EX-10.4



 





Exhibit 10.4




TIPTREE FINANCIAL PARTNERS, L.P.

2007 LP UNIT INCENTIVE PLAN




SECTION 1

PURPOSE OF PLAN; DEFINITIONS




          1.1 General. The name of this plan is the Tiptree Financial Partners, L.P. 2007 LP
Unit Incentive Plan (the “Plan”). The Plan was adopted by the Board (as defined below) on June 6,
2007.




          1.2 Purpose. The purposes of the Plan (as defined below) are (a) to facilitate the
ownership of Common Units of Tiptree Financial Partners, L.P. (the “LP”) by officers, directors,
employees, advisors, and consultants and whose performance is a key element in achieving the LP’s
continued success in order to reinforce the alignment of their interests with those of the LP’s
Partners by providing performance-based compensation arrangements to such officers, directors,
employees, advisors, and consultants to incentivize such officers, directors, employees, advisors,
and consultants in connection with such individual’s performance of services for the LP or any of
its subsidiaries, (b) to assist the LP in attracting and retaining officers, directors, employees,
advisors, and consultants with experience and ability, and (c) to benefit the LP’s Partners by
encouraging high levels of performance by such individuals in connection with such individual’s
performance of services for the LP or any of its subsidiaries. The Plan is also designed to permit
the payment of compensation that qualifies as performance-based compensation under Section 162(m)
of the Code. Notwithstanding any provision of the Plan, to the extent that any Award would be
subject to Section 409A of the Code, it is the LP’s intent that each such Award shall comply with
the requirements set forth in Section 409A of the Code and any regulations or guidance promulgated
thereunder.




          1.3 Definitions. For purposes of the Plan, the following terms shall be defined as
set forth below:




          (a) “Award” or “Awards” means an award described in Section 5 hereof.




          (b) “Award Agreement” means an agreement described in Section 6 hereof entered into
between the LP and a Participant, setting forth the terms, conditions and any limitations
applicable to the Award granted to the Participant.




          (c) “Board” means the Board of Directors of the LP.




          (d) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor statute thereto.




          (e) “Commission” means Securities and Exchange Commission.




          (f) “Committee” means the Compensation Committee of the Board or any other committee
the Board may appoint to administer the Plan. To the extent required by applicable law or
regulation, (i) the Committee shall consist of not less than two directors who shall be appointed
from time to time by and shall serve at the pleasure of the Board and (i) the Committee shall be
comprised solely of directors who are (1) “non-employee directors” under Rule 16b-3 of the Exchange
Act, (2) “outside directors” under Section 162(m) of the Code and (3) “independent directors”
pursuant to New York Stock Exchange requirements.




          (g) “Common Unit” means a unit of common limited partner interest in the LP.




          (h) “Common Unit Option” means any option to purchase Common Units granted pursuant to
Section 5.1. The Common Unit Options granted hereunder are not intended to qualify as “incentive
stock options” within the meaning of Section 422 of the Code.




          (i) “Effective Date” means the date provided pursuant to Section 10.




          (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended.




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          (k) “Fair Market Value” means the fair value of the Common Units on the relevant date
as determined in good faith by the Board of Directors; provided, however, if the Common Units are
converted into a security that is then traded over any exchange or quotation system, “Fair Market
Value” shall mean the closing price reported on such exchange or quotation system of such
securities on the relevant date, or if such securities are not then traded on such exchange or
quotation system on the relevant date, the closing price of such securities on the next preceding
trading day as reported on such exchange or quotation system.




          (l) “Freestanding SAR” means a SAR that is granted independently of any other Award.




          (m) “Limited Partner” shall have the meaning ascribed to it in the LP Agreement.




          (n) “LP” means Tiptree Financial Partners, L.P., a Delaware limited partnership or any
successor thereto.




          (o) “LP Agreement” means the Limited Partnership Agreement of the LP, including all
exhibits and schedules attached thereto, as the same may be amended from time to time.




