Document:

exv10w6

Exhibit 10.6

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made by and between American Midstream GP, LLC, a
Delaware limited liability company (“Company”), and John J. Connor II (“Executive”).

W I T N E S S E T H:

     WHEREAS, Executive is currently employed by Company, which is the general partner of American
Midstream Partners, LP (“American Midstream LP”), pursuant to that certain Employment Agreement by
and between Executive and Company dated November 2, 2009 (the “Existing Agreement”); and

     WHEREAS, in connection with the initial public offering of the common units of American
Midstream LP, Company and Executive desire to amend the Existing Agreement in certain respects and,
in connection therewith, the parties desire to enter into this Agreement to replace and supersede
the Existing Agreement in its entirety as provided herein;

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations
contained herein, Company and Executive agree as follows:

ARTICLE 1: EMPLOYMENT AND DUTIES

     1.1 Employment; Effective Date. Effective as of, and contingent upon, the closing of
the initial public offering of the common units of American Midstream LP (the “Effective Date”),
and continuing for the period of time set forth in Article 2 of this Agreement, Executive’s
employment by Company shall be subject to the terms and conditions of this Agreement.

     1.2 Positions. Company shall employ Executive in the position of Senior Vice
President of Operations and Engineering reporting to the President and Chief Executive Officer of
the Company, or in such other positions as the parties mutually may agree.

     1.3 Duties and Services. Executive agrees to serve in the position referred to in
paragraph 1.2 and to perform diligently and to the best of his or her abilities the duties and
services appertaining to such office, as well as such additional duties and services appropriate to
such office which the parties mutually may agree upon from time to time. Executive’s employment
shall also be subject to the policies maintained and established by Company that are of general
applicability to Company’s executive employees, as such policies may be amended from time to time,
provided that in the event of any inconsistency between such policies and any term of this
Agreement, this Agreement shall control.

     1.4 Other Interests. Executive agrees, during the period of his or her employment by
Company, to devote substantially all of his or her primary business time, energy and best efforts
to the business and affairs of Company and its affiliates and not to engage, directly or
indirectly, in any other business or businesses, whether or not similar to that of Company, except
with the consent of the Board of Directors of the Company (the “Board”).

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     1.5 Duty of Loyalty. Executive acknowledges and agrees that Executive owes a
fiduciary duty of loyalty to act at all times in the best interests of Company. In keeping with
such duty, Executive shall make full disclosure to Company of all business opportunities pertaining
to Company’s business and shall not appropriate for Executive’s own benefit business opportunities
concerning Company’s business.

ARTICLE 2: TERM AND TERMINATION OF EMPLOYMENT

     2.1 Term. Unless sooner terminated pursuant to other provisions hereof, Company
agrees to continue to employ Executive for the period beginning on the Effective Date and ending on
the second anniversary of the Effective Date (the “Initial Expiration Date”); provided, however,
that beginning on the Initial Expiration Date, and on each anniversary of the Initial Expiration
Date thereafter, if this Agreement has not been terminated pursuant to paragraph 2.2 or 2.3, then
the term of this Agreement shall automatically be extended for an additional one-year period,
unless on or before the date that is 90 days prior to the first day of any such extension period,
either party shall give written notice to the other that no such automatic extension shall occur.

     2.2 Company’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Company shall have the right to terminate Executive’s employment under this Agreement for any of
the following reasons:

     (i) upon Executive’s death;

     (ii) upon Executive’s disability, which shall mean Executive’s becoming incapacitated
by accident, sickness, or other circumstances which renders him or her mentally or
physically incapable of performing the duties and services required of him or her hereunder
for 90 or more days (whether or not consecutive) out of any consecutive 180-day period;

     (iii) for “Cause,” which shall mean Executive has (A) engaged in gross negligence,
gross incompetence or willful misconduct in the performance of the duties required of him or
her hereunder; (B) refused without proper reason to perform the duties and responsibilities
required of him or her hereunder; (C) willfully engaged in conduct that is materially
injurious to Company or its affiliates (monetarily or otherwise); (D) committed an act of
fraud, embezzlement or willful breach of fiduciary duty to Company or an affiliate
(including the unauthorized disclosure of confidential or proprietary material information
of Company or an affiliate) or (E) been convicted of (or pleaded no contest to) a crime
involving fraud, dishonesty or moral turpitude or any felony; or

     (iv) at any time for any other reason, or for no reason whatsoever, in the sole
discretion of the Board.

     2.3 Executive’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1,
Executive shall have the right to terminate his or her employment under this Agreement for any of
the following reasons:

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     (i) for “Good Reason,” which shall mean, in connection with or based upon a
nonconsensual (A) material diminution in Executive’s responsibilities, duties or authority;
(B) material diminution in Executive’s base compensation; (C) assignment of Executive to a
principal office located beyond a 50-mile radius of Executive’s then current work place, or
(D) material breach by Company of any material provision of this Agreement; or

     (ii) at any time for any other reason, or for no reason whatsoever, in the sole
discretion of Executive.

     2.4 Notice of Termination. If Company desires to terminate Executive’s employment
hereunder at any time prior to expiration of the term of employment as provided in paragraph 2.1,
it shall do so by giving a 30-day written notice to Executive that it has elected to terminate
Executive’s employment hereunder and stating the effective date and reason for such termination,
provided that no such action shall alter or amend any other provisions hereof or rights arising
hereunder. If Executive desires to terminate his or her employment hereunder at any time prior to
expiration of the term of employment as provided in paragraph 2.1, he or she shall do so by giving
a 30-day written notice to Company that he or she has elected to terminate his or her employment
hereunder and stating the effective date and reason for such termination, provided that no such
action shall alter or amend any other provisions hereof or rights arising hereunder. In the case
of any notice by Executive of his or her intent to terminate his or her employment hereunder for
Good Reason, Executive shall provide Company with notice of the existence of the condition(s)
constituting the Good Reason within 60 days after Executive has actual knowledge of the initial
existence of such condition(s) and Company shall have 30 days following Executive’s provision of
such notice to remedy such condition(s). If Company remedies the condition(s) constituting the
Good Reason within such 30 day period, then Executive’s employment hereunder shall continue and his
or her notice of termination shall become void and of no further effect. If Company does not
remedy the condition(s) constituting the Good Reason within such 30 day period, Executive’s
employment with Company shall terminate on the date that is 31 days following the date of
Executive’s notice of termination and Executive shall be entitled to receive the payments and
benefits described in paragraph 4.3, if applicable. The notice, remedy rights and termination
timing provisions applicable under this paragraph 2.4 in the case of Executive’s election to
terminate his or her employment for Good Reason are referred to collectively as the “Good Reason
Termination Procedure.”

     2.5 Deemed Resignations. Any termination of Executive’s employment shall constitute
an automatic resignation of Executive as an officer of Company and each affiliate of Company, an
automatic resignation of Executive from the Board and from the board of directors or similar
governing body of any affiliate of Company, and an automatic resignation from the board of
directors or similar governing body of any corporation, limited liability company or other entity
in which Company or any affiliate holds an equity interest and with respect to which board or
similar governing body Executive serves as Company’s or such affiliate’s designee or other
representative.

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ARTICLE 3: COMPENSATION AND BENEFITS

     3.1 Base Salary. During the period of this Agreement, Executive shall receive an
annual base salary of $220,000. Executive’s annual base salary shall be reviewed by the
Compensation Committee of the Board (“Compensation Committee”) on an annual basis, and, in the sole
discretion of the Compensation Committee, such annual base salary may be increased, but not
decreased (except for a decrease that is consistent with reductions taken generally by other
executives of Company), effective as of any date determined by the Compensation Committee.
Executive’s annual base salary shall be paid in equal installments in accordance with Company’s
standard policy regarding payment of compensation to executives, but no less frequently than
monthly.

     3.2 Bonus Opportunity. During the period of this Agreement, Executive shall be
provided with the opportunity to earn and receive an annual incentive performance bonus payable in
cash in an amount equal to $130,000 (pro-rated for any period of less than 12 months), 20 percent
of which shall be conditioned and determined on the attainment of personal performance goals and 80
percent of which shall be conditioned and determined on the attainment of organizational
performance goals, in each case as set by, and based on performance criteria established by, the
Compensation Committee. The Compensation Committee shall notify Executive of the bonus opportunity
by no later than the end of the first 90 days of each annual performance period and shall, at that
time, set and communicate to Executive the personal and organizational performance goals on which
the bonus (and each component thereof) shall be conditioned and the criteria on which the
attainment of such goals and the resulting bonus, if any, shall be determined. All determinations
with respect to the bonus hereunder shall be made by the Compensation Committee and its
determinations shall be final and binding.

     3.3 Incentive Compensation. Executive shall be eligible to receive awards under the
Company’s Long Term Incentive Plan, as determined by the Compensation Committee.

     3.4 Other Perquisites. During his or her employment hereunder, Executive shall be
afforded the following benefits as incidences of his or her employment:

     (i) Business and Entertainment Expenses — Subject to Company’s standard policies and
procedures with respect to expense reimbursement as applied to its executive employees
generally, Company shall reimburse Executive for, or pay on behalf of Executive, reasonable
and appropriate expenses incurred by Executive for business related purposes, including dues
and fees to industry and professional organizations and costs of entertainment and business
development.

     (ii) Vacation — During his or her employment hereunder, Executive shall be entitled to
four weeks of paid vacation each calendar year (pro-rated for the calendar year containing
the Effective Date) and to all holidays provided to executives of Company generally.

     (iii) Other Company Benefits — Executive and, to the extent applicable, Executive’s
spouse, dependents and beneficiaries, shall be allowed to participate in, and in accordance
with the terms of, all benefits, plans and programs, including

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improvements or modifications of the same, which are now, or may hereafter be,
available to other executive employees of Company. Such benefits, plans and programs shall
include, without limitation, any profit sharing plan, thrift plan, health insurance or
health care plan, life insurance, disability insurance, pension plan, supplemental
retirement plan, vacation and sick leave plan, and the like which may be maintained by
Company. Company shall not, however, by reason of this paragraph be obligated to institute,
maintain, or refrain from changing, amending, or discontinuing, any such benefit plan or
program, so long as such changes are similarly applicable to executive employees generally.

ARTICLE 4: EFFECT OF TERMINATION ON COMPENSATION

     4.1 Payment of Accrued Obligations. Upon termination of Executive’s employment
hereunder for any reason and by any means, Executive shall be entitled to, and shall be paid, any
annual base salary that is accrued and unpaid as of the date of such termination, which shall be
paid on the next regularly scheduled pay day for the payment of Executive’s annual base salary, and
any expense reimbursement payable in accordance with paragraph 3.4(i) for reimbursable expenses
incurred by Executive prior to the date of such termination, which shall be paid at the time and in
the manner provided by Company’s reimbursement policy and in accordance with this Agreement. Other
than the foregoing amounts and any Severance Pay pursuant to paragraph 4.3, all compensation and
benefits to Executive hereunder shall terminate contemporaneously with the termination of
Executive’s employment. Any other benefits to which Executive shall be entitled shall be governed
by the plan, policy or agreement providing for such benefits and applicable law.

