Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXHIBIT 10.8    
  

FORM OF PACIFIC ENERGY GP, INC.

LONG-TERM INCENTIVE PLAN  

SECTION 1. Purpose of the Plan.  

        The Pacific Energy GP, Inc. Long-Term Incentive Plan (the "Plan") is intended to promote the interests of Pacific Energy Partners, L.P., a
Delaware limited partnership (the "Partnership"), by providing to employees and directors of Pacific Energy GP, Inc., a Delaware Corporation (the "Company"), and employees of its Affiliates who
perform services for the Partnership and its subsidiaries, incentive awards for superior performance that are based on Units. The Plan is also intended to enhance the ability of the Company and its
Affiliates to attract and retain employees whose services are key to the growth and profitability of the Partnership, and to encourage them to devote their best efforts to the business of the
Partnership and its subsidiaries, thereby advancing the Partnership's interests. 

SECTION 2. Definitions  

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

        2.1  "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. 

        2.2  "Award"
means a grant of one or more Options or Restricted Units pursuant to the Plan, and shall include any tandem DERs granted with respect to such Award. 

        2.3  "Board"
means the Board of Directors of the Company. 

        2.4  "Cause"
means: 

        (i)    fraud
or embezzlement on the part of the Participant; 

        (ii)  conviction
of or the entry of a plea of nolo contendere by the Participant to any felony; 

        (iii)  the
willful and continued failure or refusal by the Participant to perform substantially the Participant's duties with the Company or an Affiliate thereof (other than
any such failure resulting from incapacity due to physical or mental illness, or death, or following notice of employment termination by the Participant for Good Reason) within thirty (30) days
following the delivery of a written demand for substantial performance to the Participant by the Board, or any employee of the Company or an Affiliate with supervisory authority over the Participant,
that specifically identifies the manner in which the Board or such supervising employee believes that the Participant has not substantially performed the Participant's duties; or 

        (iv)  any
act of willful misconduct by the Participant which: (a) is intended to result in substantial personal enrichment of the Participant at the expense of the
Partnership, the Company or any of their Affiliates; or (b) has a material adverse impact on the business or reputation of the Partnership, the Company or any Affiliate thereof (such
determination to be made by the Partnership, the Company or any such Affiliate in the good faith exercise of its reasonable judgment). 

1

 

        2.5  "Change
of Control" means, and shall be deemed to have occurred upon the occurrence of one or more of the following events: 

        (i)    any
sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company or the
Partnership to any Person or its Affiliates, other than to TAC or any Affiliate of TAC; 

        (ii)  the
consolidation, reorganization, merger or other transaction pursuant to which less than 331/3% of the combined voting power of the outstanding equity
interests in the Company cease to be beneficially owned by TAC and its Affiliates; 

        (iii)  Pacific
Energy GP, Inc. is not the sole general partner of Pacific Energy Partners, L.P. 

        (iv)  the
general partner (whether the Company or any other Person) of the Partnership ceases to be an Affiliate of TAC. 

        2.6  "Committee"
means the Compensation Committee of the Board (which shall include two independent directors) or such other committee of the Board appointed to administer
the Plan. 

        2.7  "DER"
means a contingent right, granted in tandem with a specific Restricted Unit, to receive an amount in cash equal to the cash distributions made by the Partnership
with respect to a Unit during the period such Restricted Unit is outstanding. 

        2.8  "Director"
means a member of the Board who is not an Employee. 

        2.9  "Employee"
means any employee of the Company or an Affiliate, who performs services for the Partnership. 

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

        2.11 "Fair
Market Value" means, as of any date and in respect of any Unit, the closing price of a Unit on the previous trading day (or, if there are no sales on such date,
the last date on which there were sales of units), as reflected in the consolidated trading tables of The Wall Street Journal or any other publication selected by the Committee. If there is no sale of
Units on the New York Stock Exchange for more than ten (10) trading days immediately preceding such date, or if deemed appropriate by the Committee for any other reason, the Fair Market Value
of such Units shall be as determined in good faith by the Committee in such other manner as it may deem appropriate. 

