Exhibit 10.13
SERVICES AGREEMENT
THIS SERVICES AGREEMENT, is made as
of January 1, 2004 (the “Agreement”) by and
between MARKWEST ENERGY GP, L.L.C., a Delaware limited liability
company (the “General Partner”) and MARKWEST
HYDROCARBON, INC., a Delaware corporation
(“Manager”).
A.
Pursuant to Section 7.6(c) of
the Amended and Restated Limited Partnership Agreement, dated May
24, 2002 (the “Partnership Agreement”) of MarkWest
Energy Partners, L.P., a Delaware limited partnership (the
“Partnership”), the General Partner is authorized to
enter into an agreement with any of its Affiliates (as defined in
the Partnership Agreement) to render services to any member of the
Partnership Group (as defined in the Partnership Agreement) in the
discharge of its duties as general partner of the
Partnership.
B.
The General Partner desires to
engage the Manager to render day-to-day operational, management,
accounting, personnel and related administrative services to the
Partnership on the terms and conditions in this Agreement, and the
Manager desires to accept such engagement.
NOW THEREFORE, in consideration of
the mutual agreements herein set forth, the parties hereto agree as
follows:
1.
DEFINITIONS. The
following terms have the meanings assigned them:
(a)
“Agreement” means
this Services Agreement.
(b)
“Board of
Directors” means the Board of Directors of the General
Partner.
(c)
“Code” means the
Internal Revenue Code of 1986, as amended.
(d)
“Conflicts
Committee” shall have the meaning set forth in the
Partnership Agreement.
(e)
“Exchange
Act” shall mean the Securities Exchange Act of 1934, as
amended.
(f)
“Governing
Instruments” means, with regard to any entity, the articles
of incorporation and bylaws in the case of a corporation,
certificate of limited partnership (if applicable) and the
partnership agreement in the case of a general or limited
partnership or the articles of formation and the operating
agreement in the case of a limited liability company.
(g)
“Subsidiary”
means any subsidiary of the Partnership.
2.
APPOINTMENT AND
DUTIES OF THE MANAGER.
(a)
The General
Partner hereby appoints the Manager to manage the assets of the
Partnership consistent with the terms of the Partnership Agreement
and subject to the further terms and conditions set forth in this
Agreement. The Manager hereby agrees to use its commercially
reasonable efforts to perform each of the duties set forth herein.
The appointment of the Manager shall be exclusive to the Manager
except to the extent that the Manager otherwise agrees, in its sole
and absolute discretion, and except to the extent that, the Manager
elects to cause the duties of the Manager hereunder to be provided
by third parties pursuant to the terms of this
Agreement.
(b)
The Manager, in
its capacity as manager of the assets and the day-to-day operations
of the Partnership, at all times will be subject to the supervision
and oversight of the Board of Directors and will have only such
functions and authority as the General Partner may delegate to it
including, without limitation, the functions and authority
identified herein and delegated to the Manager hereby. The Manager
will be responsible for the day-to-day operations of the
Partnership and will perform (or cause to be performed) such
services and activities relating to the assets and operations of
the Partnership as may be appropriate, including, without
limitation:
(i)
conducting a
periodic review of acquisition criteria and parameters for
acquisitions, borrowings and operations related thereto and
originating acquisition opportunities;
(ii)
investigation,
analysis and selection of acquisition opportunities;
(iii)
with respect to
prospective acquisitions or dispositions by the Partnership,
conducting negotiations with sellers and purchasers and their
respective agents, representatives and advisors (including, without
limitation, investment bankers);
(iv)
coordinating and
managing operations of any joint venture or co-investment interests
held by the Partnership and conducting all matters with the joint
venture or co-investment partners;
(v)
providing
executive and administrative personnel, office space and office
services required in rendering services to the
Partnership;
(vi)
administering the
day-to-day operations of the Partnership and performing and
supervising the performance of such other administrative functions
necessary in the management of the Partnership as may be agreed
upon by the Manager and the Board of Directors, including, without
limitation, the collection of revenues and the payment of the
Partnership’s debts and obligations and maintenance of
appropriate computer services to perform such administrative
