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311
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|
(a)
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7.11
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|
|
|
(b)
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|
7.11
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|
|
|
(c)
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|
N.A.
|
|
312
|
|
(a)
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|
2.05
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|
|
|
(b)
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|
12.03
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|
|
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(c)
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|
12.03
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|
313
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|
(a)
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7.06
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|
|
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(b)(1)
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N.A.
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|
|
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(b)(2)
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7.06
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|
|
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(c)
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7.06; 12.02
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|
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(d)
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7.06
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|
314
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|
(a)
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4.03; 4.18; 12.02
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|
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(b)
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|
N.A.
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|
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(c)(1)
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12.04
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|
|
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(c)(2)
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12.04
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|
|
|
(c)(3)
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N.A.
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|
|
|
(d)
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|
N.A.
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|
|
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(e)
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12.05
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|
|
|
(f)
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|
N.A.
|
|
315
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|
(a)
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|
7.01
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|
|
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(b)
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7.05; 12.02
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|
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(c)
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7.01
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|
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(d)
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7.01; 6.05
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|
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(e)
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6.11
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316
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(a)(last sentence)
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|
2.09
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|
|
|
(a)(1)(A)
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6.05
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|
|
|
(a)(1)(B)
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|
6.04
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|
|
|
(a)(2)
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|
N.A.
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|
|
|
(b)
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|
6.07
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|
|
|
(c)
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|
9.04
|
|
317
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|
(a)(1)
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|
6.08
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|
|
|
(a)(2)
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|
6.09
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|
|
|
(b)
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|
2.04
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|
318
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|
(a)
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|
12.01
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|
|
|
(b)
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N.A.
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|
|
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(c)
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|
12.01
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N.A. means not applicable.
*This Cross-Reference Table is not part of the
Indenture.
TABLE OF
CONTENTS
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Page
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ARTICLE 1 DEFINITIONS AND INCORPORATION BY
REFERENCE
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1
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Section 1.01.
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Definitions
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1
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Section 1.02.
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Other Definitions
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27
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|
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Section 1.03.
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Incorporation by Reference of Trust Indenture
Act
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27
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Section 1.04.
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Rules of Construction
|
28
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|
|
|
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ARTICLE 2 THE NOTES
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28
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Section 2.01.
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Form and Dating
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28
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Section 2.02.
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Execution and Authentication
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29
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|
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Section 2.03.
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Registrar and Paying Agent
|
30
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Section 2.04.
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Paying Agent to Hold Money in Trust
|
30
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Section 2.05.
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Holder Lists
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30
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Section 2.06.
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Transfer and Exchange
|
31
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Section 2.07.
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Replacement Notes
|
40
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|
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Section 2.08.
|
Outstanding Notes
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40
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|
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Section 2.09.
|
Treasury Notes
|
40
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|
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Section 2.10.
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Temporary Notes
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41
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|
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Section 2.11.
|
Cancellation
|
41
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|
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Section 2.12.
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Defaulted Interest
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41
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|
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Section 2.13.
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CUSIP Numbers
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41
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|
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ARTICLE 3 REDEMPTION AND
PREPAYMENT
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42
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Section 3.01.
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Notices to Trustee
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42
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Section 3.02.
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Selection of Notes to Be Redeemed
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42
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|
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Section 3.03.
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Notice of Redemption
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42
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|
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Section 3.04.
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Effect of Notice of Redemption
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43
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|
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Section 3.05.
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Deposit of Redemption Price
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44
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|
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Section 3.06.
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Notes Redeemed in Part
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44
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|
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Section 3.07.
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Optional Redemption
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44
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Section 3.08.
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Mandatory Redemption
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45
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|
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Section 3.09.
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Offer to Purchase by Application of Net
Proceeds
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45
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|
|
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|
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ARTICLE 4 COVENANTS
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47
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Section 4.01.
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Payment of Notes
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47
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Section 4.02.
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Maintenance of Office or Agency
|
48
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|
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Section 4.03.
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Compliance Certificate
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48
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|
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Section 4.04.
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Taxes
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49
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Section 4.05.
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Stay, Extension and Usury Laws
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49
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Section 4.06.
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Change of Control
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49
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Section 4.07.
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Asset Sales
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51
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Section 4.08.
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Restricted Payments
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53
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|
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Section 4.09.
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Incurrence of Indebtedness and Issuance of
Disqualified Equity
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56
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|
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Section 4.10.
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Liens
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59
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|
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Section 4.11.
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Dividend and Other Payment Restrictions
Affecting Subsidiaries
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59
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i
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Page
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Section 4.12.
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Transactions With Affiliates
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60
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|
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Section 4.13.
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Additional Subsidiary Guarantees
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61
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|
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Section 4.14.
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Designation of Restricted and Unrestricted
Subsidiaries
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62
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|
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Section 4.15.
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Business Activities
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62
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Section 4.16.
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Sale and Leaseback Transactions
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63
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|
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Section 4.17.
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Payments for Consent
|
63
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|
|
Section 4.18.
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Reports
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63
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|
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Section 4.19.
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Termination of Covenants
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64
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|
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ARTICLE 5 SUCCESSORS
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64
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Section 5.01.
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Merger, Consolidation, or Sale of
Assets
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64
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Section 5.02.
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Successor Entity Substituted
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66
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|
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ARTICLE 6 DEFAULTS AND REMEDIES
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67
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|
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Section 6.01.
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Events of Default
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67
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|
|
Section 6.02.
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Acceleration
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69
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|
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Section 6.03.
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Other Remedies
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70
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|
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Section 6.04.
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Waiver of Past Defaults
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70
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Section 6.05.
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Control by Majority
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70
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Section 6.06.
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Limitation on Suits
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71
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Section 6.07.
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Rights of Holders of Notes to Receive
Payment
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71
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Section 6.08.
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Collection Suit by Trustee
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71
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Section 6.09.
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Trustee May File Proofs of
Claim
|
71
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|
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Section 6.10.
|
Priorities
|
72
|
|
|
Section 6.11.
|
Undertaking for Costs
|
72
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|
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|
|
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ARTICLE 7 TRUSTEE
|
73
|
|
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Section 7.01.
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Duties of Trustee
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73
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Section 7.02.
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Rights of Trustee
|
74
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Section 7.03.
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Individual Rights of Trustee
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76
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|
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Section 7.04.
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Trustee’s Disclaimer
|
76
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|
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Section 7.05.
|
Notice of Defaults
|
76
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Section 7.06.
|
Reports by Trustee to Holders of the
Notes
|
76
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Section 7.07.
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Compensation and Indemnity
|
77
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|
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Section 7.08.
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Replacement of Trustee
|
78
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|
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Section 7.09.
|
Successor Trustee by Merger, Etc.
|
79
|
|
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Section 7.10.
|
Eligibility; Disqualification
|
79
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|
|
Section 7.11.
|
Preferential Collection of Claims Against
Issuers
|
79
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|
|
|
|
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ARTICLE 8 LEGAL DEFEASANCE AND COVENANT
DEFEASANCE
|
79
|
|
|
Section 8.01.
|
Option to Effect Legal Defeasance or Covenant
Defeasance
|
79
|
|
|
Section 8.02.
|
Legal Defeasance and Discharge
|
79
|
|
|
Section 8.03.
|
Covenant Defeasance
|
80
|
|
|
Section 8.04.
|
Conditions to Legal Defeasance or Covenant
Defeasance
|
81
|
|
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Section 8.05.
|
Deposited Money and Government Securities to be
Held in Trust, Other Miscellaneous Provisions
|
82
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|
|
|
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|
ii
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Page
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Section 8.06.
|
[Intentionally omitted]
|
82
|
|
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Section 8.07.
|
Reinstatement
|
82
|
|
|
|
|
|
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ARTICLE 9 AMENDMENT, SUPPLEMENT AND
WAIVER
|
83
|
|
|
Section 9.01.
|
Without Consent of Holders of Notes
|
83
|
|
|
Section 9.02.
|
With Consent of Holders of Notes
|
84
|
|
|
Section 9.03.
|
Compliance with Trust Indenture Act
|
|
|
|
Section 9.04.
|
Revocation and Effect of Consents
|
85
|
|
|
Section 9.05.
|
Notation or Exchange of Notes
|
86
|
|
|
Section 9.06.
|
Trustee to Sign Amendments, Etc.
|
86
|
|
|
Section 9.07.
|
Effect of Supplemental Indentures
|
86
|
|
|
|
|
|
|
ARTICLE 10 GUARANTEES
|
87
|
|
|
Section 10.01.
|
Guarantees
|
87
|
|
|
Section 10.02.
|
Limitation of Guarantor’s
Liability
|
88
|
|
|
Section 10.03.
|
Execution and Delivery of Notations of
Guarantees
|
88
|
|
|
Section 10.04.
|
[Intentionally omitted]
|
89
|
|
|
Section 10.05.
|
Releases
|
89
|
|
|
Section 10.06.
|
“Trustee” to Include Paying
Agent
|
89
|
|
|
|
|
|
|
ARTICLE 11 SATISFACTION AND
DISCHARGE
|
90
|
|
|
Section 11.01.
|
Satisfaction and Discharge
|
90
|
|
|
Section 11.02.
|
Application of Trust
|
91
|
|
|
Section 11.03.
|
Repayment of the Issuers
|
91
|
|
|
Section 11.04.
|
Reinstatement
|
92
|
|
|
|
|
|
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ARTICLE 12 MISCELLANEOUS
|
92
|
|
|
Section 12.01.
|
Trust Indenture Act Controls
|
92
|
|
|
Section 12.02.
|
Notices
|
92
|
|
|
Section 12.03.
|
Communication by Holders of Notes with Other
Holders of Notes
|
93
|
|
|
Section 12.04.
|
Certificate and Opinion as to Conditions
Precedent
|
93
|
|
|
Section 12.05.
|
Statements Required in Certificate or
Opinion
|
94
|
|
|
Section 12.06.
|
Rules by Trustee and Agents
|
95
|
|
|
Section 12.07.
|
No
Personal Liability of Directors, Officers, Employees and
Unitholders and No Recourse Against General Partner
|
95
|
|
|
Section 12.08.
|
Governing Law
|
95
|
|
|
Section 12.09.
|
No
Adverse Interpretation of Other Agreements
|
95
|
|
|
Section 12.10.
|
Successors
|
95
|
|
|
Section 12.11.
|
Severability
|
95
|
|
|
Section 12.12.
|
Counterpart Originals
|
95
|
|
|
Section 12.13.
|
Table of Contents, Headings, Etc.
|
96
|
|
|
|
|
|
iii
SCHEDULES, EXHIBITS AND
ANNEXES
|
SCHEDULE A
|
|
Schedule of Subsidiary Guarantors
|
|
|
|
EXHIBIT A
|
|
Form of Note
|
|
Exhibit A Page 1
|
|
EXHIBIT B
|
|
Form of Certificate of Transfer
|
|
Exhibit B Page 1
|
|
EXHIBIT C
|
|
Form of Certificate of Exchange
|
|
Exhibit C Page 1
|
|
EXHIBIT D
|
|
Form of Guarantee Notation
|
|
Exhibit D Page 1
|
|
EXHIBIT E
|
|
Form of Certificates from Acquiring
Institutional Accredited Investor
|
|
Exhibit E Page 1
|
|
ANNEX A
|
|
Form of Supplemental Indenture
|
|
A-1
|
|
ANNEX B
|
|
Form of Registration Rights
Agreement
|
|
B-1
|
iv
THIS INDENTURE dated as of April 15, 2008
is among MarkWest Energy Partners, L.P., a Delaware limited
partnership (the “Partnership”), MarkWest Energy
Finance Corporation, a Delaware corporation (“MarkWest
Finance” and, collectively with the Partnership, the
“Issuers”), the Subsidiary Guarantors (as defined
herein) listed on Schedule A hereto, and Wells Fargo Bank, National
Association, a national banking association, as trustee (the
“Trustee”).
The
Issuers, the Subsidiary Guarantors, and the Trustee agree as
follows for the benefit of each other and for the equal and ratable
benefit of the Holders of the 8¾% Series A Senior Notes
due 2018 (the “Series A Notes”) and the 8¾%
Series B Senior Notes due 2018 (the “Exchange
Notes” and, together with the Series A Notes, the
“Notes”):
ARTICLE 1
DEFINITIONS AND INCORPORATION BY REFERENCE
Section 1.01.
Definitions.
“ 144A Global Note ” means
the Global Note in the form of Exhibit A hereto bearing the
Global Note Legend and the Private Placement Legend and that has
the “Schedule of Exchange of Interests in the Global
Note” attached thereto and deposited with and registered in
the name of the Depositary or its nominee that will be issued in a
denomination equal to the outstanding principal amount of the Notes
sold in reliance on Rule 144A, subject to adjustment as
provided in Section 2.06 hereof.
