Document:

Registration and Reimbursement Agreement

 EXHIBIT 4.1 
  
 REGISTRATION AND REIMBURSEMENT AGREEMENT 
  
 THIS REGISTRATION AND REIMBURSEMENT AGREEMENT (the “Agreement”) is made as of December 19, 2005, by
and among Tejon Ranch Co., a Delaware corporation (the “Company”), Donald Haskell, an individual (“Haskell”), M.H. Sherman Company, a California corporation (“M.H. Sherman”), and Ardell Investment
Company, a California corporation (“Ardell”; Haskell, M.H. Sherman and Ardell are each a “Stockholder” and collectively, the “Stockholders”). 
  
 WHEREAS, the Company has agreed to file with the SEC a Form S-3
to register the shares of the Company (the “Shares”) held by the Stockholders (the “Registration Statement”); and 
  
 WHEREAS, in order to induce the Company to register the Shares, the Stockholders have agreed to reimburse and indemnify the Company pursuant to the
terms of this Agreement. 
  
 NOW, THEREFORE, in
consideration of the foregoing and of the mutual premises and covenants contained herein, the parties hereby agree as follows: 
  
 1. Definitions. 
  
 1.1 The term “Act” means the Securities Act of 1933, as amended. 
  
 1.2 The term “Form S-3” means such form under the Act as in effect on the date hereof or any registration
form under the Act subsequently adopted by the SEC that permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC. 
  
 1.3 The term “1934 Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 1.4 The terms “register,” “registered,” and
“registration” refer to a registration effected by preparing and filing the Registration Statement or similar document in compliance with the Act, and the declaration or ordering of effectiveness of the Registration Statement.

  
 1.5 The term “SEC” means the Securities and
Exchange Commission. 
  
 2. Registration.

  
 2.1 Obligations of Company. The Company agrees to use
commercially reasonable efforts to prepare and file the Registration Statement and to cause the Registration Statement to be declared effective under the Act as soon as practicable. The Company shall use commercially reasonable efforts to maintain
the effectiveness of the Registration Statement until the earlier of (i) one hundred twenty (120) days from when the Registration Statement is first declared 

 
effective under the Act, or (ii) the date on which the Stockholders shall have sold all of the securities registered under the Registration Statement.

  
 2.2 Obligations of Stockholders. The Stockholders agree
to provide the Company with (a) the plan of distribution section to be included in the Registration Statement, such section to be substantially in the form attached hereto as Exhibit A (any modifications to which are subject to the
approval of the Company), and (b) any other portion of the Registration Statement as the Company shall require in order to fulfill its obligations under Section 2.1 hereof. The Stockholders further agree that they shall use their
commercially reasonable efforts to sell the Shares as soon as reasonably practicable after the effectiveness of the Registration Statement. 
  
 2.3 Correction of Registration Statement. The Company shall notify each Stockholder in writing of the happening of any event, as promptly as
practicable after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject to
Section 2.4 below, promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and deliver ten (10) copies of the prospectus contained in such supplement or amendment to each
Stockholder (or such other number of copies as such Stockholder may reasonably request). The Company shall also promptly notify each Stockholder in writing: (i) when a prospectus or any prospectus supplement or post-effective amendment has been
filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to each Stockholder, by facsimile on the same day of such effectiveness and by overnight mail),
(ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate. 
  
 2.4 Grace
Period. Notwithstanding anything to the contrary herein, at any time after the Registration Statement has been declared effective by the SEC, the Company may delay the disclosure of material, non-public information concerning the Company, the
disclosure of which at the time is not, in the good faith opinion of the board of directors of the Company and its counsel, in the best interest of the Company and, in the opinion of counsel to the Company, otherwise required (a “Grace
Period”); provided, that the Company shall promptly (i) notify the Stockholders in writing of the existence of a Grace Period in conformity with the provisions of this Section 2.4 (provided that in each notice the Company will not
disclose the content of such material, non-public information to the Stockholders) and the date on which the Grace Period will begin, and (ii) notify the Stockholders in writing of the date on which the Grace Period ends; and, provided further,
that the Company shall not declare more than two Grace Periods during the period of effectiveness set forth in Section 2.1 above, and such period of effectiveness shall be extended by the length of any such Grace Period(s). Upon expiration of
the Grace Period, the Company shall again be bound by the first sentence of Section 2.3 with respect to the information giving rise thereto unless such material, non-public information is no longer applicable. Notwithstanding anything to the
contrary, the Company shall cause its transfer agent to deliver unlegended Shares to a transferee of an Stockholder in connection with any sale of 

  

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Shares with respect to which a Stockholder has entered into a contract for sale, and delivered a copy of the prospectus included as part of the applicable
Registration Statement, prior to the Stockholder’s receipt of the notice of a Grace Period and for which the Stockholder has not yet settled. 
  
