Company: BSM
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001193125-25-107202
Chunk: 77

Company: Black Stone Minerals, L.P.
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 77
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 not been extended to unvested options. Whether such consequences apply to unvested options or to UARs is uncertain and the gift tax implications of such a transfer is a risk the transferor will bear upon such a disposition.

Restricted Units, Phantom Units, and DERs

Individuals will not have taxable income at the time of grant of a restricted unit or phantom unit, but rather, will generally recognize ordinary compensation income at the time he or she receives cash or common units in settlement of the restricted unit award or phantom unit award, as applicable, in an amount equal to the cash or the fair market value of the common units received. The DERs, if any, received with respect to a restricted unit or other award will be taxable as ordinary compensation income, not dividend income, when paid.

Cash Awards

A participant will recognize ordinary compensation income upon receipt of cash pursuant to a cash award or, if earlier, at the time the cash is otherwise made available for the participant to draw upon.

Bonus Units, Units in Lieu of Obligations, and Other Unit-Based Awards

Bonus units, units in lieu of obligations, and other unit-based awards generally result in taxable income to the participant and a compensation deduction by the Partnership at the time the payment is made. If such awards are paid in common units, the compensation amount will be equal to the fair market value of the common units on the date of transfer and result in a corresponding compensation deduction for the Partnership.

Tax Consequences to the Partnership

The Partnership’s ability to obtain a deduction for the amounts described above could be subject to a requirement that , such amounts constitute reasonable compensation for services rendered or to be rendered and are ordinary and necessary business expenses.

New Plan Benefits

Because awards granted under the 2025 LTIP are at the discretion of the Committee, it is not possible to determine the benefits or amounts that will be received by or allocated to participants under the 2025 LTIP. Therefore, the New Plan Benefits Table is not provided.**

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Securities Authorized for Issuance Under Equity Compensation Plans The following table sets forth certain information as of December 31, 2024 with respect to compensation plans under which equity securities of the Partnership are authorized for issuance.

| Plan category                                              |     | Equity Compensation Plan Information 
 Number of                            
 securities to be                     
 issued upon exercise                 
 of outstanding                       
 options, warrants                    
 and rights (1)                       
 (a)                                  |     |           |     | Weighted-average     
 exercise price