Document:

exv10w2

Exhibit 10.2

Execution Version

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT (“Agreement”), as it may be amended, modified or
supplemented from time to time in accordance with the terms hereof, is entered into effective as of
July 19, 2011 (the “Effective Date”), and is by and among OILTANKING PARTNERS, L.P., a
Delaware limited partnership (the “Partnership”), OTLP GP, LLC, a Delaware limited
liability company and the general partner of the Partnership (the “General Partner”), and
OILTANKING HOLDING AMERICAS, INC., a Delaware corporation (“OTA”). The above-named
entities are sometimes referred to in this Agreement each as a “Party” and collectively as
the “Parties.”

RECITALS:

     WHEREAS, on the Closing Date, OTA will contribute, or cause its subsidiaries to contribute,
all of their respective equity interests in certain subsidiaries of OTA to the Partnership (the
“Contribution”) in exchange for limited partnership interests in the Partnership, cash and
other consideration agreed to by the Parties; and

     WHEREAS, in connection with the Contribution, the Parties desire by their execution of this
Agreement to evidence their understanding as more fully set forth in this Agreement, with respect
to (1) the license to use certain Marks (as defined herein) of Oiltanking GmbH that have been
licensed to OTA; and (2) specified indemnification obligations of OTA and the Partnership Group.

     NOW, THEREFORE, in consideration of the premises and the covenants, conditions and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE 1

DEFINITIONS

     1.1 Definitions. As used in this Agreement, the following terms have the respective meanings set forth below:

“Affiliate” means, with respect to any Person, any other Person who directly or indirectly
controls, is controlled by, or is under direct or indirect common control with, such Person, and
includes any Person in like relation to an Affiliate. A Person shall be deemed to “control”
another Person if such Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such other Person, whether through the ownership of
voting securities, by contract or otherwise; and the term “controlled” shall have a similar
meaning. Without limiting the generality of the foregoing, it is agreed that any Person that owns
or controls, directly or indirectly, 50% or more of the voting securities of another Person shall
be deemed for purposes of this Agreement to control such other Person.

“Agreement” has the meaning given such term in the introduction to this Agreement..

 

 

“Arbitration Award” has the meaning given such term in Section 4.16.

“Cause” has the meaning given such term in the Partnership Agreement.

“Change of Control” means, with respect to any Person (the “Applicable Person”),
any of the following events:

     (a) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the Applicable Person’s assets to any
other Person, unless immediately following such sale, lease, exchange or other transfer
such assets are owned, directly or indirectly, by the Applicable Person;

     (b) the dissolution or liquidation of the Applicable Person;

     (c) the consolidation or merger of the Applicable Person with or into another Person,
other than any such transaction where:

     (i) the outstanding Voting Securities of the Applicable Person are changed
into or exchanged for Voting Securities of the surviving Person or its parent; and

     (ii) the holders of the Voting Securities of the Applicable Person immediately
prior to such transaction own, directly or indirectly, not less than a majority of
the outstanding Voting Securities of the surviving Person or its parent immediately
after such transaction; and

     (d) a “person” or “group” (within the meaning of Sections 13(d) or 14(d)(2) of the
Exchange Act) being or becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
under the Exchange Act) of more than 50% of all of the then outstanding Voting Securities
of the Applicable Person, except in a merger or consolidation that would not constitute a
Change of Control under clause (c) above.

“Closing Date” means the date of the closing of the initial public offering of Common Units
of the Partnership.

“Common Units” has the meaning given such term in the Partnership Agreement.

“Conflicts Committee” has the meaning given such term in the Partnership Agreement.

“Contribution” has the meaning given such term in the Recitals.

“Contribution Agreement” means that certain Contribution Agreement dated July 19, 2011 by
and between OTA, the Partnership and the other parties thereto pursuant to

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which OTA will make and cause its subsidiaries to make the Contribution to the Partnership.

“Discussion Date” has the meaning given such term in Section 4.17.

“Effective Date” has the meaning given such term in the introduction to this Agreement.

“Environmental Laws” means all federal, regional, state, and local laws, statutes, rules,
regulations, orders, ordinances, judgments, codes, injunctions, decrees, permits and other legally
enforceable requirements and rules of common law relating to (i) pollution or protection of human
health, the environment or natural resources; (ii) any Release or threatened Release of, or
exposure to, Hazardous Substances; or (iii) the generation, manufacture, processing, distribution,
use, treatment, storage, disposal, transport, arrangement for disposal or transport or handling of
any Hazardous Substances. Without limiting the foregoing, “Environmental Laws” include,
without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability
Act, the Superfund Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the
Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Oil
Pollution Act of 1990, the Safe Drinking Water Act, the Federal Hazardous Materials Transportation
Law, the Occupational Safety and Health Act and other environmental conservation and protection
laws, each as amended through the Closing Date.

“Environmental Losses” has the meaning given such term in Section 3.1(a).

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

“General Partner” has the meaning given such term in the introduction to this Agreement.

“Governmental Authority” means:

     (a) any domestic or foreign government, whether national, federal, state provincial,
territorial, municipal or local (whether administrative, legislative, executive or
otherwise);

     (b) any agency, authority, ministry, department, regulatory body, court, central bank,
bureau, board or other instrumentality having legislative, judicial, taxing, regulatory,
prosecutorial or administrative powers or functions of, or pertaining to, government;

     (c) any court, tribunal, commission, individual, arbitrator, arbitration panel or
other body having adjudicative, regulatory, judicial, quasi-judicial, administrative or
similar functions; and

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     (d) other body or entity created under the authority of or otherwise subject to the
jurisdiction of any of the foregoing, including any stock or other securities exchange or
professional association.

“Group Member” means a member of the Partnership Group.

“Hazardous Substance” means (a) any substance that is designated, defined or
classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic
or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any
Environmental Law, including, without limitation, any hazardous substance as such term is defined
under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, (b)
oil as defined in the Oil Pollution Act of 1990, as amended, petroleum, petroleum products, crude
oil, gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other
petroleum hydrocarbons whether refined or unrefined and (c) asbestos, whether in a friable or a
non-friable condition, radioactive materials and polychlorinated biphenyls.

“Indemnified Party” means either the Partnership Group or OTA, as the case may be, each in
its capacity as a party entitled to indemnification in accordance with Section 2.7 and Article 3
hereof.

“Indemnifying Party” means either the Partnership Group or OTA, as the case may be, each in
its capacity as a party from whom indemnification may be required in accordance with Section 2.7
and Article 3 hereof.

“Licensees” means, for purposes of Article 2 hereof, the Partnership and its Subsidiaries.

“Licensor” means, for purposes of Article 2 hereof, OTA.

“Limited Partner” has the meaning given such term in the Partnership Agreement.

“Losses” means all losses, damages, liabilities, claims, demands, causes of action,
judgments, settlements, fines, penalties, costs and expenses (including, without limitation, court
costs and reasonable attorney’s and experts’ fees) of any and every kind or character, known or
unknown, fixed or contingent.

“Marks” means all trademarks, trade names, logos and/or service marks identified on
Schedule 2.1 attached hereto, which Schedule may be amended from time to time with the
approval of OTA and the Conflicts Committee.

“Organizational Documents” means certificates or articles of incorporation, by-laws,
certificates of formation, limited liability company operating agreements, certificates of limited
partnership or limited partnership agreements or other formation or governing documents of a
particular entity.

“OTA” has the meaning given such term in the introduction to this Agreement.

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“OTA Entities” means OTA and any Person (other than the Partnership Entities) that directly
or indirectly through one or more intermediaries controls, is controlled by or is under common
control with, OTA; and “OTA Entity” means any of the OTA Entities.

“OTA Covered Environmental Losses” has the meaning given such term in Section 3.1(a).

“Other Losses” has the meaning given such term in Section 3.2(a).

“Partners” means the General Partner and the Limited Partners.

“Partnership” has the meaning given such term in the introduction to this Agreement.

“Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of the Partnership, as it may be amended from time to time.

“Partnership Assets” means the terminal services contracts, terminal services customer
relationships and terminal assets, directly or indirectly conveyed, contributed or otherwise
transferred (but not leased) to the Partnership Group as of the closing date pursuant to the
Contribution Agreement.