     4.2 Other Terminations. If Executive’s employment hereunder shall terminate at any
time (including, but not limited to, upon or following a change of control of the Company), (i)
upon expiration of the term provided in paragraph 2.1 hereof because either party has provided the
notice contemplated in such paragraph (except as provided in Section 5.6 hereof), (ii) by Executive
for Good Reason and in accordance with the Good Reason Termination Procedure or (iii) by Company
other than in any event or circumstance described in paragraph 2.2(i), 2.2(ii), or 2.2(iii), then,
subject to paragraph 4.4, Company shall pay Executive an amount equal one times the sum of
Executive’s annual base salary at the rate in effect under paragraph 3.1 on the date of such
termination, plus one times the amount, if any, paid to Executive under paragraph 3.2 for the
calendar year ending immediately prior to the date of such termination of Executive’s employment
(the “Severance Amount”), which shall be paid as provided in paragraph 4.3.

     4.3 Severance Payments. Subject to paragraph 4.4 below, the Severance Amount, if any
shall be due, shall be divided into amounts (each, a “Severance Payment”) to be paid in
installments. The amount of each Severance Payment shall be equal to the Severance Amount divided
by the number of regular pay days scheduled (in accordance with Company’s regular payroll
practices) to occur between the date of Executive’s termination of employment (“Termination Date”)
and the first anniversary of the Termination Date (“Scheduled Paydays”). If any Severance Amount
would otherwise be owed under this Agreement, but the requirements of paragraph 4.4 are not
satisfied, then no Severance Amount and no amount in lieu of the Severance Amount, shall be owed or
paid. If the requirements of paragraph 4.4 are satisfied, then, subject to paragraph 7.14(iv), a
portion of the Severance Amount equal to the product of

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one Severance Payment and the number of Scheduled Paydays during the 60-day period beginning
on the Termination Date shall be paid in a lump sum amount on the 60th day following the
Termination Date, and the remainder of the Severance Amount shall be paid in regular installments,
each one equal to the amount of one Severance Payment, with the first such payment being due on due
on the Scheduled Payday immediately following the 60th day after the Termination Date,
with like payments on each Scheduled Payday thereafter until the remaining Severance Amount is paid
in full.

     4.4 Release and Full Settlement. Anything to the contrary herein notwithstanding, as
a condition to the receipt of any portion of the Severance Amount, Executive shall execute a
release, in the form established by the Board, releasing the Board, Company, and Company’s parent
corporation, subsidiaries, affiliates, and their respective shareholders, partners, officers,
directors, employees, attorneys and agents from any and all claims and from any and all causes of
action of any kind or character including, but not limited to, all claims or causes of action
arising out of Executive’s employment with Company or its affiliates or the termination of such
employment, but excluding all claims to vested benefits and payments Executive may have under any
compensation or benefit plan, program or arrangement, including this Agreement. Executive shall
provide such release to Company no later than 50 days after the Termination Date and, as a
condition to Company’s obligation to pay all or any portion of the Severance Amount, Executive
shall not revoke such release. The performance of Company’s obligations hereunder shall constitute
full settlement of all such claims and causes of action.

     4.5 No Duty to Mitigate Losses. Executive shall have no duty to find new employment
following the termination of his or her employment under circumstances which require Company to pay
any amount to Executive pursuant to this Article 4. Any salary or remuneration received by
Executive from a third party for the providing of personal services (whether by employment or by
functioning as an independent contractor) following the termination of his or her employment under
circumstances pursuant to which this Article 4 apply shall not reduce Company’s obligation to make
a payment to Executive (or the amount of such payment) pursuant to the terms of this Article 4.

     4.6 Liquidated Damages. In light of the difficulties in estimating the damages for an
early termination of Executive’s employment under this Agreement, Company and Executive hereby
agree that the payments and benefits, if any, to be received by Executive pursuant to this Article
4 shall be received by Executive as liquidated damages.

     4.7 Other Benefits. This Agreement governs the rights and obligations of Executive
and Company with respect to Executive’s base salary, bonus and certain perquisites of employment.
Except as expressly provided herein, Executive’s rights and obligations both during the term of his
or her employment and thereafter with respect to his or her ownership rights in Company and
American Midstream LP, and other benefits under the plans and programs maintained by Company shall
be governed by the terms (which are not, and are not required to be, affected, altered or amended)
of the separate agreements, plans and the other documents and instruments governing such matters.

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ARTICLE 5: PROTECTION OF CONFIDENTIAL INFORMATION

     5.1 Disclosure to and Property of Company. All information, designs, ideas, concepts,
improvements, product developments, discoveries and inventions, whether patentable or not, that are
conceived, made, developed or acquired by Executive, individually or in conjunction with others,
during the period of Executive’s employment by Company (whether during business hours or otherwise
and whether on Company’s premises or otherwise) that relate to Company’s (or any of its
affiliates’) business, trade secrets, products or services (including, without limitation, all such
information relating to corporate opportunities, product specification, compositions, manufacturing
and distribution methods and processes, research, financial and sales data, pricing terms,
evaluations, opinions, interpretations, acquisitions prospects, the identity of customers or their
requirements, the identity of key contacts within the customer’s organizations or within the
organization of acquisition prospects, marketing and merchandising techniques, business plans,
computer software or programs, computer software and database technologies, prospective names and
marks) (collectively, “Confidential Information”) shall be disclosed to Company and are and shall
be the sole and exclusive property of Company (or its affiliates). Moreover, all documents,
videotapes, written presentations, brochures, drawings, memoranda, notes, records, files,
correspondence, manuals, models, specifications, computer programs, E-mail, voice mail, electronic
databases, maps, drawings, architectural renditions, models and all other writings or materials of
any type embodying any of such information, ideas, concepts, improvements, discoveries, inventions
and other similar forms of expression (collectively, “Work Product”) are and shall be the sole and
exclusive property of Company (or its affiliates). Upon Executive’s termination of employment with
Company, for any reason, Executive promptly shall deliver such Confidential Information and Work
Product, and all copies thereof, to Company.