        2.12 "Good
Reason" means: 

        (i)    a
reduction in the Participant's annual base salary; 

        (ii)  failure
to pay the Participant any compensation due under an employment agreement, if any; 

        (iii)  failure
to continue to provide benefits substantially similar to those then enjoyed by the Participant unless the Partnership, the Company or their Affiliates provide
aggregate benefits substantially equivalent to those then in effect; 

        (iv)  failure
to continue a compensation plan or to continue the Participant's participation in a plan on a basis not materially less favorable to the Participant, subject to
the power of the Partnership, the Company or their Affiliates to amend such plans in their reasonable discretion, including, without limitation, providing a substantially equivalent (in terms of
economic opportunity) replacement plan; or 

        (v)  the
Partnership, the Company or their Affiliates purported termination of the Participant's employment for Cause not pursuant to a procedure indicating the specific
provision of the definition of Cause contained in this Plan as the basis for such termination of employment. 

2

 

        The
Participant may not terminate for Good Reason unless he has given written notice delivered to the Board, of the action or inaction giving rise to Good Reason, such notice to state
with specificity the nature of the breach, failure or refusal, and such action or inaction is not corrected within thirty (30) days thereafter. 

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

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

        2.15 "Partnership
Agreement" means the Amended and Restated Agreement or Limited Partnership of the Partnership, as amended from time to time. 

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

        2.17 "Restricted
Period" means the period established by the Committee with respect to an Award during which the Award either remains subject to forfeiture or is not
exercisable by the Participant. 

        2.18 "Restricted
Unit" means a phantom, or notional, unit granted under the Plan which is equivalent in value to a Unit and which, upon vesting, entitles the Participant to
receive a Unit or its Fair Market Value in cash, whichever is determined by the Committee. 

        2.19 "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. 

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

        2.21 "TAC"
means The Anschutz Corporation. 

        2.22 "Unit"
means a Common Unit of the Partnership. 

Section 3. Administration.  

        The Plan shall be administered by the Committee. A majority of the Committee shall constitute a quorum, and the acts of the members of the Committee who are
present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in writing, shall be the acts of the Committee. Annual grant levels for
Participants will be recommended to the Committee by the Chief Executive Officer of the Company. 

        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 Awards; 

        (v)  determine
whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; 

        (vi)  interpret
and administer the Plan and any instrument or agreement relating to an Award made under the Plan; 

        (vii) establish,
amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and 

3

 

        (viii)  make
any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 

        Unless
otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the
sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and any
beneficiary of any Award. 

        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 to the Chairman and the Chief
Executive Officer of the Company, including the power to grant Awards under the Plan, provided the Chief Executive Officer is also a member of the Board, subject to such limitations on such delegated
powers and duties as the Committee may impose, if any. Upon any such delegation all references in the Plan to the "Committee", other than in Section 7 ("Amendment and Termination"), shall be
deemed to include the Chairman and the Chief Executive Officer; provided, however, that such delegation shall not limit the Chairman and the Chief Executive Officer's right to receive Awards under the
Plan. Notwithstanding
the foregoing, the Chief Executive Officer may not grant Awards to, or take any action with respect to any Award previously granted to, a person who is subject to Rule 16b-3. 

SECTION 4. Units Available for Awards  

        4.1  Units
Available. Subject to adjustment as provided in Section 4.3, the number of Units with respect to which Awards may be granted under the Plan is
[                        ]. If any Award is forfeited or otherwise terminates or is canceled without the delivery of Units, then
the Units covered by such Award, to the extent of such
forfeiture, termination, or cancellation, shall again be Units with respect to which Awards may be granted. 

        4.2  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. 

        4.3  Adjustments.
If the Committee determines that any distribution (whether in the form of cash, Units, other securities, or other property), re-capitalization,
split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Partnership, issuance
of warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event affects the Units such that an adjustment is determined by the Committee to
be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem
equitable, adjust any or all of: 

        (i)    the
number and type of Units (or other securities or property) with respect to which Awards may be granted; 

        (ii)  the
number and type of Units (or other securities or property) subject to outstanding Awards; and 

        (iii)  if
deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided, that the number of Units subject to any Award will always be
a whole number. 

4

 

SECTION 5. Eligibility.  

        Any Employee or Director will be eligible to be designated a Participant and receive an Award under the Plan. 

SECTION 6. Awards.  

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

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

        (ii)  Time
and Method of Exercise. The Committee shall determine the Restricted Period, i.e., the time or times at which an Option may be exercised in whole or in part, and
the method or methods by which payment of the exercise price with respect thereto may be made or deemed to have been made which may include, without limitation, cash, check acceptable to the Company,
a "cashless-broker" exercise (through procedures approved by the Company), other securities or other property, a note from the Participant (in a form acceptable to the Company), or any combination
thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price. 

