Document:

ston-ex1043_17.htm

Exhibit 10.43

DIRECTOR RESTRICTED PHANTOM UNIT AGREEMENT 
UNDER
STONEMOR AMENDED AND RESTATED 2019 LONG-TERM INCENTIVE PLAN 

This Director Restricted Phantom Unit Agreement (the “Agreement”) entered into as of December 4, 2020 (the “Agreement Date”), by and between StoneMor Inc., a Delaware corporation (the “Company”), and Kevin D. Patrick, a director of the Company (the “Participant”). 

BACKGROUND: 

In order to make certain awards to key employees, directors and consultants of the Company and its Affiliates, the Company maintains the StoneMor Amended and Restated 2019 Long-Term Incentive Plan (the “Plan”). The Plan is administered by the Compensation, Nominating and Governance Committee (the “Committee”) of the Board of Directors of the Company. The Committee has determined to grant to the Participant, pursuant to the terms and conditions of the Plan, an award (the “Award”) of Phantom Units, representing notional shares of common stock of the Company. The Participant has determined to accept such Award. Any initially capitalized terms and phrases used in this Agreement, but not otherwise defined herein, shall have the respective meanings ascribed to them in the Plan. 

NOW, THEREFORE, the Company and the Participant, each intending to be legally bound hereby, agree as follows: 

Article I
AWARD OF PHANTOM UNITS 

1.1Creation of Mandatory Deferred Compensation Account. Commencing on January 1, 2021, compensation in the annual amount of $20,000 (“Annual Deferral”) payable to the Participant in consideration for service as a Director, shall be deferred and credited, in the form of Phantom Units, to a mandatory deferred compensation account (the “Mandatory Deferred Compensation Account”) established by the Company for the Participant. 

1.2Crediting Phantom Units. The Annual Deferral shall be credited in equal quarterly installments to the Participant’s Mandatory Deferred Compensation Account in the form of Phantom Units, each installment to be credited on the date of the regular quarterly meeting of the Board for such quarter. The number of Phantom Units (or fractions thereof) to be credited to the Participant’s Mandatory Deferred Compensation Account shall be determined by dividing the amount of each quarterly installment by the closing price for the Company’s common stock (the “Common Stock”) as published in The Wall Street Journal or in Yahoo Finance for the trading day immediately prior to the first day of such regular quarterly Board meeting. Notwithstanding the foregoing, in the event that there is no meeting of the Board during any calendar quarter, the crediting shall occur on such date as is designated by the Company. Crediting of Phantom Units (or fractions thereof) to the Participant’s Mandatory Deferred Compensation Account shall not entitle the Participant to the rights of a stockholder of the Company or a holder of shares of Common Stock. The term “quarterly”, as used in this Agreement, refers to calendar quarters. 

1.3Crediting Dividend Equivalent Rights (“DERs”). For each Phantom Unit in the Participant’s Mandatory Deferred Compensation Account, the Company shall credit such account, solely in Phantom Units (or fractions thereof), with an amount, in respect of DERs, equal to the cash dividends paid on a share of Common Stock. The crediting shall occur as of the date on which such cash dividends on the Common Stock are paid. The number of Phantom Units (or fractions thereof) to be credited to the Participant’s Mandatory Deferred Compensation Account shall be calculated by dividing the dollar amount of the DERs by the closing price for the Common Stock as published in The Wall Street Journal or in Yahoo Finance for the trading day immediately prior to the day on which the cash dividend is paid on the Common Stock. Any fractional Phantom Unit created by DERs or otherwise shall likewise be entitled to further DERs equal to cash dividends paid on the Common Stock multiplied by such fractional Phantom Unit. The Company will establish a bookkeeping method to account for DERs to be credited to the Participant’s Mandatory Deferred Compensation Account. DERs shall cease to be credited to the Participant’s Mandatory Deferred Compensation Account from and after any of the events specified in Section 1.4 hereof, except to the extent that any balance remains in the Participant’s Mandatory Deferred Compensation Account after such event. DERs shall not bear interest. 

1.4Time of Payment. Participant shall be entitled to payment of the Participant’s Mandatory Deferred Compensation Account upon the first payment event to occur pursuant to Section 409A(a)(2) of the Code and the rules and regulations adopted thereunder as follows: 

(1)Separation from Service as described under Section 409A of the Code and the rules and regulations adopted thereunder; or 

(2)Disability of the Participant. The Participant is considered disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or 

(3)an “Unforeseeable Emergency” with respect to the Participant, but subject to the limitations under Section 409A of the Code and the rules and regulations adopted thereunder as to any amount which may be paid. An Unforeseeable Emergency means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s dependent (as defined in Code section 152, without regard to section 152(b)(1), (b)(2), and (d)(1)(B)) or a Beneficiary; loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The types of events which may qualify as an Unforeseeable Emergency may be limited by the Committee; or 

(4)a “Change of Control” of the Company, as defined in the Plan, but subject to any further limitations under Section 409A of the Code and the rules and regulations adopted thereunder; or 

(5)death of the Participant. Upon the death of a Participant prior to the full payment of all amounts credited to the Participant’s Mandatory Deferred Compensation Account, the balance of 

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such Mandatory Deferred Compensation Account shall be paid in accordance with Sections 1.5 and 1.6. 

All payments of the Participant’s Mandatory Deferred Compensation Account will commence on or before the later of: (1) the last day of the calendar year in which the payment event occurs or (2) the 15th day of the third month following the date the payment event occurs. No payment of the Mandatory Deferred Compensation Account shall be made to the Participant prior to the occurrence of any of the preceding payment events and only to the extent permitted under Section 409A(a)(2) of the Code and the rules and regulations adopted thereunder. 

1.5Method of Payment. 

(a)All payments for Phantom Units (or fractions thereof) credited to the Participant’s Mandatory Deferred Compensation Account shall be made in shares of Common Stock, except as the Company, at its option, otherwise elects as provided in Section 1.5(b) hereof. The number of shares of Common Stock paid shall be equal to the number of whole Phantom Units in the Participant’s Mandatory Deferred Compensation Account. For this purpose, any fractional Phantom Units in such Account shall be combined to equal whole Phantom Units to the extent possible. If after such combination there is any remaining fractional Phantom Unit, such remaining fractional Phantom Unit shall be distributed as an amount of cash equal to the product of multiplying such fractional Phantom Unit by the closing price for the Common Stock as published in The Wall Street Journal or in Yahoo Finance for the trading day immediately prior to the payment date. 

(b)The Company, at its option, may elect to pay all or any portion of the Mandatory Deferred Compensation Account in cash instead of paying in shares of Common Stock. Phantom Units (or fractions thereof) credited to the Participant’s Mandatory Deferred Compensation Account shall be valued at the closing price for the Common Stock as published in The Wall Street Journal or in Yahoo Finance for the trading day immediately prior to the payment date. 

1.6Designation of Beneficiary. 

(a)In the event of the Participant’s death, the primary death beneficiaries and contingent death beneficiaries entitled to receive payments due the Participant at the time of death are designated below the Participant’s signature on this Agreement, unless such designation is amended as provided in this Section 1.6, in which case the amended designation shall apply. No amendment to the designation of the beneficiaries shall be valid unless in a writing, signed by the Participant, dated, and filed with the Committee during the lifetime of the Participant. A subsequent beneficiary designation will cancel all beneficiary designations signed and filed earlier under this Agreement. In case of a failure of designation of a beneficiary, or the death of the designated beneficiary (to whom a payment is otherwise due hereunder) without a designated successor, distribution shall be paid in one lump sum to the estate of the Participant. 

(b)The interest in any amounts hereunder of a spouse who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including, but not limited to, such spouse’s will, nor shall such interest pass under the laws of intestate succession. 

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(c)No payment shall be made to a designated contingent death beneficiary unless it is proven to the satisfaction of the Committee that the designated primary death beneficiary is deceased. 

1.7Source of Payments. All payments of deferred compensation shall, if paid in cash, be paid solely from the general funds of the Company and the Company shall be under no obligation to segregate any assets in connection with the maintenance of any Mandatory Deferred Compensation Account, nor shall anything contained in this Agreement nor any action taken pursuant to the Plan create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and the Participant. Title to the beneficial ownership of any assets, whether cash or investments, that the Company may designate to pay the amount credited to a Mandatory Deferred Compensation Account shall at all times remain in the Company and the Participant shall not have any property interest whatsoever in any specific assets of the Company. Participant’s interest in any Mandatory Deferred Compensation Account shall be limited to the right to receive payments pursuant to the terms of this Agreement and such rights to receive shall be no greater than the right of any other unsecured general creditor of the Company. 

1.8Nonalienation of Benefits. Participant shall not have the right to sell, assign, transfer or otherwise convey or encumber in whole or in part the right to receive any payment under this Agreement except in accordance with Section 1.6, and the right to receive any payment hereunder shall not be subject to attachment, lien or other involuntary encumbrance. 

1.9Acceptance of Terms. The terms and conditions of this Agreement shall be binding upon the heirs, beneficiaries and other successors in interest of the Participant to the same extent that said terms and conditions are binding upon the Participant. 

Article II
GENERAL PROVISIONS 

2.1No Right Of Continued Board Service. The receipt of this Award does not give the Participant, and nothing in the Plan or in this Agreement shall confer upon the Participant, any right to continue in the service of the Board of the Company or any of its subsidiaries. Nothing in the Plan or in this Agreement shall affect any right which the Company or any of its subsidiaries may have to terminate the Board service of the Participant. The payment of Mandatory Deferred Compensation Account under this Agreement shall not give the Company or any of its subsidiaries any right to the continued services of the Participant for any period. 

2.2Rights As A Limited Partner. Neither the Participant nor any other person shall be entitled to the privileges of ownership of Common Stock, or otherwise have any rights as a stockholder, by reason of the award of the Phantom Units covered by this Agreement. 

2.3Tax Withholding. All distributions under this Agreement are subject to withholding of all applicable taxes. Cash payments in respect of any Phantom Units, and/or the related DERs, shall be made net of any applicable federal, state, or local withholding taxes. 

2.4Administration. Pursuant to the Plan, the Committee is vested with conclusive authority to interpret and construe the Plan, to adopt rules and regulations for carrying out the Plan, and to 

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make determinations with respect to all matters relating to this Agreement, the Plan and awards made pursuant thereto. The authority to manage and control the operation and administration of this Agreement shall be likewise vested in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of this Agreement by the Committee, and any decision made by the Committee with respect to this Agreement, shall be final and binding. The Committee may refuse to issue shares of Common Stock as provided in Section 8(f) of the Plan and, without limiting the foregoing, may refuse to issue shares of Common Stock if, in its sole discretion, the Committee determines that the issuance of such Common Stock may violate federal or state securities laws, the listing rules of the New York Stock Exchange, or the Certificate of Incorporation or Bylaws, in each case as amended, of the Company. 

2.5Effect of Plan; Construction. The entire text of the Plan is expressly incorporated herein by this reference and so forms a part of this Agreement. In the event of any inconsistency or discrepancy between the provisions of this Agreement and the terms and conditions of the Plan under which the Phantom Units are granted, the provisions of the Plan shall govern and prevail. The Phantom Units, the related DERs and this Agreement are each subject in all respects to, and the Company and the Participant each hereby agree to be bound by, all of the terms and conditions of the Plan, as the same may have been amended from time to time in accordance with its terms; provided, however, that no such amendment shall deprive the Participant, without the Participant’s consent, of any rights earned or otherwise due to the Participant hereunder. 

2.6Amendment or Supplement. This Agreement shall not be amended or supplemented except by an instrument in writing executed by both parties to this Agreement, without the consent of any other person, as of the effective date of such amendment or supplement. 

2.7Captions. The captions at the beginning of each of the numbered Sections and Articles herein are for reference purposes only and will have no legal force or effect. Such captions will not be considered a part of this Agreement for purposes of interpreting, construing or applying this Agreement and will not define, limit, extend, explain or describe the scope or extent of this Agreement or any of its terms and conditions. 

2.8Governing Law. 

(a)THE VALIDITY, CONSTRUCTION, INTERPRETATION AND EFFECT OF THIS AGREEMENT SHALL EXCLUSIVELY BE GOVERNED BY AND DETERMINED IN ACCORDANCE WITH THE LAW OF THE COMMONWEALTH OF PENNSYLVANIA (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF), EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW, WHICH SHALL GOVERN. 

(b)It is the intention of the Company and the Participant that this Agreement satisfy the requirements set forth in Section 409A of the Internal Revenue Code of 1986 (as amended) (the “Code”) as are necessary to allow the deferral of federal income tax on the deferred compensation resulting from this Agreement and to avoid the constructive receipt of such deferred compensation. In the event that this Agreement fails to satisfy any of the requirements necessary to avoid constructive receipt under Section 409A of the Code, this Agreement shall be deemed automatically amended as of the date hereof to conform to such requirements. 

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2.9Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing, sent by facsimile, by overnight courier or by registered or certified mail, postage prepaid and return receipt requested. Notices to the Company shall be deemed to have been duly given or made upon actual receipt by the Company. Such communications shall be addressed and directed to the parties listed below (except where this Agreement expressly provides that it be directed to another) as follows, or to such other address or recipient for a party as may be hereafter notified by such party hereunder: 

			
	
(a)if to the Company:
	
 
	
StoneMor Inc.

	
 
	
 
	
3600 Horizon Boulevard

	
 
	
 
	
Trevose, PA  19053

	
 
	
 
	
Attention: President and Chief Executive           Officer

 

(b)if to the Participant: to the address for the Participant as it appears on the Company’s records. 

2.10Severability. If any provision hereof is found by a court of competent jurisdiction to be prohibited or unenforceable, it shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable, nor invalidate the other provisions hereof. 

2.11Entire Agreement. This Agreement constitutes the entire understanding and supersedes any and all other agreements, oral or written, between the parties hereto, in respect of the subject matter of this Agreement, and embodies the entire understanding of the parties with respect to the subject matter hereof. 

2.12Acceptance of Terms. The terms and conditions of this Agreement shall be binding upon the estate, heirs, beneficiaries and other successors in interest of the Participant to the same extent that said terms and conditions are binding upon the Participant. 

2.13Arbitration. Any dispute or disagreement between Participant and the Partnership with respect to any portion of this Agreement or its validity, construction, meaning, performance, or Participant’s rights hereunder shall be settled by arbitration, conducted in Philadelphia, Pennsylvania, in accordance with the Commercial Arbitration Rules of the American Arbitration Association or its successor, as amended from time to time. However, prior to submission to arbitration the Participant will attempt to resolve any disputes or disagreements with the Partnership over this Agreement amicably and informally, in good faith, for a period not to exceed two weeks. Thereafter, the dispute or disagreement will be submitted to arbitration. At any time prior to a decision from the arbitrator(s) being rendered, the Participant and the Partnership may resolve the dispute by settlement. The Participant and the Company shall equally share the costs charged by the American Arbitration Association or its successor, but the Participant and the Company shall otherwise be solely responsible for their own respective counsel fees and expenses. The decision of the arbitrator(s) shall be made in writing, setting forth the award, the reasons for the decision and award and shall be binding and conclusive on the Participant and the Company. Further, neither Participant nor the Company shall appeal any such 

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award. Judgment of a court of competent jurisdiction may be entered upon the award and may be enforced as such in accordance with the provisions of the award. 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this Agreement as of the day first above written. 

				
	
STONEMOR INC.

	
 
	
 

	
 
	
 

	
By:
	
/s/ Austin K. So

	
 
	
Name:
	
Austin K. So

	
 
	
 
	
 

	
 
	
Title:
	
Senior Vice President, Chief Legal Officer and Secretary

 

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The Participant hereby acknowledges receipt of a copy of the foregoing Restricted Phantom Unit Agreement and the Plan, and having read them, hereby signifies his or her understanding of, and his or her agreement with, their terms and conditions as of the date set forth above. The Participant hereby accepts this Restricted Phantom Unit Agreement in full satisfaction of any previous written or verbal promises made to him by the Company or any of its Affiliates with respect to Restricted Unit or Phantom Unit grants or other grants under the Plan. 

 

					
	
 
	
 
	
 
	
 
	
 

	
/s/ Kevin D. Patrick
	
 
	
 
	
 
	
 

	
Kevin D. Patrick
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
Nathalie Demedts
	
 
	
 
	
 
	
Spouse

	
Name of Primary Death Beneficiary
	
 
	
 
	
 
	
Relationship to Participant

	
 
	
 
	
 

	
Estate of Kevin D. Patrick

c/o Cozen O’Connor, Philadelphia, PA
	
 
	
 
	
 
	
Attorney/Estate Counsel

	
Name of Contingent Death Beneficiary
	
 
	
 
	
 
	
Relationship to Participant

 

 

 

 

 

8EX-4.1

 Exhibit 4.1 

DESCRIPTION OF THE REGISTRANT’S SECURITIES 

REGISTERED PURSUANT TO SECTION 12 OF THE 

SECURITIES EXCHANGE ACT OF 1934 

The following summary description of the Redeemable Units is based on and qualified by the Partnership’s Amended and
Restated Limited Partnership Agreement dated November 22, 2017 (the “Limited Partnership Agreement”), a copy of which is incorporated by reference as Exhibit 3.3 to this Annual Report on Form
10-K and is incorporated herein by this reference. For a complete description of the terms and provisions of the Partnership’s Redeemable Units refer to the Limited Partnership Agreement. Capitalized
terms not defined herein have the meanings ascribed to them in this Annual Report on Form 10-K. 

The Partnership Redeemable Units are privately offered. Profits and losses of the Partnership are allocated among the partners
on a monthly basis in proportion to their capital accounts (the initial balance of which is the amount paid for their Redeemable Units). Distributions of profits will be made at the sole discretion of the General Partner. 

The Redeemable Units may not be transferred without giving written notice of the assignment, transfer or disposition to the
General Partner. No transfer or assignment will be permitted unless the General Partner is satisfied that such transfer or assignment will not jeopardize the Partnership’s status as a partnership for federal income tax purposes. The transfer of
Redeemable Units shall be subject to all applicable securities laws. No substitution may be made unless the General Partner consents to such substitution. A transferee who becomes a substituted limited partner will be subject to all of the rights
and liabilities of a limited partner of the Partnership. A transferee who does not become a substituted limited partner will be entitled to receive the share of the profits or the return of capital to which such limited partner’s transferor
would otherwise be entitled, but will not be entitled to vote, to an accounting of Partnership transactions, to receive tax information, or to inspect the Partnership’s books and records. Under the New York Revised Limited Partnership Act (the
“New York Act”), an assigning limited partner remains liable to the Partnership for any amounts for which such limited partner may be liable under such law regardless of whether any assignee to whom such limited partner has assigned
Redeemable Units becomes a substituted limited partner. 
 A limited partner may require the Partnership to redeem some or
all of its Redeemable Units at net asset value per Redeemable Unit as of the last day of any month (the “Redemption Date”). The right to redeem is contingent upon the Partnership’s having property sufficient to discharge its
liabilities on the Redemption Date and upon receipt by the General Partner of a written request for redemption in a form specified by the General Partner at least no later than 3:00 p.m. New York City time, on the third to last business day prior to
the Redemption Date, or such other notice period as the General Partner shall determine. The General Partner, in its discretion, may waive the three business day notice requirement. Because net asset value fluctuates daily, limited partners will not
know the net asset value applicable to their redemption at the time a notice of redemption is submitted. Payment for a redeemed interest will be made within 10 business days following the Redemption Date. The General Partner has not experienced a
situation in which the Partnership did not have sufficient cash to honor redemption requests. If this were to occur, the General Partner intends to honor redemption requests on a pro rata basis. There is no fee charged to limited partners in
connection with redemptions. The General Partner may temporarily suspend redemptions if necessary in order to liquidate commodity positions in an orderly manner. 

As of January 1, 2018, the Partnership began offering three classes of limited partnership interests, Class A
Redeemable Units, Class D Redeemable Units and Class Z Redeemable Units. All Redeemable Units issued prior to January 1, 2018 were deemed Class A Redeemable Units. The rights, liabilities, risks, and fees associated with
investment in Class A Redeemable Units were not changed. Class A Redeemable Units are available to taxable U.S. individuals and institutions, U.S. tax exempt individuals and institutions, and
non-U.S. investors. Class D Redeemable Units and Class Z Redeemable Units were first issued on January 1, 2018. Class A Redeemable Units, Class D Redeemable Units and Class Z
Redeemable Units will each be referred to as a “Class” and collectively referred to as the “Classes.” The Class of Redeemable Units that a limited partner receives upon a subscription will generally depend upon the amount
invested in the Partnership or the status of the limited partner, although the General Partner may determine to offer any Class of Redeemable Units to investors at its discretion. Class D Redeemable Units are available to taxable U.S.
individuals and institutions, U.S. tax exempt individuals and institutions, and non-U.S. investors. Class Z Redeemable Units are offered to certain employees of Morgan Stanley and its subsidiaries (and
their family members). In the future, Class Z Redeemable Units may also be offered to certain limited partners who receive advisory services from Morgan Stanley Smith Barney LLC, doing business as Morgan Stanley Wealth Management (“Morgan
Stanley Wealth Management”). Class A Redeemable Units, Class D Redeemable Units and Class Z Redeemable Units are identical, except that Class A Redeemable Units and Class D Redeemable Units are subject to a monthly
ongoing selling agent fee equal to 1/12 of 0.75% (a 0.75% annual rate) of the adjusted month-end Net Assets of Class A Redeemable Units and Class D Redeemable Units, respectively, and Class Z
Redeemable Units are not subject to a monthly ongoing selling agent fee. 

 Summary of the Limited Partnership Agreement 

The following is a summary explanation of some of the more significant terms and provisions of the Limited Partnership
Agreement. Each prospective investor should read the Limited Partnership Agreement thoroughly before investing. The following description is a summary only, is not intended to be complete, and is qualified in its entirety by the Limited Partnership
Agreement itself. 
 Liability of Limited Partners 

The Partnership was formed under the laws of the State of New York on December 3, 2002. In general, a limited partner
will not be liable for amounts in excess of such limited partner’s contributions to the Partnership and his or her share of Partnership assets and undistributed profits. The General Partner will be liable for all obligations of the Partnership
to the extent that assets of the Partnership are insufficient to discharge such obligations. 
 Management of Partnership
Affairs 
 The Limited Partnership Agreement gives the General Partner complete responsibility for management of the
Partnership and gives no management role to the limited partners. 
 Sharing of Profits and Losses 

Each limited partner and the General Partner will have a capital account. Initially, each partner’s balance will be the
amount of his or her capital contribution. Each partner’s balance will be adjusted monthly to reflect his or her pro rata share of gain or loss, fees and expenses. 

At year-end, the Partnership will determine the total taxable income or loss for the
year. Subject to the special allocation of section 1256 gain or loss to redeeming limited partners, the taxable income or loss will be allocated to each limited partner in proportion to such limited partner’s capital account. Each limited
partner will be responsible for his or her share of the taxes. 
 Gains and losses will be allocated among those who are
partners when positions are closed (or deemed closed) and the gains or losses are realized (or deemed realized). Therefore, if a partner’s proportionate interest increases as a result of redemption by others between the time an unrealized gain
occurs and the time the gain is realized, the partner’s share of taxable gain for the year may exceed his or her economic gain. 

The tax basis in Redeemable Units held by a limited partner will be increased by allocable taxable income and reduced by
distributions and allocable losses and expenses. 
 Upon the Partnership’s liquidation, each limited partner will
receive his or her proportionate share of the assets of the Partnership. 
 Additional Partners 

The General Partner may, in its discretion, offer additional Redeemable Units or admit additional limited partners. There is
no limit on the number of outstanding Redeemable Units. All Redeemable Units offered must be sold at the then current net asset value per unit (plus selling commissions, if any) for each Class of Redeemable Units. 

Restrictions on Transfer or Assignment 

A limited partner may transfer or assign his or her Redeemable Units upon notice to the General Partner. The assignment will
be effective at the beginning of the next month after the General Partner receives this notice. An assignee may not become a limited partner without the consent of the General Partner. The General Partner will not consent if it determines that the
admission of the assignee to the Partnership would endanger the Partnership’s tax status as a partnership or otherwise have adverse legal consequences. The transfer of Redeemable Units shall be subject to all applicable securities laws. An
assignee not admitted to the Partnership as a limited partner will share in the profits and capital of the Partnership, but will not be entitled to vote, to an accounting of Partnership transactions, to receive tax information or to inspect the
books and records of the Partnership. An assigning limited partner will remain liable to the Partnership for any amounts for which he may be liable. 