“ Acquired Debt ” means,
with respect to any specified Person: (1) Indebtedness of any
other Person existing at the time such other Person is merged with
or into or became a Subsidiary of such specified Person, whether or
not such Indebtedness is incurred in connection with, or in
contemplation of, such other Person merging with or into, or
becoming a Subsidiary of, such specified Person, but excluding
Indebtedness that is extinguished, retired or repaid in connection
with such Person merging with or becoming a Subsidiary of such
specified Person; and (2) Indebtedness secured by a Lien
encumbering any asset acquired by such specified Person.
“ Additional Interest ”
means all additional interest then owing pursuant to a Registration
Rights Agreement. Unless the context indicates otherwise, all
references to “interest” in this Indenture or the Notes
shall be deemed to include any Additional Interest.
“ Affiliate ” of any
specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this
definition, “control,” as used with respect to any
Person, shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided that beneficial
ownership of 10% or more of the Voting Stock of a specified Person
shall be deemed to be control by the other Person; provided,
further, that any third Person which also beneficially owns 10% or
more of the Voting Stock of a specified Person shall not be deemed
to be an Affiliate of either the specified Person or the other
Person merely because of such common ownership in such specified
Person. For purposes of this definition, the terms
“controlling,” “controlled by” and
“under common control with” shall have
1
correlative meanings. Notwithstanding the
preceding, the term “Affiliate” shall not include a
Restricted Subsidiary of any specified Person.
“ Agent ” means any
Registrar or Paying Agent.
“ Applicable Procedures ”
means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and
procedures of the Depositary, Euroclear and Clearstream that apply
to such transfer or exchange.
“ Asset Sale ”
means:
(1)
the sale, lease, conveyance or other disposition of any assets,
other than sales of inventory in the ordinary course of business;
provided that the sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Partnership and its
Restricted Subsidiaries taken as a whole will be governed by the
provisions of Section 4.06 and/or the provisions of
Article 5 hereof and not by the provisions of
Section 4.07; and
(2)
the issuance of Equity Interests by any of the Partnership’s
Restricted Subsidiaries or the sale by the Partnership or any of
its Restricted Subsidiaries of Equity Interests in any of its
Restricted Subsidiaries.
Notwithstanding the preceding, the following
items shall not be deemed to be Asset Sales:
(1)
any single transaction or series of related transactions that:
(a) involves assets having a fair market value of less than
$5.0 million; or (b) results in net proceeds to the
Partnership and its Restricted Subsidiaries of less than $5.0
million;
(2)
a transfer of assets between or among the Partnership and its
Restricted Subsidiaries;
(3)
an issuance or sale of Equity Interests by a Restricted Subsidiary
to the Partnership or to another Restricted Subsidiary of the
Partnership;
(4)
a Restricted Payment that is permitted under Section 4.08
hereof or a Permitted Investment;
(5)
the sale or other disposition of cash or Cash Equivalents, Hedging
Obligations or other financial instruments in the ordinary course
of business;
(6)
any trade or exchange by the Partnership or any of its Restricted
Subsidiaries of properties or assets for properties or assets owned
or held by another Person, provided that the fair market value of
the properties or assets traded or exchanged by the Partnership or
such Restricted Subsidiary (together with any cash) is reasonably
equivalent to the fair market value of the properties or assets
(together with any cash) to be received by the Partnership or such
Restricted Subsidiary, and provided further that any cash received
must be applied in accordance with the provisions of
Section 4.07 hereof;
2
(7)
surrender or waiver of contract rights or the settlement, release
or surrender of contract, tort or other claims of any
kind;
(8)
the creation or perfection of a Lien that is not prohibited by
Section 4.10;
(9)
dispositions in connection with Permitted Liens; and
(10)
the grant in the ordinary course of business of any non-exclusive
license of patents, trademarks, registrations therefor and other
similar intellectual property.
“ Attributable Debt ” in
respect of a sale and lease-back transaction means, at the time of
determination, the present value of the obligation of the lessee
for net rental payments during the remaining term of the lease
included in such sale and lease-back transaction, including any
period for which such lease has been extended or may, at the option
of the lessor, be extended. Such present value shall be
calculated using a discount rate equal to the rate of interest
implicit in such transaction, determined in accordance with
GAAP.
“ Available Cash ” has the
meaning assigned to such term in the Partnership Agreement, as in
effect on the Issue Date.
“ Bankruptcy Law ” means
Title 11, U.S. Code or any similar federal or state law for the
relief of debtors.
“ Beneficial Owner ”
has the meaning assigned to such term in Rule 13d-3 and
Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular “person” (as
that term is used in Section 13(d)(3) of the Exchange
Act), such “person” will be deemed to have beneficial
ownership of all securities that such “person” has the
right to acquire by conversion or exercise of other securities,
whether such right is currently exercisable or is exercisable only
upon the occurrence of a subsequent condition. The terms
“Beneficially Owns” and “Beneficially
Owned” have correlative meanings.
“ Board of Directors ”
means, with respect to the Partnership, the Board of Directors of
the General Partner, or any authorized committee of such Board of
Directors, and with respect to MarkWest Finance or any other
Subsidiary of the Partnership, the Board of Directors or managing
members of such Person.
“ Board Resolution ” means a
copy of a resolution certified by the Secretary or an Assistant
Secretary of the applicable Person to have been duly adopted by the
Board of Directors of such Person and to be in full force and
effect on the date of such certification, and delivered to the
Trustee.
“ Business Day ” means any
day other than a Legal Holiday.
“ Capital Lease Obligation ”
means, at the time any determination thereof is to be made, the
amount of the liability in respect of a capital lease that would at
that time be required to be capitalized on a balance sheet in
accordance with GAAP.
3
“ Cash Equivalents ”
means:
(1)
United States dollars or, in an amount up to the amount necessary
or appropriate to fund local operating expenses, other
currencies;
(2)
securities issued or directly and fully guaranteed or insured by
the United States government or any agency or instrumentality
thereof (provided that the full faith and credit of the United
States is pledged in support thereof) having maturities of not more
than one year from the date of acquisition;
(3)
certificates of deposit, time deposits and eurodollar time deposits
with maturities of one year or less from the date of acquisition,
bankers’ acceptances with maturities not exceeding 365 days,
demand and overnight bank deposits and other similar types of
investments routinely offered by commercial banks, in each case,
with any domestic commercial bank having a combined capital and
surplus in excess of $500.0 million and a Thomson BankWatch Rating
of “B” or better or any commercial bank of any other
country that is a member of the Organization for Economic
Cooperation and Development (“OECD”) and has total
assets in excess of $500.0 million;
(4)
repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses
(2) and (3) above entered into with any financial
institution meeting the qualifications specified in clause
(3) above;
(5)
commercial paper having one of the two highest ratings obtainable
from Moody’s or Standard & Poor’s and in each
case maturing within six months after the date of acquisition;
and
(6)
money market funds at least 95% of the assets of which constitute
Cash Equivalents of the kinds described in clauses (1) through
(5) of this definition.
“ Certificated Note ” means
a certificated Note registered in the name of the Holder thereof
and issued in accordance with Section 2.06 hereof, in the form
of Exhibit A hereto, except that such Note shall not bear the
Global Note Legend, shall not have the phrase identified by
footnote 3 thereto and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached
thereto.
“ Change of Control ” means
the occurrence of any of the following:
(1)
the direct or indirect sale, lease, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of
the properties or assets (including Equity Interests of the
Restricted Subsidiaries) of the Partnership and its Restricted
Subsidiaries taken as a whole, to any “person” (as that
term is used in Section 13(d)(3) of the Exchange
Act);
(2)
the adoption of a plan relating to the liquidation or dissolution
of the Partnership or the removal of the General Partner by the
limited partners of the Partnership;
4
(3)
the consummation of any transaction (including, without limitation,
any merger or consolidation) the result of which is that any
“person” (as that term is used in
Section 13(d)(3) of the Exchange Act), excluding the
MarkWest Hydrocarbon Group, becomes the Beneficial Owner, directly
or indirectly, of more than 50% of the Voting Stock of the General
Partner, measured by voting power rather than number of
shares;
(4)
the consummation of any transaction (including, without limitation,
any merger or consolidation) the result of which is that any
“person” (as that term is used in
Section 13(d)(3) of the Exchange Act), excluding the
Persons referred to in clause (1) of the definition of
“MarkWest Hydrocarbon Group,” becomes the Beneficial
Owner, directly or indirectly, of more than 50% of the Voting Stock
of the Partnership, measured by voting power rather than number of
shares, at a time when the Partnership still Beneficially Owns more
than 50% of the Voting Stock of the General Partner, measured by
voting power rather than number of shares; or
(5)
the first day on which a majority of the members of the Board of
Directors of the General Partner are not Continuing
Directors.
Notwithstanding the preceding, a conversion of
the Partnership from a limited partnership to a corporation,
limited liability company or other form of entity or an exchange of
all of the outstanding limited partnership interests for capital
stock in a corporation, for member interests in a limited liability
company or for Equity Interests in such other form of entity shall
not constitute a Change of Control, so long as following such
conversion or exchange the MarkWest Hydrocarbon Group Beneficially
Owns, directly or indirectly, in the aggregate more than 50% of the
Voting Stock of such entity, or continues to Beneficially Own a
sufficient percentage of Voting Stock of such entity to elect a
majority of its directors, managers, trustees or other persons
serving in a similar capacity for such entity.
“ Clearstream ” means
Clearstream Banking, S.A. or any successor securities clearing
agency.
“ Code ” means the Internal
Revenue Code of 1986, as amended from time to time, and the
rules and regulations thereunder, and any successor
thereto.
“ Consolidated Cash Flow ”
means, with respect to any Person for any period, the Consolidated
Net Income of such Person for such period plus:
(1)
an amount equal to any net loss realized by such Person and its
Restricted Subsidiaries in connection with an Asset Sale, to the
extent such losses were deducted in computing such Consolidated Net
Income; plus
(2)
provision for taxes based on income or profits of such Person and
its Restricted Subsidiaries for such period, to the extent that
such provision for taxes was deducted in computing such
Consolidated Net Income; plus
(3)
the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued (including,
without limitation, amortization of debt issuance costs and
original issue discount, non-cash interest
5
payments, the interest
component of any deferred payment obligations, the interest
component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in
respect of letter of credit or bankers’ acceptance
financings, and net of the effect of all payments made or received
pursuant to interest-rate Hedging Obligations), to the extent that
any such expense was deducted in computing such Consolidated Net
Income; plus
(4)
depreciation, depletion and amortization (including amortization of
goodwill and other intangibles but excluding amortization of
prepaid cash expenses that were paid in a prior period) and other
non-cash expenses (excluding any such non-cash expense to the
extent that it represents an accrual of or reserve for cash
expenses in any future period or amortization of a prepaid cash
expense that was paid in a prior period) of such Person and its
Restricted Subsidiaries for such period to the extent that such
depreciation, depletion, amortization, impairment and other
non-cash expenses were deducted in computing such Consolidated Net
Income; plus
(5)
unrealized non-cash losses resulting from foreign currency balance
sheet adjustments required by GAAP to the extent such losses are
deducted in computing such Consolidated Net Income; plus
(6)
all extraordinary, unusual or non-recurring items of gain or loss,
or revenue or expense; minus
(7)
non-cash items increasing such Consolidated Net Income for such
period, other than items that were accrued in the ordinary course
of business, in each case, on a consolidated basis and determined
in accordance with GAAP.
Notwithstanding the preceding, the provision
for taxes based on the income or profits of, and the depreciation,
depletion and amortization and other non-cash charges of, a
Restricted Subsidiary of the Partnership shall be added to
Consolidated Net Income to compute Consolidated Cash Flow of the
Partnership only to the extent that a corresponding amount would be
permitted at the date of determination to be dividended or
distributed to the Partnership by such Restricted Subsidiary
without prior approval (that has not been obtained), pursuant to
the terms of its charter and all agreements (other than this
Indenture, the Notes or its Guarantee), instruments, judgments,
decrees, orders, statutes, rules and governmental regulations
applicable to that Restricted Subsidiary or its stockholders,
partners or members.
“ Consolidated Net Income ”
means, with respect to any specified Person for any period, the
aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined
in accordance with GAAP; provided that:
(1)
Net Income (but not loss) of any Person that is not a Restricted
Subsidiary or that is accounted for by the equity method of
accounting will be included, but only to the extent of the amount
of dividends or distributions paid in cash to the specified Person
or a Restricted Subsidiary of the Person;
6
(2)
the Net Income of any Restricted Subsidiary shall be excluded to
the extent that the declaration or payment of dividends or similar
distributions by that Restricted Subsidiary of that Net Income is
not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or
indirectly, by operation of the terms of its charter or any
agreement (other than this Indenture, the Notes or its Guarantee),
instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or
its stockholders, partners or members;
(3)
the cumulative effect of a change in accounting principles shall be
excluded;
(4)
unrealized losses and gains under derivative instruments included
in the determination of Consolidated Net Income, including, without
limitation, those resulting from the application of Statement of
Financial Accounting Standards No. 133, shall be excluded;
and
(5)
any nonrecurring charges relating to any premium or penalty paid,
write off of deferred finance costs or other charges in connection
with redeeming or retiring any Indebtedness prior to it Stated
Maturity shall be excluded.
