Document:

pcti-ex103_7.htm

EXHIBIT 10.3

 

 

PCTEL, INC.

 

JOHN W. SCHOEN EMPLOYMENT AGREEMENT

(amended and restated on December 11, 2008)

This Agreement, as amended and restated as of December 11, 2008, (the "Effective Date''), is made and entered into by and between PCTEL, Inc. (the "Company") and John W. Schoen ("Executive"). This Agreement shall supersede the Employment Agreement dated November 12, 2001, and the August 23, 2006 Letter Agreement covering severance benefits between Executive and Company.

 

1.       Duties   and   Scope   of   Employment.     Executive will continue to serve as   the Company's Chief Financial Officer, and assuming and discharging such responsibilities as are commensurate with Executive's position. Executive shall perform his duties faithfully and to the best of his ability and shall devote his full business time and effort to the performance of his duties hereunder.

 

2.At-Will Employment. The parties agree that Executive's employment with the Company will be "at-will" employment and may be terminated at any time, with or without cause or notice, by either the Company or Executive. No provision of this Agreement shall be construed as conferring upon Executive a right to continue as an employee of the Company.

 

	
 
	
3.
	
Compensation.
	
 

 

(a)Base Salary. The Company will pay Executive as compensation for his services a base salary at an annualized rate (the "Base Salary") of $250,000, payable in installments in accordance with the Company's normal payroll practices. Executive's annual Base Salary will be reviewed on an annual basis in accordance with the Company's established procedures for reviewing salaries of the Company's executive officers.

 

(b)Bonus. For calendar year 2008, Executive shall be eligible to receive an annual bonus that is targeted to be up to 80% of Executive's annual Base Salary based upon the Company's attainment of certain objectives. Executive must be employed by the Company on the payment date of any payment period determined for the bonus payout to receive such bonus. The determination of whether the Company has attained the objectives and the timing and amount, if any, of the annual bonus shall be determined by the Board of Directors of Company in its sole discretion. For each calendar year thereafter, Executive shall be eligible to receive an annual bonus in an amount and on terms to be determined by the Company's Board of Directors.

 

4.Employee Benefits. Executive will be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company, including, without limitation, the Company's group medical, dental, vision, disability, life insurance, and flexible-spending medical account plans. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. Notwithstanding the foregoing, the Company will not materially reduce the aggregate level of employee benefits, including bonuses, to which Executive was entitled immediately prior to such

 

 

 

EXHIBIT 10.3

 

reduction with the result that Executive's aggregate benefits package is materially reduced (other than a reduction that generally applies to Company employees).

 

5.Vacation. Executive will be entitled to paid vacation benefits established by the Company. The Company's vacation policy may be revised from time to time.

 

6.Expenses. The Company will reimburse Executive for reasonable travel or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive's duties hereunder, in accordance with the Company's expense reimbursement policy as in effect from time to time. Any reimbursements will be paid in accordance with the Company's expense reimbursement policy as in effect from time to time; provided, however, that all reimbursements will be paid to Executive no later than March 15 of the calendar year following the calendar year in which the expense was incurred.

 

	
 
	
7.
	
Severance.
	
 

 

(a)Termination by Company Without Cause and Apart From Change of Control.   If, either prior to the occurrence of a Change of Control or after the twelve (12) month period following a change of Control, Executive's employment is terminated (A) involuntarily by the  Company for reasons  other  than  Cause,  death  or Disability,  or (B) by  Executive  pursuant  to  a Voluntary Termination for Good Reason, then Executive shall be entitled to receive the following benefits from the Company:

 

(i)Salary Continuation. Executive shall continue to receive Executive's then current Base Salary for a period of twelve (12) months following Executive's termination of employment by the Company for reasons other than Cause. All such severance payments shall be paid in accordance with the Company's normal payroll practices. Such continuation of Executive's Base Salary shall be in lieu of any and all other benefits which Executive is entitled to receive on the date of Executive's termination of employment pursuant to any Company severance and benefit plans and practices or pursuant to other agreements with the Company. Executive shall not be entitled to pro-rated payment of an annual bonus.

 

(ii)Benefits. Provided (1) Executive constitutes a qualified beneficiary, as defined in Section 4980B(g)(l) of the Internal Revenue Code of 1986, as amended (the "Code") and

(2) Executive elects continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA") within the time period prescribed pursuant to COBRA, the Company will reimburse the COBRA premiums for continued health (i.e., medical, dental and vision) coverage for Executive and Executive's eligible dependents, in the same proportion as the Company paid Executive's health care coverage premiums while Executive was employed by the Company, until the earlier of (A) twelve (12) months following the date of Executive's termination, and (B) the date upon which Executive or Executive's dependents become covered under another employer's group medical, dental and vision insurance benefits plans.

