may be made or deemed to have been made, which may include, without limitation, cash, check acceptable to the General Partner, a broker-assisted cashless exercise through procedures approved by the Conflicts Committee, delivery of previously owned Common Units having a fair market value on the exercise date equal to the relevant exercise, or any combination thereof.
Unit Appreciation Rights. A unit appreciation right is any Award that, upon exercise, entitles the holder to receive, in cash or Common Units, in the discretion of the Conflicts Committee, the excess of the fair market value of a Common Unit on the exercise date over the exercise price established for such unit appreciation right. The exercise price per unit appreciation right shall be not less than one hundred percent (100%) of its fair market value as of the date of grant. The term of a unit appreciation right may not exceed ten (10) years.
Distribution Equivalent Rights. A distribution equivalent right is a right to receive an amount in cash or additional award equal to the cash distributions made by the Partnership with respect to a Common Unit during a specified period. The Conflicts Committee has the authority to determine whether such distribution equivalent rights are tandem or separate Awards and the vesting restrictions and payment provisions applicable to the distribution equivalent right award.
Adjustments
In the event that any distribution, recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Units or other securities of the Partnership, issuance of warrants or other rights to purchase Common Units or other securities of the Partnership, or other similar transaction or event affects the Common Units, then the Conflicts Committee reserves the right to adjust any or all of (i) the number and type of Common Units (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of Common Units (or other securities or property) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any Award or, make provision for a cash payment to the holder of an outstanding Award; provided, that the number of Common Units subject to any Award shall always be a whole number. However, no adjustment shall be made in a manner that results in noncompliance with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent applicable.
Amendment and Termination
Except as required by applicable law or the rules of the principal securities exchange on which the Common Units are traded, the Board may amend, alter, suspend, discontinue, or terminate the LTIP in any manner, including increasing the number of Common Units available for Awards under the LTIP, without the consent of any participant, holder, or beneficiary of an Award or any other person.
Limits on Transfer of Awards
Each Award shall be exercisable or payable only to a participant during such participant’s lifetime, or to the person to whom such participant’s rights shall pass by will or the laws of descent and distribution. 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 or any affiliate. However, the Conflicts Committee may permit an Award to 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 Conflicts Committee may from time to time establish.
Effect of Exchange Transaction
In the event of an Exchange Transaction (as defined in the LTIP, and generally including a merger, consolidation, acquisition, reorganization, or similar extraordinary transaction), all holders of options and unit appreciation rights shall be permitted to exercise their respective Awards in whole or in part (whether or not otherwise exercisable) immediately prior to such Exchange Transaction, and any outstanding options and unit appreciation rights which are not exercised before such Exchange Transaction shall thereupon terminate. However, if, as part of an Exchange Transaction, the unitholders of the Partnership receive equity of another entity (“Exchange Equity”) in exchange for their Common Units, and if the Board so directs, then all outstanding options and unit appreciation rights shall be converted into options to purchase units of, or unit appreciation rights with respect to, such Exchange Equity. Additionally, the Board may accelerate the vesting of restricted units and phantom units and/or make such other adjustments to the terms of any such outstanding Awards, and/or provide for the conversion of such Awards into comparable awards relating to Exchange Equity, all as it deems appropriate in its sole discretion in the context of an Exchange Transaction.