Dissolution and Termination of the Partnership 

The Partnership will be terminated and dissolved upon the first to occur of: 

 

	 	(1)	 December 31, 2022; 

 

	 	(2)	 limited partners owning more than 50% of all Classes of Redeemable Units (excluding Redeemable Units owned
by the General Partner, any entity that directly or indirectly controls, is controlled by or is under common control with the General Partner, or their employees) vote to dissolve the Partnership; 

 

	 	(3)	 the General Partner ceases to be general partner (by assignment of its interest, withdrawal, removal,
bankruptcy or other event) and no new general partner is appointed; 

  

	 	(4)	 the continued existence of the Partnership becomes unlawful; or 

 

	 	(5)	 net asset value per unit falls below $400 as of the end of any trading day. 

 Removal or Admission of the General Partner 

The General Partner may be removed and successor general partner(s) may be admitted upon the vote of limited partners owning
more than 50% of each Class of Redeemable Units (excluding Redeemable Units owned by the General Partner, any entity that directly or indirectly controls, is controlled by or is under common control with the General Partner, or their
employees). 
 Amendments and Meetings 

The Limited Partnership Agreement may be amended if the General Partner and limited partners owning more than 50% of the
outstanding Redeemable Units of each Class agree. The General Partner may amend the Limited Partnership Agreement without the approval of the limited partners in order to clarify inaccuracies or ambiguities, make changes required by regulators
or by law or make any other changes the General Partner deems advisable so long as they are not adverse to limited partners. 

Any limited partner may request in writing a list of the names and addresses of all limited partners and the number of
Redeemable Units held by each. Limited partners owning at least 10% of the outstanding Redeemable Units of each Class can require the General Partner to call a meeting of the Partnership. At the meeting, the limited partners owning a majority
of the outstanding Redeemable Units may vote to: 
  

	 	(1)	 amend the Limited Partnership Agreement without the consent of the General Partner; 

 

	 	(2)	 admit a new general partner prior to the withdrawal of the General Partner; 

 

	 	(3)	 terminate contracts with any Advisor; and 

 

	 	(4)	 approve the sale of all of the Partnership’s assets. 

Reports to Limited Partners 

The limited partners may see and copy the Partnership’s books and records during reasonable business hours. 

The General Partner will provide these reports and statements to the limited partners: 

 

	 	(1)	 a monthly account statement, including a statement of income and a statement of changes in net asset value;

  

	 	(2)	 an annual report, including audited financial statements; and 

 

	 	(3)	 tax information necessary for the preparation of the limited partners’ annual federal income tax
returns. 

 In addition, notice will be mailed to each limited partner within seven business days of any
of the following events: 
  

	 	(1)	 a decrease in the net asset value of any Class of Redeemable Unit to 50% or less of the net asset
value most recently reported; 

  

	 	(2)	 any material change in contracts with Advisors including any change in Advisors or any modification in
connection with the method of calculating the incentive fee; 

  

	 	(3)	 any change in commodity brokers or any change to payment; 

 

	 	(4)	 any change in the General Partner; 

 

	 	(5)	 any material change in the Partnership’s trading policies or any material change in an Advisor’s
trading strategies; and 

  

	 	(6)	 any other material change affecting the compensation of any party. 

Power of Attorney 

To facilitate the execution of various documents by the General Partner on behalf of the Partnership and the limited partners,
the limited partners will appoint the General Partner, with power of substitution, their attorney-in-fact by executing the subscription agreement. Such documents
include, without limitation, the Limited Partnership Agreement and amendments and restatements thereto. 

Indemnification of the General Partner 

The Partnership will indemnify the General Partner or any of its affiliates for actions taken on behalf of the Partnership,
provided that the person acted in good faith and in the best interests of the Partnership and the conduct was not the result of negligence or misconduct. No indemnification is available for losses resulting from a violation of the Securities Act of
1933, as amended, or any State securities law or if indemnification would be inconsistent with the New York Act. Under the Limited Partnership Agreement, the General Partner is not personally liable for the return or repayment of the capital or
profits of any partner (or assignee).

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