EX-10.7


 Exhibit 10.7 

Amplify Energy Corp. 

Amended and Restated Key Employee Incentive Plan 

This Amended and Restated Key Employee Incentive Plan (the “Plan”) amends and restates the Memorial Production Partners LP
Key Employee Incentive Plan that was established by MEMP in October 2016 (the “Prior Plan”). 
 On January 16, 2017,
MEMP and certain of its subsidiaries filed voluntary petitions for relief (the “Bankruptcy Cases”) under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas (the
“Bankruptcy Court”). On April 14, 2017, the Bankruptcy Court confirmed the Second Amended Chapter 11 Plan of Reorganization (the “Plan of Reorganization”) in the Bankruptcy Cases filed at docket number 341,
which Plan of Reorganization was confirmed pursuant to that certain Confirmation Order entered at docket number 344 therein. In connection with the Bankruptcy Cases, the Company has become the successor to MEMP. Pursuant to the Plan of
Reorganization, the Plan is hereby amended and restated. 
 ARTICLE 1 

Purpose and Effective Date 

1.1    Purpose. The purpose of this Plan is to provide certain key employees of the Company and its affiliates
additional compensation and incentive related to the performance of the Company and its subsidiaries. The Plan is intended to represent the principal cash incentive compensation plan of the Company for Participants through the end of its 2017 fiscal
year. 
 1.2    Effective Date. The Prior Plan became effective as of October 1, 2016. The Plan as amended
and restated hereby and is effective as of May 4, 2017. The Plan shall continue in effect until terminated in accordance with Section 6.1. 

ARTICLE 2 

Definitions 

2.1    Definitions. For purposes of the Plan, the following terms shall have the meanings set forth below. 

“Board” means the Board of Directors of the Company or any successor thereto, or any committee or agent as delegated by the
Board of Directors of the Company or any successor thereto in its sole discretion. 
 “Cause” (for Termination of
Employment) means (i) a Participant’s commission of, conviction for, plea of guilty or nolo contendere to a felony or a crime involving moral turpitude; (ii) a Participant’s engaging in conduct that constitutes fraud, gross
negligence or willful misconduct in connection with his or her employment duties or responsibilities; (iii) a Participant’s contravention, in any material respect, of specific lawful directions related to a







 
material duty or responsibility which is directed to be undertaken from the person to whom such Participant reports; (iv) any acts by a Participant which constitute embezzlement,
misappropriation or breach of fiduciary duty resulting or intending to result in such Participant’s personal gain or enrichment at the expense of the Company or its affiliates; or (v) a Participant’s continued failure to comply with a
material policy of the Company or its affiliates after receiving notice of failure to comply from the person to whom such Participant reports. 

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

“Company” means Amplify Energy Corp., a Delaware corporation, and any successor thereto. 

“Disability” of a Participant means, at the time of a Termination of Employment, such Participant is unable to perform his or
her duties for a period of 90 consecutive days as a result of physical or mental impairment, or illness or injury. 
 “Effective
Date” means October 1, 2016. 
 “Good Reason” means (i) a reduction in a Participant’s base salary
in effect immediately prior to such reduction; (ii) a reduction in the Plan Bonus opportunity of a Participant for any then-current Performance Cycle under the Plan; (iii) a required relocation of more than fifty (50) miles from a
Participant’s principal office with the Company, its affiliates or its successor; or (iv) a material diminution in a Participant’s title, authority or duties. 

“Lease Operating Expenses” means, with respect to a Performance Cycle, the day to day costs incurred by the Company and its
subsidiaries to maintain production of natural gas, NGLs and oil (including, without limitation, utilities, direct labor, water injection and disposal, the cost of CO2 injection, materials and supplies, compression, repairs and workover expenses).

 “MEMP” means Memorial Production Partners LP, a Delaware limited partnership. 

“Participant” means a key employee of the Company or its affiliates designated by the Board as a Participant in the Plan, as
provided in Section 4.1. 
 “Performance Measures” means (i) Lease Operating Expenses, (ii) Production
and/or (iii) Safety, as defined in the Plan. 
 “Performance Cycle” means the fiscal period as to which a Plan Bonus
may be separately earned under the Plan and the “2017 Performance Cycle” means the fiscal period commencing on July 1, 2017, and ending on December 31, 2017. 

“Permitted Reason” means Termination of Employment of a Participant by reason of his or her death, Disability, by the
Participant for Good Reason or by the Company or its affiliates without Cause. 
 “Plan” means this Amplify Energy Corp.
Amended and Restated Key Employee Incentive Plan, as amended from time to time. 

  
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 “Plan Bonus” means the entitlement of a Participant to a bonus payment under the
Plan, expressed as a percentage of a Participant’s base salary or a fixed dollar amount, at specified levels (threshold, target and maximum levels as determined by the Board) payable for the applicable Performance Cycle. 