          (p) “Participant” means any individual who is a director, officer, employee,
consultant or advisor to the LP or to any Subsidiary and is selected by the Committee, pursuant to
the Committee’s authority in Section 2 below, to receive Awards.




          (q) “Partner” shall have the meaning ascribed to it in the LP Agreement.




          (r) “Partnership Interest” shall have the meaning ascribed to it in the LP Agreement.




          (s) “Performance Goals” means performance goals based on one or more of the following
criteria: (i) earnings including operating income, earnings before or after taxes, earnings before
or after interest, depreciation, amortization, or extraordinary or special items or book value per
share (which may exclude nonrecurring items); (ii) pre-tax income or after-tax income; (iii)
earnings per share (basic or diluted); (iv) operating profit; (v) revenue, revenue growth or rate
of revenue growth; (vi) return on assets (gross or net), return on investment, return on capital,
or return on equity; (vii) returns on sales or revenues; (viii) operating expenses; (ix) stock
price appreciation; (x) cash flow, free cash flow, cash flow return on investment (discounted or
otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (xi)
implementation or completion of critical projects or processes; (xii) economic value created;
(xiii) cumulative earnings per share growth; (xiv) operating margin or profit margin; (xv) common
stock price or total stockholder return; (xvi) cost targets, reductions and savings, productivity
and efficiencies; (xvii) strategic business criteria, consisting of one or more objectives based on
meeting specified market penetration, geographic business expansion, customer satisfaction,
employee satisfaction, human resources management, supervision of litigation, information
technology, and goals relating to acquisitions, divestitures, joint ventures and similar
transactions, and budget comparisons; (xviii) personal professional objectives, including any of
the foregoing performance goals, the implementation of policies and plans, the negotiation of
transactions, the development of long term business goals, formation of joint ventures, research or
development collaborations, and the completion of other corporate transactions; and (xix) any
combination of, or a specified increase in, any of the foregoing. Where applicable, the
Performance Goals may be expressed in terms of attaining a specified level of the particular
criteria or the attainment of a percentage increase or decrease in the particular criteria, and may
be applied to one or more of the LP, a Subsidiary or affiliate, or a division or strategic business
unit of the LP, or may be applied to the performance of the LP relative to a market index, a group
of other companies or a combination thereof, all as determined by the Committee. The Performance
Goals may include a threshold level of performance below which no payment will be made (or no
vesting will occur), levels of performance at which specified payments will be made (or specified
vesting will occur), and a maximum level of performance above which no additional payment will be
made (or at which full vesting will occur). Each of the foregoing Performance Goals shall be
determined in accordance with generally accepted accounting principles and shall be subject to
certification by the Committee; provided that the Committee shall have the authority to make
equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events
affecting the LP or any Subsidiary or affiliate or the financial statements of the LP or any
Subsidiary or affiliate, in response to changes in applicable laws or regulations,



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or to account for items of gain, loss or expense determined to be extraordinary or unusual in
nature or infrequent in occurrence or related to the disposal of a segment of a business or related
to a change in accounting principles.




          (t) “Performance Unit” means an Award granted to a Participant pursuant to Section
5.4.




          (u) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i)
the LP or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the LP or any of its affiliates, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or
indirectly, by the Partners of the LP in substantially the same proportions as their Partnership
Interest in the LP.




          (v) “Restricted Common Unit” means an Award granted pursuant to Section 5.2 hereof.




          (w) “Stock Appreciation Right” or “SAR” means an Award, that, pursuant to
Section 5.3, is designated as an SAR.




          (x) “Strike Price” of any SAR shall equal, 100% of the Fair Market Value of a Common
Unit on the grant date of such SAR; provided that the Committee may specify a higher Strike Price
in the Award Agreement.




          (y) “Subsidiary” shall have the meaning ascribed to it in the LP Agreement.




SECTION 2

ADMINISTRATION




          2.1 Administration. The Plan shall be administered by the Board or, at the Board’s
sole discretion, by the Committee, which shall be appointed by the Board, and which shall serve at
the pleasure of the Board. In the event the Board is the administrator of the Plan, references
herein to the Committee shall be deemed to include the Board. The Committee, in its sole
discretion and on such terms and conditions as it may provide, may delegate all or any part of its
authority and powers under the Plan to one or more directors or officers of the LP.
Notwithstanding the foregoing, with respect to Awards that are intended to qualify as
performance-based compensation under Section 162(m) of the Code, the Committee may not delegate its
authority and powers with respect to such Awards if such delegation would cause the Awards to fail
to so qualify (unless determined otherwise by the Committee). Notwithstanding the foregoing, the
Board can take any action otherwise designated to the Committee.




          2.2 Duties and Powers of Committee. The Committee shall have the power and authority
to grant Awards to Participants in connection with the performance of services for the LP or any
Subsidiary pursuant to the terms of the Plan, and, in its discretion, to adopt, alter and repeal
such administrative rules, guidelines and practices governing the Plan as it shall from time to
time deem advisable; to interpret the terms and provisions of the Plan and any Award issued under
the Plan (and any agreements relating thereto); and to otherwise supervise the administration of
the Plan.




          In particular, the Committee shall have the authority to determine, in a manner consistent
with the terms of the Plan:




          (a) those officers, employees, directors, consultants and advisors of the LP, if any, who
shall be Participants;




          (b) subject to Section 3, the number of Common Units to be covered by each Common Unit Option
granted hereunder;




          (c) the terms and conditions of any Award granted hereunder, including the waiver or
modification of any such terms or conditions, consistent with the provisions of the Plan
(including, but not limited to, Section 7 of the Plan);




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          (d) to determine Performance Goals no later than such time as is required to ensure that an
underlying Award which is intended to comply with the requirements of Section 162(m) of the Code so
complies; and




          (e) to determine whether, to what extent, and under what circumstances an Award may be
settled, cancelled, forfeited, accelerated, exchanged, or surrendered.



Notwithstanding the foregoing, the Committee shall not take any action with respect to an Award
that would be treated, for accounting purposes, as a “repricing” of such Award unless such action
is approved by the LP’s Partners. The Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any Award Agreement granted hereunder in the manner
and to the extent it shall deem expedient to carry the Plan into effect and shall be the sole and
final judge of such expediency.




          2.3 Majority Rule. The Committee shall act by a majority of its members in attendance
at a meeting at which a quorum is present or by a memorandum or other written instrument signed by
all members of the Committee.




          2.4 Compensation; Professional Assistance; Good Faith Actions. Members of the
Committee may receive such compensation for their services as members as may be determined by the
Board. All expenses and liabilities that members of the Committee or Board may incur in connection
with the administration of this Plan shall be borne by the LP. The Committee may, with the
approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers or other
persons. The Committee, the Board, the LP and any officers and directors of the LP shall be
entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken
and all interpretations and determinations made by the Committee or Board in good faith shall be
final and binding upon all Participants, the LP and all other interested persons. No member of the
Committee or Board shall be personally liable for any action, determination or interpretation made
in good faith with respect to this Plan or any Award, and all members of the Committee and Board
shall be fully protected and indemnified to the fullest extent permitted by law, by the LP, in
respect of any such action, determination or interpretation.




SECTION 3

COMMON UNITS SUBJECT TO PLAN




          3.1 Number of and Source of Common Units. Initially, the maximum number of Common
Units reserved and available for issuance under the Plan, together with any number of Common Units
available for issuance under the Tiptree Financial Partners, L.P. 2007 LP Unit Incentive Plan for
Non-Natural Persons (together with the Plan, the “Equity Plans”), shall be 900,000 Common
Units. The maximum number of LP units permitted to be issued under the Plan will be subject to
further proportionate increase in the event that the initial Participant’s additional allotment of
options is exercised.




          If any Common Units subject to an Award are forfeited, cancelled, exchanged or surrendered or
if an Award otherwise terminates or expires without a distribution of Common Units to the
Participant, the Common Units respect to such Award shall, to the extent of any such forfeiture,
cancellation, exchange, surrender, termination or expiration, again be available for Awards under
the Plan and such Awards shall be granted at the Fair Market Value of the underlying Common Units
on the grant date of such Awards. Notwithstanding the foregoing, Common Units that are exchanged
by a Participant or withheld by the LP as full or partial payment in connection with any Award
under the Plan, as well as any Common Units exchanged by a Participant or withheld by the LP or any
Subsidiary to satisfy the tax withholding obligations related to any Award under the Plan, shall
not be available for subsequent Awards under the Plan. Upon the exercise of any Award granted in
tandem with any other Awards, such related Awards shall be cancelled to the extent of the number of
Common Units as to which the Award is exercised and, notwithstanding the foregoing, such number of
Common Units shall no longer be available for Awards under the Plan.




          3.2 Adjustment of Awards. Upon the occurrence of any event which affects the Common
Units in such a way that an adjustment of outstanding Awards is appropriate in order to prevent the
dilution or enlargement of rights under the Awards (including, without limitation, any
extraordinary dividend or other distribution (whether in cash or in kind), recapitalization, split,
reverse split, reorganization, merger, consolidation, spin-off, combination,



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repurchase, or exchange, or other similar corporate transaction or event), the Committee shall
make appropriate equitable adjustments, which may include, without limitation, adjustments to any
or all of the number and kind of Common Units (or other securities) which may thereafter be issued
in connection with such outstanding Awards and adjustments to any exercise price specified in the
outstanding Awards and shall also make appropriate equitable adjustments to the number and kind of
Common Units (or other securities) authorized by or to be granted under the Plan. Such other
substitutions or adjustments shall be made respecting Awards hereunder as may be determined by the
Committee, in its sole discretion. In connection with any event described in this paragraph, the
Committee may provide, in its discretion, for the cancellation of any outstanding Award and payment
in cash or other property in exchange therefor, equal to the excess, if any, of the fair market
value of the Common Units or other property subject to the Award, over the exercise price, if any.




SECTION 4

ELIGIBILITY




          Each officer, director, employee, consultant or advisor of the LP or any Subsidiary shall be
eligible to be considered by the Committee for Awards under the Plan. Additional Participants
under the Plan may be selected from time to time by the Committee, in its sole discretion, and the
Committee shall determine, in its sole discretion, the number of Common Units covered by each
Award.




SECTION 5

AWARDS




          Awards may include, but are not limited to, those described in this Section 5. The Committee
may grant Awards singly, in tandem or in combination with other Awards, as the Committee may in its
sole discretion determine.




          5.1 Common Unit Options.




          (a) General. A Common Unit Option is a right to purchase a specified number of Common
Units, at a specified price during such specified time as the Committee shall determine. Vested
Common Unit Options shall be exercised at such times and upon such conditions as the Committee may
determine in whole or in part at any time during the option period, by giving written notice of
exercise to the LP specifying the number of Common Units to be purchased, accompanied by payment in
full of the purchase price in cash or its equivalent, as determined by the Committee.




          (b) Exercise Price. The exercise price per Common Unit purchasable under a Common
Unit Option shall be determined by the Committee, but in no event shall such exercise price be less
than the Fair Market Value of a Common Unit as of the date of grant of such Common Unit Option.




          (c) Payment. As determined by the Committee, in its sole discretion, payment in whole
or in part may also be made (i) to the extent permitted by applicable law, by means of any cashless
exercise procedure approved by the Committee, (ii) to the extent approved by the Committee, in the
form of unrestricted Common Units already owned by the Participant which, (x) in the case of
unrestricted Common Units acquired upon exercise of an option, to the extent required by the
Committee, have been owned by the Participant for more than six months on the date of surrender,
and (y) have a Fair Market Value on the date of surrender equal to the aggregate option price of
the Common Units as to which such Common Unit Option shall be exercised and the minimum statutory
withholding taxes with respect thereto, (iii) to the extent approve by the Committee, in the
deduction of unrestricted Common Units that otherwise would be distributed to the Participant upon
exercise of the Common Unit Option, which have a Fair Market Value on the date of surrender equal
to the aggregate option price of the Common Units as to which such Common Unit Option shall be
exercised and the minimum statutory withholding taxes with respect thereto, (iv) any other form of
consideration approved by the Committee and permitted by applicable law or (v) any combination of
the foregoing. No fractional Common Units will be issued or accepted. A Participant shall
generally have the rights of a Limited Partner with respect to the Common Units subject to the
Common Unit Option only after the Participant has given written notice of exercise, has paid in
full for such units (including the payment of any applicable withholding taxes), and, if requested,
has agreed in writing to be bound by the LP Agreement, has




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complied with any other requirements of the Award Agreement and, if requested, has given the
representation described in paragraph (2) of Section 9 below.




          (d) Term and Exercisability of Common Unit Options. Common Unit Options shall
exercised over the exercise period (which shall not exceed ten years from the date of grant), at
such times and upon such conditions as the Committee may determine, as reflected in the Award
Agreement; provided that, the Committee shall have the authority to accelerate the vesting of any
outstanding Common Unit Option at such time and under such circumstances as it, in its sole
discretion, deems appropriate.




          5.2 Restricted Common Units.




          (a) General. Restricted Common Units are Common Units that are issued to a
Participant, and shall be evidenced in such manner as the Committee may deem appropriate, including
book-entry registration or issuance of one or more certificates. Restricted Common Units are
subject to such terms, conditions and restrictions as the Committee deems appropriate, which may
include, but are not limited to, restrictions upon the sale, assignment, transfer or other
disposition of the Restricted Common Units and the requirement of forfeiture of the Restricted
Common Units upon termination of employment or service under certain specified conditions. The
Committee may provide for the lapse of any such term or condition or waive any term or condition
based on such factors or criteria as the Committee may determine.




          (b) Section 162(m) Performance Restrictions. For purposes of qualifying grants of
Restricted Common Units as “performance-based compensation” under Section 162(m) of the Code, the
Committee, in its discretion, may set restrictions based upon the achievement of Performance Goals.
The Performance Goals shall be set by the Committee on or before the latest date permissible to
enable the Restricted Common Units to qualify as “performance-based compensation” under Section
162(m) of the Code. In granting Restricted Common Units which is intended to qualify under Section
162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to
be necessary or appropriate to ensure qualification of the Restricted Common Units under Section
162(m) of the Code (e.g., in determining the Performance Goals).




          (c) Unitholder Rights. Subject to the restrictions stated in this Section 5.2 and in
the applicable Award Agreement, the Participant shall generally have the rights of a Limited
Partner only after the Participant has agreed in writing to be bound by the LP Agreement, and, if
requested, has given the representation described in paragraph (2) of Section 9 below.




          (d) Escrow Provisions. The LP may require that any certificates evidencing Restricted
Common Units granted hereunder be held in the custody of the LP until the restrictions thereon
shall have lapsed, and that, as a condition of any award of Restricted Common Units, the
Participant shall have delivered a stock power, endorsed in blank, relating to the Common Units
covered by such award.




          (e) Legends. The Committee, in its discretion, may legend the certificates
representing Restricted Common Units to give appropriate notice of such restrictions.




          (f) Removal of Restrictions. Except as otherwise provided in this Section 5.2, Common
Units covered by each Restricted Common Unit made under the Plan shall be released from escrow as
soon as practicable after the last day of the period of restriction. The Committee, in its
discretion, may accelerate the time at which any restrictions shall lapse or be removed. The
Committee (in its discretion) may establish procedures regarding the release of Common Units from
escrow and the removal of legends, as necessary or appropriate to minimize administrative burdens
on the LP.




          5.3 Grant of Stock Appreciation Rights. Subject to the terms and conditions of the
Plan, SARs may be granted to Participants at any time and from time to time, as shall be determined
by the Committee, in its sole discretion. The Committee may grant Freestanding SARs, Tandem SARs,
or any combination thereof.




          (a) Number of Common Units. The Committee shall have complete discretion to determine
the number of SARs granted to any Participant. The Committee shall determine the number of SARs
granted to each



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Grantee (subject to Section 3.1), the Strike Price thereof, and, consistent with Section 5.2
and the other provisions of the Plan, the other terms and conditions pertaining to such SARs.




          (b) Expiration of SARs. A SAR granted under the Plan shall expire upon the date
determined by the Committee, in its sole discretion, and set forth in the Award Agreement.




          (c) Payment of SAR Amount. Upon exercise of a SAR, a Participant shall be entitled to
receive payment from the LP in an amount determined by multiplying: (i) the excess of the Fair
Market Value of a Common Unit on the date of exercise over the Strike Price by (i) the number of
Common Units with respect to which the SAR is exercised; provided that the Committee may provide in
the Award Agreement that the benefit payable on exercise of a SAR shall not exceed such percentage
of the Fair Market Value of a Common Unit on the Grant Date as the Committee shall specify. At the
discretion of the Committee, the payment upon SAR exercise may be in cash, in Common Units of
equivalent value, or in some combination thereof. As provided by the Committee in the Award
Agreement, the payment upon exercise of a SAR may alternatively be in cash provided that such SAR
is structured in a manner that the cash payment complies with Section 409A of the Code.




          (d) Transferability of SARs. Unless otherwise provided by the Committee or in the
Award Agreement, Freestanding SARs shall be transferable only when and to the extent that a Common
Unit Option would be transferable under the Plan.




          5.4 Grant of Performance Units. Performance Units may be granted to Participants at
any time and from time to time, as shall be determined by the Committee, in its sole discretion.
The Committee shall have complete discretion in determining the number of Performance Units granted
to each Participant.




          (a) Value of Performance Units. Each Performance Unit shall have an initial value
equal to the Fair Market Value of a Common Unit on the grant date.




          (b) Performance Unit Agreement. Each Award of Performance Units shall be evidenced by
an Award Agreement that shall specify any vesting conditions, the number of Performance Units
granted, and such other terms and conditions as the Committee, in its sole discretion, shall
determine.




          (c) Performance Objectives and Other Terms. The Committee, in its discretion, shall
set performance objectives or other vesting criteria which, depending on the extent to which they
are met, will determine the number or value of Performance Units that will be paid out to the
Participants. Each Award of Performance Units shall be evidenced by an Award Agreement that shall
specify the performance period, and such other terms and conditions as the Committee, in its sole
discretion, shall determine.




          (d) General Performance Objectives or Vesting Criteria. The Committee may set
performance objectives or vesting criteria based upon the achievement of LP-wide, departmental, or
individual goals, applicable federal or state securities laws, or any other basis determined by the
Committee in its discretion (for example, but not by way of limitation, continuous service as an
employee, director or consultant of the LP).




          (e) Section 162(m) Performance Objectives. For purposes of qualifying grants of
Performance Units as “performance-based compensation” under Section 162(m) of the Code, the
Committee, in its discretion, may determine that the performance objectives applicable to
Performance Units shall be based on the achievement of certain Performance Goals. The Performance
Goals shall be set by the Committee on or before the latest date permissible to enable the
Performance Units to qualify as “performance-based compensation” under Section 162(m) of the Code.
In granting Performance Units that are intended to qualify under Section 162(m) of the Code, the
Committee shall follow any procedures determined by it from time to time to be necessary or
appropriate to ensure qualification of the Performance Units under Section 162(m) of the Code
(e.g., in determining the Performance Goals).




          (f) Earning of Performance Units. After the applicable performance period has ended,
the holder of Performance Units shall be entitled to receive a payout of the number of Performance
Units earned by the Participant over the performance period, to be determined as a function of the
extent to which the corresponding




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performance objectives have been achieved. After the grant of a Performance Units, the
Committee, in its sole discretion, may reduce or waive any performance objectives for such
Performance Units.




          (g) Form and Timing of Payment of Performance Units. Except as otherwise determined
by the Committee or provided for in the Award Agreement, payment of vested Performance Units shall
be made as soon as practicable after the vesting of such units. The Committee, in its sole
discretion, may pay Performance Units in the form of cash, in Common Units or in a combination
thereof.




          (h) Cancellation of Performance Units. On the date set forth in the Award Agreement,
all unvested Performance Units shall be forfeited to the LP, and except as otherwise determined by
the Committee, again shall be available for grant under the Plan.




          5.5 Other Awards. The Committee may from time to time grant other Common Unit-based
and non Common Unit-based Awards under the Plan, including without limitation, those Awards
pursuant to which Common Units are or may in the future be acquired, Awards denominated in Common
Units, securities convertible into Common Units, phantom securities, dividend equivalents, or other
tandem Awards, or any other equity-based incentive award and cash. The Committee shall determine
the terms and conditions of such other Common Unit-based and non-Common Unit-based Awards provided
that such Awards shall not be inconsistent with the terms and purposes of this Plan.




SECTION 6

AWARD AGREEMENTS




          Each Award under this Plan shall be evidenced by an Award Agreement setting forth the number
of Common Units or other securities, and such other terms and conditions applicable to the Award
(and not inconsistent with this Plan) as are determined by the Committee.




          6.1 Terms of Award Agreements. Award Agreements shall include the following terms:




          (a) Term. The term of each Award (as determined by the Committee); provided
that, no Award shall be exercisable more than ten years after the date such Award is
granted.




          (b) Exercise Price. The exercise price per Common Units purchasable under an Award
(as determined by the Committee in its sole discretion at the time of grant).




          (c) Exercisability. Provisions regarding the exercisability of Awards (which shall be
exercised at such time or times and subject to such terms and conditions as shall be determined by
the Committee at or after grant).




          (d) Method of Exercise. Provisions describing the method of exercising Awards.




          (e) Termination of Employment or Service. Provisions describing the treatment of an
Award in the event of the retirement, disability, death or other termination of a Participant’s
employment or service with the LP or any Subsidiary, as applicable, including but not limited to,
terms relating to the vesting, time for exercise, forfeiture and cancellation of an Award in such
circumstances.




          (f) Rights as Limited Partner. A provision that a Participant shall have no rights as
a Limited Partner with respect to any securities covered by an Award until the date the Participant
becomes the holder of record.




          (g) Nontransferability. A provision that, unless otherwise permitted by the Committee
or set forth in the Award Agreement, the Participant shall not be permitted to sell, transfer,
pledge or assign any Award, and all Awards shall be exercisable only by the Participant.




          (h) Other Terms. Such other terms as are necessary and appropriate to effectuate an
Award to the Participant, including but not limited to, (1) vesting provisions, (2) deferral
elections, (3) any requirements for continued employment or service with the LP, (4) any other
restrictions or conditions (including performance



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requirements) on the Award and the method by which restrictions or conditions lapse, (5)
effect on the Award of a “change in control”, (6) the right of the LP and such other persons as the
Committee shall designate (“Designees”) to repurchase from a Participant, and such Participant’s
permitted transferees, all Common Units issued or issuable to such Participant in connection with
an Award in the event of such Participant’s termination of employment or service, (7) rights of
first refusal granted to the LP and Designees, if any, (8) holdback and other registration right
restrictions in the event of a public registration of any equity securities of the LP and (9) any
other terms and conditions which the Committee shall deem necessary and desirable.




          6.2 Replacement, Substitution, and Reloading. Award Agreements may also include
provisions permitting the replacement or substitution of outstanding Awards or securities held by
the Participant in order to exercise or realize rights under other Awards, or in exchange for the
grant of new Awards under similar or different terms, and for the grant of reload Common Unit
Options upon exercise of outstanding Common Unit Options.