functions;
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(vii)
communicating on
behalf of the Partnership with the holders of any equity or debt
securities of the Partnership as required to satisfy the reporting
and other requirements of any governmental bodies or agencies or
trading markets and to maintain effective relations with such
holders;
(viii)
counseling the
Partnership regarding the maintenance of its status as a publicly
traded partnership for tax purposes and monitoring compliance with
the various tests and other rules set out in the Code and Treasury
Regulations thereunder related to such status;
(ix)
monitoring the
operating performance of the Partnership’s assets and
providing periodic reports with respect thereto to the Board of
Directors, including comparative information with respect to such
operating and performance and budgeted or projected operating
results;
(x)
investing and
re-investing any moneys and securities of the Partnership
(including, without limitation, investing in short-term investments
pending investment in operational assets, payment of fees, costs
and expenses, or payments of dividends or distributions to partners
of the Partnership) and advising the Partnership as to its capital
structure and capital raising;
(xi)
assisting the
Partnership to retain qualified accountants and legal counsel, as
applicable, to assist in developing appropriate accounting
procedures, compliance procedures and testing systems with respect
to financial reporting obligations and compliance with the
provisions of the Code applicable to publicly traded partnerships
and to conduct quarterly compliance reviews with respect
thereto;
(xii)
causing the
Partnership to qualify to do business in all applicable
jurisdictions and to obtain and maintain all appropriate
licenses;
(xiii)
managing and
administering the Partnership’s rights and obligations under
all agreements with unaffiliated third parties to which the
Partnership is a party or by which the Partnership is bound and
monitoring compliance by the Partnership and by such unaffiliated
third parties to such agreements with the terms and conditions
thereof;
(xiv)
assisting the
Partnership in complying with all regulatory requirements
applicable to the Partnership in respect of its business
activities, including preparing or causing to be prepared all
financial statements required under applicable regulations and
contractual undertakings and all reports and documents required
under the Exchange Act;
(xv)
taking all
necessary actions to enable the Partnership to make required tax
filings and reports;
(xvi)
handling and
resolving all claims, disputes or controversies (including, without
limitation, all litigation, arbitration, settlement or
other
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proceedings or
negotiations) with unaffiliated third parties in which the
Partnership may be involved or to which the Partnership may be
subject arising out of the Partnership’s day-to-day
operations, subject to such limitations or parameters as may be
imposed from time to time by the Board of Directors;
(xvii)
using
commercially reasonable best efforts to cause expenses incurred by
or on behalf of the Partnership to be reasonable or customary and
within any budgeted parameters or expense guidelines as may be set
by the Board of Directors from time to time;
(xviii)
performing such
other services as may be required from time to time for management
and other activities relating to the assets of the Partnership as
the Board of Directors shall reasonably request or the Manager
shall deem appropriate under the particular circumstances;
and
(xix)
using
commercially reasonable best efforts to cause the Partnership to
comply with all applicable laws.
(c)
The Manager may
retain, for and on behalf, and at the sole cost and expense, of the
Partnership, such services of accountants, legal counsel,
appraisers, insurers, brokers, transfer agents, registrars,
investment banks, financial advisors, banks and other lenders and
others as the Manager deems necessary or advisable in connection
with the management and operations of the Partnership. The
Manager shall also have the right to cause any of such services as
may be appropriate to be rendered by its employees or affiliates.
The Partnership shall pay or reimburse the Manager or its
affiliates performing such services for the cost thereof; provided,
that such costs and reimbursements are reasonable and no greater
than those which would be payable to outside professionals or
consultants engaged to perform such services pursuant to agreements
negotiated on an arm’s-length basis.