 

(iii)Partial Accelerated Vesting. All equity awards from the Company then held by Executive shall partially accelerate, or if Executive is then holding unvested shares, Company's right to repurchase the then-unvested shares under each such equity award shall partially lapse, with respect to the number of shares under each such award that would have become vested or

 

 

 

EXHIBIT 10.3

 

been released from such repurchase right under each respective equity award if Executive's employment with the Company had continued for an additional twelve (12) months following Executive's effective termination date for reasons other than Cause.

 

(b)Termination Following a Change of Control.   If Executive's employment   is terminated within twelve (12) months following a Change of Control, the severance and other benefits to which Executive is entitled, if any, shall be governed by the Management Retention Agreement (as amended and restated) (which includes the definition of Change of Control).

 

(c)Other Termination. If Executive's employment is terminated by the Company for Cause, or by Executive for any reason, including death or Disability but other than pursuant to a Voluntary Termination for Good Reason, then Executive shall not be entitled to receive the severance and other benefits discussed above, but may be eligible for those benefits (if any) as may then be required by law or established under the Company's severance and benefit plans and policies existing at the time of such termination.

 

8.Section 280G. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (a) constitute "parachute payments" within the meaning of Section 2800 of the Code and (b) but for this Section, would be subject to the excise tax imposed by Section 4999 of the code, then Executive's severance benefits shall be payable either

 

(i)in full, or

(ii)as to such lesser amount which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive, on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this Section shall be made in writing by the Company's independent public accountants (the "Accountants"), whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section. Any reduction in payments and/or benefits required by this Section 8 shall occur in the following order:

(1) reduction of cash payments and (2) reduction of other benefits paid to Executive. In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for Executive's equity awards.

 

9.Separation Agreement and Mutual Release.  The receipt of any severance payments or benefits pursuant to this Agreement will be subject to Executive signing and not revoking a separation agreement and mutual release of claims (in a form reasonably acceptable to the Company) and provided that such separation agreement and mutual release of claims is effective within sixty (60) days following the termination date.  No severance pursuant to this Agreement will be paid or

 

 

 

EXHIBIT 10.3

 

provided until the separation agreement and mutual release of claims becomes effective. If Executive should die before all of the severance amounts have been paid, such unpaid amounts will be paid in a lump-sum payment promptly following such event to Executive's designated beneficiary, if living, or otherwise to the personal representative of Executive's estate.

 

	
 
	
10.
	
Section 409A.
	
 

 

(a)If Executive is a "specified employee" of the Company (or any successor entity thereto) within the meaning of Section 409A of the Internal Revenue Code of 1986 as amended and the final regulations and any guidance promulgated thereunder ("Section 409A") on the date of Executive's termination (other than a termination due to death), then the severance payments payable to Executive, if any, under this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (together, the "Payments") that are payable within the first six (6) months following Executive's termination of employment, shall be delayed until the earlier of: (i) the date that is six (6) months and one (1) day after the date of the termination, or (ii) the date of Executive's death (such date, the "Delayed Initial Payment Date"), and the Company (or the successor entity thereto, as applicable) shall (A) pay to Executive a lump sum amount equal to the sum of the Payments that Executive would otherwise have received on or before the Delayed Initial Payment Date, without any adjustment on account of such delay, if the Payments had not been delayed pursuant to this section, and (B) pay the balance of the Payments in accordance with any applicable payment schedules set forth herein. Notwithstanding anything herein to the contrary, if Executive dies following his termination but prior to the six (6) month anniversary of Executive's termination, then any Payments delayed in accordance with this clause will be payable in a lump sum as soon as administratively practicable after the date of Executive's death and all other Payments will be payable in accordance with the payment schedule applicable to each payment or benefit.

 

(b)Any amounts paid under this Agreement that satisfy the requirements of the "short term deferral" rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Payments for purposes of clause (a) above.

 

	
(c)
	
Payments pursuant to clause (a) above are intended to constitute separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2).
	
 

 

(d)Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section l .409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit will not constitute Payments for purposes of clause (a) above. "Section 409A Limit" will mean the lesser of two (2) times: (A) Executive's annualized compensation based upon the annual rate of pay paid to Executive during Executive's taxable year preceding Executive's taxable year of Executive's termination of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation  1.409A­ l (b)(9)(iii)(A)(l ) and any Internal Revenue Service guidance issued with respect thereto; or (B) the maximum amount that may be taken into account under a qualified plan pursuant  to Section 40 l (a)(l 7) of the Code for the year in which Executive's employment is terminated.

