(14) LONG-TERM INCENTIVE PLAN

TransMontaigne GP is our general partner and manages our operations and activities. TransMontaigne GP is an indirect wholly owned subsidiary of TransMontaigne Inc. TransMontaigne Services Inc. is an indirect wholly owned subsidiary of TransMontaigne Inc. TransMontaigne Services Inc. employs the personnel who provide support to TransMontaigne Inc.'s operations, as well as our operations. TransMontaigne Services Inc. adopted a long-term incentive plan for its employees and consultants and the independent directors of our general partner. The long-term incentive plan currently permits the grant of awards covering an aggregate of 2,428,377 units, which amount will automatically increase on an annual basis by 2% of the total outstanding common and subordinated units, if any, at the end of the preceding fiscal year. At March 31, 2014, 2,188,457 units are available for future grant under the long-term incentive plan. Ownership in the awards is subject to forfeiture until the vesting date, but recipients have distribution and voting rights from the date of grant. Pursuant to the terms of the long-term incentive plan, all restricted phantom units and restricted common units vest upon a change in control of TransMontaigne Inc. The long-term incentive plan is administered by the compensation committee of the board of directors of our general partner. TransMontaigne GP purchases outstanding common units on the open market for purposes of making grants of restricted phantom units to independent directors of our general partner.

TransMontaigne GP, on behalf of the long-term incentive plan, has purchased 2,001 and 1,725 common units pursuant to the program during the three months ended March 31, 2014 and 2013, respectively.

Information about restricted phantom unit activity for the three months ended March 31, 2014 is as follows:

					NYSE closing price

Units outstanding at December 31, 2013	1,871,966		14,500
Automatic increase in units available for future grant on January 1, 2014	322,491		—
Grant on March 31, 2014	(6,000	)	6,000		$	43.08
Vesting on March 31, 2014	—		(5,500	)	$	43.08


Units outstanding at March 31, 2014	2,188,457		15,000

On March 31, 2014 and 2013, TransMontaigne Services Inc. granted 6,000 and 6,000 restricted phantom units, respectively, to the independent directors of our general partner. Over their respective four-year vesting periods, we will recognize deferred equity-based compensation of approximately $0.3 million and $0.3 million, associated with the March 2014 and March 2013 grants, respectively.

Deferred equity-based compensation of approximately $52,000 and $89,000 is included in direct general and administrative expenses for the three months ended March 31, 2014 and 2013, respectively.