(d)
The Manager shall
prepare, or cause to be prepared, at the sole cost and expense of
the Partnership, all reports, financial or otherwise, with respect
to the Partnership reasonably required by the Board of Directors in
order for the Partnership to comply with its Governing Instruments
or any other materials required to be filed with any governmental
body or agency, and shall prepare, or cause to be prepared, all
materials and data necessary to complete such reports and other
materials including, without limitation, an annual audit of the
Partnership’s books of account by a nationally recognized
independent accounting firm selected by the audit committee of the
Board of Directors.
(e)
The Manager shall
keep a full and complete account of all costs, expenses and
expenditures incurred by it in connection with the provision of
services under this Agreement. To the extent that the Manager
engages in activities other than the discharge of its
responsibilities under this Agreement, the Manager shall separately
account for all such costs, expenses and expenditures and the
Partnership shall not be billed for such costs, expenses and
expenditures.
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(f)
The Manager shall
prepare regular reports for the Board of Directors to enable the
Board of Directors to review the Partnership’s operations and
compliance with the guidelines and policies approved by the Board
of Directors.
3.
REPRESENTATIONS
AND WARRANTIES OF THE PARTIES
(a)
Each of the
General Partner and the Manager hereby represents, warrants and
covenants to the other and to the Partnership that the following
statements are true and correct as of the date hereof:
(i)
Each of the
General Partner and the Manager is duly incorporated, validly
existing and in good standing under the laws of the jurisdiction of
its formation; each of the General Partner and the Manager has full
power and authority to execute and deliver this Agreement and to
perform its obligations hereunder;
(ii)
Each of the
General Partner and the Manager has duly executed and delivered
this Agreement, and this Agreement constitutes the legal, valid and
binding obligation of such entity, enforceable against such entity
in accordance with its terms (except as such enforcement may be
limited by bankruptcy, insolvency or similar laws of general
application and by the effect of general principles of equity,
regardless of whether considered at law or in equity);
and
(iii)
The
authorization, execution, delivery and performance of this
Agreement by each of the General Partner and the Manager will not
result in a breach, default or violation of the organizational
documents of such entity.
(b)
If it shall come
to the attention of either party to this Agreement that the
representations and warranties made by such party in this
Section 3 have ceased to be true and correct in all material
respects, such party shall promptly notify the other party and the
Partnership of such fact.
4.
DEVOTION OF TIME;
ADDITIONAL ACTIVITIES.
(a)
The Manager will
provide a dedicated management team, including a Chief Executive
Officer and such other officers and employees as may be deemed
necessary by the Manager, to provide the management services to be
provided by the Manager to the Partnership hereunder, the members
of which team shall have as their responsibility the management of
the Partnership and shall devote such of their time to the
management of the Partnership as the Manager or the Board of
Directors reasonably deems necessary and appropriate, commensurate
with the level of activity of the Partnership from time to
time.
(b)
The Manager
hereby agrees that neither the Manager nor any entity controlled by
or under common control with the Manager shall provide services to
any company or other entity whose business, investment policies,
guidelines or plan targets is substantially similar to that of the
Partnership. The Partnership shall have the benefit
of
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Manager’s best
judgment and effort in rendering services and, in furtherance of
the foregoing, (i) the Manager shall not undertake activities that,
in its judgment, will substantially adversely affect the
performance of its obligations under this Agreement and (ii)
without the written consent of the Conflicts Committee, the Manager
shall not undertake activities that are in competition with any
line of business conducted by the Partnership.
(c)
Except to the
extent set forth in Section 4(a) or 4(b) above, nothing herein
shall prevent the Manager or any of its affiliates or any of the
officers and employees of any of the foregoing from engaging in
other businesses or from rendering services of any kind to any
other person or entity.
(d)
Stockholders,
officers, employees and agents of the Manager or affiliates of the
Manager may serve as directors, officers, employees, agents,
nominees or signatories for the Partnership or any Subsidiary, to
the extent permitted by their Governing Instruments, as from time
to time amended, or by any resolutions duly adopted by the Board of
Directors pursuant to the General Partner’s Governing
Instruments.
5.
AGENCY. The
Manager shall act as agent of the Par
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