     5.2 Disclosure to Executive. In reliance upon Executive’s representations and
agreements in this Agreement, Company has and will disclose to Executive, and will place Executive
in a position to have access to and to develop, Confidential Information and Work Product of
Company (or its affiliates); and/or has and will entrust Executive with business opportunities of
Company (or its affiliates); and/or has and will place Executive in a position to develop business
good will on behalf of Company (or its affiliates). Executive agrees to preserve and protect the
confidentiality of all Confidential Information or Work Product of Company (or its affiliates).

     5.3 No Unauthorized Use or Disclosure. Executive agrees that he or she will not, at
any time during or after Executive’s employment by Company, make any unauthorized disclosure of,
and will prevent the removal from Company premises of, Confidential Information or Work Product of
Company (or its affiliates), or make any use thereof, except in the carrying out of Executive’s
responsibilities during the course of Executive’s employment with Company. Executive shall use
commercially reasonable efforts to cause all persons or entities to whom any Confidential
Information shall be disclosed by him or her hereunder to observe the terms and conditions set
forth herein as though each such person or entity was bound hereby. Executive shall have no
obligation hereunder to keep confidential any Confidential Information if and to the extent
disclosure thereof is specifically required by law; provided, however, that in the event disclosure
is required by applicable law, Executive shall provide Company with prompt notice of such
requirement prior to making any such disclosure, so that Company may seek an appropriate

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protective order or otherwise contest such disclosure. At the request of Company at any time,
Executive agrees to deliver to Company all Confidential Information that he or she may possess or
control. Executive agrees that all Confidential Information of Company (whether now or hereafter
existing) conceived, discovered or made by him or her during the period of Executive’s employment
by Company exclusively belongs to Company (and not to Executive), and Executive will promptly
disclose such Confidential Information to Company and perform all actions reasonably requested by
Company to establish and confirm such exclusive ownership. Affiliates of Company shall be third
party beneficiaries of Executive’s obligations under this Article 5. As a result of Executive’s
employment by Company, Executive may also from time to time have access to, or knowledge of,
Confidential Information or Work Product of third parties, such as customers, suppliers, partners,
joint venturers, and the like, of Company and its affiliates. Executive also agrees to preserve
and protect the confidentiality of such third party Confidential Information and Work Product to
the same extent, and on the same basis, as Company’s Confidential Information and Work Product.

     5.4 Ownership by Company. If, during Executive’s employment by Company, Executive
creates any work of authorship fixed in any tangible medium of expression that is the subject
matter of copyright (such as videotapes, written presentations, or acquisitions, computer programs,
E-mail, voice mail, electronic databases, drawings, maps, architectural renditions, models,
manuals, brochures, or the like) relating to Company’s business, products, or services, whether
such work is created solely by Executive or jointly with others (whether during business hours or
otherwise and whether on Company’s premises or otherwise), including any Work Product, Company
shall be deemed the author of such work if the work is prepared by Executive in the scope of
Executive’s employment; or, if the work is not prepared by Executive within the scope of
Executive’s employment but is specially ordered by Company as a contribution to a collective work,
as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work,
as a compilation, or as an instructional text, then the work shall be considered to be work made
for hire and Company shall be the author of the work. If such work is neither prepared by
Executive within the scope of Executive’s employment nor a work specially ordered that is deemed to
be a work made for hire, then Executive hereby agrees to assign, and by these presents does assign,
to Company all of Executive’s worldwide right, title, and interest in and to such work and all
rights of copyright therein.

     5.5 Assistance by Executive. During the period of Executive’s employment by Company
and thereafter, Executive shall assist Company and its nominee, at any time, in the protection of
Company’s (or its affiliates’) worldwide right, title and interest in and to Work Product and the
execution of all formal assignment documents requested by Company or its nominee and the execution
of all lawful oaths and applications for patents and registration of copyright in the United States
and foreign countries.

     5.6 Non-Competition Obligations. Both as part of the consideration for the
compensation and benefits to be paid to Executive hereunder; and to protect the trade secrets and
Confidential Information of Company and its affiliates that have been or will in the future be
disclosed or entrusted to Executive, the business good will of Company and its affiliates that has
been and will in the future be developed in Executive, and the business opportunities that have
been and will in the future be disclosed or entrusted to Executive by Company and its affiliates;
Executive agrees that during the period that Executive is employed by Company and for 12

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months after the date of the termination of Executive’s employment with the Company for any
reason, Executive shall not, directly or indirectly for Executive or for others, in the geographic
areas and markets where Company conducts any business during Executive’s employment with the
Company (as identified on Schedule A attached hereto, and amended by the Company from time to
time), as well as any other geographic area or market where Company is conducting any business as
of the date of termination of the employment relationship:

	 	(i)	 	engage in the business of acquiring, developing, improving, managing,
providing services with respect to, operating and disposing of mid-stream
energy projects, including pipelines, treatment and processing facilities and
gas storage fields or any other business that is competitive with the business
conducted by Company;
	 
	 	(ii)	 	render any advice or services to, or otherwise assist, any other
person, association, or entity who is engaged, directly or indirectly, with any
business that is competitive with the business conducted by Company;
	 
	 	(iii)	 	induce any employee of Company or its affiliates to terminate his or
her employment with Company or its affiliates, or hire or assist in the hiring
of any such employee by any person, association, or entity not affiliated with
Company; or
	 
	 	(iv)	 	request or cause any customer of Company or its affiliates to terminate
any business relationship with Company or its affiliates.