“Production” means, with respect to a Performance Cycle, the average daily production (oil, natural gas and NGLs) of the
Company and its subsidiaries on a MMcfe basis. 
 “Safety” means, with respect to a Performance Cycle, the Company’s
and its subsidiaries’ Total OSHA Recordable Injuries. 
 “Termination of Employment” occurs when a Participant incurs
a “separation from service” from the Company or any of its affiliates as defined in Section 409A of the Code and applicable regulations. 

ARTICLE 3 

Administration of the Plan 

3.1    Administrator of the Plan. The Plan shall be administered by the Board. 

3.2    Authority of Board. The Board shall have full power and discretionary authority to administer the Plan,
including, without limitation, to: (i) interpret and construe the Plan, apply the terms of the Plan, interpret and resolve all questions of fact under the Plan, (ii) determine the rights of any person under the Plan, or the meaning of
requirements imposed by the terms of the Plan or an award, or any rule or procedure established by the Board, and to resolve all disputes under the Plan, (iii) adopt, amend, and rescind administrative guidelines and other rules and regulations
relating to the Plan, (iv) correct any defect or omission or reconcile any good faith, unintentional inconsistency in the Plan, and (v) make all other determinations and take all other actions necessary or advisable for the implementation
and administration of the Plan, subject to the such limitations as may be imposed by the Code or other applicable law. The Board may delegate administrative duties under the Plan to one or more agents as it shall deem necessary or advisable. 

3.3    Plan Determinations. No member of the Board or any person delegated authority by the Board under the Plan
shall be personally liable for any action or determination made in good faith with respect to the Plan or as to any settlement of any dispute between a Participant and the Company. Any decision or action taken by the Board acting in good faith with
respect to the administration or interpretation of the Plan shall be conclusive and binding upon all persons. 
 ARTICLE 4 

Eligibility and Participation 

4.1    Participants. Key employees of the Company or its affiliates who have been designated by the Board to
participate in the Plan are set forth on Exhibit A hereto. Additional Participants may be designated by the Board from time to time to participate in the Plan, and shall be notified by the Board in writing of such participation. 

  
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 ARTICLE 5 

Bonus Payments 

5.1    Performance Measures. The payment of the Participant’s Plan Bonus shall be determined based upon the
achievement by the Company and its subsidiaries of the Performance Measures for each Performance Cycle under the Plan. Performance Measures for each Performance Cycle shall be weighted equally during the applicable Performance Cycle, unless
otherwise determined in good faith by the Board prior to the end of the first month in such applicable Performance Cycle. In determining a Plan Bonus payable, the degree of achievement of each Performance Measure and the specified levels thereof
during the applicable Performance Cycle shall be measured independently of other Performance Measures and then weighted in accordance with the foregoing sentence. The specified levels of achievement for each Performance Cycle (threshold, target and
maximum levels of achievement) for the payment of Plan Bonuses in respective amounts shall be determined by the Board as soon as practicable following each Performance Cycle and communicated to Participants. 

5.2    Plan Bonuses. Each Participant shall be eligible to receive a Plan Bonus for each Performance Cycle under
the Plan for which the Participant is employed at the beginning of the Performance Cycle, subject to the terms hereof. The Board shall notify each Participant of the Plan Bonus he or she shall be eligible to receive in writing substantially in the
form set forth on Exhibit B hereto. Payment of the Plan Bonus is based upon achievement by the Company and its subsidiaries of performance levels established by the Board for the Performance Measures at the specified levels, as provided in
Section 5.1. 
 5.3    Payment of Bonuses. Any Plan Bonus earned by a Participant (if any) shall be payable
in a cash lump sum, within 30 days after the end of the Performance Cycle (or the 2017 Performance Cycle, if applicable), following the determination by the Board of the degree of achievement of the Performance Measures. Payments shall be made based
on the applicable threshold, target and maximum levels of achievement of the Performance Measures. All payments shall be subject to applicable tax withholding requirements. Subject to Section 5.4, a Participant is required to remain employed by
the Company or an affiliate until the end of the Performance Cycle to be eligible to receive a payment of a Plan Bonus. 

5.4    Termination of Employment. Notwithstanding the foregoing, in the event that prior to payment of a Plan Bonus
for a Performance Cycle that has commenced, a Participant incurs a Termination of Employment for a Permitted Reason, such Participant shall remain entitled to payment of the Plan Bonus determined on the same basis as other Participants. Such Plan
Bonus shall be paid at the same time as paid to other Participants. In the event that a Participant’s employment is terminated for any other reason (i.e., voluntary termination other than for Good Reason, or termination by the Company or an
affiliate for Cause), the Participant shall forfeit entitlement to payment of any future Plan Bonus. 

5.5    Special Rules for 2017 Fiscal Year. Notwithstanding anything to the contrary in this Plan: 

(i)     The calculation of the Plan Bonus with respect to the first fiscal quarter of 2017 shall be governed under the
terms and conditions of the Prior Plan (the “Q1 Plan Bonus”). 

