Memorial Production Partners LP | 2013 | FY | 3


Incentive Units

The governing documents of certain entities within the Cinco Group provided for the issuance of incentive units. The incentive units were accounted for as liability awards with compensation expense based on period-end fair value. The incentive units were subject to performance conditions that affected their vesting. Compensation cost was recognized only if the performance condition was probable of being satisfied at each reporting date. Tanos recognized compensation expense related to the forfeiture of incentive units during April 2013 as further discussed in Note 12.


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