 3. Reimbursement. The Stockholders agree to reimburse the Company for any and all out-of-pocket expenses incurred by the Company at the request the Stockholders
and any and all actual out-of-pocket attorneys’ and accountants’ fees and expenses and SEC filing and blue-sky filing fees incurred by the Company in connection with the proposed sale by the Stockholders of shares of the Company, including
but not limited to the negotiation, drafting and execution of this Agreement and the preparation and filing of the Registration Statement. 
  
 4. Miscellaneous. 
  
 4.1 Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties with respect to its subject matter and
supersedes all prior agreements and understandings both formal and informal, and it shall not be varied without the written agreement of both parties. 
  
 4.2 Notices. All notices, demands and requests required by this Agreement shall be in writing and shall be deemed to have been given for all
purposes (i) upon personal delivery, (ii) one day after being sent, when sent by professional overnight courier service from and to locations within the continental United States, (iii) five days after posting when sent by registered
or certified mail, or (iv) on the date of transmission when sent by facsimile, telegram, telegraph, telex or telecopier, addressed to the Company or the Stockholder at its address or facsimile number as set forth on the signature page hereto or
to the latest address communicated. 
  
 4.3 Counterparts.
This Agreement may be signed in counterparts, in which case each counterpart shall constitute an original document and such counterparts, taken together, shall constitute one and the same instrument. 
  
 4.4 Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 4.5 Third Parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto any rights,
remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
  
 4.6 Further Assurances. The Company will make management reasonably available to provide assistance in the preparation of the Registration
Statement and to meet with, and provide responses to the reasonable inquiries of, potential purchasers of the Shares. Each party shall execute and deliver both before and after the declaration or ordering of effectiveness of the Registration
Statement such further documents and take such other actions as may be necessary or appropriate to effect the transactions contemplated by the filing of the Registration Statement. 
  
 4.7 Governing Law. This Agreement shall be governed by and construed under the laws of the State of California as
applied to agreements among California residents entered into and to be performed entirely within California. 
  

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 4.8 Severability. If any provision of this Agreement as applied to either party in any
circumstance is adjudged by a court to be invalid or unenforceable, this shall not affect any other provision of this Agreement, the application of such provision in any other circumstance, or the validity or enforceability of this Agreement.

  
 4.9 Expenses. If any action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

  
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

					
	THE COMPANY:
	
	 TEJON RANCH CO.

			
	 	 	 By:
	 	 /s/ Dennis Mullins

	 	 	 Name:
	 	 Dennis Mullins

	 	 	 Title:
	 	 Vice President & General Counsel

		
	 Address:
	 	 4436 Lebec Road
 Lebec, California 93243
 Attn.: General Counsel

		
	 Facsimile:
	 	 (661) 248-3100

	
	STOCKHOLDERS:
	
	 DONALD HASKELL

	
	 /s/ Donald Haskell

		
	 Address:
	 	 2077 West Coast Highway
 Newport Beach, CA 92663

		
	 Facsimile:
	 	 (949) 650-8274

	
	 M.H. SHERMAN COMPANY

			
	 	 	 By:
	 	 /s/ Donald Haskell

	 	 	 	 	 Donald Haskell

	 	 	 	 	 Chairman

		
	 Address:
	 	 2077 West Coast Highway
 Newport Beach, CA 92663

		
	 Facsimile:
	 	 (949) 650-8274

	
	 ARDELL INVESTMENT COMPANY

			
	 	 	 By:
	 	 /s/ Donald Haskell

	 	 	 	 	 Donald Haskell

	 	 	 	 	 Chairman

		
	 Address:
	 	 2077 West Coast Highway
 Newport Beach, CA 92663

		
	 Facsimile:
	 	 (949) 650-8274

 EXHIBIT A 
  
 FORM OF PLAN OF DISTRIBUTION SECTION 
 TO REGISTRATION STATEMENT 
  
 Secondary Offering and Sale of Securities 
  
 The selling stockholders may sell the securities from time to time as follows: 
  

	 	•	 	through agents; 

  

	 	•	 	to dealers or underwriters for resale; 

  

	 	•	 	directly to one or more purchasers; or 

  

	 	•	 	through a combination of any of these methods of sale. 

