2004 INCENTIVECOMPENSATION PLAN PERFORMANCETARGETS

EX-10.2 3 a05-2339_2ex10d2.htm EX-10.2

Exhibit 10.2

2004 INCENTIVE COMPENSATION PLAN

PERFORMANCE TARGETS

Intent: To provide a reward for achieving budget targets.

Measurement Criteria: The incentive award for each executive under the 2004 incentive compensation plan was derived from three measurement criteria: 1) MarkWest Hydrocarbon, Inc. (“MarkWest Hydrocarbon”) operating cash flow (weighted 40% of the total incentive award); 2) MarkWest Energy Partner’s, L.P. (“MarkWest Energy”) distributable cash flow (weighted 40% of the total incentive award); and 3) department/individual goals (weighted 20% of the total incentive award).

Threshold: The payout of incentive awards was contingent upon EBITDA (earnings before interest, taxes, depreciation, depletion and amortization) being 90% to 100% of target for both MarkWest Energy and MarkWest Hydrocarbon.

Incentive Award Range: The incentive award range was set from 20% to 35% of base salary for officers and executives if budget targets are achieved, with opportunity of percentages to be increased to up to 35% to 65% of base salary for achieving stretch performance.

Payout: Base incentive award 50% cash and 50% equity (restricted stock or phantom units).