Executive understands that the foregoing restrictions may limit Executive’s ability to engage in
certain businesses anywhere in the world during the period provided for above, but acknowledges and
represents that the restrictions are both reasonable and necessary to protect Company’s legitimate
business interests, and that Executive will receive sufficiently high remuneration and other
benefits under this Agreement to compensate for and to justify such restrictions. Notwithstanding
the foregoing, in the event that the Executive’s employment is terminated upon expiration of the
initial or extended term pursuant to Section 2.1 hereof because either party has provided the
notice contemplated in such paragraph, the Board may, in its discretion, release the Executive from
the covenants contained in this Section 5.6; provided, however, that in such case, the Executive
shall not receive the Severance Amount provided in Section 4.2 hereof.

     5.7 Enforcement and Remedies. Executive acknowledges and agrees that money damages
would not be sufficient remedy for any breach of this Article 5 by Executive, and Company or its
affiliates shall be entitled to enforce the provisions of this Article 5 by terminating payments
then owing to Executive under this Agreement or otherwise, by specific performance and injunctive
relief as remedies for such breach or any threatened breach. Such remedies shall not be deemed the
exclusive remedies for a breach of this Article 5, but shall be in addition to all remedies
available at law or in equity, including, without limitation, the recovery of damages from
Executive and Executive’s agents involved in such breach and remedies available to Company pursuant
to other agreements with Executive.

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     5.8 Reformation. It is expressly understood and agreed that Company and Executive
consider the restrictions contained in this Article 5 to be reasonable and necessary to protect the
proprietary information of Company and its affiliates. Nevertheless, if any of the aforesaid
restrictions are found by a court having jurisdiction to be unreasonable, or overly broad as to
geographic area or time, or otherwise unenforceable, the parties intend for the restrictions
therein set forth to be modified by such courts so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced.

ARTICLE 6: NONDISPARAGEMENT

     Executive shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any oral or written statements about Company, its
affiliates, or any of such entities’ officers, employees, agents or representatives that (i) are
slanderous, libelous, or defamatory; (ii) disclose private or confidential information about
Company, its affiliates, or any of such entities’ business affairs, officers, employees, agents, or
representatives; (iii) constitute an intrusion into the seclusion or private lives of the officers,
employees, agents, or representatives of Company or its affiliates; (iv) give rise to unreasonable
publicity about the private lives of the officers, employees, agents, or representatives of Company
or its affiliates; (v) place Company, its affiliates, or any of such entities’ officers, employees,
agents, or representatives in a false light before the public; or (vi) constitute a
misappropriation of the name or likeness of Company, its affiliates, or any of such entities’
officers, employees, agents, or representatives. A violation or threatened violation of this
prohibition may be enjoined by the courts. The rights afforded Company and its affiliates under
this provision are in addition to any and all rights and remedies otherwise afforded by law.

     Company agrees that, both during Executive’s employment relationship and after the employment
relationship terminates, Company, its affiliates, and such entities’ officers, employees, agents or
representatives shall refrain from publishing any oral or written statements about Executive that
(i) are slanderous, libelous, or defamatory; (ii) disclose private or confidential information
about Executive; (iii) that constitute an intrusion into the seclusion or private life of
Executive; (iv) give rise to unreasonable publicity about the private life of Executive; (v) place
Executive in a false light before the public; or (vi) constitute a misappropriation of the name or
likeness of Executive. A violation or threatened violation of this prohibition may be enjoined by
the courts. The rights afforded Executive under this provision are in addition to any and all
rights and remedies otherwise afforded by law.

     The nondisparagement obligations of this Article 6 shall not apply to communications with law
enforcement or required testimony under law or court process.

ARTICLE 7: MISCELLANEOUS

     7.1 Notices. For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

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	 	If to Company to:
	 	American Midstream GP, LLC
	 

	 	 	 	1614 15th Street
	 

	 	 	 	Suite 300
	 

	 	 	 	Denver, CO 80202
	 

	 	 	 	Attention: Chairman of the Board
	 
	 

	 	with a copy to:
	 	American Infrastructure MLP Fund, L.P.
	 

	 	 	 	950 Tower Lane
	 

	 	 	 	Suite 800
	 

	 	 	 	Foster City, CA 94404
	 

	 	 	 	Attention: Ed Diffendal and Robert B. Hellman, Jr.
	 
	 

	 	If to Executive to:
	 	John J. Connor II
	 

	 	 	 	1206 Forest Street
	 

	 	 	 	Denver, CO 80220-2553

or to such other address as either party may furnish to the other in writing in accordance
herewith, except that notices or changes of address shall be effective only upon receipt.

     7.2 Applicable Law. This Agreement is entered into under, and shall be governed for
all purposes by, the laws of the State of Delaware.

     7.3 No Waiver. No failure by either party hereto at any time to give notice of any
breach by the other party of, or to require compliance with, any condition or provision of this
Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time.

     7.4 Severability. If a court of competent jurisdiction determines that any provision
of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that
provision shall not affect the validity or enforceability of any other provision of this Agreement,
and all other provisions shall remain in full force and effect.

     7.5 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
Agreement.

     7.6 Withholding of Taxes and Other Employee Deductions. Company may withhold from any
benefits and payments made pursuant to this Agreement or otherwise all federal, state, city and
other taxes as may be required pursuant to any law or governmental regulation or ruling and all
other normal employee deductions made with respect to Company’s employees generally.

     7.7 Headings. The paragraph headings have been inserted for purposes of convenience
and shall not be used for interpretive purposes.

     7.8 Gender and Plurals. Wherever the context so requires, the masculine gender
includes the feminine or neuter, and the singular number includes the plural and conversely.

11

 

     7.9 Affiliate. As used in this Agreement, the term “affiliate” shall mean any entity
which owns or controls, is owned or controlled by, or is under common ownership or control with,
Company.

     7.10 Term. This Agreement has a term co-extensive with the term of employment
provided in Article 2. Termination shall not affect any right or obligation of any party which is
accrued or vested prior to such termination. The provisions of paragraphs 2.4 and 2.5 and Articles
4, 5, 6, and 7 shall survive any termination of this Agreement.

     7.11 Entire Agreement. Except as provided in (i) the written benefit plans and
programs referenced in paragraph 3.4(iii) (and any agreements between Company and Executive that
have been executed under such plans and programs) and paragraph 4.7 and (ii) any signed written
agreement contemporaneously or hereafter executed by Company and Executive, this Agreement
constitutes the entire agreement of the parties with regard to the subject matter hereof, and
contains all the covenants, promises, representations, warranties and agreements between the
parties with respect to employment of Executive by Company. Without limiting the scope of the
preceding sentence, all understandings and agreements preceding the date of execution of this
Agreement and relating to the subject matter hereof (other than (A) under the agreements described
in clause (i) of the preceding sentence; (B) as provided herein or (C) under the agreements forming
and/or operating Company and American Midstream, LP or any investor rights agreement related
thereto) are hereby null and void and of no further force and effect. Any modification of this
Agreement will be effective only if it is in writing and signed by the party to be charged.

     7.12 Legal Expenses. If Executive incurs legal costs and expenses (including
reasonable attorneys’ fees) in any contest relating to rights under this Agreement and prevails in
such contest, Company shall reimburse Executive for his or her reasonable legal costs and expenses
(including reasonable attorneys’ fees) incurred with respect to such contest.

     7.13 Liability Insurance. Company shall maintain a directors’ and officers’ insurance
liability policy throughout the term of this Agreement and shall provide Executive with coverage
under such policy on terms not less favorable than provided to other Company directors and
officers.

     7.14 Compliance with Section 409A of the Code.

     (i) All references in this Agreement to the termination of Executive’s employment with
Company shall mean and shall be deemed to occur if and when a termination of employment that
constitutes a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of
the Internal Revenue Code of 1986, as amended (the “Code”), and applicable administrative
guidance issued thereunder has occurred.

     (ii) To the extent that any reimbursement or benefit in kind hereunder constituted
deferred compensation under Section 409A of the Code, such reimbursement or benefit shall be
administered consistently with the following additional requirements as set forth in Treas.
Reg. §1.409A-3(i)(1)(iv): (1) Executive’s eligibility for or receipt of benefits or
reimbursements in one calendar year will not affect Executive’s eligibility for

12

 

or the amount of benefits or reimbursements in any other calendar year, (2) any
reimbursement of eligible expenses will be made on or before the last day of the year
following the year in which the expense was incurred, (3) Executive’s right to benefits or
reimbursement is not subject to liquidation or exchange for another benefit, and (4) the
right to reimbursement of expenses incurred or to the provision of benefits in kind shall
terminate ten (10) years from Executive’s termination of employment, if not before.

     (iii) Executive’s right to installment payments, if any, hereunder, shall be treated as
the right to receive a series of separate and distinct individual payments for purposes of
Section 409A of the Code.

     (iv) Notwithstanding any provision in this Agreement to the contrary, if Executive is a
“specified employee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code, and
applicable administrative guidance thereunder and determined in accordance with any method
selected by Company that is permitted under the regulations issued under Section 409A of the
Code), and any amount paid or benefit provided under this Agreement to or on behalf of
Executive would be subject to additional taxes under Section 409A of the Code because the
timing of such payment is not delayed as provided in Section 409A(a)(2)(B)(i) of the Code
and the regulations thereunder, then any such payment or benefit that Executive would
otherwise be entitled to during the first six months following the date of Executive’s
separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the Code and
applicable administrative guidance thereunder) shall be accumulated and paid or provided, as
applicable, on the date that is six months plus one day after Executive’s separation from
service (or if such date does not fall on a business day of Company, the next following
business day of Company), or such earlier date upon which such amount can be paid or
provided under Section 409A of the Code without being subject to such additional taxes and
interest; provided, however, that Executive shall be entitled to receive the maximum amount
permissible under Section 409A of the Code and the applicable administrative guidance
thereunder during the six-month period following his or her separation from service that
will not result in the imposition of any additional tax or penalties on such amount.

     (v) To the extent that Section 409A of the Code is applicable to this Agreement, the
provisions of this Agreement shall be interpreted as necessary to comply with such section
and the applicable administrative guidance issued thereunder.

     7.15 Arbitration.

     (i) Company and Executive agree to submit to final and binding arbitration any and all
disputes or disagreements concerning the interpretation or application of this Agreement,
the termination of this Agreement, or any other aspect of Executive’s employment
relationship with Company. Any such dispute or disagreement will be resolved by arbitration
in accordance with the National Rules for the Resolution of Employment Disputes of
the American Arbitration Association (the “AAA Rules”) before a single arbitrator.
Arbitration will take place in Delaware, unless the parties mutually agree to a different
location. Company and Executive agree that the decision of the arbitrator will be final and
binding on both parties. Any court having jurisdiction may

13

 

enter a judgment upon the award rendered by the arbitrator. The costs of the
proceedings shall be borne equally by the parties unless the arbitrator orders otherwise.

     (ii) Notwithstanding the provisions of paragraph 7.15(i), (a) Company may, if it so
chooses, bring an action in any court of competent jurisdiction for injunctive relief to
enforce Executive’s obligations under Articles 5 or 6 hereof, pending a decision by the
arbitrator in accordance with paragraph 7.15(i), and (b) Executive may, if he or she so
chooses, bring an action in any court of competent jurisdiction for temporary or preliminary
injunctive relief to enforce Company’s obligations under Article 6 hereof, pending a
decision by the arbitrator in accordance with paragraph 7.15(i).

     7.16 Provisions Regarding Effective Date. As indicated in this Agreement, this
Agreement is effective as of the Effective Date, and accordingly in connection therewith the
parties agree that the following shall apply:

     (i) This Agreement shall from and after its execution by the parties be an agreement
binding upon and enforceable by both Company and Executive subject to the application of the
provisions hereof generally being effective as of the Effective Date.

     (ii) The employment of Executive by Company shall continue to be governed by the terms
of the Existing Agreement until the Effective Date.

     (iii) In the event that the employment of Executive by Company terminates at any time
prior to the Effective Date, such termination shall be governed by the terms of the Existing
Agreement and this Agreement shall be null and void and of no force and effect.

     (iv) In the event that the Effective Date does not occur on or before July 31, 2011,
this Agreement shall be null and void and of no force and effect and the Existing Agreement
shall continue in full force and effect.

Signature page follows.

14

 

     IN
WITNESS WHEREOF, the parties hereto have executed this Agreement
on the 9th day of
June, 2011, to be effective as of the Effective Date.

	 	 	 	 	 

	 	 	American Midstream GP, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert
B. Hellman, Jr. 
	 

	 	 	 	 
 Robert
B. Hellman, Jr.,
	 

	 	 	 	Chairman, Compensation Committee
	 
	 	 	 	 
	 	 	“EXECUTIVE”
	 
	 
	 
	 	 	 	/s/ John
J. Connor II 
	 

	 	 	 	 
 John
J. Connor II

15

 

SCHEDULE A

NONCOMPETITION GEOGRAPHIC AREAS AND SCOPE

Every State of the United States in which the Company does business on the Executive’s date of
termination.

All customers of the Company on the Executive’s date of termination.

16exv10w7

Exhibit 10.7

AMENDED AND RESTATED

AMERICAN MIDSTREAM GP, LLC

LONG-TERM INCENTIVE PLAN

1. Purpose of the Plan. This Amended and Restated American Midstream GP, LLC Long-Term
Incentive Plan (the “Plan”) has been adopted by American Midstream GP, LLC, a Delaware
limited liability company (the “Company”), the general partner of American Midstream
Partners, LP a Delaware limited partnership (the “Partnership”). The Plan is intended to
promote the interests of the Partnership, the Company and their Affiliates by providing to
employees, consultants and directors of the Partnership, the Company and their Affiliates incentive
compensation awards for superior performance that are based on Units. The Plan is also
contemplated to enhance the ability of the Partnership, the Company and their Affiliates to attract
and retain the services of individuals who are essential for the growth and profitability of the
Company, the Partnership and their Affiliates, and to encourage them to devote their best efforts
to advancing the business of the Company, the Partnership and their Affiliates.

2. Definitions; Construction.

     (a) Definitions. As used in the Plan, the following terms shall have the meanings set
forth below:

     “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, 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. Notwithstanding the
immediately preceding two sentences, to the extent that Section 409A of the Code applies to Options
or Unit Appreciation Rights granted under the Plan, the term “Affiliate” means all Persons with
whom the Partnership could be considered a single employer under Section 414(b) or Section 414(c)
of the Code substituting “50 percent” in place of “80 percent” in determining a controlled group of
corporations under Section 414(b) of the Code and in determining trades or businesses (whether or
not incorporated) that are under common control for purposes of Section 414(c) of the Code.

     “Award” means an Option, UAR, Restricted Unit, Phantom Unit, Other Unit-Based Award,
Unit Award or Replacement Award, and shall also include any tandem DERs granted with respect to an
Award.

     “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

     “Board” means the Board of Directors of the Company.

     “Change of Control” means, and shall be deemed to have occurred upon the occurrence
of, one or more of the following events:

1

 

     (i) any “Person” or “group” within the meaning of those terms as used in Section 13(d)
and Section 14(d)(2) of the Exchange Act, other than an Affiliate of the Company or the
Partnership, shall become the beneficial owner, by way of merger, consolidation,
recapitalization, reorganization or otherwise, of 50% or more of the combined voting power
of the equity interests in the Company or the Partnership;

     (ii) the limited partners of the Partnership approve, in one or a series of
transactions, a plan of complete liquidation of the Partnership;

     (iii) the sale, lease or other disposition by either the Company or the Partnership of
all or substantially all of its assets in one or more transactions to any Person other than
the Company or an Affiliate of the Company; or

     (iv) a transaction resulting in a Person other than the Company or an Affiliate of the
Company being the general partner of the Partnership.

; provided, however, that, notwithstanding the foregoing, with respect to an Award
that is subject to Section 409A of the Code and with respect to which a Change of Control will
accelerate payment, “Change of Control” shall only include a Change of Control that constitutes a
“change in control event” as defined in the regulations and guidance issued under Section 409A of
the Code; and provided further, however, that, notwithstanding the foregoing, for
purposes of determining whether the vesting of any Award accelerates, “Change of Control” shall not
include any initial public offering of the Partnership’s equity securities that is registered under
the Securities Act of 1933 or any private offering undertaken by or for the Partnership as an
alternative to such an initial public offering.

     “Code” means the Internal Revenue Code of 1986, as amended. Reference to any section
of the Code shall include reference to such section and the regulations and other authoritative
guidance promulgated thereunder.

     “Committee” means the Board or such committee of the Board, if any, as may be
appointed by the Board to administer the Plan.