 

(e)The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the

 

 

 

EXHIBIT 10.3

 

additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

(:t) If Executive is not a "specified employee" of the Company (or any successor entity thereto) within the meaning of Section 409A of the Code, then the Payments shall be paid pursuant to the schedule set forth under clause 7. (a) of the Agreement.

 

	
 
	
11.
	
Definitions.
	
 

 

(a)Cause.  "Cause" shall mean:

 

(i)an act of personal dishonesty taken by Executive in connection with his responsibilities as an employee and intended to result in substantial personal enrichment of Executive;

 

	
 
	
(ii)
	
Executive being convicted of, or a plea of nolo contendere to, a felony;
	
 

 

(iii)a willful act by Executive which constitutes gross misconduct and which is injurious to the Company; or

 

(iv)following delivery to Executive of a written demand for performance from the Company which describes the basis for the Company's reasonable belief that Executive has not substantially performed his duties, continued violations by Executive of Executive's obligations to the Company which are demonstrably willful and deliberate on Executive's part and affords Executive a reasonable opportunity to cure within a reasonable period of time.

 

(b)Disability. "Disability" shall mean that the Executive has been unable to perform his Company duties as the result of his incapacity due to physical or mental illness, and such inability, at least 26 weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive's legal representative (such agreement as to acceptability not to be unreasonably withheld). Termination resulting from Disability may only be effected after at least 30 days' written notice by the Company of its intention to terminate the Executive's employment. In the event that the Executive resumes the performance of substantially all of his duties hereunder before the termination of his employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked.

 

	
(c)
	
Voluntary Termination for Good Reason. "Voluntary Termination for Good Reason" shall mean Executive voluntarily resigns within thirty (30) days following the expiration of any cure period (as discussed below) after the occurrence of any of the following events, without Executive's written consent: (i) a material diminution by the Company in the Base Salary of Executive as in effect immediately prior to such reduction (other than a reduction that generally applies to Company officers and/or managers); (ii) a material change in the geographic location at which Executive must perform service (in other words, the relocation of Executive to a facility or a location more than thirty-five (35) miles from Executive's then present location); or (iii) any other action or inaction
	
 

 

 

 

 

EXHIBIT 10.3

 

that constitutes a material breach by the Company of this Agreement.  Provided, however, that before Executive's employment may be terminated by a Voluntary Termination for Good Reason,

(A)Executive must provide written notice to the Company within ninety (90) days of the initial existence of the Voluntary Termination for Good Reason condition, setting forth the reasons for Executive's intention to terminate his employment as a result of a Voluntary Termination for Good Reason and (B) the Company must have an opportunity within thirty (30) days following delivery of such notice to cure the Voluntary Termination for Good Reason Condition.

 

For the avoidance of doubt, the voluntary resignation by Executive after the occurrence of either of the following shall not constitute grounds for a "Voluntary Termination for Good Reason": (1) a reduction of Executive's duties, title, authority or responsibilities, relative to Executive's duties, title, authority or responsibilities as in effect immediately prior to such reduction, as a result of (i) the Company being acquired and made part of a larger entity, or (ii) a restructuring of the Company and/or its subsidiaries, or a restructuring of the Company's employees' functions, and/or reporting relationships; or (2) a material reduction, without good business reasons, of the facilities or perquisites (including office space and location) available to Executive immediately prior to such reduction.

 

12.Miscellaneous Provisions.

 

(a)Notices. All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well established commercial overnight service, or

(iii)four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:

If     to the Company:

 

PCTEL, Inc.

471 Brighton Drive

Bloomingdale, Illinois 60108 Attn: General Counsel

If to Executive:

John W. Schoen

at the last residential address known by the Company.

 

(b)Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision.

 

	
 
	
(c)
	
Arbitration and Equitable Relief.
	
 

 

(i)Executive agrees that any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by arbitration to be held in Cook County, Illinois, in accordance

 

 

with the National Rules for Resolution of Employment Disputes then in effect of the American Arbitration Association. The Company and Executive shall each select one arbitrator and the two 

 

EXHIBIT 10.3

 

arbitrators shall select a third arbitrator, each of which arbitrators shall be independent.  The arbitrators may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrators shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrators' decision in any court having jurisdiction.  Executive hereby consents to the personal jurisdiction of the state and federal courts located in Cook County, Illinois for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are participants.

 

(ii)Without breach of this arbitration agreement and without abridgement of the powers of the arbitrators, the parties may apply to any court of competent jurisdiction for a temporary restraining order, preliminary injunction, or other interim or conservatory relief, as necessary.

 

(d)Right to Advice of Counsel.   Executive acknowledges that he has had the right to consult with counsel and is fully aware of his rights and obligations under this Agreement.

 

	
 
	
(e)
	
Successors.
	