“ Consolidated Net Tangible Assets
” means, with respect to any Person at any date of
determination, the aggregate amount of total assets included in
such Person’s most recent quarterly or annual consolidated
balance sheet prepared in accordance with GAAP less applicable
reserves reflected in such balance sheet, after deducting the
following amounts: (1) all current liabilities reflected in
such balance sheet, and (2) all goodwill, trademarks, patents,
unamortized debt discounts and expenses and other like intangibles
reflected in such balance sheet.
“ Continuing Directors
” means, as of any date of determination, any member
of the Board of Directors of the General Partner who (1) was a
member of such Board of Directors on the Issue Date or (2) was
nominated for election or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were
members of such Board at the time of such nomination or
election.
“ Corporate Trust Office of the
Trustee ” shall be at the address of the Trustee
specified in Section 12.02 hereof or such other address as to
which the Trustee may give notice to the Issuers.
“ Credit Agreement ” means
that certain Credit Agreement, dated February 20, 2008, among
the Partnership, the banks parties thereto and Royal Bank of
Canada, as administrative agent, consisting of a revolver loan and
a term loan, including any related notes, guarantees, collateral
documents, instruments and agreements executed in connection
therewith, and in each case as amended, restated, modified,
renewed, refunded, replaced or refinanced in whole or in part from
time to time.
“ Credit Facilities ” means,
with respect to the Partnership, MarkWest Finance or any Restricted
Subsidiary, one or more credit facilities or commercial paper
facilities, including the Credit Agreement, providing for revolving
credit loans, term loans, receivables financing
7
(including through the sale of receivables to
lenders or to special purpose entities formed to borrow from
lenders against such receivables) or letters of credit, in each
case, as amended, restated, modified, renewed, refunded, replaced
or refinanced in whole or in part from time to time.
“ Default ” means any event
that is or with the passage of time or the giving of notice or both
would be, an Event of Default.
“ Depositary ” means, with
respect to the Notes issuable or issued in whole or in part in
global form, the Person specified in Section 2.03 hereof as
the Depositary with respect to the Notes, and any and all
successors thereto appointed as depositary hereunder and having
become such pursuant to the applicable provision of this
Indenture.
“ Disqualified Equity ”
means any Equity Interest that, by its terms (or by the terms of
any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder thereof), or
upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder thereof, in whole or in
part, on or prior to the date that is 91 days after the date on
which the Notes mature. Notwithstanding the preceding
sentence, any Equity Interest that would constitute Disqualified
Equity solely because the holders thereof have the right to require
the Partnership or any of its Restricted Subsidiaries to repurchase
such Equity Interests upon the occurrence of a change of control or
an asset sale shall not constitute Disqualified Equity if the terms
of such Equity Interests provide that the Partnership or Restricted
Subsidiary may not repurchase or redeem any such Equity Interests
pursuant to such provisions unless such repurchase or redemption is
conditioned upon, and subject to, compliance with Section 4.08
hereof.
“ Distribution Compliance Period
” means the 40-day distribution compliance period as defined
in Regulation S.
“ Equity Interests ”
means:
(1)
in the case of a corporation, corporate stock;
(2)
in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents
(however designated) of corporate stock;
(3)
in the case of a partnership or limited liability company,
partnership or membership interests (whether general or
limited);
(4)
any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person; and
(5)
all warrants, options or other rights to acquire any of the
interests described in clauses (1) through (4) above (but
excluding any debt security that is convertible into, or
exchangeable for, any of the interests described in clauses
(1) through (4) above).
8
“ Equity Offering ”
means any public or private sale for cash of Equity Interests of
the Partnership (excluding sales made to any Restricted Subsidiary
and excluding sales of Disqualified Equity) after the Issue Date;
provided that a private placement of Equity Interests will not be
deemed an Equity Offering unless net cash proceeds of at least
$10.0 million are received.
“ Euroclear ” means the
Euroclear System or any successor securities clearing
agency.
“ Exchange Act ” means the
Securities Exchange Act of 1934, as amended.
“ Exchange Notes ” means the
8¾% Series B Senior Notes due 2018, having terms
substantially identical to the Series A Notes, offered to the
Holders of the Series A Notes under an Exchange Offer
Registration Statement.
“ Exchange Offer ” means an
offer that may be made by the Issuers pursuant to a Registration
Rights Agreement to the Holders of the Series A Notes to
exchange their Series A Notes for a like aggregate principal
amount of the Exchange Notes registered under the Securities
Act.
“ Exchange Offer Registration
Statement ” means a registration statement filed by the
Issuers and the Subsidiary Guarantors with the SEC to register the
Exchange Notes for issuance in an Exchange Offer.
“ Existing Indebtedness ”
means the aggregate principal amount of Indebtedness of the
Partnership and its Restricted Subsidiaries in existence on the
Issue Date.
“ Fixed Charge Coverage Ratio
” means, with respect to any specified Person for any
four-quarter reference period, the ratio of the Consolidated Cash
Flow of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the specified
Person or any of its Restricted Subsidiaries incurs, assumes,
guarantees, repays or redeems any Indebtedness (other than
revolving credit borrowings not constituting a permanent commitment
reduction) or issues or redeems Disqualified Equity subsequent to
the commencement of the period for which the Fixed Charge Coverage
Ratio is being calculated but prior to the date on which the event
for which the calculation of the Fixed Charge Coverage Ratio is
made (the “Calculation Date”), then the Fixed Charge
Coverage Ratio shall be calculated giving pro forma effect to such
incurrence, assumption, guarantee, repayment or redemption of
Indebtedness, or such issuance or redemption of Disqualified
Equity, and the application of the net proceeds thereof as if the
same had occurred at the beginning of the applicable four-quarter
reference period.
In
addition, for purposes of calculating the Fixed Charge Coverage
Ratio:
(1)
acquisitions that have been made by the specified Person or any of
its Restricted Subsidiaries, including through mergers,
consolidations or otherwise (including acquisitions of assets used
in a Permitted Business), and including in each case any related
financing transactions (including repayment of Indebtedness) during
the four-quarter reference period or subsequent to such reference
period and on or prior to the Calculation Date will be given pro
forma effect as if they had occurred on the first day of
9
the four-quarter
reference period, including any Consolidated Cash Flow and any pro
forma expense and cost reductions that have occurred or are
reasonably expected to occur, in the reasonable judgment of the
chief financial or accounting officer of the Partnership
(regardless of whether those cost savings or operating improvements
could then be reflected in pro forma financial statements in
accordance with Regulation S-X promulgated under the Securities Act
or any other regulation or policy of the SEC related
thereto);
(2)
the Consolidated Cash Flow attributable to discontinued operations,
as determined in accordance with GAAP, and operations or businesses
disposed of prior to the Calculation Date, shall be
excluded;
(3)
the Fixed Charges attributable to discontinued operations, as
determined in accordance with GAAP, and operations or businesses
disposed of prior to the Calculation Date, shall be excluded, but
only to the extent that the obligations giving rise to such Fixed
Charges will not be obligations of the specified Person or any of
its Restricted Subsidiaries following the Calculation
Date;
(4)
interest on outstanding Indebtedness of the specified Person or any
of its Restricted Subsidiaries as of the last day of the
four-quarter reference period shall be deemed to have accrued at a
fixed rate per annum equal to the rate of interest on such
Indebtedness in effect on such last day after giving effect to any
Hedging Obligation then in effect; and
(5)
if interest on any Indebtedness incurred by the specified Person or
any of its Restricted Subsidiaries on such date may optionally be
determined at an interest rate based upon a factor of a prime or
similar rate, a eurocurrency interbank offered rate or other rates,
then the interest rate in effect on the last day of the
four-quarter reference period will be deemed to have been in effect
during such period.
“ Fixed Charges ” means,
with respect to any Person for any period, the sum, without
duplication, of:
(1)
the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued, including,
without limitation, amortization of debt issuance costs and
original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest
component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts, and other fees and charges incurred in
respect of letter of credit or bankers’ acceptance
financings, and net of the effect of all payments made or received
pursuant to interest-rate Hedging Obligations; plus
(2)
the consolidated interest expense of such Person and its Restricted
Subsidiaries that was capitalized during such period;
plus
(3)
any interest expense on Indebtedness of another Person that is
guaranteed by such Person or one of its Restricted Subsidiaries or
secured by a Lien on assets of such
10
Person or one of its
Restricted Subsidiaries, whether or not such guarantee or Lien is
called upon; plus
(4)
all dividend payments, whether paid or accrued and whether or not
in cash, on any series of Disqualified Equity of such Person or any
of its Restricted Subsidiaries, other than dividend payments on
Equity Interests payable solely in Equity Interests of the
Partnership (other than Disqualified Equity) or to the Partnership
or a Restricted Subsidiary of the Partnership;
in
each case, on a consolidated basis and in accordance with
GAAP.
“ GAAP ” means generally
accepted accounting principles in the United States, which are in
effect from time to time.
“ General Partner ” means
MarkWest Energy GP, L.L.C., a Delaware limited liability company,
and its successors and permitted assigns as general partner of the
Partnership.
“ Global Note Legend ” means
the legend set forth in Section 2.06(g)(ii), which is required
to be placed on all Global Notes issued under this
Indenture.
“ Global Notes ” means,
individually and collectively, each of the Restricted Global Notes
and the Unrestricted Global Notes, in the form of Exhibit A
hereto issued in accordance with Section 2.01, 2.06(b) or
2.06(f) hereof.
The
term “ guarantee ” means a guarantee, other than
by endorsement of negotiable instruments for collection in the
ordinary course of business, direct or indirect, in any manner,
including, without limitation, by way of a pledge of assets, or
through letters of credit or reimbursement,
“claw-back,” “make-well,” or
“keep-well” agreements in respect thereof, of all or
any part of any Indebtedness. The term
“guarantee” used as a verb has a corresponding
meaning. The term “guarantor” shall mean any
Person providing a guarantee of any obligation.
“ Guarantee ” means,
individually and collectively, the guarantees given by the
Subsidiary Guarantors pursuant to Article 10 hereof, including
a notation in the Notes substantially in the form attached hereto
as Exhibit D.
“ Guarantee Obligations ”
means, with respect to each Subsidiary Guarantor, the obligations
of such Guarantor under Article 10.
“ Guarantor Subordinated
Obligation ” means, with respect to a Subsidiary
Guarantor, any Indebtedness or other Obligations of such Subsidiary
Guarantor (whether outstanding on the Issue Date or thereafter
incurred) which are expressly subordinate in right of payment to
the Obligations of such Subsidiary Guarantor under its Guarantee
pursuant to a written agreement.
“ Hedging Obligations ”
means, with respect to any Person, the obligations of such Person
under interest rate and commodity price swap agreements, interest
rate and commodity price cap agreements, interest rate and
commodity price collar agreements and foreign currency and
commodity price exchange agreements, options or futures contracts
or other similar agreements or arrangements or Hydrocarbon hedge
contracts or Hydrocarbon forward sales contracts, in
11
each case designed to protect such Person
against fluctuations in interest rates, foreign exchange rates, or
commodities prices.
“ Holder ” means the Person
in whose name a Note is registered on the Registrar’s
books.
“ Hydrocarbons ” means crude
oil, natural gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons
and all constituents, elements or compounds thereof and products
refined or processed therefrom.
“ IAI Global Note ” means
the Global Note in the form of Exhibit A hereto bearing the
Global Note Legend and the Private Placement Legend and that has
the “Schedule of Exchange of Interests in the Global
Note” attached thereto and deposited with and registered in
the name of the Depositary or its nominee that will be issued in a
denomination equal to the outstanding principal amount of the Notes
transferred to Institutional Accredited Investors in accordance
with 2.06(b)(iii)(C), subject to adjustment as provided in
Section 2.06 hereof.
“ Indebtedness ” means, with
respect to any specified Person, any indebtedness of such Person,
whether or not contingent:
(1)
in respect of borrowed money;
(2)
evidenced by bonds, notes, debentures or similar instruments or
letters of credit (or reimbursement agreements in respect
thereof);
(3)
in respect of bankers’ acceptances;
(4)
representing Capital Lease Obligations;
(5)
representing all Attributable Debt of such Person in respect of any
sale and lease-back transactions not involving a Capital Lease
Obligation;
(6)
representing the balance deferred and unpaid of the purchase price
of any property, except any such balance that constitutes an
accrued expense or trade payable incurred in the ordinary course of
business;
(7)
representing Disqualified Equity; or
(8)
representing any Hedging Obligations;
if
and to the extent any of the preceding items (other than the item
referred to in clause (5), letters of credit, Disqualified Equity
and Hedging Obligations) would appear as a liability upon a balance
sheet of the specified Person prepared in accordance with
GAAP. In addition, the term “Indebtedness”
includes all Indebtedness of others secured by a Lien on any asset
of the specified Person (whether or not such Indebtedness is
assumed by the specified Person) and, to the extent not otherwise
included, the guarantee by such Person of any Indebtedness of any
other Person, provided that a guarantee otherwise permitted by this
Indenture to be incurred by the Partnership or any of its
Restricted Subsidiaries of Indebtedness incurred by the Partnership
or a
12
Restricted Subsidiary in compliance with the
terms of this Indenture shall not constitute a separate incurrence
of Indebtedness.
The
amount of any Indebtedness outstanding as of any date shall
be:
(1)
the accreted value thereof, in the case of any Indebtedness issued
with original issue discount;
(2)
in the case of any Hedging Obligation, the termination value of the
agreement or arrangement giving rise to such Hedging Obligation
that would be payable by such Person at such date;
(3)
in the case of any letter of credit, the maximum potential
liability thereunder; and
(4)
the principal amount thereof, together with any interest thereon
that is more than 30 days past due, in the case of any other
Indebtedness.
For
purposes of clause (7) of the first paragraph of this
definition, Disqualified Equity shall be valued at the maximum
fixed redemption, repayment or repurchase price, which shall be
calculated in accordance with the terms of such Disqualified Equity
as if such Disqualified Equity were repurchased on any date on
which Indebtedness shall be required to be determined pursuant to
this Indenture; provided, however, that if such Disqualified Equity
is not then permitted by its terms to be redeemed, repaid or
repurchased, the redemption, repayment or repurchase price shall be
the book value of such Disqualified Equity. The amount of
Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional Obligations as described
above and the maximum liability of any guarantees at such date;
provided that for purposes of calculating the amount of any
non-interest bearing or other discount security, such Indebtedness
shall be deemed to be the principal amount thereof that would be
shown on the balance sheet of the issuer thereof dated such date
prepared in accordance with GAAP, but that such security shall be
deemed to have been incurred only on the date of the original
issuance thereof.
“ Indenture ” means this
Indenture, as amended or supplemented from time to time.
“ Indirect Participant ”
means a Person who holds a beneficial interest in a Global Note
through a Participant.
“ Initial Purchasers ” means
J.P. Morgan Securities Inc., RBC Capital Markets Corporation,
Wachovia Capital Markets, LLC, Banc of America Securities LLC,
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.,
Fortis Securities LLC and SunTrust Capital
Markets, Inc.
“ Institutional Accredited
Investor ” means an institution that is an
“accredited investor” as defined in
Rule 501(a)(1), (2), (3) or (7) of the rules and
regulations promulgated under the Securities Act.
“ Interest Payment Date ”
means Stated Maturity of an installment of interest on the
Notes.
13
“ Investment Grade Rating ”
means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by Standard &
Poor’s.
“ Investments ”
means, with respect to any Person, all investments by such Person
in other Persons (including Affiliates) in the forms of direct or
indirect loans (including guarantees of Indebtedness or other
Obligations), advances (other than advances to customers in the
ordinary course of business that are recorded as accounts
receivable on the balance sheet of the lender and commission,
moving, travel and similar advances to officers and employees made
in the ordinary course of business) or capital contributions,
purchases or other acquisitions for consideration of Indebtedness,
Equity Interests or other securities, together with all items that
are or would be classified as investments on a balance sheet
prepared in accordance with GAAP. For purposes of the
definition of “Unrestricted Subsidiary,” the definition
of “Restricted Payment” and the covenant in
Section 4.08 hereof, (1) the term
“Investment” shall include the portion (proportionate
to the Partnership’s Equity Interest in such Subsidiary) of
the fair market value of the net assets of any Subsidiary of the
Partnership or any of its Restricted Subsidiaries at the time that
such Subsidiary is designated an Unrestricted Subsidiary; provided,
however, that upon a redesignation of such Subsidiary as a
Restricted Subsidiary, the Partnership or such Restricted
Subsidiary shall be deemed to continue to have a permanent
“Investment” in such Subsidiary at the time immediately
before the effectiveness of such redesignation less the portion
(proportionate to the Partnership’s or such Restricted
Subsidiary’s Equity Interest in such Subsidiary) of the fair
market value of the net assets of such Subsidiary at the time of
such redesignation, and (2) any property transferred to or
from an Unrestricted Subsidiary shall be valued at its fair market
value at the time of such transfer, in each case as determined in
good faith by the Board of Directors of the General Partner.
If the Partnership or any Restricted Subsidiary of the Partnership
sells or otherwise disposes of any Equity Interests of any direct
or indirect Restricted Subsidiary of the Partnership such that,
after giving effect to any such sale or disposition, such Person is
no longer a Restricted Subsidiary of the Partnership, the
Partnership shall be deemed to have made an Investment on the date
of any such sale or disposition equal to the fair market value of
the Equity Interests of such Restricted Subsidiary not sold or
disposed of in an amount determined as provided in the last
paragraph of Section 4.08(b) hereof.
“ Issue Date ” means
April 15, 2008.
“ Issuers ” means the
Partnership and MarkWest Finance, collectively;
“Issuer” means the Partnership or MarkWest
Finance.
“ Joint Venture ” means any
Person that is not a direct or indirect Subsidiary of the
Partnership in which the Partnership or any of its Restricted
Subsidiaries makes any Investment.
“ Legal Holiday ” means a
Saturday, a Sunday or a day on which banking institutions in the
City of Denver, Colorado, Dallas, Texas or New York, New York or at
a place of payment are authorized by law, regulation or executive
order to remain closed. If a payment date is a Legal Holiday
at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period.
14
“ Letter of Transmittal ”
means the letter of transmittal to be prepared by the Issuers and
sent to all Holders of the Series A Notes for use by such
Holders in connection with an Exchange Offer.
“ Lien ” means, with respect
to any asset, any mortgage, lien (statutory or otherwise), pledge,
charge, security interest, hypothecation, assignment for security,
claim, preference, priority or encumbrance of any kind in respect
of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or
other title retention agreement or any lease in the nature thereof,
any option or other agreement to grant a security interest in and
any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statute) of any
jurisdiction other than a precautionary financing statement
respecting a lease not intended as a security agreement.
“ Make Whole Amount ” means,
with respect to any Note at any redemption date, the excess, if
any, of (1) an amount equal to the present value of
(a) the redemption price of such Note at April 15, 2013
plus (b) the remaining scheduled interest payments on the
Notes to be redeemed (subject to the right of Holders on the
relevant record date to receive interest due on the relevant
Interest Payment Date) to April 15, 2013 (other than interest
accrued to the redemption date), computed using a discount rate
equal to the Treasury Rate plus 50 basis points, over (2) the
aggregate principal amount of the Notes to be redeemed.
“ MarkWest Finance ” means
the Person named as such in the preamble of this Indenture under
and until a successor replaces it pursuant to the applicable
provision of this Indenture and thereafter means such
successor.
“ MarkWest Hydrocarbon ”
means MarkWest Hydrocarbon, Inc., a Delaware corporation, and
its successors.
“ MarkWest Hydrocarbon Group
” means, collectively, (1) John M. Fox and any of his
Affiliates, (2) MarkWest Hydrocarbon, (3) the Partnership
and (4) each Person which is a direct or indirect Subsidiary
of the Partnership.
“ Moody’s ” means
Moody’s Investors Service, Inc. or any successor to the
rating agency business thereof.
“ Net Income ” means, with
respect to any Person, the consolidated net income (loss) of such
Person and its Restricted Subsidiaries, determined in accordance
with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however:
(1)
the aggregate gain (but not loss in excess of such aggregate gain),
together with any related provision for taxes on such gain,
realized in connection with:
(a)
any Asset Sale; or
(b)
the disposition of any securities by such Person or any of its
Restricted Subsidiaries or the extinguishment of any Indebtedness
of such Person or any of its Restricted Subsidiaries; and
15
(2)
any extraordinary gain (but not loss), together with any related
provision for taxes on such extraordinary gain (but not
loss).
“ Net Proceeds ” means, with
respect to any Asset Sale or sale of Equity Interests, the
aggregate proceeds received by the Partnership or any of its
Restricted Subsidiaries in cash or Cash Equivalents in respect of
any Asset Sale or sale of Equity Interests (including, without
limitation, any cash received upon the sale or other disposition of
any non-cash consideration received in any such sale), net of,
without duplication, (1) the direct costs relating to such
Asset Sale or sale of Equity Interests, including, without
limitation, brokerage commissions and legal, accounting and
investment banking fees, sales commissions, recording fees, title
transfer fees and any relocation expenses incurred as a result
thereof, (2) taxes paid or payable as a result thereof, in
each case after taking into account any available tax credits or
deductions and any tax sharing arrangements and amounts required to
be applied to the repayment of Indebtedness secured by a Lien on
the asset or Equity Interests that were the subject of such Asset
Sale or sale of Equity Interests, (3) all distributions and
payments required to be made to minority interest holders in
Restricted Subsidiaries as a result of such Asset Sale and
(4) any amounts to be set aside in any reserve established in
accordance with GAAP or any amount placed in escrow, in either case
for adjustment in respect of the sale price of such asset or Equity
Interests or for liabilities associated with such Asset Sale or
sale of Equity Interests and retained by the Partnership or any of
its Restricted Subsidiaries until such time as such reserve is
reversed or such escrow arrangement is terminated, in which case
Net Proceeds shall include only the amount of the reserve so
reversed or the amount returned to the Partnership or its
Restricted Subsidiaries from such escrow arrangement, as the case
may be.
“ Non-Recourse Debt ” means
Indebtedness as to which:
(1)
neither the Partnership nor any of its Restricted Subsidiaries
(a) provides credit support of any kind (including any
undertaking, agreement or instrument that would constitute
Indebtedness), (b) is directly or indirectly liable as a
guarantor or otherwise, or (c) constitutes the lender of such
Indebtedness;
(2)
no default with respect to which (including any rights that the
holders thereof may have to take enforcement action against an
Unrestricted Subsidiary) would permit upon notice, lapse of time or
both any holder of any other Indebtedness (other than the Notes) of
the Partnership or any of its Restricted Subsidiaries to declare a
default on such other Indebtedness or cause the payment thereof to
be accelerated or payable prior to its Stated Maturity;
and
(3)
the lenders have been notified in writing that they will not have
any recourse to the stock or assets of the Partnership or any of
its Restricted Subsidiaries, except as contemplated by clause (15)
of the definition of “Permitted Liens.”
“ Non-U.S. Person ” means a
person who is not a U.S. Person.
“ Note Custodian ” means the
Trustee, as custodian with respect to the Notes in global form, or
any successor entity thereto.
“ Notes ” has the meaning
assigned to it in the preamble to this Indenture.
16
“ Obligations ” means any
principal, interest, penalties, fees, indemnifications,
reimbursement obligations, damages and other liabilities payable
under the documentation governing any Indebtedness.
“ Offering ” means the
offering of the Series A Notes by the Issuers pursuant to the
Offering Memorandum.
“ Offering Memorandum ”
means the offering memorandum of the Issuers dated
April 10, 2008 relating to the Offering.
“ Officer ” means, with
respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the Chief Accounting Officer, the
Treasurer, any Assistant Treasurer, the Controller, the Secretary
or any Vice-President of such Person (or, with respect to the
Partnership, so long as it remains a partnership, the General
Partner).
“ Officers’ Certificate
” means a certificate signed on behalf of each of the
Partnership and MarkWest Finance by two of its Officers, one of
whom must be the principal executive officer, the principal
financial officer or the principal accounting officer of such
Person, that meets the requirements of Section 12.05
hereof.
“ Operating Company ” means
MarkWest Energy Operating Company, L.L.C., a Delaware limited
liability company, and its successors.
“ Operating Surplus ” shall
have the meaning assigned to such term in the Partnership
Agreement, as in effect on the Issue Date.
“ Opinion of Counsel ” means
an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05
hereof. The counsel may be an employee of or counsel to the
Partnership, MarkWest Finance or the General Partner (or any
Subsidiary Guarantor, if applicable), any Subsidiary of the
Partnership or the Trustee.
“ Participant ” means, with
respect to DTC, Euroclear or Clearstream, a Person who has an
account with DTC, Euroclear or Clearstream, respectively (and, with
respect to DTC, shall include Euroclear and
Clearstream).
“ Participating Broker-Dealer
” has the meaning set forth in the Registration Rights
Agreement relating to the Series A Notes issued on the Issue
Date.
“ Partnership ” means the
Person named as such in the preamble of this Indenture unless and
until a successor replaces it pursuant to the applicable provisions
of this Indenture and thereafter means such successor.
“ Partnership Agreement ”
means the Third Amended and Restated Agreement of Limited
Partnership of MarkWest Energy Partners, L.P., dated as of
February 21, 2008, as such may be amended, modified or
supplemented from time to time.
17
“ Permitted Business
” means either (1) gathering, transporting,
treating, processing, marketing or otherwise handling Hydrocarbons,
or activities or services reasonably related or ancillary thereto
including entering into Hedging Obligations to support these
businesses, or (2) any other business that generates gross
income that constitutes “qualifying income” under
Section 7704(d) of the Code.
“ Permitted Business Investments
” means Investments by the Partnership or any of its
Restricted Subsidiaries in any Unrestricted Subsidiary of the
Partnership or in any Joint Venture, provided that:
(1)
either (a) at the time of such Investment and immediately
thereafter, the Partnership could incur $1.00 of additional
Indebtedness under Section 4.09(a) or (b) such
investment is made with the proceeds of Incremental
Funds;
(2)
if such Unrestricted Subsidiary or Joint Venture has outstanding
Indebtedness at the time of such Investment, either (a) all
such Indebtedness is Non-Recourse Debt with respect to the
Partnership and its Restricted Subsidiaries or (b) any other
Indebtedness of such Unrestricted Subsidiary or Joint Venture
could, at the time such Investment is made and, if later, at the
time any such Indebtedness is incurred, be incurred by the
Partnership and its Restricted Subsidiaries in accordance with the
limitation on Indebtedness set forth in Section 4.09(a);
and
(3)
such Unrestricted Subsidiary’s or Joint Venture’s
activities are not outside the scope of the Permitted
Business.
“ Permitted Investments ”
means:
(4)
any Investment in, or that results in the creation of, any
Restricted Subsidiary of the Partnership;
(5)
any Investment in the Partnership or in a Restricted Subsidiary of
the Partnership (excluding redemptions, purchases, acquisitions or
other retirements of Equity Interests in the
Partnership);
(6)
any Investment in cash or Cash Equivalents;
(7)
any Investment by the Partnership or any Restricted Subsidiary of
the Partnership in a Person if as a result of such
Investment:
(a)
such Person becomes a Restricted Subsidiary of the Partnership;
or
(b)
such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is
liquidated into, the Partnership or a Restricted Subsidiary of the
Partnership;
18
(8)
any Investment made as a result of the receipt of consideration
consisting of other than cash or Cash Equivalents from an Asset
Sale that was made pursuant to and in compliance with
Section 4.07;
(9)
any Investment in a Person solely in exchange for the issuance of
Equity Interests (other than Disqualified Equity) of the
Partnership;
(10)
Investments in stock, obligations or securities received in
settlement of debts owing to the Partnership or any of its
Restricted Subsidiaries as a result of bankruptcy or insolvency
proceedings or upon the foreclosure, perfection or enforcement of
any Lien in favor of the Partnership or any such Restricted
Subsidiary, in each case as to debt owing to the Partnership or any
such Restricted Subsidiary that arose in the ordinary course of
business of the Partnership or any such Restricted
Subsidiary;
(11)
any Investment in Hedging Obligations permitted to be incurred
under Section 4.09 hereof; and
(12)
other Investments in any Person engaged in a Permitted Business
(other than an Investment in an Unrestricted Subsidiary) having an
aggregate fair market value (measured on the date each such
Investment was made and without giving effect to subsequent changes
in value), when taken together with all other Investments made
pursuant to this clause (9) since the Issue Date and existing
at the time of the Investment, which is the subject of the
determination, was made, not to exceed the greater of
(a) $25.0 million and (b) 2.50% of Consolidated Net
Tangible Assets.
“ Permitted Liens ”
means:
(1)
Liens securing Indebtedness under any of the Credit
Facilities;
(2)
Liens in favor of the Partnership or any of its Restricted
Subsidiaries;
(3)
any interest or title of a lessor in the property subject to a
Capital Lease Obligation;
(4)
Liens on property of a Person existing at the time such Person is
merged with or into or consolidated with the Partnership or any
Restricted Subsidiary of the Partnership, provided that such Liens
were in existence prior to, and were not obtained in contemplation
of, such merger or consolidation and do not extend to any assets
other than those of the Person merged into or consolidated with the
Partnership or such Restricted Subsidiary; !
(5)
Liens on property existing at the time of acquisition thereof by
the Partnership or any Restricted Subsidiary of the Partnership,
provided that such Liens were in existence prior to, and were not
obtained in contemplation of, such acquisition and relate solely to
such property, accessions thereto and the proceeds
thereof;
19
(6)
Liens to secure the performance of tenders, bids, leases, statutory
obligations, surety or appeal bonds, government contracts,
performance bonds or other obligations of a like nature incurred in
the ordinary course of business;
(7)
Liens on any property or asset acquired, constructed or improved by
the Partnership or any Restricted Subsidiary, which (a) are in
favor of the seller of such property or assets, in favor of the
Person constructing or improving such asset or property, or in
favor of the Person that provided the funding for the acquisition,
construction or improvement of such asset or property, (b) are
created within 360 days after the date of acquisition, construction
or improvement, (c) secure the purchase price or construction
or improvement cost, as the case may be, of such asset or property
in an amount not to exceed the lesser of (i) the cost to the
Partnership and its Restricted Subsidiaries of such acquisition,
construction or improvement of such asset or property and
(ii) 100% of the fair market value (as determined by the Board
of Directors of the General Partner) of such acquisition,
construction or improvement of such asset or property, and
(d) are limited to the asset or property so acquired,
constructed or improved (including proceeds thereof, accessions
thereto and upgrades thereof);
(8)
Liens to secure performance of Hedging Obligations of the
Partnership or any Restricted Subsidiary;
(9)
Liens existing on the Issue Date and Liens in connection with any
extensions, refinancing, renewal, replacement or defeasance of any
Indebtedness or other obligation secured thereby, provided that
(a) the principal amount of the Indebtedness secured by such
Lien is not increased and (b) no assets are encumbered by any
such Lien other than the assets permitted to be encumbered
immediately prior to such extension, refinancing, renewal,
replacement or defeasance;
(10)
Liens on pipelines or pipeline facilities that arise by operation
of law;
(11)
Liens arising under operating agreements, joint venture agreements,
partnership agreements, oil and gas leases, farmout agreements,
division orders, contracts for sale, transportation or exchange of
oil and natural gas, unitization and pooling declarations and
agreements, area of mutual interest agreements and other agreements
arising in the ordinary course of the Partnership’s or any
Restricted Subsidiary’s business that are customary in the
Permitted Business;
(12)
Liens securing the Obligations of the Issuers under the Notes and
this Indenture and of the Subsidiary Guarantors under the
Guarantees;
(13)
Liens upon specific items of inventory or other goods and proceeds
of any Person securing such Person’s Obligations in respect
of bankers’ acceptances issued or created for the account of
such Person to facilitate the purchase, shipment or storage of such
inventory or other goods and permitted by Section 4.09
hereof;
(14)
Liens securing any Indebtedness equally and ratably with all
Obligations due under the Notes or any Guarantee pursuant to a
contractual covenant that limits liens in a manner substantially
similar to Section 4.10 hereof;
20
(15)
Liens on and pledges of the Equity Interests of any Unrestricted
Subsidiaries or any Joint Venture owned by the Partnership or any
Restricted Subsidiary of the Partnership to the extent securing
Non-Recourse Debt or other Indebtedness of such Unrestricted
Subsidiary or Joint Venture; and
(16)
Liens incurred in the ordinary course of business of the
Partnership or any Restricted Subsidiary of the Partnership,
provided that, after giving effect to any such incurrence, the
aggregate principal amount of all Indebtedness then outstanding and
secured by any Liens incurred pursuant to this clause (16) does not
exceed the greater of $25.0 million or 2.5% of the Consolidated Net
Tangible Assets of the Partnership.
After the termination of the covenants pursuant
to Section 4.19 hereof, for purposes of complying with
Section 4.10, the Liens described in clauses (1) and (16)
of this definition of “Permitted Liens” shall be
Permitted Liens only to the extent those Liens secure Indebtedness
not exceeding, at the time of determination, 10% of the
Consolidated Net Tangible Assets of the Partnership. Once
effective, this 10% limitation on Permitted Liens will continue to
apply during any later period in which the Notes do not have an
Investment Grade Rating from both Rating Agencies.
“ Permitted Refinancing
Indebtedness ” means any Indebtedness of the Partnership
or any of its Restricted Subsidiaries issued in exchange for, or
the net proceeds of which are used to extend, refinance, renew,
replace, defease or refund other Indebtedness of the Partnership or
any of its Restricted Subsidiaries (other than intercompany
Indebtedness); provided that:
(1)
the principal amount of such Permitted Refinancing Indebtedness
does not exceed the principal amount of, plus accrued interest on,
the Indebtedness so extended, refinanced, renewed, replaced,
defeased or refunded (plus the amount of necessary fees and
expenses incurred in connection therewith and any premiums paid on
the Indebtedness so extended, refinanced, renewed, replaced,
defeased or refunded);
(2)
such Permitted Refinancing Indebtedness has a final maturity date
no earlier than the final maturity date of, and has a Weighted
Average Life to Maturity equal to or greater than the Weighted
Average Life to Maturity of, the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded;
(3)
if the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded is subordinated in right of payment to the
Notes or the Guarantees, such Permitted Refinancing Indebtedness is
subordinated in right of payment to, the Notes or the Guarantees,
as the case may be, on terms at least as favorable to the Holders
of Notes as those contained in the documentation governing the
Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded; and
(4)
such Indebtedness is not incurred by a Restricted Subsidiary if the
Partnership is the obligor on the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded.
21
“ Person ” means any
individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited
liability company or government or any agency or political
subdivision thereof or any other entity.
“ Private Placement Legend ”
means the legend set forth in Section 2.06(g)(i) to be
placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.
“ QIB ” means a
“qualified institutional buyer” as defined in
Rule 144A.
“ Rating Agency ” means each
of Standard & Poor’s and Moody’s, or if
Standard & Poor’s or Moody’s or both shall not
make a rating on the Notes publicly available, a nationally
recognized statistical rating agency or agencies, as the case may
be, selected by the Issuers (as certified by a resolution of the
Board of Directors of the General Partner) which shall be
substituted for Standard & Poor’s or Moody’s,
or both, as the case may be.
“ Registrable Securities ”
has the meaning set forth in the Registration Rights Agreement
applicable to such Notes.
“ Registration Rights Agreement
” means (1) with respect to the Series A Notes
issued on the Issue Date that certain agreement among the Issuers,
the Subsidiary Guarantors and the Initial Purchasers requiring the
Issuers and the Subsidiary Guarantors to file an Exchange Offer
Registration Statement and a Shelf Registration Statement, a form
of which is attached to this Indenture as Annex B hereto, and
(2) any other registration rights agreement relating to any
additional Notes issued by the Issuers after the Issue Date
pursuant to Section 2.02.
“ Regulation S ” means
Regulation S promulgated by the SEC under the Securities
Act.
“ Regulation S Global Note ”
means a Global Note in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and that
has the “Schedule of Exchange of Interests in the Global
Note” attached thereto and deposited with or on behalf of and
registered in the name of the Depositary or its nominee, issued in
a denomination equal to the outstanding principal amount of the
Notes initially sold in reliance on Rule 903 of Regulation S,
subject to adjustment as provided in Section 2.06
hereof.
“ Reporting Default ” means
a Default described in Section 6.01(d) hereof.
“ Responsible Officer ,”
when used with respect to the Trustee, means the officer in the
Corporate Trust Department of the Trustee having direct
responsibility for administration of this Indenture.
“ Restricted Certificated Note
” means a Certificated Note bearing the Private Placement
Legend.
“ Restricted Global Note ”
means a Global Note bearing the Private Placement Legend and that
bears the Global Note Legend and that has the “Schedule of
Exchanges of Interests in the Global Note” attached
thereto.
22
“ Restricted Investment ”
means an Investment other than a Permitted Investment or a
Permitted Business Investment.
“ Restricted Subsidiary ” of
a Person means any Subsidiary of the referenced Person that is not
an Unrestricted Subsidiary. Notwithstanding anything in this
Indenture to the contrary, each of MarkWest Finance and the
Operating Company shall be a Restricted Subsidiary of the
Partnership.
“ Rule 144 ” means
Rule 144 promulgated by the SEC under the Securities
Act.
“ Rule 144A ” means
Rule 144A promulgated by the SEC under the Securities
Act.
“ Rule 903 ” means
Rule 903 of Regulation S promulgated by the SEC under the
Securities Act.
“ Rule 904 ” means
Rule 904 of Regulation S promulgated by the SEC under the
Securities Act.
“ SEC ” means the Securities
and Exchange Commission.
“ Securities Act ” means the
Securities Act of 1933, as amended.
“ Series A Notes ” has
the meaning set forth in the preamble of this Indenture.
“ Shelf Registration Statement
” means a shelf registration statement filed with the SEC by
the Issuers and the Subsidiary Guarantors in accordance with the
applicable Registration Rights Agreement to register resales of the
Series A Notes or the Exchange Notes.
“ Significant Subsidiary ”
means any Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of
Regulation S-X, promulgated pursuant to the Securities Act and the
Exchange Act, as such Regulation is in effect on the Issue
Date.
“ Standard & Poor’s
” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc., or any successor
to the rating agency business thereof.
“ Stated Maturity ” means,
with respect to any installment of interest or principal on any
series of Indebtedness, the date on which such payment of interest
or principal was scheduled to be paid in the original documentation
governing such Indebtedness, and shall not include any contingent
Obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment
thereof.
“ Subordinated Obligation ”
means any Indebtedness of the Partnership or MarkWest Finance
(whether outstanding on the Issue Date or thereafter incurred) that
is subordinate or junior in right of payment to the Notes pursuant
to a written agreement.
23
“ Subsidiary ” means, with
respect to any Person:
(1)
any corporation, association or other business entity (other than
an entity referred to in clause (2) below) of which more than
50% of the total Voting Stock is at the time owned or controlled,
directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person (or a combination thereof);
and
(2)
any partnership (whether general or limited), limited liability
company or joint venture (a) the sole general partner or
member of which is such Person or a Subsidiary of such Person, or
(b) if there is more than a single general partner or member,
either (i) the only general partners, members, managing
general partners or managing members of which are such Person or
one or more Subsidiaries of such Person (or any combination
thereof) or (ii) such Person owns or controls, directly or
indirectly, a majority of the outstanding general partner
interests, member interests or other Voting Stock of such
partnership, limited liability company or joint venture,
respectively.
“ Subsidiary Guarantors ”
means each of:
(1)
the Operating Company, MarkWest Hydrocarbon, the General Partner,
Basin Pipeline L.L.C., MarkWest Blackhawk, L.L.C., MarkWest Energy
Appalachia, L.L.C., MarkWest Energy East Texas Gas Company, L.L.C.,
MarkWest Gas Services, L.L.C., MarkWest Javelina Company, L.L.C.,
MarkWest Javelina Pipeline Company, L.L.C., MarkWest Michigan
Pipeline Company, L.L.C., MarkWest New Mexico, L.L.C., MarkWest
Pinnacle, L.L.C., MarkWest Pioneer, L.L.C., MarkWest Pipeline
Company, L.L.C., MarkWest PNG Utility, L.L.C., MarkWest Power Tex,
L.L.C., MarkWest Texas PNG Utility, L.L.C., MarkWest Oklahoma Gas
Company, L.L.C., Mason Pipeline Limited Liability Company, Matrex,
L.L.C., MarkWest Liberty Gas Gathering, L.L.C. and West Shore
Processing Company, L.L.C.; and
(2)
any other Subsidiary of the Partnership that becomes a Subsidiary
Guarantor in accordance with the provisions of Section 4.13
and Article 10 of this Indenture; and
(3)
their respective successors and assigns;
in
each case until such Subsidiary Guarantor ceases to be such in
accordance with this Indenture. Notwithstanding anything in
this Indenture to the contrary, MarkWest Finance shall not be a
Subsidiary Guarantor.
“ Tax Payment ” means any
payment of foreign, federal, state or local tax
liabilities.
“ TIA ” means the Trust
Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in
effect on the date on which this Indenture is qualified under the
TIA, except as provided in Section 9.03 hereof.
“ Treasury Rate ” means, at
the time of computation, the yield to maturity of United States
Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release
H.15(519) which has become publicly available at least
two
24
Business Days prior to the redemption date or,
if such Statistical Release is no longer published, any publicly
available source of similar market data) most nearly equal to the
period from the redemption date to April 15 ,
2013; provided, however , that if such period is not equal
to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the Treasury Rate shall be
obtained by linear interpolation (calculated to the nearest
one-twelfth of a year) from the weekly average yields of United
States Treasury securities for which such yields are given, except
that if the period from the redemption date to April 15, 2013
is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity
of one year shall be used. The Treasury Rate shall be
calculated on the third Business Day preceding the redemption
date. Any weekly average yields calculated by interpolation
shall be rounded to the nearest 1/100th of 1%, with any figure of
1/200th of 1% or above being rounded upward.
“ Trustee ” means the party
named as such in the preamble of this Indenture until a successor
replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving
hereunder.
“ U.S. Government Obligations
” means securities that are (1) direct Obligations of
the United States of America for the payment of which its full
faith and credit is pledged; (2) Obligations of a Person
controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of
which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case
under clauses (1) or (2) above, are not callable or
redeemable at the option of the issuers thereof; or
(3) depository receipts issued by a bank or trust company as
custodian with respect to any such U.S. Government Obligations or a
specific payment of interest on or principal of any such U.S.
Government Obligation held by such custodian for the account of the
holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the U.S.
Government Obligation evidenced by such depository
receipt.
“ U.S. Person ” means a U.S.
person as defined in Rule 902(k) of Regulation S
promulgated by the SEC under the Securities Act.
“ Unrestricted Certificated Note
” means one or more Certificated Notes that do not bear and
are not required to bear the Private Placement Legend.
“ Unrestricted Global Note ”
means a permanent Global Note in the form of Exhibit A
attached hereto that bears the Global Note Legend and that has the
“Schedule of Exchanges of Interests in the Global Note”
attached thereto, and that is deposited with or on behalf of and
registered in the name of the Depositary, representing a series of
Notes that do not bear the Private Placement Legend.
“ Unrestricted Subsidiary
” means any Subsidiary of the Partnership (other than
MarkWest Finance or the Operating Company) that is designated by
the Board of Directors of the General Partner as an Unrestricted
Subsidiary pursuant to a Board Resolution, but only to the extent
that such Subsidiary: (1) has no Indebtedness owing to any
Person other than the Partnership or any
25
of its Restricted Subsidiaries other than
Non-Recourse Debt, except to the extent permitted by subclause
(2)(b) of the definition of “Permitted Business
Investments”; (2) is not a party to any agreement,
contract, arrangement or understanding with the Partnership
or any Restricted Subsidiary of the Partnership unless the terms of
any such arrangement, contract, arrangement or understanding are no
less favorable to the Partnership or such Restricted Subsidiary
than those that might be obtained at the time from Persons who are
not Affiliates of the Partnership; (3) is a Person with
respect to which neither the Partnership nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to
subscribe for additional Equity Interests or (b) to maintain
or preserve such Person’s financial condition or to cause
such Person to achieve any specified levels of operating results;
and (4) has not guaranteed or otherwise directly or indirectly
provided credit support for any Indebtedness of the Partnership or
any of its Restricted Subsidiaries. Notwithstanding anything
in this Indenture to the contrary, neither MarkWest Finance nor the
Operating Company shall be designated as an Unrestricted
Subsidiary.
Any
designation of a Subsidiary of the Partnership as an Unrestricted
Subsidiary shall be evidenced to the Trustee by filing with the
Trustee a Board Resolution of the General Partner giving effect to
such designation and an Officers’ Certificate certifying that
such designation complied with the preceding conditions and was
permitted by Section 4.08 hereof. If, at any time, any
Unrestricted Subsidiary would fail to meet the preceding
requirements as an Unrestricted Subsidiary, it shall thereafter
cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Subsidiary shall be deemed
to be incurred by a Restricted Subsidiary of the Partnership as of
such date and, if such Indebtedness is not permitted to be
incurred as of such date under Section 4.09 hereof, the
Partnership shall be in default of such covenant.
“ Voting Stock ” of any
Person as of any date means the Equity Interests of such Person
pursuant to which the holders thereof have the general voting power
under ordinary circumstances to elect at least a majority of
the board of directors, managers, general partners or trustees of
such Person (regardless of whether, at the time, Equity Interests
of any other class or classes shall have, or might have, voting
power by reason of the occurrence of any contingency) or, with
respect to a partnership (whether general or limited), any general
partner interest in such partnership.
“ Weighted Average Life to
Maturity ” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing: (1) the sum of
the products obtained by multiplying (a) the amount of each
then remaining installment, sinking fund, serial maturity or other
required payments of principal, including payment at final
maturity, in respect thereof, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment; by (2) the then
outstanding principal amount of such Indebtedness.
26
Section 1.02.
Other Definitions.
|
TERM
|
|
DEFINED IN SECTION
|
|
|
|
|
|
“Affiliate Transaction”
|
|
4.12
|
|
“Asset Sale Offer”
|
|
3.09
|
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“Calculation Date”
|
|
1.01 (definition of Fixed Charge Coverage
Ratio)
|
|
“Change of Control
Offer”
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4.06(a)
|
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“Change of Control
Payment”
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|
4.06(a)
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“Change of Control Payment
Date”
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|
4.06(b)
|
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“Covenant Defeasance”
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|
8.03
|
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“Discharge”
|
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11.01(e)
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“DTC”
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|
2.03
|
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“Event of Default”
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|
6.01
|
|
“Excess Proceeds”
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|
4.07(c)
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“Incremental Funds”
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|
4.08(a)
|
|
“incur”
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4.09(a)
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“Legal Defeasance”
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|
8.02
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“Offer Amount”
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3.09
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“Offer Period”
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3.09
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“Paying Agent”
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2.03
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|
“Payment Default”
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|
6.01(g)
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“Permitted Debt”
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|
4.09(b)
|
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“Purchase Date”
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|
3.09
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“Registrar”
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2.03
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“Restricted Payments”
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4.08(a)
|
Section 1.03.
Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision
of the TIA, the provision is incorporated by reference in and made
a part of this Indenture.
The
following TIA terms used in this Indenture have the following
meanings:
“indenture
securities” means the Notes and the Guarantees;
“indenture
security holder” means a Holder of a Note;
“indenture
to be qualified” means this Indenture;
“indenture
trustee” or “institutional trustee” means the
Trustee;
“obligor” on the Notes means the
Partnership, MarkWest Finance or any Subsidiary Guarantor and any
successor obligor upon the Notes.
27
All
other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC
rule under the TIA have the meanings so assigned to
them.
Section 1.04.
Rules of Construction.
Unless the context otherwise
requires:
(1)
a term has the meaning assigned to it;
(2)
an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP;
(3)
“or” is not exclusive;
(4)
words in the singular include the plural, and in the plural include
the singular;
(5)
provisions apply to successive events and transactions;
and
(6)
references to sections of or rules under the Securities Act or
the Exchange Act shall be deemed to include substitute, replacement
of successor sections or rules adopted by the SEC from time to
time.
ARTICLE 2
THE NOTES
Section 2.01.
Form and Dating.
The
Notes and the Trustee’s certificate of authentication shall
be substantially in the form of Exhibit A hereto. The
notation on each Note relating to the Guarantees shall be
substantially in the form set forth on Exhibit D, which is a
part of this Indenture. The Notes may have notations, legends
or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its
authentication. The Notes shall be in minimum denominations
of $2,000 or integral multiples of $1,000 in excess
thereof.
The
terms and provisions contained in the Notes (including the
Guarantees) shall constitute, and are hereby expressly made, a part
of this Indenture and the Partnership, MarkWest Finance, the
Subsidiary Guarantors, and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby. However, to the extent
permitted by law, if any provision of any Note conflicts with the
express provisions of this Indenture, the provisions of this
Indenture shall govern and be controlling.
Notes issued in global form shall be
substantially in the form of Exhibit A attached hereto
(including the Global Note Legend and the “Schedule of
Exchanges in the Global Note” attached thereto). Notes
issued in definitive form shall be substantially in the form of
Exhibit A attached hereto (but without the Global Note Legend,
the phrase identified in footnote 3 thereto and without the
“Schedule of Exchanges of Interests in the Global Note”
attached thereto). Each
28
Global Note shall represent such of the
outstanding Notes as shall be specified therein and each shall
provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Notes represented thereby
may from time to time be reduced or increased, as appropriate, to
reflect exchanges and redemptions. Any endorsement of a
Global Note to reflect the amount of any increase or decrease in
the aggregate principal amount of outstanding Notes represented
thereby shall be made by the Trustee or the Note Custodian, at the
direction of the Trustee, in accordance with instructions given by
the Holder thereof as required by Section 2.06
hereof.
Section 2.02.
Execution and Authentication.
One
Officer of the Partnership and one Officer of MarkWest Finance
shall sign the Notes for the Partnership and MarkWest Finance,
respectively, by manual or facsimile signature.
If
an Officer whose signature is on a Note no longer holds that office
at the time a Note is authenticated, the Note shall nevertheless be
valid.
A
Note shall not be valid until authenticated by the manual signature
of the Trustee. The signature shall be conclusive evidence
that the Note has been authenticated under this
Indenture.