“Partnership Covered Environmental Losses” has the meaning given such term in Section
3.1(b).

“Partnership Entities” means the General Partner and each member of the Partnership Group;
and “Partnership Entity” means any of the Partnership Entities.

“Partnership Group” means the Partnership and its Subsidiaries.

“Party” or “Parties” have the meaning given such term in the introduction to this
Agreement.

“Person” is to be construed broadly and includes an individual, partnership, corporation,
business trust, limited liability company, limited liability partnership, joint stock company,
trust, unincorporated association, joint venture or other entity or a Governmental Authority.

“Release” or “Releasing” means depositing, spilling, leaking, pumping, pouring,
placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping,
leaking, dumping or disposing into the environment.

“Retained Assets” means the assets and investments owned by OTA or any of its Affiliates
that were not conveyed, contributed or otherwise transferred to the Partnership Group pursuant to a
particular contribution agreement.

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“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of
the voting power of shares entitled (without regard to the occurrence of any contingency) to vote
in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person.

“Voluntary Cleanup Program” means a program of the United States or a state of the United
States enacted pursuant to Environmental Laws that provides for a mechanism for the written
approval of, or authorization to conduct, voluntary investigatory and remedial action for the
clean-up, removal or remediation of Hazardous Substances that exceeds actionable levels established
pursuant to Environmental Laws.

“Voting Securities” of a Person means securities of any class of such Person entitling the
holders thereof to vote in the election of, or to appoint, members of the board of directors or
other similar governing body of the Person; provided that, if such Person is a limited partnership,
Voting Securities of such Person shall be the general partner interest in such Person.

ARTICLE 2

LICENSE

     2.1 Grant of License. Upon the terms and conditions set forth in this Article 2, Licensor hereby grants and conveys to
Licensees a non-transferable, non-exclusive license with respect to Marks owned by Licensor, and a
non-transferable, non-exclusive sublicense with respect to Marks that are licensed to Licensor by
Oiltanking GmbH, to use the Marks in connection with the continuation of Licensees’ current
businesses and the current services performed therewith within the United States during the term of
this Agreement. Licensees shall not have the right to assign, transfer or sublicense any of the
rights granted hereunder, except upon the written consent of Licensor, which consent shall be given
or withheld at the sole discretion of Licensor and which shall be limited by such conditions as
Licensor may require at its sole discretion.

     2.2 Restrictions on Marks. In order to ensure the quality of uses under the Marks, and to protect the goodwill of the
Marks, Licensees agree as follows:

     (a) Licensees will use the Marks only in accordance with such quality standards and
specifications as may be established by Licensor and communicated to Licensees from time to
time, it being understood that Licensor has evaluated

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Licensees’ businesses and services
and determined that they are of a quality that justifies this grant of a license.
Licensees recognize the substantial goodwill associated with the Marks and will not permit
the quality of the businesses or services with which Licensees use the Marks to deteriorate
so as to affect adversely the goodwill associated with the Marks. If the quality of the
businesses or services with which Licensees use the Marks so deteriorates so as to affect
adversely the goodwill associated with the Marks, Licensees shall at their expense
immediately cease further use of the Marks and shall immediately cause the Marks to be
removed from all materials associated with the businesses and services until rectified and
from all marketing materials. Licensees shall promptly report to Licensor any material
changes in the quality of the businesses or services with which Licensees use the Marks.
Licensees will not cause any action, or permit or fail to prevent any action by Licensees’
Affiliates or any other Person under Licensees’ control, that is deemed to injure, harm or
dilute the distinctiveness or goodwill of the Marks;

     (b) Licensees will only use the Marks in formats approved by Licensor and only in
strict association with Licensees’ businesses and the services performed therewith;

     (c) Prior to publishing any new format or appearance of the Marks or any new
advertising or promotional materials that incorporate the Marks, Licensees shall first
provide such format, appearance or materials to Licensor for its approval. If Licensor
does not inform Licensees in writing within fourteen (14) days from the date of the receipt
of such new format, appearance, or materials that such new format, appearance, or materials
is unacceptable, then such new format, appearance or materials shall be deemed to be
acceptable and approved by Licensor. Licensor may withhold approval of any proposed
changes to the format, appearance or materials which Licensees propose to use in Licensor’s
sole discretion; and

     (d) Licensees shall not use any other trademarks, service marks, trade names or logos
in connection with the Marks.

     2.3 Ownership. Oiltanking GmbH, a German corporation, has licensed certain of the Marks to Licensor.
Oiltanking GmbH or Licensor, as the case may be, shall own all right, title and interest, including
all goodwill relating thereto, in and to the Marks, and all trademark rights embodied therein shall
at all times be solely vested in Oiltanking GmbH or Licensor. Licensees have no right, title,
interest or claim of ownership in the Marks, except for the licenses granted in this Agreement.
All use of the Marks shall inure to the benefit of
Licensor and Oiltanking GmbH. Licensees agree that they will not attack the title of Oiltanking
GmbH or Licensor in and to the Marks.

     2.4 Confidentiality. Licensees shall maintain in strictest confidence all confidential or nonpublic information or
material disclosed by Licensor and in the materials supplied hereunder in connection with the
license of the Marks, whether in writing or orally and whether or not marked as confidential. Such
confidential

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information includes, but is not limited to, algorithms, inventions, ideas, processes,
computer system architecture and design, operator interfaces, operational systems, technical
information, technical specifications, training and instruction manuals, and the like. In
furtherance of the foregoing confidentiality obligation, Licensees shall limit disclosure of such
confidential information to those of their employees, contractors or agents having a need to access
the confidential information for the purpose of exercising rights granted hereunder.

     2.5 Estoppel. Nothing in this Agreement shall be construed as conferring by implication, estoppel, or
otherwise upon Licensees (a) any license or other right under the intellectual property rights of
Licensor other than the license granted herein to the Marks as set forth expressly herein or (b)
any license rights other than those expressly granted herein.

     2.6 Warranties; Disclaimers.

     (a) Licensor represents and warrants that (i) Oiltanking GmbH or Licensor owns, and
Licensor has the right to license or sublicense, the Marks licensed under this Agreement
and (ii) the Marks do not infringe upon the rights of any third parties.

     (b) EXCEPT FOR THE WARRANTIES AND REPRESENTATIONS DESCRIBED IN SECTION 2.6(a),
LICENSOR DISCLAIMS ANY AND ALL WARRANTIES, CONDITIONS OR REPRESENTATIONS (EXPRESS OR
IMPLIED, ORAL OR WRITTEN) WITH RESPECT TO THE SUBJECT MATTER HEREOF, OR ANY PART THEREOF,
INCLUDING ANY AND ALL IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS OR
SUITABILITY FOR ANY PURPOSE (WHETHER ANY LICENSEE KNOWS, HAS REASON TO KNOW, HAS BEEN
ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE) WHETHER ALLEGED TO ARISE BY
LAW, BY REASON OF CUSTOM OR USAGE IN THE TRADE OR BY COURSE OF DEALING.

2.7 Trademark Indemnification. (a) Licensees agree to defend, indemnify, and hold harmless Licensor from and against
any Losses suffered or incurred by Licensor by reason of or arising out of claims by third
parties based on alleged defects or failures of Licensees’ services.

     (b) Licensor will defend, indemnify, and hold harmless Licensee from and against any
Losses suffered or incurred by Licensees by reason of or arising out of any claim that any
Licensee’s authorized use of the Marks that complies with this Agreement infringes the
trademark rights of any third party.

     2.8 In the Event of Termination. In the event of termination of this Agreement pursuant to Section 4.4 or otherwise,
Licensees’ right to utilize or possess the Marks licensed under this Agreement shall automatically
cease, and no later than ninety (90) days following such termination of this Agreement, (i) the
Licensees shall cease all

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use of the Marks and shall adopt new trademarks, service marks, and trade
names that are not confusingly similar to the Marks and (ii) the General Partner shall have caused
each of the Licensees to change its legal name so that there is no longer any reference therein to
the name “Oiltanking,” any name or d/b/a then used by any OTA Entity or any variation, derivation
or abbreviation thereof, and in connection therewith, the General Partner shall cause each such
Licensee to make all necessary filings of certificates with the Secretary of State of the State of
Delaware and to otherwise amend its Organizational Documents by such date.