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

        6.2  Restricted
Units. The Committee shall have the authority to determine the Employees and Directors to whom Restricted Units shall be granted, the number of Restricted
Units to be granted to each such Participant, the duration of the Restricted Period, the conditions under which the Restricted Units may
become vested or forfeited, and such other terms and conditions as the Committee may establish respecting such Awards, including whether DERs are granted with respect to such Restricted Units. 

        (i)    DERs.
To the extent provided by the Committee, in its discretion, a grant of Restricted Units may include a tandem DER grant, which may provide that such DERs shall be
paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same restrictions as the tandem Award, or be subject
to such other provisions or restrictions as determined by the Committee in its discretion. 

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

        (iii)  Lapse
of Restrictions. Upon, or as soon as reasonably practicable following, the vesting of each Restricted Unit, the Participant shall be entitled to receive from the
Company one Unit or its 

5

 

Fair Market Value in cash, as determined by the Committee, subject to the provisions of Section 8.2. 

        6.3  General

        (i)    Awards
May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in
substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate. Awards granted in addition to or in tandem with other Awards or
awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

        (ii)  Limits
on Transfer of Awards. 

        (a)  Except
as provided in (b) below: 

        (1)  no
Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such
purported assignment, alienation,
pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; and 

        (2)  each
Option shall be exercisable only by the Participant during the Participant's lifetime, or by the person to whom the Participant's rights shall pass by will or the
laws of descent and distribution; and 

        (b)  To
the extent specifically provided by the Committee with respect to an Option grant, an Option may be transferred by a Participant without consideration to immediate
family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. In addition, Awards may be
transferred by will and the laws of descent and distribution. 

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

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

        (v)  Consideration
for Grants. Awards may be granted for such consideration as the Committee determines including, without limitation, services or such minimal cash
consideration as may be required by applicable law. 

        (vi)  Delivery
of Units or other Securities and Payment by Participant of Consideration. Notwithstanding anything in the Plan or any grant agreement to the contrary, delivery
of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the Company is not reasonably able to obtain
Units to deliver pursuant to such Award without violating the rules or regulations of any applicable law or securities exchange. No Units or other securities shall be delivered pursuant to any Award
until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award agreement (including, without limitation, any exercise price or any tax withholding) is received by
the Company Such payment may be made by such method or methods and in such form or forms as the Committee shall determine, including, without limitation, cash, other Awards, 

6

 

withholding of Units, cashless broker exercises with immediate sale, or any combination thereof; provided, however, that the combined value, as determined by the Committee, of all cash and cash
equivalents and the Fair Market Value of any such Units or other property so tendered to the
Company, as of the date of such tender, is at least equal to the full amount required to be paid to the Company pursuant to the Plan or the applicable Award agreement. 

        (vii) Change
in Control. Upon a Change in Control, or such period prior thereto as may be established by the Committee, all Awards shall automatically vest and become
payable or exercisable, as the case may be, in full. In this regard, all Restricted Periods shall terminate and all performance criteria, if any, shall be deemed to have been achieved at the maximum
level. 

        (viii)  Sale
of Significant Assets. In the event the Company or the Partnership sells or otherwise disposes of, other than to an Affiliate, a significant
portion of the assets under its control, taken as a whole, (such significance to be determined by the Board in its sole discretion), and as a consequence of such disposition: 

        (a)  a
Participant's employment is terminated by the Partnership, the Company or an Affiliate without Cause or by the Participant for Good Reason; provided, however, that in
the case of any such termination by the Participant under this subparagraph 6.3 (viii) (a), such termination shall not be deemed to be for Good Reason unless the termination occurs within
180 days after the occurrence of the applicable sale or disposition constituting the reason for the termination; or 

        (b)  as
a result of such sale or disposition, the Participant's employer shall no longer be the Partnership, the Company or one of their Affiliates, 

then
all of such Participant's Awards shall automatically vest and become payable or exercisable, as the case may be, in full. In this regard, all Restricted Periods shall terminate and all
performance criteria, if any, shall be deemed to have been achieved at the maximum level. 

SECTION 7. Amendment and Termination.  

        Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award agreement or in the Plan: 

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

        (ii)  Amendments
to Awards. The Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no change, other than
pursuant to Section 7(iii), in any Award shall materially reduce the benefit to Participant without the consent of such Participant. 

        (iii)  Adjustment
of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee is hereby authorized to make adjustments in the terms and conditions
of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.3 of the Plan) affecting the
Partnership or the financial statements of the Partnership, or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the plan. 

7

 

SECTION 8. General Provisions.  