  
 This prospectus may be used in connection with any offering of our securities through any of these methods. 
  
 The securities the selling stockholders distribute by any of these methods
may be sold to the public, in one or more transactions, either: 
  

	 	•	 	at a fixed price or prices, which may be changed; 

  

	 	•	 	at market prices prevailing at the time of sale; 

  

	 	•	 	at prices related to prevailing market prices; or 

  

	 	•	 	at negotiated prices. 

  
 In addition, any securities offered hereby that qualify for sale pursuant to Rule 144 may, at the option of the selling stockholders, be sold under Rule
144 rather than pursuant to this prospectus. The selling stockholders may also sell the securities offered hereby to third parties in privately negotiated transactions. 
  
 The selling stockholders may solicit offers to purchase securities directly from the public from time to time. The selling
stockholders may also designate agents from time to time to solicit offers to purchase securities from the public on their behalf. Agents may be deemed to be “underwriters” as that term is defined in the Securities Act. 
  
 From time to time, the selling stockholders may sell securities to one or
more dealers acting as principals. The dealers, who may be deemed to be “underwriters” as that term is defined in the Securities Act, may then resell those securities to the public. 
  
 The selling stockholders may sell securities from time to time to one or more
underwriters, who would purchase the securities as principal for resale to the public, either on a firm-commitment or best-efforts basis. If the selling stockholders sell securities to underwriters, we and the selling stockholders may execute an
underwriting agreement with them at the time of sale and will name them in the applicable prospectus 

  

 A-1 

 
supplement. In connection with those sales, underwriters may be deemed to have received compensation from the selling stockholders in the form of
underwriting discounts or commissions and may also receive commissions from purchasers of the securities for whom they may act as agents. Underwriters may resell the securities to or through dealers, and those dealers may receive compensation in the
form of discounts, concessions or commissions from the underwriters and/or commissions from purchasers for whom they may act as agents. 
  
 To comply with the securities laws of certain states, if applicable, the shares must be sold in such jurisdictions only through registered or licensed
brokers or dealers. 
  
 We will make copies of this prospectus
available to the selling stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act of 1933, as amended, which may include delivery through the facilities of the New York Stock Exchange pursuant to Rule 153
under the Securities Act of 1933, as amended. 
  

 A-2Energy Transfer Equity Long-Term Incentive Plan

 Exhibit 10.25 
  
 ENERGY TRANSFER EQUITY, L.P. 
 LONG-TERM INCENTIVE PLAN 
  
 SECTION 1. Purpose of the Plan. 
  
 The Energy
Transfer Equity, L.P. Long-Term Incentive Plan (the “Plan”) has been adopted by LE GP, LLC, a Delaware limited liability company (the “Company”), the general partner of Energy Transfer Equity, L.P., a Delaware limited partnership
(the “Partnership”). The Plan is intended to promote the interests of the Partnership, the Company and their Affiliates by providing to Employees, Consultants and Directors incentive compensation awards based on Units to encourage superior
performance. The Plan is also contemplated to enhance the ability of the Company, the Partnership and their Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Company, the
Partnership and their Affiliates and to encourage them to devote their best efforts to advancing the business of the Company, the Partnership and their Affiliates. 
  
 SECTION 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, Restricted Unit, Phantom Unit, Unit Appreciation Right or Substitute Award granted under the Plan, and shall include
any tandem DERs granted with respect to a Phantom Unit, Unit Appreciation Right or Option. 
  
 “Award Agreement” means the written or electronic agreement by which an Award shall be evidenced. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Change of Control” means, and shall be deemed to have occurred upon, one or more of the following events: 
  
         (i) any “person” or
“group” within the meaning of those terms as used in Sections 13(d) and 14(d)(2) of the Exchange Act, other than an Affiliate, shall become the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or
otherwise, of fifty percent (50%) or more of the voting power of the voting securities of the general partner of the Partnership or the Partnership; 
  
         (ii) the Company or an Affiliate of the Company ceases to be the general partner of the Partnership; or

         (iii) the sale or other disposition, including by
liquidation or dissolution, of all or substantially all of the assets of the Partnership in one or more transactions to any Person other than an Affiliate. 
  