ARTICLE 3

INDEMNIFICATION

     3.1 Environmental Indemnification.

     (a) Subject to Section 3.1(c) and to the provisions of Section 3.3, OTA shall
indemnify, defend and hold harmless the Partnership Group from and against any Losses
suffered or incurred by the Partnership Group by reason of or arising out of:

     (i) with respect to the Partnership Assets, any violation or correction of
violation of Environmental Laws; or

     (ii) any event, circumstance, action, omission, condition or environmental
matter associated with or arising from the ownership or operation of the
Partnership Assets (including, without limitation, the exposure to or presence of
Hazardous Substances at, on, under, about or Releasing to or from the Partnership
Assets or the exposure to or Release of Hazardous Substances arising out of
operation of the Partnership Assets at non-Partnership Asset locations) including,
without limitation, (A) the cost and expense of any investigation, assessment,
evaluation, response,
abatement, monitoring, containment, cleanup, repair, restoration, remediation,
or other corrective action required or necessary under Environmental Laws or to
satisfy any applicable Voluntary Cleanup Program, (B) performance of a supplemental
environmental project authorized or consented to by a Governmental Authority in
partial or whole mitigation of a fine or penalty, (C) the cost or expense of the
preparation and implementation of any investigatory closure, remedial, corrective
action or other plans required or necessary under Environmental Laws or to satisfy
any applicable Voluntary Cleanup Program and (D) the cost and expense for any
environmental or toxic tort pre-trial, trial, or appellate legal or litigation
support work; provided, in the case of clauses (A) and (C) such cost and expense
shall not include the costs of and associated with project management and soil and
ground water monitoring performed at the conclusion of or in lieu of active soil or
groundwater remediation (collectively with Losses under Section 3.1(a)(i),
“Environmental Losses”); but only to the extent that such violation
complained of under Section 3.1(a)(i) or such events, omissions or

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conditions
included under Section 3.1(a)(ii) occurred or existed on or before the Closing Date
with respect to such Partnership Assets (collectively, “OTA Covered
Environmental Losses”).

     (b) Subject to Section 3.1(c) and to the provisions of Section 3.3, the Partnership
Group shall indemnify, defend and hold harmless the OTA Entities from and against any
Environmental Losses suffered or incurred by the OTA Entities relating to the ownership or
operation of the Partnership Assets to the extent occurring after the Closing Date
(“Partnership Covered Environmental Losses”), except to the extent that the
Partnership Group is indemnified with respect to any of such Environmental Losses that are
OTA Covered Environmental Losses under Section 3.1(a), or unless such indemnification would
not be permitted under the Partnership Agreement by reason of one of the provisos contained
in Section 7.7 of the Partnership Agreement.

     (c) Except for obligations with respect to claims made before the third anniversary of
the Closing Date for OTA Covered Environmental Losses or Partnership Covered Environmental
Losses, which shall not terminate, all indemnification obligations in this Section 3.1
shall terminate on the third anniversary of the Closing Date.

     3.2 Additional Indemnification.

     (a) In addition to and not in limitation of the indemnification provided under Section
3.1(a), subject to Section 3.3, OTA shall indemnify, defend and hold harmless the
Partnership Group from and against any Losses of any and every kind or character, known or
unknown, fixed or contingent, suffered or incurred by the Partnership Group (“Other
Losses”) by reason of or arising out of:

     (i) failure to convey good and indefeasible title to the Partnership Assets to
one or more members of the Partnership Group, and such failure renders the
Partnership Group unable to use or operate the Partnership Assets in substantially
the same manner as they were operated by the OTA Entities immediately prior to the
Closing Date with respect to such Partnership Assets;

     (ii) failure of the Partnership Group to be the owner on the Closing Date of
(A) valid and indefeasible easement rights, rights-of-way, leasehold and/or fee
ownership interests in and to the lands on which are located any Partnership Assets
and (B) valid title to 100% of the equity interest of Oiltanking Houston, L.P. and
Oiltanking Beaumont Partners, L.P., in each case to the extent that, such failure
renders the Partnership Group liable or unable to use or operate the Partnership
Assets in substantially the same manner as they were operated by the OTA Entities
immediately prior to the Closing Date;

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     (iii) failure of the Partnership Group to have on the Closing Date any consent
or governmental permit and such failure renders the Partnership unable to use or
operate the Partnership Assets in substantially the same manner as they were
operated by the OTA Entities immediately prior to the Closing Date;

     (iv) events and conditions associated with the Retained Assets whether
occurring before or after the Closing Date; and

     (v) all federal, state and local income tax liabilities attributable to the
ownership and operation of the Partnership Assets prior to the Closing Date,
including any such income tax liabilities of OTA that may result from the
consummation of the formation transactions for the Partnership Entities;

provided, however, that in the case of clauses (i), (ii), (iii) and (iv) above, such
indemnification obligations shall terminate on the third anniversary of the Closing Date;
and that in the case of clause (v) above, such indemnification obligations shall survive
until sixty (60) days after the termination of any applicable statute of limitations.

     (b) In addition to and not in limitation of the indemnification provided under Section
3.1(b) and the Partnership Agreement, the Partnership Group shall indemnify, defend and
hold harmless the OTA Entities from and against any Losses of any and every kind or
character, known or unknown, fixed or contingent, suffered or incurred by any of the OTA
Entities by reason of or arising out of events and conditions associated with the operation
of the Partnership Assets and occurring on or after the Closing Date unless such
indemnification would not be permitted under the Partnership Agreement by
reason of one of the provisos contained in Section 7.7 of the Partnership Agreement.

     3.3 Limitations Regarding Indemnification.

     (a) The aggregate liability of OTA under Section 3.1(a) shall not exceed $15.0
million.

     (b) No claims may be made against OTA for indemnification pursuant to Sections 3.1(a)
or 3.2(a) unless the aggregate dollar amount of the Losses suffered or incurred by the
Partnership Group exceeds $500,000 per calendar year, after such time and for the remainder
of the relevant calendar year OTA shall be liable for the full amount of such claims in
excess of $500,000, subject to the limitations of Section 3.3(a).

     (c) Notwithstanding anything herein to the contrary, in no event shall OTA have any
indemnification obligations under Section 3.1(a) for claims made

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as a result of additions
to or modifications of Environmental Laws promulgated after the Closing Date with respect
to a particular Partnership Asset.

     (d) In no event shall the Indemnifying Party be obligated to the Indemnified Party
under Section 3.1 or 3.2 for any Losses or income tax liabilities to the extent either (i)
reserved for in the Partnership Group’s financial statements as of the Closing Date or (ii)
recovered by the Indemnified Party under available insurance coverage, from contractual
rights or against any third party.

     3.4 Indemnification Procedures.

     (a) The Indemnified Party agrees that promptly after it becomes aware of facts giving
rise to a claim for indemnification under Section 2.7 or this Article 3, it will provide
notice thereof in writing to the Indemnifying Party, specifying the nature of and specific
basis for such claim; provided, however, that the Indemnified Party shall not submit claims
more frequently than once a calendar quarter (or twice in the case of the last calendar
quarter prior to the expiration of the applicable indemnity coverage under this Agreement).

     (b) The Indemnifying Party shall have the right to control all aspects of the defense
of (and any counterclaims with respect to) any claims brought against the Indemnified Party
that are covered by the indemnification under Section 2.7 or this Article 3, including,
without limitation, the selection of counsel, determination of whether to appeal any
decision of any court and the settling of any such matter or any issues relating thereto;
provided, however, that no such settlement shall be entered into without the consent of the
Indemnified Party (with the concurrence of the Conflicts Committee in the case of the
Partnership Group) unless it includes a full release of the Indemnified Party from
such matter or issues, as the case may be, and does not include the admission of fault,
culpability or a failure to act, by or on behalf of such Indemnified Party.