          6.3 Surrender of Common Unit Options. The Committee may require the voluntary
surrender of all or a portion of any Common Unit Option or other Award granted under the Plan as a
condition precedent to a grant of a new Common Unit Option or Award. Subject to the provisions of
the Plan, such new Common Unit Option or Award shall be exercisable at the price, during such
period and on such other terms and conditions as are specified by the Committee at the time the new
Common Unit Option or Award is granted; provided that, should the Committee so require, the number
of Common Units subject to such new Common Unit Option or Award shall not be greater than the
number of Common Units subject to the surrendered Common Unit Option or Award.




SECTION 7

AMENDMENT AND TERMINATION




          The Board may at any time and from time-to-time alter, amend, suspend, or terminate the Plan
in whole or in part; provided that, no amendment which requires approval by the
LP’s limited partners in order for the Plan to comply with a rule or regulation deemed applicable
by the Committee, shall be effective unless the same shall be approved by the requisite vote of the
Partners entitled to vote thereon. Notwithstanding the foregoing, no amendment shall affect
adversely any of the rights of any Participant, without such Participant’s consent, under any Award
or Loan previously granted under the Plan. Notwithstanding anything to the contrary in the Plan,
the LP reserves the right, but not the obligation, to revise the Plan and any Awards as it deems
necessary or advisable, in its sole discretion and without the consent of the Participant, to
comply with Section 409A of the Code or to otherwise avoid imposition of any additional tax or
income recognition under Section 409A of the Code. No Award may be granted during any period of
suspension or after termination of the Plan.




SECTION 8

UNFUNDED STATUS OF PLAN




          The Plan is intended to constitute an “unfunded” plan for incentive compensation. With
respect to any payments not yet made to a Participant by the LP, nothing contained herein shall
give any such Participant any rights that are greater than those of a general creditor of the LP.




SECTION 9

GENERAL PROVISIONS




          9.1 Securities Laws Compliance. Common Units shall not be issued pursuant to the
exercise of any Award granted hereunder unless the exercise of such Award and the issuance and
delivery of such Common Units pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the
requirements of any stock exchange upon which the Common Units may then be listed, and shall be
further subject to the approval of counsel for the LP with respect to such compliance.




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          9.2 Certificate Legends. The Committee may require each person purchasing Common
Units pursuant to a Common Unit Option to represent to and agree with the LP in writing that such
person is acquiring the Common Units subject thereto without a view to distribution thereof. Any
certificates for such Common Units may include any legend which the Committee deems appropriate to
reflect any restrictions on transfer.




          9.3 Transfer Restrictions. Any certificates for Common Units delivered under the Plan
shall be subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations, and other requirements of the Commission, any stock
exchange upon which the Common Units or the security into which any Common Units are converted are
then listed, and any applicable federal or state securities law, and the Committee may cause a
legend or legends to be placed on any such certificates to make appropriate reference to such
restrictions.




          9.4 LP Actions. Nothing contained in the Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to approval of the LP’s Partners if such
approval is necessary and desirable; and such arrangements may be either generally applicable or
applicable only in specific cases. The adoption of the Plan shall not confer upon any officer,
director, employee, consultant or advisor of the LP any right to continued employment with or
retention by the LP, as the case may be, nor shall it interfere in any way with the right of the LP
to terminate the employment or service of any of its officers, directors, employees, consultants or
advisors at any time.




          9.5 Payment of Taxes. Each Participant shall, no later than the date as of which the
value of an Award first becomes includible in the gross income of the Participant for federal
income tax purposes, pay to the LP, or make arrangements satisfactory to the Committee regarding
payment of, any federal, state, or local taxes of any kind required by law to be withheld with
respect to the Award. The obligations of the LP under the Plan shall be conditional on the making
of such payments or arrangements, and the LP shall, to the extent permitted by law, have the right
to deduct any such taxes from any payment of any kind otherwise due to the Participant.




SECTION 10

EFFECTIVE DATE OF PLAN




          The Plan became effective (the “Effective Date”) on June 6, 2007, the date the Board formally
approved the Plan.




SECTION 11

TERM OF PLAN




          No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the
Effective Date, but Awards theretofore granted may extend beyond that date.





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