        8.1  No
Rights to Awards. No Person shall have any claim to be granted any Award, and there is not obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each Participant. 

        8.2  Withholding.
The Company or any Affiliate is authorized to withhold from any Award, from any payment due or transfer made under any Award or from any compensation or
other amount owing to a Participant the amount (in cash, Units, other securities, Units that otherwise would be issued pursuant to such Award or other property) of any applicable taxes payable in
respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the
opinion of the Company or affiliate to satisfy its withholding obligations for the payment of such taxes. 

        8.3  No
Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained in the employment of the Company or any Affiliate
or to remain on the Board, as applicable. Further, the Company or an Affiliate may at any time dismiss a Participant from employment, free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or in any Award agreement. 

        8.4  Governing
Law. The validity, construction, and effect of the Plan and any rules and regulations relating the Plan shall be determined in accordance with the laws of the
State of [                        ] and applicable federal law. 

        8.5  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 laws, 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. 

        8.6  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 entire then Fair Market Value thereof under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other
holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 

        8.7  No
Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund or any kind or a fiduciary relationship between
the Company or any Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such
right shall be no greater than the right of any general unsecured creditor of the Company or any Affiliate. 

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

        8.9  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. 

8

 

        8.10 Facility
Payment. Any amounts payable hereunder to any person under legal disability or who, in the judgment of the Committee, is unable to properly manage his
financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner
which the Committee may select, and the Company shall be relieved of any further liability for payment of such amounts. 

        8.11 Gender
and Number. Words in the masculine gender shall include the feminine and the neuter, the plural shall include the singular and the singular shall include the
plural. 

SECTION 9. Term of the Plan.  

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

9

QuickLinks

EXHIBIT 10.8QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXHIBIT 10.9    
  

FORM OF PACIFIC ENERGY GP, INC.

ANNUAL INCENTIVE PLAN  

	1.
	INTENT.

        The
purpose of this Annual Incentive Plan (the "Plan") is to motivate management and the employees of Pacific Energy GP, Inc. (the "Company") and its affiliates who perform
services for Pacific Energy Partners, L.P., a Delaware limited partnership, and its subsidiaries (the "Partnership") to collectively produce outstanding results, encourage superior performance,
increase productivity, and aid in attracting and retaining key employees. 

	2.
	PLAN
GUIDELINES. 

        The
administration of the Plan and any potential awards granted pursuant to the Plan is subject to the determination by the Compensation Committee of the Company's Board of Directors
that the performance goals for the applicable periods have been achieved. The Plan is an additional compensation program designed to encourage Plan participants (designated by the Company's
Compensation Committee) to exceed specified objective performance targets for the designated period. The Compensation Committee will review the Partnership's performance results for the designated
performance period, and thereafter will determine the extent to which performance targets have been met and to approve the level of awards, if any, to be granted under the Plan. 

	3.
	PERFORMANCE
TARGETS. 

        3.1  Designation
of Performance Targets. The Company's Chief Executive Officer shall recommend, subject to the Compensation Committee's approval, the performance measures and
performance targets to be used for each calendar year (a "Plan Year") in determining the bonus amounts to be paid as a result of the Plan. Performance targets may be based on Partnership, business
unit and/or individual achievements, or any combination of these, or on such factors as the Company's Chief Executive Officer, subject to the approval of the Compensation Committee, may determine.
Different performance targets may be established for different participants for any Plan Year. Satisfactory results, as determined by the Compensation Committee in its sole discretion, unless waived
by the Compensation Committee, must be achieved in order for an award to be made pursuant to the Plan. 

        3.2  Equitable
Adjustment to Performance Targets. At its discretion, the Compensation Committee may adjust actual performance measure results for extraordinary events or
accounting adjustments resulting from significant asset purchases or dispositions or other events not contemplated or otherwise considered by the Compensation Committee when the performance measures
and targets were set. 

	4.
	PARTICIPANTS. 

        The
Compensation Committee, in consultation with the Company's Chief Executive Officer, will designate members of management and employees of the Company and its affiliates as eligible
to participate in the Plan. Employees so designated shall be referred to as "Participants." 

	5.
	PARTICIPATION
LEVELS. 

        A
Participant's designated level of participation in the Plan, or target bonus, will be determined under criteria established or approved by the Compensation Committee for that Plan Year
or designated performance period. Levels of participation in the Plan may vary according to a Participant's position and the relative impact such Participant can have on the Company's and/or
affiliate's operations. Care will be used in communicating to any Participant his performance targets and potential performance amount for a Plan Year. The amount of target bonus a Participant may
receive 

1

 

for any Plan Year, if any, will depend upon the performance level achieved (unless waived) for that Plan Year, as determined by the Compensation Committee. No Participant 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 respecting each Participant. 