     (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party, with
respect to all aspects of the defense of any claims covered by the indemnification under
Section 2.7 or this Article 3, including, without limitation, the prompt furnishing to the
Indemnifying Party of any correspondence or other notice relating thereto that the
Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized
in connection with such defense, the making available to the Indemnifying Party of any
files, records or other information of the Indemnified Party that the Indemnifying Party
considers relevant to such defense and the making available to the Indemnifying Party, at
no cost to the Indemnifying Party, of any employees of the Indemnified Party; provided,
however, that in connection therewith the Indemnifying Party agrees to use reasonable
efforts to minimize the impact thereof on the operations of the Indemnified Party and
further agrees to endeavor to maintain the confidentiality of all files, records and other
information furnished by the Indemnified Party pursuant to this Section 3.4. In no event
shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as
set forth in the

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immediately preceding sentence be construed as imposing upon the
Indemnified Party an obligation to hire and pay for counsel in connection with the defense
of any claims covered by the indemnification set forth in Section 2.7 or this Article 3;
provided, however, that the Indemnified Party may, at its own option, cost and expense,
hire and pay for counsel in connection with any such defense. The Indemnifying Party
agrees to keep any such counsel hired by the Indemnified Party informed as to the status of
any such defense, but the Indemnifying Party shall have the right to retain sole control
over such defense.

     (d) In determining the amount of any Losses for which the Indemnified Party is
entitled to indemnification under this Agreement, the gross amount of the indemnification
will be reduced by (i) any insurance proceeds realized by the Indemnified Party and (ii)
all amounts recovered by the Indemnified Party under contractual indemnities from third
Persons. The Indemnified Party hereby agrees to use commercially reasonable efforts to
realize any applicable insurance proceeds or amounts recoverable under such contractual
indemnities.

     (e) The date on which the Indemnifying Party receives notification of a claim for
indemnification shall determine whether such claim is timely made.

     (f) NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY’S
INDEMNIFICATION OBLIGATION HEREUNDER COVER OR INCLUDE CONSEQUENTIAL, INDIRECT, INCIDENTAL,
PUNITIVE, EXEMPLARY, SPECIAL OR SIMILAR DAMAGES OR LOST PROFITS SUFFERED BY ANY OTHER PARTY
ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT.

ARTICLE 4

MISCELLANEOUS

     4.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by the laws of the State of Texas, excluding any
conflicts-of-law rule or principle that might refer the construction or interpretation of this
Agreement to the laws of another state. Each Party hereby submits to the jurisdiction of the state
and federal courts in the State of Texas and to venue in Texas.

     4.2 Notice. All notices, requests or consents provided for or permitted to be given pursuant to this
Agreement must be in writing and must be given by depositing same in the United States mail,
addressed to the Person to be notified, postpaid, and registered or certified with return receipt
requested or by delivering such notice in person or by telecopier or telegram to such Party.
Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by
telegram or telecopier shall be effective upon actual receipt if received during the recipient’s
normal business hours, or at the beginning of the recipient’s next business day after receipt if
not received during the recipient’s normal business hours. All notices to be sent to a Party
pursuant to this

13

 

Agreement shall be sent to or made at the address set forth below or at such other
address as such Party may stipulate to the other Parties in the manner provided in this Section
4.2.

For notices to any of the OTA Entities:

Oiltanking Holding Americas, Inc.

15631 Jacintoport Blvd.

Houston, Texas 77015

Phone: (281) 457-7900

Fax: (281) 457-7991

Attention: Chief Financial Officer

For notices to any of the Partnership Entities:

Oiltanking Partners, L.P.

OTLP GP, LLC

15631 Jacintoport Blvd.

Houston, Texas 77015

Phone: (281) 457-7900

Fax: (281) 457-7991

Attention: Chief Financial Officer

     4.3 Entire Agreement. This Agreement constitutes the entire agreement of the Parties relating to the matters contained
herein, superseding all prior contracts or agreements, whether oral or written, relating to the
matters contained herein, other than the Contribution Agreement.

     4.4 Termination. This Agreement, other than the provisions set forth in Section 2.7 and Articles 3 and 4 hereof,
shall terminate upon a Change of Control of the General Partner or the Partnership, other than any
Change of Control of the General Partner or the Partnership deemed to have occurred pursuant to
clause (d) of the definition of Change of Control solely as a result of a Change of Control of OTA.
Notwithstanding any other provision of this Agreement, if the General Partner is removed as general
partner of the Partnership under circumstances where Cause does not exist and the Common Units held
by the General Partner and its Affiliates are not voted in favor of such removal, this Agreement
may immediately thereupon be terminated by OTA.

     4.5 Effect of Waiver or Consent. No waiver or consent, express or implied, by any Party to or of any breach or default by any
Person in the performance by such Person of its obligations hereunder shall be deemed or construed
to be a consent or waiver to or of any other breach or default in the performance by such Person of
the same or any other obligations of such Person hereunder. Failure on the part of a Party to
complain of any act of any Person or to declare any Person in default, irrespective of how long
such failure continues, shall not constitute a waiver by such Party of its rights hereunder until
the applicable statute of limitations period has run.

14

 

     4.6 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all
the Parties; provided, however, that the Partnership may not, without the prior approval of the
Conflicts Committee, agree to any amendment or modification of this Agreement that the General
Partner determines will adversely affect the holders of Common Units. Each such instrument shall
be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this
Agreement.

     4.7 Assignment; Third Party Beneficiaries. Except as provided in Section 2.1, any Party shall have the right to assign its rights under
this Agreement without the consent of any other Party, but no Party shall have the right to assign
its obligations under this Agreement without the consent of the other Parties. Each of the Parties
hereto specifically intends that each entity comprising the OTA Entities and each entity comprising
the Partnership Entities, as applicable, whether or not a Party to this Agreement, shall be
entitled to assert rights and remedies hereunder as third-party beneficiaries hereto with respect
to those provisions of this Agreement affording a right, benefit or privilege to any such entity.

     4.8 Counterparts. This Agreement may be executed in two or more counterparts, and by facsimile, each of which
shall be deemed to be an original, but all of which shall constitute one and the same agreement.

     4.9 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced by any applicable rule of law or public policy, all other conditions and provisions of
this Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any Party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as possible in an
acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent
possible.

     4.10 Gender, Parts, Articles and Sections. Whenever the context requires, the gender of all words used in this Agreement shall include the
masculine, feminine and neuter, and the number of all words shall include the singular and plural.
All references to Article numbers and Section numbers refer to Articles and Sections of this
Agreement.

     4.11 Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each
Party agrees to execute and deliver such additional documents and instruments and to perform such
additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the
terms, provisions and conditions of this Agreement and all such transactions.

     4.12 Withholding or Granting of Consent. Except as otherwise expressly provided in this Agreement, each Party may, with respect to any
consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such
consent or

15

 

approval in its sole and uncontrolled discretion, with or without cause, and subject to
such conditions as it shall deem appropriate.

     4.13 Laws and Regulations. Notwithstanding any provision of this Agreement to the contrary, no Party shall be required to
take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause
such Party to be in violation of any applicable law, statute, rule or regulation.

     4.14 Negation of Rights of Limited Partners, Assignees and Third Parties. Except as set forth in Section 4.7, the provisions of this Agreement are enforceable solely by
the Parties, and no shareholder, limited partner, member, or assignee of OTA, the General Partner,
the Partnership or other Person shall have the right, separate and apart from OTA, the General
Partner or the Partnership, to enforce any provision of this Agreement or to compel any Party to
comply with the terms of this Agreement.

     4.15 No Recourse Against Officers and Directors. For the avoidance of doubt, the provisions of this Agreement shall not give rise to any right of
recourse against any officer or director of any OTA Entity or any Partnership Entity.

     4.16 Arbitration.

     Any dispute, controversy or claim arising out of or in connection with this Agreement shall be
settled by final and binding arbitration conducted in Houston, Texas in accordance with the
Commercial Arbitration Rules of the American Arbitration Association by one or more arbitrators
designated in accordance with said Rules. All arbitrators must have not less than seven years
experience in the energy industry. The Parties agree that the award of the arbitral tribunal (the
“Arbitration Award”) shall be: (a) conclusive, final and binding upon the Parties; and (b) the sole
and exclusive remedy between the Parties regarding any and all claims and counterclaims presented
to the arbitral tribunal. All notices to be given in connection with the arbitration shall be as
provided in Section 4.2 of this Agreement. The Arbitration Award shall include interest, at a rate
determined as appropriate by the arbitrators, from the date of any breach or other violation of
this Agreement to the date when the Arbitration Award is paid in full. The Arbitration Award shall
also include the fixing of the expense of the arbitration and the assessment of the same, as is
appropriate in the opinion of the arbitrators, against either or both Parties hereto. Each Party
shall otherwise bear its cost for its respective legal fees, witnesses, depositions and other
out-of-pocket expenses incurred in the course of the arbitration.

     4.17 Dispute Resolution.

     If the Parties are unable to resolve any service or performance issues or if there is a
material breach of this Agreement that has not been corrected within thirty (30) days of receipt of
notice of such breach, representatives of each of the Parties in dispute shall meet promptly to
review and resolve such issues and breaches in good faith (the date on which such Persons first so
meet, the “Discussion Date”). If such Persons are unable to

16

 

fully resolve any such issues and
breaches in good faith promptly after the Discussion Date, any remaining disputes shall be resolved
in accordance with Section 4.16.

[Signature pages follow.]

17

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the
Effective Date.

	 	 	 	 	 	 	 

	 	 	OILTANKING HOLDING AMERICAS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Carlin G. Conner	 	 
	 

	 	Name:
	 	 

Carlin G. Conner
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	OTLP GP, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Carlin G. Conner	 	 
	 

	 	Name:
	 	 

Carlin G. Conner
	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	OILTANKING PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	OTLP GP, LLC,	 	 
	 

	 	 	 	Its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Carlin G. Conner	 	 
	 

	 	Name:
	 	 

Carlin G. Conner
	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 

Signature Page — Omnibus Agreement

18

 

Schedule 2.1

Marks

Oiltanking

We Can, We Care

www.oiltankingpartners.com

www.oiltanking.com

19exv10w3

Exhibit 10.3

OILTANKING PARTNERS, L.P.

LONG-TERM INCENTIVE PLAN

          Section 1. Purpose of the Plan. The Oiltanking Partners, L.P. Long-Term Incentive
Plan (the “Plan”) has been adopted to become effective on July 19, 2011 (the “Effective Date”) by
OTLP GP, LLC, a Delaware limited liability company, the general partner (“General Partner”) of
Oiltanking Partners, L.P., a Delaware limited partnership (the “Partnership”). The Plan is
intended to promote the interests of the General Partner, the Partnership 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
General Partner, the Partnership and their 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 advancing the business of the Partnership.

          Section 2. Definitions. As used in the Plan, the following terms shall have the
meanings set forth below:

          (a) “409A Award” means an Award that constitutes a “deferral of compensation” within the
meaning of the 409A Regulations, whether by design, due to a subsequent modification in the terms
and conditions of such Award or as a result of a change in applicable law following the date of
grant of such Award, and that is not exempt from Section 409A of the Code pursuant to an applicable
exemption.

          (b) “409A Regulations” means the applicable Treasury regulations and other interpretive
guidance promulgated pursuant to Section 409A of the Code.

          (c) “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.

          (d) “Award” means an Option, Unit Appreciation Right, Restricted Unit, Phantom Unit, Unit
Award, Substitute Award, Other Unit Based Award granted under the Plan or Performance Awards and
includes, as appropriate, any tandem DERs granted with respect to an Award (other than a Restricted
Unit or Unit Award).

          (e) “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

          (f) “Board” means the Board of Directors of the General Partner.

          (g) “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 members of the General Partner, the
Partnership, or an Affiliate of either the General Partner or the Partnership, shall become
the beneficial owner, by way of merger, consolidation, recapitalization, reorganization or
otherwise,

 

 

of 50% or more of the voting power of the voting securities of the General
Partner or the Partnership;

     (ii) the limited partners of the General Partner or the Partnership approve, in one
transaction or a series of transactions, a plan of complete liquidation of the General
Partner or the Partnership;

     (iii) the sale or other disposition by either the General Partner or the Partnership of
all or substantially all of its assets in one or more transactions to any Person other than
an Affiliate;

     (iv) the General Partner or an Affiliate of the General Partner or the Partnership
ceases to be the general partner of the Partnership;

     (v) any other event specified as a “Change of Control” in an applicable Award
Agreement.

          (h) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          (i) “Committee” means the Board or such committee as may be appointed by the Board to
administer the Plan, which alternative committee may be the board of directors or managers of any
Affiliate or a committee therefore.

          (j) “Consultant” means an individual who renders consulting or advisory services to the
General Partner, the Partnership or an Affiliate of either.

          (k) “Director” means a member of the Board or the board of an Affiliate of the General Partner
who is not an Employee or a Consultant (other than in that individual’s capacity as a Director).

          (l) “Distribution Equivalent Right” or “DER” means a contingent right, granted alone or in
tandem with a specific Award (other than a Restricted Unit or Unit Award), to receive with respect
to each Unit subject to the Award an amount in cash, Units and/or Phantom Units, as determined by
the Committee in its sole discretion, equal in value to the distributions made by the Partnership
with respect to a Unit during the period such Award is outstanding.

          (m) “Effective Date” has the meaning set forth in Section 1.

          (n) “Employee” means an employee of the General Partner or an Affiliate of the General
Partner.

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

          (p) “Fair Market Value” means, on any relevant date, the closing sales price of a Unit on the
principal national securities exchange or other market in which trading in Units occurs on the last
market trading day prior to the applicable day (or, if there is no trading in the Units on such
date, on the next preceding day 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 by the Committee in good
faith using a “reasonable application of a reasonable valuation method” within the meaning of the
409A Regulations (specifically, Treasury Regulation Section 1.409A-l(b)(5)(iv)(B)).

2

 

          (q) “General Partner” has the meaning set forth in Section 1.

          (r) “Option” means an option to purchase Units granted under the Plan.

          (s) “Other Unit Based Award” means an Award granted to an Employee, Director or Consultant
pursuant to Section 6(e).

          (t) “Participant” means an Employee, Consultant or Director granted an Award under the Plan.

          (u) “Partnership” has the meaning set forth in Section 1.

          (v) “Performance Award” means a right granted to an Employee, Director or Consultant pursuant
to Section 6(h), to receive an Award based upon performance criteria specified by the Committee.

          (w) “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.

          (x) “Phantom Unit” means a notional Unit granted under the Plan which upon vesting entitles
the Participant to receive, at the time of settlement, a Unit or an amount of cash equal to the
Fair Market Value of a Unit, as determined by the Committee in its sole discretion.

          (y) “Plan” has the meaning set forth in Section 1.

          (z) “Restricted Period” means the period established by the Committee with respect to an Award
during which the Award remains subject to forfeiture and is either not exercisable by or payable to
the Participant, as the case may be.

          (aa) “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted
Period.

          (bb) “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.

          (cc) “SEC” means the Securities and Exchange Commission, or any successor thereto.

          (dd) “Substitute Award” means an award granted pursuant to Section 6(g) of the Plan.

          (ee) “Unit Distribution Right” or “UDR” means a distribution made by the Partnership with
respect to a Restricted Unit.

          (ff) “Unit” means a common unit of the Partnership.

          (gg) “Unit Appreciation Right” means a contingent right granted under the Plan that entitles
the holder to receive, in cash or Units, as determined by the Committee in its sole discretion, an
amount equal to the excess of the Fair Market Value of a Unit on the exercise date of the Unit
Appreciation Right (or another specified date) over the exercise price of the Unit Appreciation
Right.

          (hh)
“Unit Award” means a grant of a Unit that is not subject to a Restricted Period.

3

 

          Section 3. Administration.

          (a) Authority of the Committee. 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 the General Partner, 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. Any such delegation shall not limit the Chief Executive Officer’s right to
receive Awards under the Plan; provided, however, the Chief Executive Officer may not grant Awards
to himself, a Director or any executive officer of the General Partner or an Affiliate, or take any
action with respect to any Award previously granted to himself, an individual who is an executive
officer or a Director. 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, consistent with the terms of the Plan, which
terms may include any provision regarding the acceleration of vesting or waiver of forfeiture
restrictions or any other condition or limitation regarding an Award, based on such factors as the
Committee shall determine, in its sole discretion; (v) determine whether, to what extent, and under
what circumstances Awards may be vested, 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. 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, without limitation, the
General Partner, the Partnership, any Affiliate, any Participant, and any beneficiary of any
Participant.

          (b) Limitation of Liability. The Committee and each member thereof shall be entitled
to, in good faith, rely or act upon any report or other information furnished to him or her by any
officer or employee of the General Partner, the Partnership or their Affiliates, the General
Partner’s or the Partnership’s legal counsel, independent auditors, consultants or any other agents
assisting in the administration of the Plan. Members of the Committee and any officer or employee
of the General Partner, the Partnership or any of their Affiliates acting at the direction or on
behalf of the Committee shall not be personally liable for any action or determination taken or
made in good faith with respect to this Plan, and shall, to the fullest extent permitted by law, be
indemnified and held harmless by the General Partner with respect to any such action or
determination.

          (c) Exemptions from Section 16(b) Liability. It is the intent of the General Partner
that the grant of any Awards to, or other transaction by, a Participant who is subject to Section
16 of the Exchange Act shall be exempt from Section 16(b) of the Exchange Act pursuant to Rule
16b-3 or another applicable exemption (except for transactions acknowledged by the Participant in
writing to be non-exempt). Accordingly, if any provision of the Plan or any Award Agreement does
not comply with the requirements of Rule 16b-3 or such other exemption as then applicable to any
such transaction, such

4

 

provision shall be construed or deemed amended to the extent necessary to
conform to the applicable requirements of Rule 16b-3 so that such Participant shall avoid liability
under Section 16(b) of the Exchange Act.

          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 3,889,980.
Units withheld from an Award or surrendered by a Participant to satisfy the Partnership’s or an
Affiliate’s tax withholding obligations (including the withholding of Units with respect to
Restricted Units) or to satisfy the payment of any exercise price 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, settled in cash, or otherwise terminates or expires without the
actual delivery of Units pursuant to such Award (the grant of Restricted Units is not a delivery of
Units for this purpose), the Units subject to such Award shall again be available for Awards under
the Plan (including Units not delivered in connection with the exercise of an Option or Unit
Appreciation Right). 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) Anti-dilution Adjustments. With respect to any “equity restructuring” event that
could result in an additional compensation expense to the General Partner or the Partnership
pursuant to the provisions of FASB Accounting Standards Codification, Topic 718 if adjustments to
Awards with respect to such event were discretionary, the Committee shall equitably adjust the
number and type of Units covered by each outstanding Award and the terms and conditions, including
the exercise price and performance criteria (if any), of such Award to equitably reflect such
restructuring event and shall adjust the number and type of Units (or other securities or property)
with respect to which Awards may be granted after such event. With respect to any other similar
event that would not result in an accounting charge under FASB Accounting Standards Codification,
Topic 718 if the adjustment to Awards with respect to such event were subject to discretionary
action, the Committee shall have complete discretion to adjust Awards in such manner as it deems
appropriate with respect to such other event. In the event the Committee makes any adjustment
pursuant to the foregoing provisions of this Section 4(c), the Committee shall make a corresponding
and proportionate adjustment with respect to the maximum number of Units that may be delivered with
respect to Awards under the Plan as provided in Section 4(a) and the kind of Units or other
securities available for grant under the Plan.

          (d) Additional Issuances. Except as hereinbefore expressly provided, the issuance by
the General Partner or the Partnership of Units for cash, property, labor or services, upon direct
sale, or upon the conversion of Units or obligations of the General Partner or the Partnership
convertible into such Units, and in any case whether or not for fair value, shall not affect, and
no adjustment by reason thereof shall be made with respect to, the number of Units subject to
Awards theretofore granted pursuant to the Plan.

          Section 5. Eligibility. Any Employee, Consultant or Director shall be eligible to be
designated a Participant and receive an Award under the Plan. Notwithstanding the foregoing,
Employees, Consultants and Directors that provide services to Affiliates that are not considered a
single employer with the Partnership under Section 414(b) of the Code or Section 414(c) of the Code
shall not

5

 

be eligible to receive Awards which are subject to Section 409A of the Code until the
Affiliate adopts this Plan as a participating employer in accordance with Section 10. Further, if
the Units issuable pursuant to an Award are intended to be registered with the SEC on Form S-8,
then only Employees, Consultants, and Directors of the Partnership or a parent or subsidiary of the
Partnership (within the meaning of General Instruction A.1(a) to Form S-8) will be eligible to
receive such an Award.

          Section 6. Awards.

          (a) Options. The Committee may grant Options that are intended to comply with
Treasury Regulation Section 1.409A-l(b)(5)(i)(A) only to Employees, Consultants or Directors
performing services for the Partnership or a corporation or other type of entity in a chain of
corporations or other entities in which each corporation or other entity has a “controlling
interest” in another corporation or entity in the chain, starting with the Partnership and ending
with the corporation or other entity for which the Employee, Consultant or Director performs
services. For purposes of this Section 6(a), “controlling interest” means (i) in the case of a
corporation, ownership of stock possessing at least 50% of total combined voting power of all
classes of stock of such corporation entitled to vote or at least 50% of the total value of shares
of all classes of stock of such corporation; (ii) in the case of a partnership, ownership of at
least 50% of the profits interest or capital interest of such partnership; (iii) in the case of a
sole proprietorship, ownership of the sole proprietorship; or (iv) in the case of a trust or
estate, ownership of an actuarial interest (as defined in Treasury Regulation Section
1.414(c)-2(b)(2)(ii)) of at least 50% of such trust or estate. The Committee may grant Options
that are otherwise exempt from or compliant with Section 409A of the Code to any eligible Employee,
Consultant or Director. The Committee shall have the authority to determine the number of Units to
be covered by each 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.

          (i) Exercise Price. The exercise price per Unit purchasable under an Option
that does not provide for the deferral of compensation under the 409A Regulations shall be
determined by the Committee at the time the Option is granted but, except with respect to
Substitute Awards, may not be less than the Fair Market Value of a Unit as of the date of
grant of the Option. The exercise price per Unit purchasable under an Option that does not
provide for the deferral of compensation by reason of satisfying the short-term deferral
rule set forth in the 409A Regulations or that is compliant with Section 409A of the Code
shall be determined by the Committee at the time the Option is granted.

          (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, a 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 General Partner, withholding
Units from an Award, a “cashless-broker” exercise through procedures approved by the General
Partner, or any combination of the above 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 Award
Agreement, upon termination of a Participant’s employment or service with the General
Partner and its Affiliates or membership on the Board, whichever is applicable, for any
reason during the applicable Restricted Period, all unvested Options shall be forfeited by
the Participant. The

6

 

Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Options; provided that the waiver contemplated
under this Section 6(a)(iii) shall be effective only to the extent that such waiver will not
cause the Participant’s Options that are designed to satisfy Section 409A of the Code to
fail to satisfy such section.

          (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 Units or cash shall be delivered upon exercise, the
exercise price therefor and the conditions and limitations applicable to the exercise of the Unit
Appreciation Rights, 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 and may be
more or less than the Fair Market Value of a Unit as of the date of grant of the Award.
Notwithstanding the foregoing, the exercise price per Unit that may be acquired under a Unit
Appreciation Right that does not provide for the deferral of compensation under the 409A
Regulations shall not be less than the Fair Market Value of a Unit as of the date of grant
of the Unit Appreciation Right.

          (ii) Time of Exercise. The Committee shall determine the Restricted Period and
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.

          (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment with or service to the General
Partner, the Partnership and their Affiliates or membership on the Board, whichever is
applicable, for any reason during the applicable Restricted Period, all outstanding Unit
Appreciation Rights awarded to 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) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that the 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. In addition, the Committee may provide that such
distributions be used to acquire additional Restricted Units for the Participant. Such
additional Restricted Units may be subject to such vesting and other terms as the Committee
may prescribe. Absent such a restriction on the UDRs in the Award Agreement, UDRs shall be
paid to the holder of the Restricted Unit without restriction at the same time as cash
distributions are paid by the Partnership to its unitholders.

7

 

Notwithstanding the
foregoing, UDRs shall only be paid in a manner that is either exempt from or in compliance
with Section 409A of the Code.

          (ii) Forfeitures. Except as otherwise provided in the terms of the applicable
Award Agreement, upon termination of a Participant’s employment with, or consultant services
to, the General Partner and its Affiliates or membership on the Board, whichever is
applicable, for any reason during the applicable Restricted Period, all outstanding,
unvested 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;
provided that the waiver contemplated under this Section 6(c)(ii) shall be effective only to
the extent that such waiver will not cause the Participant’s Restricted Units and/or Phantom
Units that are designed to satisfy Section 409A of the Code to fail to satisfy such section.

          (iii) Lapse of Restrictions.

               (A) Phantom Units. During the 15 calendar day period immediately following the
vesting of each Phantom Unit, subject to the provisions of Section 8(b), the Participant
shall be entitled to settlement of such Phantom Unit and shall receive one Unit or an amount
in cash equal to the Fair Market Value of a Unit, as determined by the Committee in its
discretion.

               (B) Restricted Units. Upon the vesting of each Restricted Unit, subject to
satisfying the tax withholding obligations of Section 8(b), the Participant shall be
entitled to have the restrictions removed from his or her Award so that the Participant then
holds an unrestricted Unit.

          
(d) Unit Awards. A Unit Award of Units not subject to a Restricted Period may be
granted under the Plan to any Employee, Consultant or Director as a bonus or additional
compensation or in lieu of cash compensation the individual is otherwise entitled to receive, in
such amounts as the Committee determines to be appropriate.

          (e) Other Unit Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Awards that may be denominated or payable
in, valued in whole or in part by reference to, or otherwise based on, or related to, Units, as
deemed by the Committee to be consistent with the purposes of this Plan, including, without
limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable
into Units, purchase rights for Units, Awards with value and payment contingent upon performance of
the Partnership or any other factors designated by the Committee, and Awards valued by reference to
the book value of Units or the value of securities of or the performance of specified Affiliates of
the General Partner or the Partnership. The Committee shall determine the terms and conditions of
such Awards. Units delivered pursuant to an Award in the nature of a purchase right granted under
this Section 6(e) shall be purchased for such consideration, paid for at such times, by such
methods, and in such forms, including, without limitation, cash, Units, other Awards, or other
property, as the Committee shall determine. Cash awards, as an element of or supplement to any
other Award under this Plan, may also be granted pursuant to this Section 6(e).

          (f) DERs. To the extent provided by the Committee, in its discretion, an Award (other
than a Restricted Unit or Unit Award) may include a tandem DER grant, which may provide that such
DERs shall be paid directly to the Participant, be reinvested into additional Awards, be credited
to a bookkeeping account (with or without interest in the discretion of the Committee) subject to
the same

8

 

vesting restrictions as the tandem Award, or be subject to such other provisions or
restrictions as determined by the Committee in its discretion. Absent a contrary provision in the
Award Agreement, DERs shall be paid to the Participant without restriction at the same time as
ordinary cash distributions are paid by the Partnership to its unitholders. Notwithstanding the
foregoing, DERs shall only be paid in a manner that is either exempt from or in compliance with
Section 409A of the Code.

          (g) Substitute Awards. Awards may be granted under the Plan in substitution for
similar awards held by individuals who become Employees, Consultants or Directors as a result of a
merger, consolidation or acquisition by the Partnership or an Affiliate of another entity or the
assets of another entity. Such Substitute Awards that are Options or Unit Appreciation Rights may
have exercise prices less than the Fair Market Value of a Unit on the date of the substitution if
such substitution complies with Section 409A of the Code and the 409A Regulations and other
applicable laws and exchange rules.

          (h) Performance Awards. The right of a Participant to receive a grant, and the right
of a Participant to exercise or receive a grant or settlement of any Award, and the timing thereof,
may be subject to such performance conditions as may be specified by the Committee. The Committee
may use such business criteria and other measures of performance as it may deem appropriate in
establishing any performance conditions, and may exercise its discretion to reduce or increase the
amounts payable under any Award subject to performance conditions.

          (i) Performance Goals Generally. The performance goals for such Performance
Awards shall consist of one or more business criteria or individual performance criteria and
a targeted level or levels of performance with respect to each of such criteria, as
specified by the Committee consistent with this Section 6(h). The Committee may determine
that such Performance Awards shall be granted, exercised, and/or settled upon achievement of
any one performance goal or that two or more of the performance goals must be achieved as a
condition to grant, exercise and/or settlement of such Performance Awards. The Committee
shall establish any such performance conditions and goals based on one or more business
criteria for the General Partner and/or the Partnership, on a consolidated basis, and/or for
specified Affiliates or business or geographical units of the Partnership, as determined by
the Committee in its discretion, which may include (but are not limited to) one or more of
the following: (A) earnings per Unit, (B) increase in revenues, (C) increase in cash flow,
(D) increase in cash flow from operations, (E) increase in cash flow return, (F) return on
net assets, (G) return on assets, (H) return on investment, (I) return on capital, (J)
return on equity, (K) economic value added, (L) operating margin, (M) contribution margin,
(N) net income, (O) net income per Unit, (P) pretax earnings, (Q) pretax earnings before
interest, depreciation and amortization, (R) pretax operating earnings after interest
expense and before incentives, service fees, and extraordinary or special items, (S) total
unitholder return, (T) debt reduction, (U) market share, (V) change in the Fair Market Value
of the Units, (W) operating income, and (X) any of the above goals determined on an absolute
or relative basis or as compared to the performance of a published or special index deemed
applicable by the Committee including, but not limited to, the Standard & Poor’s 500 Stock
Index or a group of comparable companies. Performance goals may differ for Performance
Awards granted to any one Participant or to different Participants.

          (ii) Performance Periods. Achievement of performance goals in respect of such
Performance Awards shall be measured over a performance period of up to ten years, as
specified by the Committee. Performance goals shall be established by the Committtee not
later than 90 days after the beginning of any performance period applicable to such
Performance Awards.

9

 

          (iii) Settlement. After the end of each performance period, the Committee
shall determine the amount, if any, of the amount of the potential Performance Award
otherwise payable to each Participant. Settlement of such Performance Awards shall be in
cash, Units, other Awards or other property, in the discretion of the Committee. The
Committee may, in its discretion, reduce or increase the amount of a settlement otherwise to
be made in connection with such Performance Awards. The Committee shall specify the
circumstances in which such Performance Awards shall be paid or forfeited in the event of
termination of employment by the Participant prior to the end of a performance period or
settlement of Performance Awards.

     (i) 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 Partnership or any Affiliate. Awards granted in addition to or in tandem
with other Awards or awards granted under any other plan of the Partnership 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 Section 6(i)(ii)(C) below, each Option and Unit Appreciation
Right 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 Section 6(i)(ii)(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
General Partner, the Partnership or any Affiliate.

                    (C) To the extent specifically provided by the Committee with respect to an Option or
Unit Appreciation Right, an Option or Unit Appreciation Right 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) Issuance of Units. The Units or other securities of the Partnership
delivered pursuant to an Award may be evidenced in any manner deemed appropriate by the
Committee in its sole discretion, including, but not limited to, in the form of a
certificate issued in the name of the Participant or by book entry, electronic or otherwise
and 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.

10

 

          (v) Consideration for Grants. Awards may be granted for such consideration,
including services, as the Committee shall determine.

          (vi) Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any Award Agreement to the
contrary, delivery of Units pursuant to the exercise, vesting and/or settlement of an Award
may be deferred for any period during which, in the good faith determination of the
Committee, the General Partner 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 Agreement (including, without limitation, any
exercise price or tax withholding) is received by the General Partner.

          (vii) Change of Control. No 409A Award shall become exercisable, or be settled
or otherwise paid or distributed, pursuant to the Plan or the applicable Award Agreement, as
a result of a Change of Control, unless the event constituting such Change of Control also
constitutes a “change in the ownership or effective control” or “in the ownership of a
substantial portion of the assets” of the General Partner or the Partnership, as
appropriate, within the meaning of Treasury Regulation Section 1.409A-3(i)(5); except that,
to the extent permitted under Section 409A of the Code and the 409A Regulations, the time of
exercise, payment or settlement of a 409A Award shall be accelerated, or payment shall be
made under the Plan in respect of such Award, upon the occurrence of a Change of Control, as
determined by the Committee in its discretion, to the extent necessary to pay income,
withholding, employment or other taxes imposed on such 409A Award. To the extent any 409A
Award does not become exercisable or is not settled or otherwise payable upon a Change of
Control as a result of the limitations described in the preceding sentence, it shall become
exercisable or be settled or otherwise payable upon the occurrence of an event that
qualifies as a permissible time of distribution in respect of such 409A Award under Section
409A and the Treasury Regulations promulgated thereunder, the Plan and the terms of the
governing Award Agreement.

          (viii) Additional Agreements. Each Employee, Consultant or Director to whom an
Award is granted under this Plan may be required to agree in writing, as a condition to the
grant of such Award or otherwise, to subject an Award that is exercised or settled following
such Person’s termination of services with the General Partner, the Partnership or their
Affiliates to a general release of claims and/or a noncompetition agreement in favor of the
General Partner, the Partnership, and their Affiliates, with the terms and conditions of
such agreement(s) to be determined in good faith by the Committee.

          Section 7. Amendment and Termination. Except to the extent prohibited by applicable
law:

          (a) Amendments to the Plan and Awards. Except as required by applicable law or the
rules of the principal securities exchange, if any, on which the Units are traded, 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.
Notwithstanding the foregoing, the Committee may waive any conditions or rights under, amend any
terms of, or alter any Award theretofore granted, provided that no change, other than pursuant to
Section 7(b), 7(c), or 7(d) below, in

11

 

any Award shall materially reduce the rights or benefits of a
Participant with respect to an Award without the consent of such Participant.

          (b) Recapitalizations. If the Partnership recapitalizes, reclassifies its equity
securities, or otherwise changes its capital structure (a “recapitalization”), the number and class
of Units covered by an Award theretofore granted shall be adjusted so that such Award shall
thereafter cover the number and class of Units and securities to which the holder would have been
entitled pursuant to the terms of the recapitalization if, immediately prior to the
recapitalization, the holder had been the holder of record of the number of Units then covered by
such Award and the Unit limitations provided in Section 4 shall be adjusted in a manner consistent
with the recapitalization.

          (c) Award Adjustment. Except as otherwise provided in Section 4(c), in the event of
changes in the outstanding Units by reason of recapitalization, reorganizations, mergers,
consolidations, combinations, exchanges or other relevant changes in capitalization occurring after
the date of the grant of any Award and not otherwise provided for by this Section 7, any
outstanding Awards and any agreements evidencing such Awards shall be subject to adjustment by the
Committee at its discretion as to the number and price of Units or other consideration subject to
such Awards. In the event of any such change in the outstanding Units, the Unit limitations
provided in Section 4 may be appropriately adjusted by the Committee, whose determination shall be
conclusive.

          (d) Change of Control. Notwithstanding any other provisions of the Plan or any Award
Agreement to the contrary, upon a Change of Control the Committee, acting in its sole discretion
without the consent or approval of any holder, may affect one or more of the following
alternatives, which may vary among individual holders and which may vary among Awards: (i) remove
any applicable forfeiture restrictions on any Award; (ii) accelerate the time of exercisability or
the time at which the Restricted Period shall lapse to a specific date, before or after such Change
of Control, specified by the Committee; (iii) require the mandatory surrender to the General
Partner or the Partnership by selected holders of some or all of the outstanding Awards held by
such holders (irrespective of whether such Awards are then subject to a Restricted Period or other
restrictions pursuant to the Plan) as of a date, before or after such Change of Control, specified
by the Committee, in which event the Committee shall thereupon cancel such Awards and pay to each
holder an amount of cash per Unit equal to the amount calculated in Section 7(e) (the “Change of
Control Price”) less the exercise price, if any, applicable to such Awards; or (iv) make such
adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change of
Control (including, but not limited to, the substitution of Awards for new awards); provided,
however, that the Committee may determine in its sole discretion that no adjustment is necessary to
Awards then outstanding.

          (e) Change of Control Price. The “Change of Control Price” shall equal the amount
determined in clause (i), (ii), (iii), (iv) or (v), whichever is applicable, as follows: (i) the
per Unit price offered to Unit holders in any merger or consolidation, (ii) the per Unit value of
the Units immediately before the Change of Control without regard to assets sold in the Change of
Control and assuming the General Partner or the Partnership, as applicable, has received the
consideration paid for the assets in the case of a sale of the assets, (iii) the amount distributed
per Unit in a dissolution transaction, (iv) the price per Unit offered to Unit holders in any
tender offer or exchange offer whereby a Change of Control takes place, or (v) if such Change of
Control occurs other than pursuant to a transaction described in clauses (i), (ii), (iii), or (iv)
of this Section 7(e), the Fair Market Value per Unit of the Units that may otherwise be obtained
with respect to such Awards or to which such Awards track, as determined by the Committee as of the
date determined by the Committee to be the date of cancellation and surrender of such Awards. In
the event that the consideration offered to unitholders of the Partnership in any transaction
described in

12

 

this Section 7(e) or Section 7(d) 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.

          Section 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) Tax Withholding. Unless other arrangements have been made that are acceptable to
the General Partner or an Affiliate, the Partnership or Affiliate is authorized to deduct,
withhold, or cause to be deducted or withheld, 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 or settlement of an Award, its exercise, the lapse
of restrictions thereon, or any other 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 General Partner or Affiliate to
satisfy its withholding obligations for the payment of such taxes. Notwithstanding the foregoing,
with respect to any Participant who is subject to Rule 16b-3, such tax withholding automatically
shall be effected by the General Partner “netting” or withholding Units otherwise deliverable to
the Participant on the vesting or payment of such Award.

          (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 General Partner or any
Affiliate, to continue providing consulting services, or to remain on the Board, as applicable.
Furthermore, the General Partner or an Affiliate may at any time dismiss a Participant from
employment or his or her service relationship 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 Delaware without regard to its conflicts 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 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 General Partner 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
General Partner or any Affiliate and a Participant or any other Person. To the extent that any
Person acquires a

13

 

right to receive payments from the General Partner or any Affiliate pursuant to
an Award, such right shall be no greater than the right of any general unsecured creditor of the
General Partner or such 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 in its sole discretion 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 with or without consideration.

          (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 manage properly his financial
affairs, may be paid to the legal representative of such individual, or may be applied for the
benefit of such individual in any manner that the Committee may select, and the General Partner
shall be relieved of any further liability for payment of such amounts.

          (k) Participation by Affiliates. In making Awards to Employees employed by an entity
other than the General Partner, the Committee shall be acting on behalf of the Affiliate, and to
the extent the Partnership has an obligation to reimburse the Affiliate 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 General Partner, shall be
received by the General Partner 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 Code. The applicable provisions of Section 409A the Code and the 409A
Regulations are hereby incorporated by reference and shall control over any Plan or Award Agreement
provision in conflict therewith. To the extent that any Award shall be subject to Section 409A of
the Code, it shall be designed to comply with Section 409A of the Code.

          (n) Specified Employee under Section 409A of the Code. Subject to any other
restrictions or limitations contained herein, in the event that a “specified employee” (as defined
under Section 409A of the Code and the Treasury Regulations thereunder) becomes entitled to a
payment under an Award which is a 409A Award on account of a “separation from service” (as defined
under Section 409A of the Code and the Treasury Regulations thereunder), such payment shall not
occur until the date that is six months plus one day from the date of such separation from service.
Any amount that is otherwise payable within the six month period described herein will be
aggregated and paid in a lump sum without interest.

          (o) No Guarantee of Tax Consequences. None of the Board, the Committee, the
Partnership nor the General Partner makes any commitment or guarantee that any federal, state or
local tax treatment will (or will not) apply or be available to any Participant.

          Section 9. Term of the Plan. The Plan shall be effective on the date on which it is
adopted by the Board and shall continue until the earliest of (i) the date terminated by the Board,
(ii) all

14

 

Units available under the Plan have been delivered to Participants, or (iii) the 10th
anniversary of the date the Plan is adopted by the Board. However, any Award granted prior to such
termination, and the authority of the Board or 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.

          Section 10. Adoption by Affiliates. With the consent of the Committee, any Affiliate
that is not considered a single employer with the Partnership under Section 414(b) of the Code or
Section 414(c) of the Code may adopt the Plan for the benefit of its Employees, Consultants or
Directors by written instrument delivered to the Committee before the grant to such Affiliate’s
Employees, Consultants or Directors under the Plan of any 409A Award.

15

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