 “Committee” means the Board, the Compensation Committee of the Board or such other committee as may be appointed by the Board to administer the
Plan. 
  
 “Consultant” means an individual who renders
consulting services to the Company, the Partnership or an Affiliate. 
  
 “DER” means a distribution equivalent right, being a contingent right, granted in tandem with a specific Option or Phantom Unit, to receive an amount in cash equal to the cash distributions made by the Partnership with respect to
a Unit during the period such Award is outstanding. 
  
 “Director” means a member of the board of directors of the Company or an Affiliate who is not an Employee or a Consultant. 
  
 “Employee” means an employee of the Company, the Partnership or an Affiliate. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” means the closing sales price of a Unit on the
principal national securities exchange or other market in which trading in Units occurs 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). If Units are not traded on a national securities exchange or other market 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 an Employee, Consultant or Director granted an Award under the Plan. 
  
 “Partnership Agreement” means the Third Amended and Restated Agreement of Limited Partnership of the Partnership, as it may be amended or
amended and restated 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. 
  
 “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, as determined by the Committee in its discretion. 
  

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 “Restricted Period” means the period established by the Committee with respect to an Award
during which the Award remains subject to forfeiture and is not exercisable by or payable to the Participant, as the case may be. 
  
 “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period. 
  
 “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. 
  
 “Substitute Award” means an award granted pursuant to Section 6(c)(viii) of the Plan. 
  
 “UDR” means a distribution made by the Partnership with respect to
a Restricted Unit. 
  
 “Unit” means a Common Unit of the
Partnership. 
  
 “Unit Appreciation Right” or
“UAR” means an Award, that, upon exercise, entitles the holder to receive the excess of the Fair Market Value of a Unit on the exercise date over the exercise price established for such Unit Appreciation Right. Such excess shall be paid in
Units and/or in cash as set forth in the Award Agreement. 
  
 SECTION 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 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 the Company, 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 8, 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, a person who is an officer subject to Rule 16b-3 or 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 

  

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administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or an Award Agreement in
such manner and to such extent as the Committee deems necessary or appropriate. 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 be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and any beneficiary of any Award.

  
 SECTION 4. Units. 
  
 (a) Limits on Units Deliverable. Subject to adjustment as provided in
Section 4(c), the number of Units that may be delivered with respect to Awards under the Plan is 3,000,000. Units withheld from an Award to satisfy the exercise price of such Award or the Company’s or an Affiliate’s minimum tax
withholding obligations with respect to the Award shall not be considered to be Units delivered under the Plan for this purpose. If any Award is forfeited, cancelled, exercised, or otherwise terminates or expires without the actual delivery of Units
pursuant to such Award, the Units subject to such Award shall again be available for Awards under the Plan. There shall not be any limitation on the number of Awards that may be granted and paid in cash. 
  
 (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, the Partnership or any other Person, or any combination of the foregoing, as determined by the Committee in its discretion.

  
 (c) Adjustments. In the event of any distribution
(whether in the form of Units, other securities or property other than cash), 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, the Committee shall, in such manner as it may deem equitable, adjust the number and type of Units (or
other securities or property) with respect to which Awards may be granted. 
  
 SECTION 5. Eligibility. 
  
 Any Employee, Consultant or Director who performs services, directly or indirectly, for the benefit of the Partnership shall be eligible to be designated a Participant and receive an Award under the Plan. 
  
 SECTION 6. Awards. 
  
 (a) Options. The Committee shall have the authority to determine the
Employees, Consultants and Directors to whom Options shall be granted, the number of Units to be covered by each Option, whether DERs are granted with respect to such Option, the purchase price therefor and the Restricted Period and other 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. 

 

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 (i) Exercise Price. The exercise price per Unit purchasable under an Option shall
be determined by the Committee at the time the Option is granted but, except with respect to a Substitute Award, may not be less than the Fair Market Value of a Unit as of the date of grant of the Option. 
  
 (ii) Time and Method of Exercise. The Committee shall
determine the exercise terms and the Restricted Period with respect to an Option grant, which may include, without limitation, the provision for accelerated vesting upon the achievement of specified performance goals or other events, and the method
or methods by which payment of the exercise price with respect thereto may be made or deemed to have been made, which may include, without limitation, cash, check acceptable to the Company, a “cashless-broker” exercise through procedures
approved by the Company, withholding Units to be acquired upon the Option exercise, or any combination of methods, having a Fair Market Value on the exercise date equal to the relevant exercise price. 
  