 

 

(i)Company's Successors. For all purposes under this Agreement, the term "Company," as applicable, shall include any successor to the Company's business and/or assets or which becomes bound by the terms of this Agreement by operation of law.

 

(ii)Executive's Successors. The terms of this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable by, Executive's personal or legal representatives, executors, administrators, successors, heirs, distributes, devisees and legatees.

 

(f)Integration. This Agreement together with the Management Retention Agreement, as amended and restated, represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in writing and signed by duly authorized representatives of the parties hereto.

 

(g)Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

 

(h)Governing Law. This Agreement will be governed by the laws of the State of Illinois (with the exception of its conflict of laws provisions), and all actions to enforce its terms will be venued exclusively in Cook County, Illinois.

 

(i)Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by two authorized officers of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

 

 

 

 

 

 

EXHIBIT 10.3

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by their duly authorized officers, as of the day and year first above written.

 

 

PCTEL, INC.

By: Martin H. Singer

Title:Chairman and CEO

/s/ Martin H. Singer

 

December 11, 2008

 

EXECUTIVE

 

By: John W. Schoen

/s/ John W. Schoen

 

December 11, 2008EX-4.1

 Exhibit 4.1 

Execution Version 

STOCKHOLDERS AGREEMENT 
 This
STOCKHOLDERS AGREEMENT (this “Agreement”), dated as of November 9, 2018, is by and among ALTUS MIDSTREAM COMPANY, a Delaware corporation (the “Corporation”), Apache Midstream LLC, a Delaware limited
liability company (“Apache”), and Kayne Anderson Sponsor, LLC, a Delaware limited liability company (“Kayne Anderson”). Each of the Corporation, Apache, and Kayne Anderson is sometimes referred to herein
individually as a “Party” and collectively as the “Parties.” 
 WHEREAS, the Corporation and Apache are
parties to that certain contribution agreement, dated as of August 8, 2018, by and among Apache, the Corporation, and other parties thereto (the “Contribution Agreement”); and 

WHEREAS, the Corporation and Apache are entering into this Agreement in connection with the Contribution Agreement in accordance with the
terms set forth therein. 
 NOW, THEREFORE, in consideration of the promises and of the mutual consents and obligations hereinafter set
forth, the Parties hereby agree as follows: 
 Section 1 Definitions; Interpretation. 

(a) Definitions. As used herein, the following terms shall have the following respective meanings: 

“Affiliate” means (a) with respect to any Person, other than an individual, any other Person that directly or indirectly
controls, is controlled by, or is under common control with, such Person and (b) as to any individual, (i) any member of the immediate family of an individual Stockholder, including parents, siblings, spouse, and children (including those
by adoption) of such individual Stockholder, and, in any such case, any trust whose primary beneficiary is such individual Stockholder or one or more members of such individual Stockholder’s immediate family and/or such individual
Stockholder’s lineal descendants, (ii) the legal representative or guardian of such individual Stockholder or of any such immediate family member in the event such individual Stockholder or any such immediate family member becomes mentally
incompetent, and (iii) any Person controlling, controlled by, or under common control with, a Stockholder. As used in this definition, the term “control,” (and its correlative terms) means the possession, directly or indirectly, 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. For purposes of this Agreement, the Corporation shall not constitute an Affiliate of
either Kayne Anderson or Apache. 
 “Agreement” has the meaning set forth in the Preamble. 

“Apache” has the meaning set forth in the Preamble. 

“Apache Directors” has the meaning set forth in Section 2(a)(i). 

“Board” means the board of directors of the Corporation. 

 “Common Stock” means (i) the Class A Common Stock, par value
$0.0001 per share, of the Corporation, (ii) the Class C Common Stock, par value $0.0001 per share, of the Corporation, and (iii) any capital stock of the Corporation into which such Common Stock may hereafter be changed or for which
such Common Stock may be exchanged, and shall also include any Common Stock of the Corporation of any class hereafter authorized. 

“Contribution Agreement” has the meaning set forth in the Recitals. 

“Corporation” has the meaning set forth in the Preamble. 

“Institutional Investors” means each of Apache, Kayne Anderson, and their respective Affiliates. 

“Kayne Anderson” has the meaning set forth in the Preamble. 

“Kayne Anderson Directors” has the meaning set forth in Section 2(a)(ii). 

“Necessary Action” means, with respect to any Institutional Investor and a specified result, all actions (to the extent such
actions are permitted by law and within such Institutional Investor’s control) necessary to cause such result, including (i) voting or providing a written consent or proxy with respect to Shares, (ii) causing the adoption of
stockholders’ resolutions and amendments to the organizational documents of the Corporation, (iii) executing agreements and instruments, and (iv) making, or causing to be made, with governmental, administrative, or regulatory
authorities, all filings, registrations, or similar actions that are required to achieve such result. 
 “Person” has the
meaning ascribed to such term in the Contribution Agreement. 
 “Shares” means (i) the shares of Common Stock of the
Corporation, (ii) any additional shares of Common Stock of the Corporation that may be issued in the future, and (iii) any shares of capital stock of the Corporation into which such shares may be converted or for which they may be
exchanged. 
 “Stockholders” means those Persons identified on the signature pages hereto as the Stockholders and shall
include any other Person who agrees in writing with the Parties to be bound by and to comply with all the provisions of this Agreement applicable to a Stockholder. 

Any capitalized term used in any Section of this Agreement that is not defined in this Section 1 shall have the
meaning ascribed to it in such other Section or as otherwise defined herein. 
 (b) Rules of Construction. The
headings and captions herein are inserted for convenience of reference only and are not intended to govern, limit, or aid in the construction of any term or provision hereof. The Parties recognize that this Agreement is the product of the joint
efforts of the Parties. It is the intention of the Parties that every covenant, term, and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any Party (notwithstanding any rule of law
requiring an agreement to be strictly construed against the drafting party), it being understood that the Parties are sophisticated and have had adequate opportunity and means to retain counsel to represent their interests and to otherwise negotiate
the provisions of this Agreement. Further, unless the context requires otherwise: 

  
 2 

 (i) “own,” “ownership,” “held,” and
“holding” refer to ownership or holding as record holder or record owner; 
 (ii) terms defined in
Section 1 or elsewhere in this Agreement have the meanings assigned to them in that Section for purposes of this Agreement; 

(iii) the gender (or lack of gender) of all words used in this Agreement includes the masculine, feminine, and neuter; 

(iv) references to Sections (other than in connection with laws) refer to Sections, respectively, of this Agreement unless
otherwise indicated by the context thereof; 
 (v) the words “herein,” “hereof,” “hereunder,”
and other words of similar import refer to this Agreement as a whole and not to any particular Section; 
 (vi)
“include,” “includes,” and “including” mean “include, without limitation,” “includes, without limitation,” and “including, without limitation,” respectively; 

(vii) terms defined herein include the plural as well as the singular; 

(viii) “or” is not exclusive; 

(ix) all references to “$” and dollars shall be deemed to refer to United States currency unless otherwise
specifically provided; 
 (x) if a provision or defined term is incorporated into this Agreement by referencing another
contract and such contract is terminated, such termination shall have no effect on such provision or defined term as used in this Agreement; and 

(xi) the serial comma is sometimes included and sometimes omitted. Its inclusion or omission shall not affect the
interpretation of any phrase. 
 Section 2 Board of Directors. 

(a) Nomination of Directors. The Board shall consist of: 

(i) (A) for so long as Apache and its Affiliates own 50% or more of the outstanding Shares, seven (7) directors
nominated by Apache, (B) for so long as Apache and its Affiliates own 40% or more but less than 50% of the outstanding Shares, six (6) directors nominated by Apache, (C) for so long as Apache and its Affiliates own 30% or more but
less than 40% of the outstanding Shares, five (5) directors nominated by Apache, (D) for so long as Apache and its Affiliates own 20% or more but less than 30% of the outstanding Shares, four (4) directors

  
 3 

 
nominated by Apache, (E) for so long as Apache and its Affiliates own 10% or more but less than 20% of the outstanding Shares, three (3) directors nominated by Apache, (F) for so
long as Apache and its Affiliates own 5% or more but less than 10% of the outstanding Shares, two (2) directors nominated by Apache, and (G) for so long as Apache and its Affiliates own 1% or more but less than 5% of the outstanding
Shares, one (1) director nominated by Apache (the directors nominated by Apache, the “Apache Directors”); and 

(ii) two (2) directors nominated by Kayne Anderson (the directors nominated by Kayne Anderson, the “Kayne Anderson
Directors”) until the earlier to occur of (A) Kayne Anderson and its Affiliates owning less than 1% of the outstanding Shares or (B) the second anniversary of the date of this Agreement. 

(b) Board Composition. 

(i) Notwithstanding Section 2(a), if the size of the Board shall, with Apache’s prior written
approval or otherwise, be increased, Apache shall have the right to designate one or more Apache Directors to the Board such that the total number of Apache Directors on the Board shall be proportional (rounded up to the nearest whole number) to the
number of Apache Directors on the Board set forth in Section 2(a)(i). 
 (ii) For so long as Kayne
Anderson is entitled to nominate a director pursuant to Section 2(a)(ii) and Apache and its Affiliates own 50% or more of the outstanding Shares, at least one (1) of the Apache Directors shall be an “independent
director” in accordance with the rules of The NASDAQ Stock Market. 
 (c) Election of Directors. The Corporation
shall take all action within its power to cause all nominees nominated pursuant to Section 2(a) to be included in the slate of nominees recommended by the Board to the Corporation’s shareholders for election as
directors at each annual meeting of the shareholders of the Corporation (and/or in connection with any election by written consent) and the Corporation shall use all reasonable best efforts to cause the election of each such nominee, including
soliciting proxies in favor of the election of such nominees. 
 (d) Replacement of Directors. 

(i) In the event that a vacancy is created at any time by the death, disability, retirement, resignation, or removal (with or
without cause) of an Apache Director or the Kayne Anderson Director nominated pursuant to Section 2(a)(i) or Section 2(a)(ii) or designated pursuant to this
Section 2(d)(i) or Section 2(d)(ii), or in the event of the failure of any such nominee to be elected, Apache and/or Kayne Anderson, as applicable, shall have the right to designate a replacement
to fill such vacancy. In any such case, the Corporation shall take all action within its power to cause such vacancy to be filled by the replacement so designated, and the Board shall promptly elect such designee to the Board. At the written request
of Apache 

  
 4 

 
or Kayne Anderson, as applicable, the shareholders of the Corporation shall take all actions necessary to remove, with or without cause, any director previously nominated by Apache or Kayne
Anderson, as the case may be, pursuant to Section 2(a) or designated pursuant to this Section 2(d), and to elect any replacement director designated by Apache or Kayne Anderson, as the case may be,
as provided in this Section 2(d). 
 (ii) Each Institutional Investor shall take all Necessary
Action to cause any of its nominated directors to resign promptly from the Board if any such director, as determined by the Board in good faith after consultation with outside legal counsel, (i) is prohibited or disqualified from serving as a
director of the Corporation under any rule or regulation of the U.S. Securities and Exchange Commission, the NASDAQ Capital Market, or by applicable law, (ii) has engaged in acts or omissions constituting a breach of such director’s
fiduciary duties to the corporation and its stockholders, (iii) has engaged in acts or omissions that involve an intentional violation of law, or (iv) has engaged in any transaction involving the Corporation from which such director
derived an improper personal benefit that was not disclosed to the Board prior to the authorization of such transaction; provided, however, that, subject to the limitations set forth in Section 2, the applicable
Institutional Investor shall have the right to designate a replacement to fill the vacancy caused by such resignation, and the Board shall promptly elect such designee to the Board. 

(e) Committees. The Corporation shall take all action within its power to cause any committee of the Board to include in
its membership at least one (1) Apache Director, except to the extent that such membership would violate applicable securities laws or stock exchange or stock market rules. 

(f) Laws and Regulations. Nothing in this Section 2 shall be deemed to require that any Party,
or any Affiliate thereof, act or be in violation of any applicable provision of law, regulation, legal duty, or requirement, or stock exchange or stock market rule. 

(g) Reimbursement of Expenses. The Corporation shall reimburse the directors nominated or designated by an Institutional
Investor in accordance with this Agreement for all reasonable out-of-pocket expenses incurred in connection with their attendance at meetings of the Board and any
committees thereof, including travel, lodging and meal expenses. In addition, any director who satisfies the independence requirements of the NASDAQ Capital Market shall be entitled to receive additional director compensation as determined by the
Board. 
 (h) Indemnity Agreements. Simultaneously with any person nominated or designated in accordance with this
Agreement becoming a director, the Corporation shall execute and deliver to each such director a customary director indemnification agreement dated the date such director becomes a director of the Corporation. 

  
 5 

 Section 3 Directors’ and Officers’
Insurance. 
 The Corporation shall maintain directors’ and officers’ liability insurance (including Side A coverage) covering
the Corporation’s and its Subsidiaries’ directors and officers and issued by reputable insurers, with appropriate policy limits, terms, and conditions (including “tail” insurance if necessary or appropriate). The provisions of
this Section 3 are intended to be for the benefit of, and will be enforceable by, each indemnified party, his or her heirs, and his or her representatives and are in addition to, and not in substitution for, any other
rights to indemnification or contribution that any such Person may have by contract or otherwise. 
 Section 4 Duration of
Agreement. 
 This Agreement shall terminate automatically (a) upon the dissolution of the Corporation (unless the Corporation
continues to exist after such dissolution as a limited liability company or in another form), (b) as to Apache, when Apache and its Affiliates cease to own at least 1% of the outstanding Shares, and (c) as to Kayne Anderson, for the period that
Kayne Anderson is entitled to nominate a director pursuant to Section 2(a)(ii). 
 Section 5 Governing
Law. 
 (a) This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without
regard to the principles of conflicts of law. 
 (b) The Parties hereby irrevocably submit to the exclusive jurisdiction of the courts of the
State of Delaware and the federal courts of the United States of America located in the State of Delaware, over any dispute between the Parties arising out of this Agreement, and the Parties irrevocably agree that all such claims in respect of such
dispute shall be heard and determined in such courts. The Parties hereby irrevocably waive, to the fullest extent permitted by law, any objection which they may now or hereafter have to the venue of any such dispute arising out of this Agreement
brought in such court or any defense of inconvenient forum for the maintenance of such dispute. The Parties agree that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law. 
 (c) Should any term or provision of this Agreement for any reason be declared invalid or unenforceable, such decision shall not
affect the validity or enforceability of any of the other terms or provisions of this Agreement, which other terms and provisions shall remain in full force and effect and the application of such invalid or unenforceable term or provision to Persons
or circumstances other than those as to which it is held invalid or unenforceable shall be valid and be enforced to the fullest extent permitted by law. If a final judgment of a court of competent jurisdiction declares that any term or provision of
this Agreement is invalid or unenforceable, the Parties agree that the court making such determination shall have the power to limit such term or provision, to delete specific words or phrases or to replace such term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and that this Agreement shall be valid and enforceable as so modified. 

  
 6 

 (d) EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 Section 6 Stock Dividends, Etc. 

The provisions of this Agreement shall apply to any and all Shares or any successor or assignee of the Corporation (whether by merger,
consolidation, sale of assets, or otherwise) which may be issued in respect of, in exchange for or in substitution for the shares of Common Stock, by reason of any stock dividend, split, reverse split, combination, recapitalization,
reclassification, merger, consolidation, or otherwise in such a manner and with such appropriate adjustments as to reflect the intent and meaning of the provisions hereof and so that the rights, privileges, duties, and obligations hereunder shall
continue with respect to the capital stock of the Corporation as so changed. 
 Section 7 No Third Party Benefit. 

This Agreement (a) is for the sole benefit of the Parties hereto and (b) is not intended to benefit any other Person. No Person that
is not a Party to this Agreement may enforce any part of this Agreement or rely upon any data or information disclosed or developed pursuant to this Agreement. 

Section 8 Amendments. 

(a) No amendment, supplement, or waiver of this Agreement shall be binding unless executed in writing by the Party to be bound thereby and any
permitted assignees. 
 (b) If a provision or a defined term incorporated by reference into this Agreement is amended, supplemented, or
modified in the agreement from which such provision or defined term is incorporated, such amendment, supplement, or modification shall have no effect on such provision or defined term as used in this Agreement unless such amendment, supplement, or
modification is approved as provided in this Section 8. 
 Section 9 Assignment. 

(a) The rights and obligations contained in this Agreement shall not be assigned by either Party without the prior written consent of the other
Party to this Agreement, and any such action without the required consent shall be void ab initio. 
 (b) This Agreement shall bind
and inure to the benefit of the Parties and any permitted successors or assigns to the original Parties to this Agreement, but such assignment shall not relieve any Party of any obligations hereunder. 

  
 7 

 Section 10 Notices. 

Any notice, request, demand, and other communication required or permitted to be given or made hereunder shall be in writing and shall be
deemed to have been duly given or made if (a) delivered personally, (b) transmitted by first class registered or certified mail, postage prepaid, return receipt requested, (c) delivered by prepaid overnight courier service, or
(d) delivered by confirmed facsimile transmission or electronic mail to a Party at the following addresses (or at such other addresses as shall be specified by a Party by similar notice): 

If to Apache, addressed to: 

Apache Midstream LLC 

2000 Post Oak Blvd., Suite 100 

Houston, Texas 77056 

Attention: Brian Freed 

Facsimile: (713) 296-6459 

Email: brian.freed@apachecorp.com 

In the case of notice to the Corporation, to: 

Altus Midstream Company (f/k/a Kayne Anderson Acquisition Corp.) 

2000 Post Oak Blvd., Suite 100 

Houston, Texas 77056 

Attention: Brian Freed 

Facsimile: (713) 296-6459 

Email: brian.freed@apachecorp.com 

With a copy to 

Apache Legal 

2000 Post Oak Blvd., Suite 100 

Houston, Texas 77056 

Attention: General Counsel 

Facsimile: (713) 296-6459 

In the case of notice to Kayne Anderson, to: 

Kayne Anderson Sponsor, LLC 

811 Main Street, 14th Floor 

Attention: James C. Baker 

Facsimile: (713) 655-7359 

Email: jbaker@kaynecapital.com 

With a copy to 

Kayne Anderson Capital Advisors, L.P. 

1800 Avenue of the Stars, 3rd Floor 

Los Angeles, CA 90067 

Attention: David Shladovsky 

Email: dshladovsky@kaynecapital.com 

  
 8 

 Notices shall be effective (i) if delivered personally or sent by courier service, upon
actual receipt by the intended recipient, (ii) if mailed, upon the earlier of five (5) days after deposit in the mail or the date of delivery as shown by the return receipt therefor, (iii) if sent by facsimile transmission, when
confirmation of transmission is received, or (iv) if sent by electronic mail, when confirmation is received. Whenever any notice is required to be given by law or this Agreement, a written waiver thereof, signed by the Person entitled to
notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. 
 Section 11
Waiver. 
 No waiver by any Party hereto of any of the provisions hereof shall be effective unless explicitly set forth in writing and
signed by the Party so waiving. No waiver by any Party shall operate or be construed as a waiver in respect of any failure, breach, or default not expressly identified by such written waiver, whether of a similar or different character, and whether
occurring before or after that waiver. Except as specifically set forth in this Agreement, no failure by a Party hereto to exercise, or delay in exercising, any right, remedy, power, or privilege hereunder shall operate or be construed as a waiver
thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. 

Section 12 Entire Agreement. 

This Agreement and the Contribution Agreement constitute the entire agreement among the Parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof. There are no restrictions, promises, warranties, covenants, or undertakings between the Parties, other than those
expressly set forth or referred to herein or therein. Unless otherwise provided herein, any consent required by the Corporation may be withheld by the Corporation in its sole discretion. 

Section 13 Inconsistent Arrangements. 

No Stockholder shall enter into any shareholder agreements or arrangements of any kind with any Person with respect to any Shares on terms
inconsistent with the provisions of this Agreement (whether or not such agreements or arrangements are with other Stockholders or with Persons that are not Parties to this Agreement), including agreements or arrangements with respect to the
acquisition or disposition of any Shares in a manner inconsistent with this Agreement. Each Party to this Agreement acknowledges that a remedy at law for any breach or attempted breach of this Agreement will be inadequate, agrees that each other
Party to this Agreement shall be entitled to specific performance and injunctive and other equitable relief in case of any such breach or attempted breach, and further agrees to waive (to the extent legally permissible) any legal conditions required
to be met for the obtaining of any such injunctive or other equitable relief (including posting any bond in order to obtain equitable relief). 

  
 9 

 Section 14 Counterparts. 

This Agreement may be executed in counterparts, all of which together shall constitute an agreement binding on all Parties hereto,
notwithstanding that all such Parties are not signatories to the original or the same counterpart. Facsimile copies of signatures shall constitute original signatures for all purposes of this Agreement and any enforcement hereof. The failure of any
Stockholder to execute this Agreement shall not make it invalid as against any other Stockholder. 
 Section 15 Further
Assurances. 
 Each Party hereto shall do and perform or cause to be done and performed all such further acts and things and shall
execute and deliver all such other agreements, certificates, instruments, and other documents as any other Party hereto reasonably may request in order to carry out the provisions of this Agreement and the consummation of the transactions
contemplated hereby. 
 Section 16 Director and Officer Actions. 

No director or officer of the Corporation shall be personally liable to the Corporation or any Stockholder as a result of any acts or omissions
taken under this Agreement in good faith. 
 Section 17 Voting Agreement. 

Each Institutional Investor agrees to cast all votes to which such Institutional Investor is entitled in respect of its Shares, whether at any
annual or special meeting, by written consent or otherwise, so as to cause to be elected to the Board those individuals designated in accordance with Section 2 above. Subject to the foregoing sentence, in the event there
are directors to be selected in addition to those designated in Section 2(a), each Institutional Investor shall be free to vote for its preferred candidate(s). Each Institutional Investor agrees not to take action to remove
each other’s director nominees from office pursuant to the Corporation’s articles of incorporation. 
 [Signature Page to
Follow] 

  
 10 

 The Parties have signed this agreement as of the date first written above. 

 

			
	ALTUS MIDSTREAM COMPANY
		
	By:	 	 /s/ Terry A. Hart

	Name:	 	Terry A. Hart
	Title:	 	Chief Financial Officer
	
	STOCKHOLDERS:
	
	APACHE MIDSTREAM LLC
		
	By:	 	 /s/ Brian W. Freed

	Name:	 	Brian W. Freed
	Title:	 	Senior Vice President
	
	KAYNE ANDERSON SPONSOR, LLC
		
	By:	 	 /s/ David Shladovsky

	Name:	 	David Shladovsky
	Title:	 	General Counsel

  
 [Signature Page to
Stockholders Agreement]

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