	6.
	AWARD
PAYOUT. 

        Awards
typically will be determined after the end of the Plan Year or designated performance period. Awards will be paid in cash annually and as soon as reasonable after the end of the
performance period, unless otherwise determined by the Compensation Committee. The Compensation Committee will have the discretion, by Participant and by grant, to reduce (or to increase) some or all
of the amount of any award that otherwise would be payable by reason of the satisfaction of the applicable performance targets. In making any such determination, the Compensation Committee is
authorized to take into account any such factor or factors it determines are appropriate, including but not limited to Company, business unit and individual performance; provided, however, that the
exercise of such discretion with respect to one Participant may not be used to effect the amount of any award otherwise payable to another Participant. 

	7.
	TERMINATION
OF EMPLOYMENT. 

        Termination
of a Participant's employment for any reason prior to payout of an award under the Plan will result in the Participant's forfeiture of any right, title or interest in any
such award, unless and to the extent waived by the Compensation Committee in its sole discretion. 

	8.
	AMENDMENT
AND TERMINATION. 

        The
Company's Compensation Committee, at its sole discretion, may amend the Plan or terminate the Plan at any time. 

	9.
	ADMINISTRATION.

        The
Compensation Committee may delegate all or part of the responsibility for the administration and operation of the Plan to the Chief Executive Officer (or his designee) of the Company
or any participating affiliate. The Compensation Committee (or the person(s) to which administrative authority has been delegated) shall have the authority to interpret and construe any and all
provisions of the Plan, including all performance targets and whether and to what extent achieved. Any determination made by the Compensation Committee (or the person(s) to which administrative
authority has been delegated) shall be final and conclusive and binding on all persons. 

	10.
	INDEMNIFICATION.

        Neither
the Company, any participating affiliate, nor the Board of Directors, or any member of any committee thereof, of the Company or any participating affiliate, nor any employee of
the Company or any participating affiliate shall be liable for any act, omission, interpretation, construction or
determination made in connection with the Plan in good faith; and the members of the Company's Board of Directors, the Compensation Committee and/or the employees of the Company or any participating
affiliate shall be entitled to indemnification and reimbursement by the Company to the maximum extent permitted by law in respect of any claim, loss, damage or expense (including counsel's fees)
arising from their acts, omission and conduct in their official capacity with respect to the Plan. 

	11.
	GENERAL
PROVISIONS. 

        11.1 Non-Guarantee
of Employment. Nothing contained in this Plan shall be construed as a contract of employment between the Company and/or a participating
affiliate and a Participant, and nothing in this Plan shall confer upon any Participant any right to continued employment with the Company or a participating affiliate, or to interfere with the right
of the Company or a participating affiliate to terminate a Participant's employment, with or without cause. 

2

 

        11.2 Interests
Not Transferable. No benefits under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment or other legal
process, or encumbrance of any kind, and any attempt to do so shall be void. 

        11.3 Facility
Payment. Any amounts payable hereunder to any person under legal disability or who, in the judgment of the Compensation Committee or its designee, is unable to
properly manage his or her financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the Compensation Committee or
its designee may select, and each participating affiliate shall be relieved of any further liability for payment of such amounts. 

        11.4 Controlling
Law. To the extent not superseded by federal law, the law of the State of [                        ] shall be controlling in all
matters
relating to the Plan. 

        11.5 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. 

        11.6 Severability.
If any Plan provision 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 the law deemed applicable by the Compensation Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it
cannot be construed or deemed amended without, in the determination of the Compensation 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. 

        11.7 No
Trust or Fund Created. Neither the Plan nor any award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between
the Company or any participating affiliate and a Participant or any other person. To the extent that any person acquires a right of receive payments from the Company or any participating affiliate
pursuant to an award, such right shall be no greater than the right of any general unsecured creditor of the Company or any participating affiliate. 

        11.8 Headings.
Headings are given to the sections 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 provisions of it. 

        11.9 Tax
Withholding. The Company and/or any participating affiliate may deduct from any payment otherwise due under this Plan to a Participant (or beneficiary) amounts
required by law to be withheld for purposes of federal, state or local taxes. 

3

QuickLinks

EXHIBIT 10.9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]