  
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As required under the Plan of Reorganization, all or a portion of any earned Q1 Plan Bonus will be forfeited by each applicable Participant in an amount determined by MEMP and set forth in an
Agreement and Acknowledgement that will be sent to each affected Participant in a separate cover. 
 (ii)    The
calculation of the Plan Bonus with respect to the second fiscal quarter of 2017 shall be governed under the terms and conditions of the Prior Plan. 

(iii)    With respect to the third and fourth fiscal quarters of the Company during the 2017 fiscal year (the “2017
Performance Cycle”), the Plan Bonus shall be determined based upon the achievement by the Company and its subsidiaries of the aggregate Performance Measures for the 2017 Performance Cycle, which, for the avoidance of doubt, is the sum of the
quarterly Performance Measures under the Prior Plan for the third and fourth fiscal quarters of the Company. The Participant is eligible for a Plan Bonus for the 2017 Performance Cycle equal to two times the quarterly amount of the Plan Bonus
communicated to each Participant under Exhibit B of the Prior Plan for each of the threshold, target and maximum level. The Participant must remain employed by the Company or its subsidiaries on the Plan Bonus payment date as described in
Section 5.3 with respect to the 2017 Performance Cycle and shall forfeit any entitlements of such Plan Bonus if such Participant incurs a Termination of Employment for any reason prior to such Plan Bonus payment date. 

ARTICLE 6 
 Term of
the Plan 
 6.1    Termination and Amendment. The Plan shall be effective as of the Effective Date and
shall remain in effect for the payment of Plan Bonuses through the end of the Company’s 2017 fiscal year, and shall not be terminated by the Board prior to such time. The Plan shall not be effective for future periods, unless extended by the
Board. The Board shall not amend the terms of the Plan in any manner that shall adversely affect any Plan Bonus to which a Participant is entitled under the Plan. 

ARTICLE 7 
 Code
Section 409A 
 7.1    General. It is intended that the rights of Participants under this Plan will be
exempt from Section 409A of the Code as a “short-term deferral” under the applicable regulations. The Plan shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan is
not warranted or guaranteed. Neither the Company, its affiliates nor their respective directors, officers or employees shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a
result of the Plan. 
 ARTICLE 8 

Miscellaneous 

8.1    Funding of Plan. At the discretion of the Board, a Participant’s right to payment of benefits under the
Plan may be paid by any of the following, in whole or in some combination: (i) from the general assets of the Company, (ii) from a trust or escrow established by the Company for purposes funding Plan benefits, including, without
limitation, a “secular trust” subject to section 402(b) of the Code, or (iii) such other source of funding directed by the Company. 

  
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 8.2    Nature of Payments. The payments to be made by the Company to
the Participant under the Plan are intended to constitute additional compensation to the Participant, and are subject to the withholding of taxes and all other legal obligations with respect to the payment of compensation. Any amounts paid to a
Participant under the Plan shall not be taken into account in determining the amount of the Participant’s benefits under any benefit plan or program of the Company or any affiliate. 

8.3    Rights Non-Transferable. A Participants rights to benefits under the
Plan may not be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or one of its affiliates, and shall not be subject to any lien, obligation, or liability of the Participant to any other party other than the
Company or one of its affiliates, and are not assignable or transferable by a Participant other than by will or the laws of descent and distribution. 

8.4    Limitation of Rights. Participation under the Plan, and the Company’s obligations under the Plan, shall
not in any way impose any obligation on the Company to continue the employment of the Participant or provide future rights to payments to the Participant or others. 

8.5    Governing Law. The Plan shall be construed, governed and enforced in accordance with the law of Texas,
except as such laws are preempted by applicable federal law. 
 8.6    Successors. The Plan shall be binding upon
and inure to the benefit of the Company, its legal successors and its permitted assigns. 

  
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 Exhibit A 

Participants 
  

	•	 	Bill Scarff 

  

	•	 	Chris Cooper 

  

	•	 	Bobby Stillwell 

  

	•	 	Jason Childress 

  

	•	 	Rich Smiley 

  

	•	 	Bruce Berwager 

  

	•	 	John Deck 

  

	•	 	David Beck 

  

	•	 	Matt Hoss 

  

	•	 	Martyn Willsher 







 Exhibit B 

Form of Notification Letter 

Amplify Energy Corp. 

Amended and Restated Key Employee Incentive Plan 

Notification of Participation 

Participant Name: [                    ] 

Pursuant to the Amplify Energy Corp. Amended and Restated Key Employee Incentive Plan (the “Plan”), a copy of which has been provided to you,
you have been designated by the Board to participate as a Participant in the Plan as of [*]. Subject to the terms and conditions of the Plan, your eligibility for a Plan Bonus shall be as follows. 

 

					
	 Plan Bonus

	 Threshold
	  	 Target
	  	 Maximum

		  		  	

 Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan.