Document:

<Page>

                                                                   EXHIBIT 10.7

                       K-SEA TRANSPORTATION PARTNERS L.P.

                            LONG-TERM INCENTIVE PLAN

1.   PURPOSE OF THE PLAN.

          The K-Sea Transportation Partners L.P. Long-Term Incentive Plan (the
"Plan") is intended to promote the interests of K-Sea Transportation Partners
L.P., a Delaware limited partnership (the "Partnership"), by providing to
employees and directors of K-Sea Transportation GP, LLC, a Delaware limited
liability company (the "Company"), and its Affiliates who perform services for
the Partnership, incentive compensation awards for superior performance that are
based on Units. The Plan is also contemplated to enhance the ability of the
Company and its Affiliates to attract and retain the services of individuals who
are essential for the growth and profitability of the Partnership and to
encourage them to devote their best efforts to the business of the Partnership,
thereby advancing the interests of the Partnership.

2.   DEFINITIONS.

          As used in the Plan, the following terms shall have the meanings set
forth below:

          "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly through one or more intermediaries controls, is
controlled by or is under common control with, the Person in question. As used
herein, the term "control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract or
otherwise.

          "Award" means an Option or Phantom Unit granted under the Plan, and
shall include any DER granted with respect to a Phantom Unit.

          "Award Agreement" means the agreement entered into between the
Partnership and the Participant evidencing the terms and conditions of the
Award.

          "Board" means the Board of Directors of K-Sea Transportation GP, LLC,
a Delaware limited liability company.

          "Cash-Out Value" means the amount determined in Clause (i) or (ii),
whichever is applicable, as follows: (i) the per Unit price offered to
equityholders of the Partnership in any merger or consolidation or (iii) in the
event of a reorganization, the Fair Market Value per Unit determined by the
Committee as of the date determined by the Committee to be the date of
cancellation and surrender of an Award. In the event that the consideration
offered to equityholders of the Partnership in any transaction described in this
definition consists of anything other than cash, the Committee shall determine
the fair cash equivalent of the portion of the consideration offered which is
other than cash.

                                        1
<Page>

          "Change in Control" shall be deemed to have occurred upon the
occurrence of one or more of the following events: (i) any sale, lease, exchange
or other transfer (in one or a series of related transactions) of all or
substantially all of the assets of the Partnership or K-Sea Operating Partners
L.P. to any Person or its Affiliates, other than the Partnership, the Company or
any of their Affiliates or (ii) any merger, reorganization, consolidation or
other transaction pursuant to which more than 50% of the combined voting power
of the equity interests in the Partnership or K-Sea Operating Partners L.P.
ceases to be owned by Persons who own such interests, respectively, as of the
date of the initial public offering of Units.

          "Committee" means the Compensation Committee of the Board or such
other committee of the Board appointed by the Board to administer the Plan.

          "DER" means a right, granted in tandem with a Phantom Unit, to receive
an amount in cash equal to, and at the same time as, the cash distributions made
by the Partnership with respect to a Unit during the period such Phantom Unit is
outstanding.

          "Director" means a member of the Board or the board of directors or
managers of an Affiliate who is not an Employee.

          "Employee" means any employee of the Company or an Affiliate,
including, without limitation, K-Sea Transportation Inc., a Delaware
corporation, in each case as determined by the Committee. Notwithstanding the
foregoing, the term "Employee" shall not include any individual covered by a
collective bargaining or comparable agreement between representatives of such
employees and the Partnership, the Company or any Affiliate of the Partnership
or the Company.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended.

          "Fair Market Value" means the closing sales price of a Unit on the
date of determination (or, if there is no trading in the Units on such date, the
closing sales price on the last date the Units were traded) as reported in The
Wall Street Journal (or other reporting service approved by the Committee). In
the event Units are not publicly traded at the time a determination of Fair
Market Value is required to be made hereunder, the determination of Fair Market
Value shall be made in good faith by the Committee.

          "Option" means an option to purchase Units granted under the Plan.

          "Participant" means any Employee or Director granted an Award under
the Plan.

          "Partnership Agreement" means the First Amended and Restated Agreement
of Limited Partnership of the Partnership.

          "Person" means an individual or a corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization,
association, governmental agency or political subdivision thereof or other
entity.

                                        2
<Page>

          "Phantom Unit" means a phantom (notional) unit granted under the Plan
which upon vesting entitles the Participant to receive a Unit or an amount of
cash equal to the Fair Market Value of a Unit, whichever is determined by the
Committee.

          "Plan" means this K-Sea Transportation Partners L.P. Long-Term
Incentive Plan, as amended from time to time.

          "Restricted Period" means the period established by the Committee with
respect to an Award during which the Award remains subject to forfeiture (I.E.,
it is not vested) and is not exercisable by or payable to the Participant.

          "Rule 16b-3" means Rule 16b-3 promulgated by the SEC under the
Exchange Act, or any successor rule or regulation thereto as in effect from time
to time.

          "SEC" means the Securities and Exchange Commission, or any successor
thereto.

          "Unit" means a Common Unit of the Partnership.

3.   ADMINISTRATION.

          The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of the members of the
Committee who are present at any meeting thereof at which a quorum is present,
or acts unanimously approved by the members of the Committee in writing, shall
be the acts of the Committee. Subject to the following and any applicable law,
the Committee, in its sole discretion, may delegate any or all of its powers and
duties under the Plan, including the power to grant Awards under the Plan, to
the Chief Executive Officer of K-Sea Transportation GP, LLC (provided that the
Chief Executive Officer is a member of the Board), subject to such limitations
on such delegated powers and duties as the Committee may impose, if any. Upon
any such delegation all references in the Plan to the "Committee," other than in
Section 7, shall be deemed to include the Chief Executive Officer; provided,
however, that such delegation shall not limit the Chief Executive Officer's
right to receive Awards under the Plan. Notwithstanding the foregoing, the Chief
Executive Officer may not grant Awards to, or take any action with respect to
any Award previously granted to, himself, a person who is an officer subject to
Rule 16b-3 or who is a member of the Board. Subject to the terms of the Plan and
applicable law, and in addition to other express powers and authorizations
conferred on the Committee by the Plan, the Committee shall have full power and
authority to: (i) designate Participants; (ii) determine the type or types of
Awards to be granted to a Participant; (iii) determine the number of Units to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v)
determine whether, to what extent, and under what circumstances Awards may be
settled, exercised, canceled, or forfeited; (vi) interpret and administer the
Plan and any instrument or agreement relating to an Award made under the Plan;
(vii) establish, amend, suspend, or waive such rules and regulations and appoint
such agents as it shall deem appropriate for the proper administration of the
Plan; and (viii) make any other determination and take any other action that the
Committee deems necessary or desirable for the administration of the Plan.
Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations, and other decisions under or with respect to
the Plan or any Award shall be within the sole discretion of the Committee, may
be made at any time and shall

                                        3
<Page>

be final, conclusive, and binding upon all Persons, including the Company, the
Partnership, any Affiliate, any Participant, and any beneficiary of any Award.

4.   UNITS.

          (a)     UNITS AVAILABLE. Subject to adjustment as provided in Section
4(c), the number of Units with respect to which Options and Phantom Units may be
granted under the Plan is 440,000. If any Option or Phantom Unit is forfeited or
otherwise terminates or is canceled without the delivery of Units, then the
Units covered by such Award, to the extent of such forfeiture, termination or
cancellation, shall again be Units with respect to which an Option or Phantom
Unit, as the case may be, may be granted.

          (b)     SOURCES OF UNITS DELIVERABLE UNDER AWARDS. Any Units delivered
pursuant to an Award shall consist, in whole or in part, of Units acquired in
the open market, from any Affiliate, or from the Partnership, or any combination
of the foregoing, as determined by the Committee in its discretion.

          (c)     ADJUSTMENTS. In the event that the Committee determines that
any distribution (whether in the form of cash, Units, other securities, or other
property), recapitalization, split, reverse split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, or exchange of Units
or other securities of the Partnership, issuance of warrants or other rights to
purchase Units or other securities of the Partnership, or other similar
transaction or event affects the Units such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or
all of (i) the number and type of Units (or other securities or property) with
respect to which Awards may be granted, (ii) the number and type of Units (or
other securities or property) subject to outstanding Awards, and (iii) the grant
or exercise price with respect to any Award or, if deemed appropriate, make
provision for a cash payment to the holder of an outstanding Award; provided
that the number of Units subject to any Award shall always be a whole number.

          (d)     CASH-OUT OF AWARDS. In the event that the Partnership is
reorganized, merged or consolidated with another entity, the Committee may, in
its sole discretion, (i) require the mandatory surrender to the Partnership by
selected holders of Options of some or all of the outstanding Options held by
such holder (irrespective of whether such Options are then exercisable under the
provisions of the Plan) as of a date (before or after the reorganization, merger
or consolidation) specified by the Committee, in which event the Committee shall
thereupon cancel such Options and pay to each holder thereof an amount of cash
per Unit equal to the excess, if any, of the Cash-Out Value of the Units subject
to such Option over the exercise price(s) under such Options for such Units or
(ii) require the mandatory surrender to the Partnership by selected holders of
Phantom Units of some or all of the outstanding Phantom Units held by such
holder (irrespective of whether such Phantom Units are vested under the
provisions of the Plan) as of a date (before or after the reorganization, merger
or consolidation) specified by the Committee, in which event the Committee shall
thereupon cancel such Phantom Units and pay to each holder an amount of cash per
Phantom Unit equal to the Cash-Out Value of the Units.

                                        4
<Page>

5.   ELIGIBILITY.

          Any Employee who performs services for the benefit of the Partnership
as determined by the Committee, or any Director shall be eligible to be
designated a Participant and receive an Award under the Plan.

6.   AWARDS.

          (a)     OPTIONS. The Committee shall have the authority to determine
the Employees and Directors to whom Options shall be granted, the number of
Units to be covered by each Option, the purchase price therefor, the Restricted
Period and the conditions and limitations applicable to the exercise of the
Option, including the following terms and conditions and such additional terms
and conditions, as the Committee shall determine, that are not inconsistent with
the provisions of the Plan.

                  (i)    EXERCISE PRICE. The purchase price per Unit purchasable
          under an Option shall be determined by the Committee at the time the
          Option is granted and may not be less than its Fair Market Value as
          of the date of grant.

                  (ii)   TIME AND METHOD OF EXERCISE. The Committee shall
          determine the Restricted Period with respect to an Option, which may
          include, without limitation, accelerated vesting upon the
          achievement of specified performance goals, and the method or
          methods by which payment of the exercise price with respect thereto
          be made or deemed to have been made, which may include, without
          limitation: (a) cash, (b) check acceptable to K-Sea Transportation
          GP, LLC, (c) a "cashless-broker" exercise through procedures
          approved by K-Sea Transportation GP, LLC or (d) any combination
          thereof, having a Fair Market Value on the exercise date equal to
          the relevant exercise price.

                  (iii)  FORFEITURE. Except as otherwise provided in the terms
          of the Option grant, upon termination of a Participant's employment
          with the Company and its Affiliates or membership on the Board,
          whichever is applicable, for any reason during the applicable
          Restricted Period, all Options shall be forfeited by the Participant
          (or any transferee) unless otherwise provided in a written
          employment agreement between the Participant and the Company or its
          Affiliates. The Committee may, in its discretion, waive in whole or
          in part such forfeiture with respect to a Participant's Options.

          (b)     PHANTOM UNITS. The Committee shall have the authority to
determine the Employees and Directors to whom Phantom Units shall be granted,
the number of Phantom Units to be granted to each such Participant, the
Restricted Period, the conditions under which the Phantom Units may become
vested or forfeited, which may include, without limitation, the accelerated
vesting upon the achievement of specified performance goals, and such other
terms and conditions as the Committee may establish with respect to such Awards
including whether DERs are granted with respect to such Phantom Units.

                  (i)    DERs. Phantom Units granted under the Plan may include
          a tandem DER grant.

                                        5
<Page>

                  (ii)   FORFEITURE. Except as otherwise provided in the terms
          of the Phantom Units grant, upon termination of a Participant's
          employment with the Company and its Affiliates or membership on the
          Board, whichever is applicable, for any reason during the applicable
          Restricted Period, all Phantom Units shall be forfeited by the
          Participant (or any transferee) unless otherwise provided in a
          written employment agreement between the Participant and the Company
          or its Affiliates. The Committee may, in its discretion, waive in
          whole or in part such forfeiture with respect to a Participant's
          Phantom Units.

                  (iii)  LAPSE OF RESTRICTIONS. Unless a different payment time
          is specified in the Award agreement, the Participant shall be
          entitled to receive from the Company one Unit or cash equal to the
          Fair Market Value of a Unit, as determined by the Committee, in its
          discretion, upon or as soon as reasonably practical following the
          vesting of each Phantom Unit.

          (c)     GENERAL.

                  (i)    AWARDS MAY BE GRANTED SEPARATELY OR TOGETHER. Awards
          may, in the discretion of the Committee, be granted either alone or
          in addition to, in tandem with, or in substitution for any other
          Award granted under the Plan or any award granted under any other
          plan of the Company or any Affiliate. Awards granted in addition to
          or in tandem with other Awards or awards granted under any other
          plan of the Company or any Affiliate may be granted either at the
          same time as or at a different time from the grant of such other
          Awards or awards.

                  (ii)   LIMITS ON TRANSFER OF AWARDS. Unless otherwise provided
          in the Award agreement, each Option shall be exercisable only by the
          Participant during the Participant's lifetime, or by the person to
          whom the Participant's right shall pass by will or the law of
          descent and distribution. Unless otherwise provided in the Award
          agreement, no Award and no right under any such Award may be
          assigned, alienated, pledged, attached, sold or otherwise
          transferred or encumbered by a Participant and any such purported
          assignment, alienation, pledge, attachment, sale, transfer or
          encumbrance shall be void and unenforceable against the Company and
          any Affiliate.

                  (iii)  TERM OF AWARDS. The term of each Award shall be for
          such period as may be determined by the Committee.

                  (iv)   UNIT CERTIFICATES. All certificates for Units or other
          securities of the Partnership delivered under the Plan pursuant to
          any Award or the exercise thereof shall be subject to such stop
          transfer orders and other restrictions as the Committee may deem
          advisable under the Plan or the rules, regulations, and other
          requirements of the SEC, any stock exchange upon which such Units or
          other securities are then listed, and any applicable federal or
          state laws. The Committee may cause a legend or legends to be put on
          any such certificates to make appropriate reference to such
          restrictions.

                                        6
<Page>

                  (v)    CONSIDERATION FOR GRANTS. Awards may be granted for
          such consideration, including services, as the Committee determines.

                  (vi)   DELIVERY OF UNITS OR OTHER SECURITIES AND PAYMENT BY
          PARTICIPANT OF CONSIDERATION. Notwithstanding anything in the Plan
          or any grant agreement to the contrary, delivery of Units pursuant
          to the exercise or vesting of an Award may be deferred for any
          period during which, in the good faith determination of the
          Committee, K-Sea Transportation GP, LLC is not reasonably able to
          obtain Units to deliver pursuant to such Award without violating the
          rules or regulations of any applicable law or securities exchange.
          No Units or other securities shall be delivered pursuant to any
          Award until payment in full of any amount required to be paid
          pursuant to the Plan or the applicable Award Agreement (including,
          without limitation, any exercise price or tax withholding) is
          received by K-Sea Transportation GP, LLC. Such payment may be made
          by such method or methods and in such form or forms as the Committee
          shall determine, including, without limitation, cash, other Awards,
          withholding of Units, cashless-broker exercises with simultaneous
          sale, or any combination thereof; provided that the combined value,
          as determined by the Committee, of all cash and cash equivalents and
          the Fair Market Value of any such Units or other property so
          tendered to K-Sea Transportation GP, LLC, as of the date of such
          tender, is at least equal to the full amount required to be paid to
          K-Sea Transportation GP, LLC pursuant to the Plan or the applicable
          Award agreement.

                  (vii)  CHANGE IN CONTROL. Subject to additional or contrary
          provisions in the Award agreement, upon a Change in Control or such
          period prior thereto as may be established by the Committee, all
          Awards shall automatically vest and become payable or exercisable,
          as the case may be, in full. In this regard, all Restricted Periods
          shall terminate and all performance criteria, if any, shall be
          deemed to have been achieved at the maximum level. To the extent an
          Option is not exercised upon a Change in Control, the Committee may,
          in its discretion, cancel such Award without payment or provide for
          a replacement grant with respect to such Award on such terms as it
          deems appropriate.

7.   AMENDMENT AND TERMINATION.

          Except to the extent prohibited by applicable law:

          (a)     AMENDMENTS TO THE PLAN. Except as required by the rules of the
principal securities exchange on which the Units are traded and subject to
Section 7(b) below, the Board or the Committee may amend, alter, suspend,
discontinue, or terminate the Plan in any manner, including increasing the
number of Units available for Awards under the Plan, without the consent of any
partner, Participant, other holder or beneficiary of an Award, or other Person.

          (b)     AMENDMENTS TO AWARDS. Subject to Section 7(a), the Committee
may waive any conditions or rights under, amend any terms of, or alter any Award
theretofore granted, provided no change, other than pursuant to Section 7(c), in
any Award shall materially reduce the benefit to a Participant without the
consent of such Participant.

                                        7
<Page>

          (c)     ADJUSTMENT OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR
NONRECURRING EVENTS. The Committee is hereby authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition
of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) of the Plan) affecting the Partnership or the
financial statements of the Partnership, or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan.

8.   GENERAL PROVISIONS.

          (a)     NO RIGHTS TO AWARD. No Person shall have any claim to be
granted any Award under the Plan, and there is no obligation for uniformity of
treatment of Participants. The terms and conditions of Awards need not be the
same with respect to each recipient.

          (b)     WITHHOLDING. The Company, its Affiliate or its designated
third party administrator shall have the right to deduct applicable taxes from
any Award payment and withhold, at the time of delivery or vesting of cash or
Units under this Plan, an appropriate amount of cash or number of Units or a
combination thereof for payment of taxes or other amounts required by law or to
take such other action as may be necessary in the opinion of the Company or its
Affiliate to satisfy all obligations for withholding of such taxes. The
Committee may also permit withholding to be satisfied by the transfer to the
Company or its Affiliate of Units theretofore owned by the holder of the Award
with respect to which withholding is required. If Units are used to satisfy tax
withholding, such Units shall be valued based on the Fair Market Value when the
tax withholding is required to be made.

          (c)     NO RIGHT TO EMPLOYMENT. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate or to remain on the Board, as applicable. Further, the
Company or an Affiliate may at any time dismiss a Participant from employment.

          (d)     GOVERNING LAW. The validity, construction, and effect of the
Plan and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Delaware without regard to its conflict
of laws principles.

          (e)     SEVERABILITY. If any provision of the Plan or any Award
becomes invalid, illegal, or unenforceable in any jurisdiction or as to any
Person or Award, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be deemed amended to conform
to the applicable laws, or if it cannot be construed or deemed amended without
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect.

          (f)     OTHER LAWS. Notwithstanding anything in the Plan or any Award
agreement to the contrary, the Committee may refuse to issue or transfer any
Units or other consideration under an Award if, in its sole discretion, it
determines that the issuance or transfer

                                        8
<Page>

of such Units or such other consideration might violate any applicable law or
regulation, the rules of the principal securities exchange on which the Units
are then traded.

          (g)     NO TRUST OR FUND CREATED. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any participating Affiliate and a
Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any participating Affiliate pursuant to
an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

          (h)     NO FRACTIONAL UNITS. No fractional Units shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Units or whether such fractional Units or any rights
thereto shall be canceled, terminated, or otherwise eliminated.

          (i)     HEADINGS. Headings are given to the Sections and subsections
of the Plan solely as a convenience to facilitate reference. Such headings shall
not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any provision thereof.

          (j)     FACILITY OF PAYMENT. Any amounts payable hereunder to any
individual under legal disability or who, in the judgment of the Committee, is
unable to properly manage his financial affairs, may be paid to the legal
representative of such person, or may be applied for the benefit of such person
in any manner that the Committee may select, and the Company and its Affiliates
shall be relieved of any further liability for payment of such amounts.

          (k)     GENDER AND NUMBER. Words in the masculine gender shall include
the feminine gender, the plural shall include the singular and the singular
shall include the plural.

9.   TERM OF THE PLAN.

          The Plan shall be effective on the date of its approval by the Board
and shall continue until the date terminated by the Board or the date Units are
no longer available for the payment of Awards under the Plan, whichever occurs
first. However, unless otherwise expressly provided in the Plan or in an
applicable Award Agreement, any Award granted prior to such termination, and the
authority of the Board or the Committee to amend, alter, adjust, suspend,
discontinue, or terminate any such Award or to waive any conditions or rights
under such Award, shall extend beyond such termination date.

                                        9<Page>

                                                                   EXHIBIT 10.8

                       K-SEA TRANSPORTATION PARTNERS L.P.

                           EMPLOYEE UNIT PURCHASE PLAN

1.   PURPOSE OF THE PLAN.

     The K-Sea Transportation Partners Employee Unit Purchase Plan (the "Plan")
is intended to (i) promote the interests of K-Sea Transportation Partners L.P.,
a Delaware limited partnership (the "Partnership"), by providing to Employees of
the Partnership and its Affiliates the opportunity to acquire or increase their
ownership of Units, (ii) provide a means whereby such individuals may develop a
sense of proprietorship and personal involvement in the development and
financial success of the Partnership and (iii) encourage such individuals to
devote their best efforts to the business of the Partnership, thereby advancing
the interests of the Partnership.

2.   DEFINITIONS.

          (a)     As used in the Plan, the following terms shall have the
meanings set forth below:

          "Affiliates" means with respect to any Person, any other Person that
directly or indirectly through one or more intermediaries controls, is
controlled by or is under common control with, the Person in question. As used
herein, the term "control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract or
otherwise.

          "Board" means the Board of Directors of K-Sea General Partner GP LLC,
a Delaware limited liability company.

          "Committee" means the Compensation Committee of the Board appointed to
administer the Plan pursuant to Section 8.

          "Employee" means any individual who is a United States citizen for
maritime law purposes and a full-time employee of the Partnership or one of its
Affiliates, but, until the Committee decides otherwise, excluding any employee
covered by a collective bargaining agreement unless such bargaining agreement
provides for his or her participation in the Plan.

          "Employer" means the Partnership and/or one of its Affiliates, as the
case may be.

          "Fair Market Value" means the closing sales price of a Unit on the
applicable date (or if there is no trading in the Units on such date, on the
next preceding date on which there was trading) as reported in The Wall Street
Journal (or other reporting service approved by the Committee). In the event
Units are not publicly traded at the time a determination of Fair Market Value
is required to be made hereunder, the determination of Fair Market Value shall
be made in good faith by the Committee.

          "Offering Period" means each calendar quarter or other period as
designated by the Committee from time to time.

          "Person" means an individual or a corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization,
association, governmental agency or political subdivision thereof or other
entity.

          "Purchase Period" means the 10-day period following the end of each
Offering Period; provided, however, the Purchase Period shall include such other
periods, if any, as may be designated by the Committee from time to time.

          "Unit" means a Common Unit of the Partnership.

                                        1
<Page>

          (b)     GENDER AND NUMBER. Except when otherwise indicated by the
context, the masculine gender shall also include the feminine gender, and the
definition of any term herein in the singular shall also include the plural.

3.   ELIGIBILITY.

          (a)     ELIGIBILITY AND PLAN ENTRY DATE. All Employees shall be
eligible to participate in the Plan. An Employee is eligible to enter the Plan
beginning on the first day of the month following 180 days after such
individual's employment commencement date.

          (b)     PRIOR SERVICE CREDIT. The Committee, in it is discretion, may
grant prior service credit to individuals that become Employees pursuant to a
corporate merger or acquisition.

4.   UNITS AVAILABLE UNDER THE PLAN.

          Unless otherwise increased by the Board, the maximum number of Units
that may be purchased for Employees under the Plan is 200,000. Units to be
delivered under the Plan may be Units acquired by the Partnership in the open
market, Units already owned by the Partnership, Units acquired directly from any
Person or any combination of the foregoing. Upon an Employee's termination of
employment with his or her Employer, all amounts then credited to his or her
notional account under the Plan, if any, shall be paid to the terminated
Employee as soon as practicable. In the event that any change is made to the
Units deliverable under the Plan, the Committee may make appropriate adjustments
in the maximum number of Units deliverable under the Plan. The adjustments
determined by the Committee shall be final, binding and conclusive.

5.   PURCHASE OF UNITS.

          (a)     EMPLOYEE WITHHOLDING ELECTIONS. The Committee shall provide an
Employee with the ability to purchase Units under the Plan upon the following
terms and conditions:

                  (i)    Effective as of the beginning of any month, an Employee
          may elect to have his Employer withhold from the Employee's cash
          base salary or cash base wages each future pay period, for the
          purchase of Units hereunder, a designated whole percentage of the
          Employee's cash base payor wages (in whole percentages only, not to
          exceed 10%). An Employee may change (within the above limitations)
          or, subject to Section 5(a)(vi), stop his withholding election at
          any time; however, only two such changes may be made during any
          calendar year. All Employee elections and any changes to an election
          shall be in such written form as the Committee or its delegate may
          establish from time to time.

                  (ii)   Each withholding election made by an Employee hereunder
          shall be an ongoing election until the earlier of the date changed
          by the Employee or the date the Employee ceases to be eligible to
          participate in the Plan.

                  (iii)  The Employer shall maintain for each electing Employee
          a separate notional or ledger account reflecting the aggregate
          amount of his cash base payor wages that has been withheld and not
          yet applied to the purchase of Units for such Employee. An Employer,
          other than the Partnership, shall remit to the Partnership all
          amounts of base pay or wages withheld by the Employer promptly upon
          request by the Partnership in order to permit the Partnership to
          fulfill its obligations under this Plan with respect to the purchase
          of Units for Employees. Amounts of base pay or wages withheld by the
          Employer and remitted to the Partnership shall not be segregated
          from the general assets of the Partnership and shall not bear
          interest.

                  (iv)   During each Purchase Period, the Partnership shall use,
          to the fullest extent practicable, all amounts then credited to the
          notional accounts of the electing Employees to purchase Units for
          such Employees. Purchases of Units may be made at any time or times
          during the Purchase Period on any securities exchange on which the
          Units are traded, in the over-the-counter market and/or in
          negotiated transactions as the Committee shall determine.

                                        2
<Page>

                  (v)    Upon an Employee's termination of Employment with his
          or her Employer, all amounts then credited to his or her notional
          account under the Plan, if any, shall be paid to the terminated
          Employee as soon as reasonably practicable.

                  (vi)   Provided an Employee submits his or her election to
          stop withholding prior to the five business day period before the
          beginning of an immediately upcoming Purchase Period, all amounts
          then credited to such Employee's notional account shall be returned
          to the Employee as soon as administratively practicable. Unless
          otherwise administratively feasible, to the extent an Employee
          submits his or her election to stop withholding within the five
          business day period before the beginning of the immediately upcoming
          Purchase Period, all amounts credited to such Employee's notional
          account will be applied toward the purchase of Units in the
          immediately following Purchase Period and the Employee's election to
          stop withholding shall become effective as of the commencement of
          the next following Offering Period. All requests to withdraw from
          the Plan submitted during a Purchase Period will become effective as
          of the commencement of the next following Offering Period.

          (b)     PURCHASE OF UNITS AND PLAN EXPENSES. During each Purchase
Period, the Partnership, using funds withheld from Employees' wages pursuant to
this Section 5, shall purchase for the electing Employees the maximum number of
Units (including fractional Units) that can be acquired (using the Unit's Fair
Market Value on the date of purchase) based on amounts then credited to the
electing Employees' notional accounts. The Partnership shall pay, other than
from the notional accounts, all brokerage fees and other costs and expenses of
the Plan. To the extent that Units are purchased on multiple days or at multiple
times during a single Purchase Period, the Partnership shall use the average of
the Units' Fair Market Value at the times of purchase as the applicable Unit
price upon which Units are allocated to the participating Employees.

          (c)     WITHHOLDING OF TAXES. To the extent that the Employer is
required to withhold any taxes in connection with the purchase of Units, it will
be a condition to the ownership of such Units that the Employee make
arrangements satisfactory to the Employer for the payment of such taxes, which
may include, but not be limited to, a reduction in the Employee's notional
account.

6.   RESTRICTIONS ON UNITS.

          (a)     HOLDING PERIOD. Subject to the exception provided below under
Section 6(b), all Units purchased under the Plan shall be subject to a "Holding
Period" which shall expire on the first anniversary of the date the Units were
purchased under the Plan. During such Holding Period, each Employee shall be
prohibited from pledging, transferring, selling or otherwise disposing of the
restricted Units. Upon the expiration of such Holding Period, the Employee may,
if he or she desires, make a request to the Partnership (or its designated third
party plan administrator, if any) to receive certificates for all of such
unrestricted whole Units. Otherwise, such Units shall be held without
restriction (1) by the Partnership or (2) in the name of the third party
administrator (or its designee), if any, for the benefit of the Employee. Upon
payment during the Holding Period of any distribution with respect to Units,
each Employee shall receive an amount in cash equal to, and at the same time as,
the amount of such distribution multiplied by the number of Units allocated to
such Employee.

          (b)     HOLDING PERIOD EXCEPTION. Notwithstanding the Holding Period
imposed above under Section 6(a) and subject to the conditions imposed pursuant
to this Section 6(b), an Employee will be permitted to pledge, transfer, sell or
otherwise dispose of his or her restricted whole Units during the one-year
Holding Period (a "Restricted Transfer") by notifying the Employer (or its
designated third party plan administrator) of his or her intention to engage in
a Restricted Transfer. If a Restricted Transfer occurs, the Employee shall be
prohibited from participating in the Plan again until the first Purchase Period
following the first anniversary of the date of the Restricted Transfer. During
this period of prohibition, no amounts shall be withheld from the Employee's
cash base salary or cash base wages. Such withholding shall not be allowed to
resume, at the earliest, until the first pay period following the first
anniversary of the date of the Restricted Transfer. To the extent an Employee
has amounts credited to his or her notional account under the Plan on the date
of a Restricted Transfer, all such amounts will be returned to the Participant.
To the

                                        3
<Page>

extent a Participant has a fractional Unit credited to his or her notional
account under the Plan on the date of a Restricted Transfer, such fractional
Unit will be liquidated and the Participant will receive his pro rata portion of
the proceeds from such liquidation.

          (c)     INVESTMENT REPRESENTATION. Unless the Units subject to
purchase under the Plan have been registered under the Securities Act of 1933,
as amended (the "1933 Act"), and, in the case of any Employee who may be deemed
an affiliate (for securities law purposes) of the Partnership, such Units have
been registered under the 1933 Act for resale by such Participant, or the
Partnership has determined that an exemption from registration is available, the
Partnership may require prior to and as a condition of the delivery of any Units
that the person purchasing such Units hereunder furnish the Partnership with a
written representation in a form prescribed by the Committee to the effect that
such person is acquiring such Units solely with a view to investment for his or
her own account and not with a view to the resale or distribution of all or any
part thereof, and that such person will not dispose of any of such Units
otherwise than in accordance with the provisions of Rule 144 under the 1933 Act
unless and until either the Units are registered under the 1933 Act or the
Partnership is satisfied that an exemption from such registration is available.

          (d)     COMPLIANCE WITH SECURITIES LAWS. Notwithstanding anything
herein or in any other agreement to the contrary, the Partnership shall not be
obligated to sell or issue any Units to an Employee under the Plan unless and
until the Partnership is satisfied that such sale or issuance complies with (i)
all applicable requirements of the securities exchange on which the Units are
traded (or the governing body of the principal market in which such Units are
traded, if such Units are not then listed on an exchange), (ii) all applicable
provisions of the 1933 Act, and (iii) all other laws or regulations by which the
Partnership is bound or to which the Partnership is subject.

7.   RIGHTS OF EMPLOYEES; PARTICIPANTS.

          (a)     EMPLOYMENT. The Plan will not confer upon any Employee any
right with respect to continuance of employment or other service with the
Employer, nor will it interfere in any way with any right the Employer would
otherwise have to terminate such Employee's employment or other service at any
time.

          (b)     NONTRANSFERABILITY. No right to purchase Units or be
reimbursed for the purchase of Units granted under the Plan shall be assignable
or transferable during the lifetime of any Employee either voluntarily or
involuntarily, or be subjected to any lien, directly or indirectly, by operation
of law, or otherwise, including execution, levy, garnishment, attachment, pledge
or bankruptcy.

8.   PLAN ADMINISTRATION.

          (a)     AUTHORITY OF COMMITTEE. The Plan shall be administered by the
Committee. Subject to the terms of the Plan and applicable law, and in addition
to other express powers and authorizations conferred on the Committee by the
Plan, the Committee shall have full power and authority to: (i) determine which
persons are Employees who may participate; (ii) determine the number of Units to
be purchased by an Employee; (iii) determine the time and manner for purchasing
Units; (iv) interpret, construe and administer the Plan; (v) establish, amend,
suspend, or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; (vi) make a
determination as to the right of any person to receive Units under the Plan;
(vii) correct any defect, supply any omission, or reconcile an inconsistency in
the Plan; and (viii) make any other determinations and take any other actions
that the Committee deems necessary or desirable for the administration of the
Plan.

          (b)     DETERMINATION UNDER THE PLAN. Unless otherwise expressly
provided in the Plan, all designations, determinations, interpretations, and
other decisions under or with respect to the Plan shall be within the sole
discretion of the Committee, may be made at any time and shall be final,
conclusive, and binding upon all persons, including the Partnership, the
Employer or any Employee. No member of the Committee shall be liable for any
action, determination or interpretation made in good faith, and all members of
the Committee shall, in addition to their rights as directors, be fully
protected by the Partnership with respect to any such action, determination or
interpretation.

9.   PLAN AMENDMENT, MODIFICATION AND TERMINATION.

                                        4
<Page>

          The Plan may be amended from time to time by the Committee. The Plan
may be terminated at any time by the Committee and, unless Board approval is
obtained for an increase in the maximum number of available Units, shall
automatically terminate when all Units authorized for purchase pursuant to the
Plan have been purchased. On termination of the Plan, all amounts then remaining
credited to the notional accounts for Employees shall be returned to the
affected Employees.

10.  NONEXCLUSIVITY OF THE PLAN.

          The adoption of the Plan by the Partnership shall not be construed as
creating any limitations on the power or authority of the Partnership or any of
its Affiliates to adopt such other or additional incentive or other compensation
arrangements of whatever nature as the Partnership or any of its Affiliates may
deem necessary or desirable or to preclude or limit the continuation of any
other plan, practice or arrangement for the payment of compensation or fringe
benefits to employees, non-employee directors, or consultants generally, or to
any class or group of employees, directors, or consultants, which the
Partnership or any of its Affiliates now has lawfully put into effect,
including, without limitation, any long-term incentive plan.

11.  REQUIREMENTS OF LAW.

          (a)     REQUIREMENTS OF LAW. The issuance of Units pursuant to the
Plan shall be subject to all applicable laws, rules and regulations.

          (b)     GOVERNING LAW. The validity, construction and effect of the
Plan and any rules and regulations relating to the Plan shall be determined in
accordance with applicable Federal law, and to the extent not preempted thereby,
with the laws of the State of Delaware, without regard to conflicts of laws
principles.

                                        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]