 (iii) Forfeitures. Except as otherwise provided in the
terms of the Option grant, upon termination of a Participant’s employment with or consulting services to 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. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options. 
  
 (iv) Option DERs. To the extent provided by the Committee, in its discretion, a grant of Options may
include a tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same vesting restrictions as
the tandem Options Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion. 
  
 (b) Unit Appreciation Rights. The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Unit
Appreciation Rights shall be granted, the number of Units to be covered by each grant, whether DERs are granted with respect to such Unit Appreciation Right and the terms of any DERs, the exercise price therefor and the conditions and limitations
applicable to the exercise of the Unit Appreciation Right, 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 exercise price
per Unit Appreciation Right shall be determined by the Committee at the time the Unit Appreciation Right is granted but may not be less than the Fair Market Value of a Unit as of the date of grant. 
  
 (ii) Time of Exercise. The Committee shall determine
the time or times at which a Unit Appreciation Right may be exercised in whole or in part, which may include, without limitation, accelerated vesting upon the achievement of specified performance goals or other events. 
  

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 (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting arrangement with the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all outstanding
Unit Appreciation Rights awarded the Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Unit Appreciation Rights.

  
 (c) Restricted Units and Phantom Units. The Committee
shall have the authority to determine the Employees, Consultants and Directors to whom Restricted Units or Phantom Units shall be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant, the Restricted Period,
the conditions under which the Restricted Units or Phantom Units may become vested or forfeited and such other terms and conditions as the Committee may establish with respect to such Awards. 
  
 (i) DERs. To the extent provided by the Committee, in
its discretion, a grant of Phantom Units may include a tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee)
subject to the same vesting restrictions as the tandem Phantom Unit Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion. 
  
 (ii) UDRs. To the extent provided by the Committee, in its discretion, a grant of Restricted Units
may provide that distributions made by the Partnership with respect to the Restricted Units shall be subject to the same forfeiture and other restrictions as the Restricted Unit and, if restricted, such distributions shall be held, without interest,
until the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the same time, as the case may be. Absent such a restriction on the UDRs in the grant agreement, UDRs shall be paid to the holder of the Restricted Unit without
restriction. 
  
 (iii) Forfeitures. Except
as otherwise provided in the terms of the Restricted Units or Phantom Units grant, upon termination of a Participant’s employment with or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable,
for any reason during the applicable Restricted Period, all outstanding Restricted Units and Phantom Units awarded the Participant shall be automatically forfeited on such termination. The Committee may, in its discretion, waive in whole or in part
such forfeiture with respect to a Participant’s Restricted Units and/or Phantom Units. 
  
 (iv) Lapse of Restrictions. 
  
 (A) Phantom Units. Upon or as soon as reasonably practical following the vesting of each Phantom Unit, subject to the provisions of
Section 9(b), 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. 
  

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 (B) Restricted Units. Upon or as soon as reasonably practical following the
vesting of each Restricted Unit, subject to satisfying the tax withholding obligations of Section 9(b), the Participant shall be entitled to have the restrictions removed from his or her Unit certificate so that the Participant then holds an
unrestricted Unit. 
  
 (d) 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.

  
 (A) Except as provided in Paragraph
(C) below, each Option shall be exercisable only by the Participant during the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution. 
  
 (B) Except as provided in Paragraph (C) below, 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, the Partnership or any Affiliate. 
  
 (C) To the extent specifically provided by the Committee with respect to an Option, an Option may be transferred by a Participant without consideration to immediate family members or related family trusts, limited
partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. 
  
 (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, and the Committee may cause a legend or legends to be inscribed on any such
certificates to make appropriate reference to such restrictions. 
  
 (v) Consideration for Grants. Awards may be granted for such consideration, including services, as the Committee determines. 
  

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 (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, the Company is not reasonably able to obtain Units to deliver pursuant to such Award without violating applicable law or the applicable rules or regulations of any governmental agency or authority 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 grant agreement (including, without limitation, any exercise price or tax withholding) is
received by the Company. 
  
 (vii) Change of
Control. Unless specifically provided otherwise in the Award agreement, upon a Change of Control all outstanding Awards shall automatically vest and be payable at their maximum target level or become exercisable in full, as the case may be.

  
 (viii) Substitute Awards. Awards may be
granted under the Plan in substitution for similar assumed, canceled or forfeited awards held by individuals who become Employees, Consultants or Directors as a result of a merger, consolidation or acquisition by the Company or an Affiliate of
another entity or the assets of another entity. Such Substitute Awards that are Options may have exercise prices less than the Fair Market Value of a Unit on the date of such substitution. 
  
 SECTION 7. Award of Class B Units. The Company shall grant 2,521,570
Class B Units pursuant to the terms of the Partnership Agreement. 
  
 SECTION 8. 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 8(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 any other Person. 
  
 (b) Amendments to Awards. Subject to
Section 8(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 8(c), in any Award shall materially reduce the benefit to
a Participant without the consent of such Participant. 
  
 (c) Actions Upon the Occurrence of Certain Events. Upon the occurrence of any event described in Section 4(c) of the Plan, any Change of Control, any change in applicable law or regulation affecting the Plan or Awards
thereunder, or any change in accounting principles affecting the financial statements of the Partnership, the Committee, in its sole discretion and on such terms and conditions as it deems appropriate, may take any one or more of the following
actions in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or an outstanding Award: 
  

 8 

 (A) provide for either (i) the termination of any Award in exchange for an amount of
cash, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights (and, for the avoidance of doubt, if as of the date of the occurrence of such transaction or event the
Committee determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment) or (ii) the
replacement of such Award with other rights or property selected by the Committee in its sole discretion; 
  
 (B) provide that such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or be exchanged for similar
options, rights or awards covering the equity of the successor or survivor, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices; 
  
 (C) make adjustments in the number and type of Units (or
other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Awards or in the terms and conditions of (including the exercise price), and the vesting/performance criteria included in, outstanding Awards, or
both; 
  
 (D) provide that such Award shall be
exercisable or payable, notwithstanding anything to the contrary in the Plan or the applicable Award Agreement; and 
  
 (E) provide that the Award cannot be exercised or become payable after such event, i.e., shall terminate upon such event.

  
 SECTION 9. 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) Tax Withholding. Unless other arrangements have been made that are acceptable to the Company, the Company or any
Affiliate is authorized to withhold from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a Participant the amount (in cash, Units, Units that would otherwise be issued pursuant to
such Award or other property) of any applicable taxes payable in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the Plan and to take such other action as may be
necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes. 
  
 (c) No Right to Employment or Services. 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, continue consulting services or to remain on the Board, as applicable. Furthermore, the Company or an Affiliate may at any time dismiss a Participant from employment or consulting 

  

 9 

 
free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award agreement or other agreement. 
  
 (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 Texas without regard to its conflict of laws principles. 
  
 (e) Severability. If any provision of the Plan or any Award is or becomes or is deemed to be 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 Compensation Committee, such provision shall be construed or deemed amended to conform to the applicable
law, or if it cannot be construed or deemed amended without, in the determination of the Committee, 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. 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 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, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment
tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 
  
 (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 Payment. Any
amounts payable hereunder to any person under legal disability or who, in the judgment of the Committee, is unable to manage properly 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 shall be relieved of any further liability for payment of such amounts. 
  

 10 

 (k) Participation by Affiliates. In making Awards to Employees employed by an entity other than
the Company, the Committee shall be acting on behalf of the Affiliate, and to the extent the Partnership has an obligation to reimburse the Company for compensation paid for services rendered for the benefit of the Partnership, such payments or
reimbursement payments may be made by the Partnership directly to the Affiliate, and, if made to the Company, shall be received by the Company as agent for the Affiliate. 
  
 (l) 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. 
  
 (m)
Compliance with Section 409A. Nothing in the Plan or any Award Agreement shall operate or be construed to cause the Plan or an Award to fail to comply with the requirements of Section 409A of the Internal Revenue Code. The
applicable provisions of Section 409A and the regulations and guidelines issued thereunder are hereby incorporated by reference and, with respect to an Award the Committee intended to comply with Section 409A, shall control over any Plan
or Award Agreement provision in conflict therewith. 
  
 SECTION
10. Term of the Plan. 
  
 The Plan shall be effective on
the date of its approval by the Board and shall continue until the earliest of (i) the date terminated by the Board or the Committee, (ii) all Units available under the Plan have been paid to Participants, or (iii) the 10th
anniversary of the date the Plan is adopted by the Company. Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, however, 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. 
  

 11

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