The
Trustee shall, upon a written order of the Partnership and MarkWest
Finance signed by one Officer of the Partnership and one Officer of
MarkWest Finance, authenticate (i) $400,000,000 aggregate
principal amount of Notes, with the Guarantees endorsed thereon,
for original issue on the Issue Date and (ii) from time to
time thereafter any amount of additional Notes specified by the
Issuers, in each case, upon a written order of the Partnership and
MarkWest Finance signed by one Officer of the Partnership and one
Officer of MarkWest Finance. Such order shall specify
(a) the amount of the Notes of each series to be authenticated
and the date of original issue thereof, and (b) whether the
Notes are Series A Notes or Exchange Notes. The
aggregate principal amount of Notes of either series outstanding at
any time may not exceed the aggregate principal amount of Notes of
such series authorized for issuance by the Issuers pursuant to one
or more written orders of the Issuers, except as provided in
Section 2.07 hereof. Subject to the foregoing, the
aggregate principal amount of Notes of either series that may be
issued under this Indenture shall not be limited.
The
Series A Notes issued on the Issue Date and any additional
Series A Notes subsequently issued, together with the Exchange
Notes issued in exchange therefor, shall be treated as a single
class for all purposes under this Indenture, including, without
limitation, waivers, amendments, redemptions and offers to
purchase.
The
Trustee may appoint an authenticating agent acceptable to the
Issuers to authenticate Notes. An authenticating agent may
authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee
includes authentication by such agent. An authenticating
agent has the same rights as an Agent to deal with Holders or an
Affiliate of either of the Issuers.
29
Section 2.03.
Registrar and Paying Agent.
The
Partnership, MarkWest Finance and the Subsidiary Guarantors shall
maintain in the continental United States an office or agency where
Notes may be presented for registration of transfer or for exchange
(“Registrar”) and an office or agency where Notes may
be presented for payment (“Paying Agent”). The
Registrar shall keep a register of the Notes and of their transfer
and exchange. The Issuers may appoint one or more
co-registrars and one or more additional paying agents. The
term “Registrar” includes any co-registrar and the term
“Paying Agent” includes any additional paying
agent. The Issuers may change any Paying Agent or Registrar
without notice to any Holder. The Issuers shall notify the
Trustee in writing of the name and address of any Agent not a party
to this Indenture. If the Issuers fail to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act
as such. The Partnership, MarkWest Finance or any of their
Subsidiaries may act as Paying Agent or Registrar.
The
Issuers initially appoint The Depository Trust Company
(“DTC”) to act as Depositary with respect to the Global
Notes.
The
Issuers initially appoint the Trustee to act as the Registrar and
Paying Agent and to act as Note Custodian with respect to the
Global Notes at the Corporate Trust Office of the
Trustee.
Section 2.04.
Paying Agent to Hold Money in Trust.
The
Issuers shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the
benefit of Holders or the Trustee all money held by the Paying
Agent for the payment of principal, premium, if any, or interest or
Additional Interest, if any, on the Notes, and will notify the
Trustee of any default by the Partnership, MarkWest Finance or the
Subsidiary Guarantors in making any such payment. While any
such default continues, the Trustee may require a Paying Agent to
pay all money held by it to the Trustee. The Issuers at any
time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent
(if other than an Issuer or a Subsidiary Guarantor) shall have no
further liability for the money. If an Issuer or a Subsidiary
Guarantor acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held
by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Partnership or MarkWest Finance, the
Trustee shall serve as Paying Agent for the Notes.
Section 2.05.
Holder Lists.
The
Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA
Section 312(a). If the Trustee is not the Registrar, the
Issuers shall furnish to the Trustee at least seven Business Days
before each Interest Payment Date and at such other times as the
Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and
addresses of the Holders of Notes and the Issuers shall otherwise
comply with TIA Section 312(a).
30
Section 2.06.
Transfer and Exchange.
(a)
Transfer and Exchange of Global Notes. A Global Note may not
be transferred as a whole except by the Depositary to a nominee of
the Depositary, by a nominee of the Depositary to the Depositary or
to another nominee of the Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such
successor Depositary. All Global Notes may be exchanged by
the Issuers for Certificated Notes if (i) the Issuers deliver
to the Trustee notice from the Depositary that it is unwilling or
unable to continue to act as Depositary or that it is no longer a
clearing agency registered under the Exchange Act and, in either
case, a successor Depositary is not appointed by the Issuers within
90 days after the date of such notice from the Depositary, or
(ii) if an Event of Default occurs and is continuing and the
Depositary notifies the Trustee of its decision to exchange the
Global Notes for Certificated Notes. Whenever a Global Note
is exchanged as a whole for one or more Certificated Notes, it
shall be surrendered by the Holder thereof to the Trustee for
cancellation. Whenever a Global Note is exchanged in part for
one or more Certificated Notes, it shall be surrendered by the
Holder thereof to the Trustee and the Trustee shall make the
appropriate notations to the Schedule of Exchanges of Interests in
the Global Notes attached thereto pursuant to Section 2.01
hereof. All Certificated Notes issued in exchange for a
Global Note or any portion thereof shall be registered in such
names, and delivered, as the Depositary shall instruct the
Trustee. Global Notes also may be exchanged or replaced, in
whole or in part, as provided in Sections 2.07 and 2.10
hereof. Every Note authenticated and delivered in exchange
for, or in lieu of, a Global Note or any portion thereof, pursuant
to Section 2.07 or 2.10 hereof, shall be authenticated and
delivered in the form of, and shall be, a Global Note. A
Global Note may not be exchanged for another Note other than as
provided in this Section 2.06(a); however, beneficial
interests in a Global Note may be transferred and exchanged as
provided in Section 2.06(b) or (f) hereof.
(b)
Transfer and Exchange of Beneficial Interests in the Global
Notes. The transfer and exchange of beneficial interests in
the Global Notes shall be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable
Procedures. Beneficial interests in the Restricted Global
Notes shall be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities
Act. Transfers of beneficial interests in the Global Notes
also shall require compliance with either subparagraph (i) or
(ii) below, as applicable, as well as one or more of the other
following subparagraphs as applicable:
(i)
Transfer of Beneficial Interests in the Same Global Note.
Beneficial interests in any Restricted Global Note may be
transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in
accordance with the transfer restrictions set forth in the Private
Placement Legend; provided, however, that prior to the expiration
of the Distribution Compliance Period transfers of beneficial
interests in the Regulation S Global Note may not be made to a U.S.
Person or for the account or benefit of a U.S. Person (other than
an Initial Purchaser). Beneficial interests in any
Unrestricted Global Note may be transferred only to Persons who
take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. No written orders or instructions
shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.06(b)(i).
31
(ii)
All Other Transfers and Exchanges of Beneficial Interests in Global
Notes. In connection with all transfers and exchanges of
beneficial interests (other than a transfer of a beneficial
interest in a Global Note to a Person who takes delivery thereof in
the form of a beneficial interest in the same Global Note), the
transferor of such beneficial interest must deliver to the
Registrar (A) a written order from a Participant or an
Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to credit or cause
to be credited a beneficial interest in another Global Note in an
amount equal to the beneficial interest to be transferred or
exchanged and (B) instructions given in accordance with the
Applicable Procedures containing information regarding the
Participant account to be credited with such increase. Upon
an Exchange Offer by the Issuers in accordance with
Section 2.06(f) hereof, the requirements of this
Section 2.06(b)(ii) shall be deemed to have been
satisfied upon receipt by the Registrar of the instructions
contained in the Letters of Transmittal delivered by the holders of
such beneficial interests in the Restricted Global Notes.
Upon satisfaction of all of the requirements for transfer or
exchange of beneficial interests in Global Notes contained in this
Indenture, the Notes and otherwise applicable under the Securities
Act, the Trustee shall adjust the principal amount of the relevant
Global Note(s) pursuant to
Section 2.06(h) hereof.
(iii)
Transfer of Beneficial Interests to Another Restricted Global
Note. A beneficial interest in any Restricted Global Note may
be transferred to a Person who takes delivery thereof in the form
of a beneficial interest in another Restricted Global Note if the
transfer complies with the requirements of clause (ii) above
and the Registrar receives the following:
(A)
if the transferee will take delivery in the form of a beneficial
interest in the 144A Global Note, then the transferor must deliver
a certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof;
(B)
if the transferee will take delivery in the form of a beneficial
interest in the Regulation S Global Note, then the transferor must
deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (2) thereof; and
(C)
if the transferee will take delivery in the form of a beneficial
interest in the IAI Global Note, then the transferor must deliver
(x) a certificate in the form of Exhibit B hereto,
including the certifications and certificates and Opinion of
Counsel required by item (3)(c) thereof, if applicable.
(iv)
Transfer and Exchange of Beneficial Interests in a Restricted
Global Note for Beneficial Interests in the Unrestricted Global
Note. A beneficial interest in any Restricted Global Note may
be exchanged by any holder thereof for a beneficial interest in an
Unrestricted Global Note or transferred to a Person who takes
delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with
the requirements of clause (ii) above and:
32
(A)
such exchange or transfer is effected pursuant to an Exchange Offer
in accordance with the applicable Registration Rights Agreement and
the holder of the beneficial interest to be transferred, in the
case of an exchange, or the transferee, in the case of a transfer,
is not (i) a broker-dealer, (ii) a Person participating
in the distribution of the Exchange Notes or (iii) a Person
who is an affiliate (as defined in Rule 144) of the
Partnership;
(B)
any such transfer is effected pursuant to a Shelf Registration
Statement in accordance with the applicable Registration Rights
Agreement;
(C)
any such transfer is effected by a Participating Broker-Dealer
pursuant to an Exchange Offer Registration Statement in accordance
with the applicable Registration Rights Agreement; or
(D)
the Registrar receives the following:
(i)
if the holder of such beneficial interest in a Restricted Global
Note proposes to exchange such beneficial interest for a beneficial
interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit C hereto, including the
certifications in item (1)(a) thereof;
(ii)
if the holder of such beneficial interest in a Restricted Global
Note proposes to transfer such beneficial interest to a Person who
shall take delivery thereof in the form of a beneficial interest in
an Unrestricted Global Note, a certificate from such holder in the
form of Exhibit B hereto, including the certifications in item
(4) thereof; and
(iii)
in each such case set forth in this subparagraph (D), an opinion of
counsel in form reasonably acceptable to the Issuers to the effect
that such exchange or transfer is in compliance with the Securities
Act, that the restrictions on transfer contained herein and in the
Private Placement Legend are not required in order to maintain
compliance with the Securities Act and such beneficial interest is
being exchanged or transferred in compliance with any applicable
blue sky securities laws of any state of the United States.
If
any such transfer is effected pursuant to subparagraph (B) or
(D) above at a time when an Unrestricted Global Note has not
yet been issued, the Issuers shall issue and, upon receipt of an
authentication order in accordance with Section 2.02 hereof,
the Trustee shall authenticate one or more Unrestricted Global
Notes (accompanied by a notation of the Guarantees duly endorsed by
the Subsidiary Guarantors) in an aggregate principal amount equal
to the principal amount of beneficial interests transferred
pursuant to subparagraph (B) or (D) above.
Beneficial interests in an Unrestricted Global
Note cannot be exchanged for, or transferred to Persons who take
delivery thereof in the form of, a beneficial interest in a
Restricted Global Note.
33
(c)
Transfer or Exchange of Beneficial Interests for Certificated
Notes. A beneficial interest in a Global Note cannot be
exchanged for, or transferred to Persons who take delivery thereof
in the form of, a Certificated Note, except in the circumstances
specified in Section 2.06(a).
(d)
Transfer and Exchange of Certificated Notes for Beneficial
Interests. Certificated Notes cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Global Note.
(e)
Transfer and Exchange of Certificated Notes for Certificated
Notes. Upon request by a Holder of Certificated Notes and
such Holder’s compliance with the provisions of this
Section 2.06(e), the Registrar shall register the transfer or
exchange of Certificated Notes. Prior to such registration of
transfer or exchange, the requesting Holder shall present or
surrender to the Registrar the Certificated Notes duly endorsed or
accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by
his attorney, duly authorized in writing. In addition, the
requesting Holder shall provide any additional certifications,
documents and information, as applicable, pursuant to the
provisions of this Section 2.06(e).
(i)
Restricted Certificated Notes may be transferred to and registered
in the name of Persons who take delivery thereof if the Registrar
receives the following:
(A)
if the transfer will be made pursuant to Rule 144A under the
Securities Act, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in
item (1) thereof;
(B)
if the transfer will be made pursuant to Rule 903 or
Rule 904, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in
item (2) thereof; and
(C)
if the transfer will be made pursuant to any other exemption from
the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications, certificates and Opinion of
Counsel required by item (3) thereof, if applicable.
(ii)
Any Restricted Certificated Note may be exchanged by the Holder
thereof for an Unrestricted Certificated Note or transferred to a
Person or Persons who take delivery thereof in the form of an
Unrestricted Certificated Note if:
(A)
such exchange or transfer is effected pursuant to an Exchange Offer
in accordance with the applicable Registration Rights Agreement and
the Holder, in the case of an exchange, or the transferee, in the
case of a transfer, is not (i) a broker-dealer, (ii) a
Person participating in the distribution of the Exchange Notes or
(iii) a Person who is an affiliate (as defined in
Rule 144) of the Partnership;
(B)
any such transfer is effected pursuant to a Shelf Registration
Statement in accordance with the applicable Registration Rights
Agreement;
34
(C)
any such transfer is effected by a Participating Broker-Dealer
pursuant to an Exchange Offer Registration Statement in accordance
with the applicable Registration Rights Agreement; or
(D)
the Registrar receives the following:
(i)
if the Holder of such Restricted Certificated Notes proposes to
exchange such Notes for an Unrestricted Certificated Note, a
certificate from such Holder in the form of Exhibit C hereto,
including the certifications in item
(1)(b) thereof;
(ii)
if the Holder of such Restricted Certificated Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in
the form of an Unrestricted Certificated Note, a certificate from
such Holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof; and
(iii)
in each such case set forth in this subparagraph (D), an opinion of
counsel in form reasonably acceptable to the Issuers to the effect
that such exchange or transfer is in compliance with the Securities
Act, that the restrictions on transfer contained herein and in the
Private Placement Legend are not required in order to maintain
compliance with the Securities Act, and such Restricted
Certificated Note is being exchanged or transferred in compliance
with any applicable blue sky securities laws of any state of the
United States.
(iii)
A Holder of Unrestricted Certificated Notes may transfer such Notes
to a Person who takes delivery thereof in the form of an
Unrestricted Certificated Note. Upon receipt of a request for
such a transfer, the Registrar shall register the Unrestricted
Certificated Notes pursuant to the instructions from the Holder
thereof. Unrestricted Certificated Notes cannot be exchanged
for or transferred to Persons who take delivery thereof in the form
of a Restricted Certificated Note.
(f)
Exchange Offer. Upon the occurrence of an Exchange Offer in
accordance with a Registration Rights Agreement, the Issuers shall
issue and, upon receipt of an authentication order in accordance
with Section 2.02, the Trustee shall authenticate (i) one
or more Unrestricted Global Notes (accompanied by a notation of the
Guarantees duly endorsed by the Subsidiary Guarantors) in an
aggregate principal amount equal to the principal amount of the
beneficial interests in the Restricted Global Notes tendered for
acceptance by Persons that are not (x) broker-dealers
(excluding broker-dealers that acquired such beneficial interests
in Restricted Global Notes as a result of market-making activities
or other trading activities (other than such beneficial interests
in Restricted Global Notes acquired directly from the Issuers or
any of their affiliates (as defined in Rule 144) thereof)),
(y) Persons participating in the distribution of the Exchange
Notes or (z) Persons who are affiliates of the Partnership and
accepted for exchange in the Exchange Offer and
(ii) Unrestricted Certificated Notes (accompanied by a
notation of the Guarantees duly endorsed by the Subsidiary
Guarantors) in an aggregate principal amount equal to the principal
amount of the Restricted Certificated Notes accepted for exchange
in the
35
Exchange Offer. Concurrently with the
issuance of such Notes, the Trustee shall cause the aggregate
principal amount of the applicable Restricted Global Notes to be
reduced accordingly, and the Issuers shall execute and the Trustee
shall authenticate and deliver to the Persons designated by the
Holders of Restricted Certificated Notes so accepted Unrestricted
Certificated Notes in the appropriate principal amount.
(g)
Legends. The following legends shall appear on the face of
all Global Notes and Certificated Notes issued under this Indenture
unless specifically stated otherwise in the applicable provisions
of this Indenture.
(i)
Private Placement Legend.
(A)
Except as permitted by subparagraph (B) below, each Global
Note and each Certificated Note (and all Notes issued in exchange
therefor or substitution thereof) shall bear the legend in
substantially the following form:
“THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF
THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF
AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED
SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY,
PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
DATE”) THAT IS [ IN THE CASE OF NOTES
SOLD IN RELIANCE ON RULE 144A
UNDER THE SECURITIES ACT : ONE YEAR ] [ IN THE
CASE OF NOTES SOLD IN RELIANCE ON REGULATION S UNDER THE SECURITIES
ACT: 40 DAYS ] AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH EITHER ISSUER OR ANY AFFILIATE OF
EITHER ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO AN ISSUER OR ITS SUBSIDIARY,
(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG
AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
(D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER
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THE SECURITIES
ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR”
WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR
(7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL
ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN
EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF
$250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (C), (D),
(E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO
EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF
THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.”
(B)
Notwithstanding the foregoing, any Global Note or Certificated Note
issued pursuant to subparagraphs (b)(iv), (e)(ii), (e)(iii) or (f)
of this Section 2.06 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement
Legend.
(ii)
Global Note Legend. Each Global Note shall bear a legend in
substantially the following form:
“THIS GLOBAL
NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF
THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON
UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE
MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS
GLOBAL NOTE MAY BE EXCHANGED PURSUANT TO
SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL
NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT
TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE
PRIOR WRITTEN CONSENT OF THE ISSUERS.”
“UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF
THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR
37
DEPOSITARY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK)
(“DTC”), TO THE ISSUERS OR THEIR AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS
MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.”
(h)
Cancellation and/or Adjustment of Global Notes. At such time
as all beneficial interests in a particular Global Note have been
exchanged for Certificated Notes or a particular Global Note has
been redeemed, repurchased or canceled in whole and not in part,
each such Global Note shall be returned to or retained and canceled
by the Trustee in accordance with Section 2.11 hereof.
At any time prior to such cancellation, if any beneficial interest
in a Global Note is exchanged for or transferred to a Person who
will take delivery thereof in the form of a beneficial interest in
another Global Note or for Certificated Notes, the principal amount
of Notes represented by such Global Note shall be reduced
accordingly and an endorsement shall be made on such Global Note,
by the Trustee or by the Depositary at the direction of the
Trustee, to reflect such reduction; and if the beneficial interest
is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another
Global Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note, by the
Trustee or by the Depositary at the direction of the Trustee, to
reflect such increase.
(i)
General Provisions Relating to Transfers and Exchanges.
(i)
To permit registrations of transfers and exchanges, the Issuers
shall execute and the Trustee shall authenticate Global Notes and
Certificated Notes (in each case, accompanied by a notation of the
Guarantees duly endorsed by the Subsidiary Guarantors) upon the
Issuers’ order or at the Registrar’s
request.
(ii)
No service charge shall be made to a holder of a beneficial
interest in a Global Note or to a Holder of a Certificated Note for
any registration of transfer or exchange, but the Issuers may
require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other
than any such transfer taxes or similar governmental charge payable
upon exchange or transfer pursuant to Sections 2.10, 3.06, 3.09,
4.06 and 9.05 hereof).
(iii)
The Registrar shall not be required to register the transfer of or
exchange any Note selected for redemption in whole or in part,
except the unredeemed portion of any Note being redeemed in
part.
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(iv)
All Global Notes and Certificated Notes (in each case, accompanied
by a notation of the Guarantees duly endorsed by the Subsidiary
Guarantors) issued upon any registration of transfer or exchange of
Global Notes or Certificated Notes shall be the valid obligations
of the Issuers and the Subsidiary Guarantors, evidencing the same
debt, and entitled to the same benefits under this Indenture, as
the Global Notes or Certificated Notes surrendered upon such
registration of transfer or exchange.
(v)
The Issuers shall not be required (A) to issue, to register
the transfer of or to exchange Notes during a period of 15 days
before a selection of Notes for redemption, (B) to register
the transfer of or to exchange any Note so selected for redemption
in whole or in part, except the unredeemed portion of any Note
being redeemed in part or (C) to register the transfer of or
to exchange a Note between a record date and the next succeeding
Interest Payment Date.
(vi)
Prior to due presentment for the registration of a transfer of any
Note, the Trustee, any Agent, the Issuers and the Subsidiary
Guarantors may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of
receiving payment of principal of and interest on such Notes and
for all other purposes, and none of the Trustee, any Agent, the
Issuers or any Subsidiary Guarantor shall be affected by notice to
the contrary.
(vii)
The Trustee shall authenticate Global Notes and Certificated Notes
(in each case, accompanied by a notation of the Guarantees duly
endorsed by the Subsidiary Guarantors) in accordance with the
provisions of Section 2.02 hereof.
(viii)
All certifications, certificates and opinions of counsel required
to be submitted to the Registrar pursuant to this Section 2.06
to effect a transfer or exchange may be submitted by
facsimile.
(ix)
Each Holder of a Note agrees to indemnify the Issuers and the
Trustee against any liability that may result from the transfer,
exchange or assignment of such Holder’s Note in violation of
any provision of this Indenture and/or applicable United States
federal or state securities law.
(j)
Each beneficial owner of an interest in a Note agrees to indemnify
the Issuers and the Trustee against any liability that may result
from the transfer, exchange or assignment by such beneficial owner
of such interest in violation of any provision of this Indenture
and/or applicable United States federal or state securities
law.
(k)
The Trustee shall have no obligation or duty to monitor, determine
or inquire as to compliance with any restrictions on transfer
imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Note (including any
transfers between or among beneficial owners of interest in any
Global Note) other than to require delivery of such certificate and
other documentation or evidence as are expressly required by, and
to do so if and when expressly required by the terms of, this
Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.
39
Section 2.07.
Replacement Notes.
If
any mutilated Note is surrendered to the Trustee or either of the
Issuers and the Trustee receives evidence to its satisfaction of
the destruction, loss or theft of any Note, the Issuers shall issue
and the Trustee, upon the written order of the Issuers signed by
one Officer of the Partnership and one Officer of MarkWest Finance,
shall authenticate a replacement Note (accompanied by a notation of
the Guarantees duly endorsed by the Subsidiary Guarantors) if the
Trustee’s requirements are met. An indemnity bond must
be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Issuers to protect the Issuers, the Subsidiary
Guarantors, the Trustee, any Agent and any authenticating agent
from any loss that any of them may suffer if a Note is
replaced. The Issuers may charge for their expenses in
replacing a Note.
Every replacement Note is an additional
obligation of the Issuers and the Subsidiary Guarantors and shall
be entitled to all of the benefits of this Indenture equally and
proportionately with all other Notes duly issued hereunder.
The provisions of this Section 2.07 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with
respect to the replacement of mutilated, destroyed, lost or stolen
Notes.
Section 2.08.
Outstanding Notes.
The
Notes outstanding at any time are all the Notes authenticated by
the Trustee except for those canceled by it, those delivered to it
for cancellation, those reductions in the interests in a Global
Note effected by the Trustee in accordance with the provisions
hereof, and those described in this Section as not
outstanding. Except as set forth in Section 2.09 hereof,
a Note does not cease to be outstanding because an Issuer or an
Affiliate of an Issuer holds the Note.
If
a Note is replaced pursuant to Section 2.07 hereof, it ceases
to be outstanding unless the Trustee receives proof satisfactory to
it that the replaced Note is held by a bona fide
purchaser.
If
the principal amount of any Note is considered paid under
Section 4.01 hereof, it ceases to be outstanding and interest
(including Additional Interest, if applicable) on it ceases to
accrue.
If
the Paying Agent (other than an Issuer or a Subsidiary or an
Affiliate of an Issuer) holds, on a redemption date or other
maturity date, money sufficient to pay Notes payable on that date,
then on and after that date such Notes shall be deemed to be no
longer outstanding and shall cease to accrue interest (including
Additional Interest, if any).
Section 2.09.
Treasury Notes.
In
determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes
owned by an Issuer, by any Subsidiary Guarantor or by any Person
directly or indirectly controlling or controlled by or under direct
or indirect common control with the Partnership or any Subsidiary
Guarantor, shall be considered as though not outstanding, except
that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only
Notes that a Responsible Officer of the Trustee actually knows are
so owned shall be so disregarded.
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Section 2.10.
Temporary Notes.
Until definitive Notes are ready for delivery,
the Issuers may prepare and the Trustee shall authenticate
temporary Notes (accompanied by a notation of the Guarantees duly
endorsed by the Subsidiary Guarantors) upon a written order of the
Issuers signed by one Officer of the Partnership and one Officer of
MarkWest Finance. Temporary Notes shall be substantially in
the form of definitive Notes but may have variations that the
Issuers consider appropriate for temporary Notes and as shall be
reasonably acceptable to the Trustee. Without unreasonable
delay, the Issuers shall prepare and the Trustee shall authenticate
definitive Notes (accompanied by a notation of the Guarantees duly
endorsed by the Subsidiary Guarantors) in exchange for temporary
Notes.
Holders of temporary Notes shall be entitled to
all of the benefits of this Indenture.
Section 2.11.
Cancellation.
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