     “Consultant” means an independent contractor, other than a Director, who performs
services for the benefit of the Company or the Partnership or an Affiliate of either of them.

     “DER” or “Distribution Equivalent Right” means a contingent right, granted in
tandem with a specific Option, UAR or Phantom Unit, to receive an amount in cash equal to the cash
distributions made by the Partnership with respect to a Unit during the period such DER is
outstanding.

     “Director” means a member of the Board or a board of directors of an Affiliate who is
not an Employee or a Consultant.

     “Employee” means any employee of the Company or the Partnership or an Affiliate of
either of them who performs services for the benefit of the Company or the Partnership or an
Affiliate of either of them.

2

 

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means the closing sales price of a Unit on the principal national
securities exchange or other market in which trading in Units occurs on the applicable date (or if
there is no trading in the Units on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service approved by the
Committee). In the event Units are not traded on a national securities exchange or other market at
the time a determination of fair market value is required to be made hereunder, the determination
of fair market value shall be made in good faith by the Committee by the reasonable application of
a reasonable method. Notwithstanding the foregoing, with respect to an Award granted on the
effective date of the initial public offering of Units, Fair Market Value on such date shall mean
the initial offering price per Unit as stated on the cover page of the Registration Statement on
Form S-1 (or successor form thereto) for such offering.

     “Option” means an option to purchase Units granted under the Plan.

     “Other Unit-Based Award” means an award granted pursuant to Section 6(f).

     “Participant” means any Employee, Consultant or Director granted an Award under the
Plan.

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “Phantom Unit” means a phantom (notional) unit granted under the Plan that entitles
the Participant to receive an amount of cash equal to the Fair Market Value of one Unit upon
vesting of the Phantom Unit; however, the Committee, in its discretion, may elect to pay such
vested Phantom Unit with a Unit in lieu of cash.

     “Replacement Award” means an Award granted pursuant to Section 6(g).

     “Restricted Period” means the period established by the Committee with respect to an
Award during which the Award is not transferable, remains subject to forfeiture and is either not
exercisable by or payable to the Participant, as the case may be.

     “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted
Period.

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any
successor rule or regulation thereto as in effect from time to time.

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “Unit” means a Common Unit of the Partnership.

     “UAR” or “Unit Appreciation Right” means an Award that, upon exercise,
entitles the holder to receive the excess of the Fair Market Value of a Unit on the exercise date
over the

3

 

exercise price established for such Unit Appreciation Right. Such excess may be paid in cash,
Units or any combination thereof, as determined by the Committee in its discretion.

     “Unit Award” means the grant of a Unit that is not subject to a Restricted Period.

     “UDR” or “Unit Distribution Right” means a right to receive distributions made
by the Partnership with respect to a Restricted Unit.

     (b) Construction. In this Plan, unless a clear contrary intention appears: (i) the
gender of all words used in this Plan includes the masculine, feminine and neuter; (ii) the
singular forms of nouns, pronouns and verbs shall include the plural and vice versa; (iii) all
references to Articles and Sections refer to articles and sections in this Plan, each of which is
made a part for all purposes; (iv) the terms “include” and “includes” mean
“includes, without limitation,” and “including” means “including, without limitation,”; (v)
all Article and Section headings in this Plan are for convenience only and shall not be deemed to
control or affect the meaning or construction of any of the provisions hereof; and (vi) the words
“hereof,” “herein” and “hereunder” and words of similar import, when used in this Plan, refer to
this Plan as a whole and not to any particular provision of this Plan.

3. Administration.

     (a) Governance. The Plan shall be administered by the Committee.

     (b) Delegation. Subject to the following and applicable law, the Committee, in its
sole discretion, may delegate any or all of its powers and duties under the Plan, including the
power to grant Awards under the Plan, to the Chief Executive Officer of the Company, subject to
such limitations on such delegated powers and duties as the Committee may impose, if any. Upon any
such delegation, all references in the Plan to the “Committee”, other than in Section
7, shall be deemed to include the Chief Executive Officer; provided, however, that such
delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan.
Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards to, or take any
action with respect to any Award previously granted to, a Person who is an officer subject to Rule
16b-3 or a member of the Board.

     (c) Authority and Powers. Subject to the terms of the Plan and applicable law, and in
addition to other express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority to: (i) designate Participants; (ii) determine the
type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to
what extent, and under what circumstances Awards may be vested, settled, exercised, canceled, or
forfeited; (vi) interpret and administer the Plan and any instrument or agreement relating to an
Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration of the Plan; and
(viii) make any other determination and take any other action that the Committee deems necessary or
desirable for the administration of the Plan. The Committee may correct any defect, supply any
omission or reconcile any inconsistency in the Plan or an Award Agreement in such manner and to
such extent as the Committee deems necessary or appropriate. Unless

4

 

otherwise expressly provided in the Plan, all designations, determinations, interpretations,
and other decisions under or with respect to the Plan or any Award shall be within the sole
discretion of the Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and any
beneficiary of any Participant.

4. Units.

     (a) Limits on Units Deliverable. Subject to adjustment as provided in Section
4(c), the number of Units that may be delivered with respect to Awards under the Plan may not
exceed 625,532 Units; provided, however, if any Award (including Restricted Units)
is terminated, cancelled, forfeited or expires for any reason without the actual delivery of Units
covered by such Award or Units are withheld from an Award to satisfy the exercise price or the
employer’s tax withholding obligation with respect to such Award, such Units shall again be
available for delivery pursuant to other Awards granted under the Plan. Notwithstanding the
foregoing, (i) there shall not be any limitation on the number of Awards that may be granted under
the Plan and paid in cash, and (ii) any Units allocated to an Award shall, to the extent such Award
is paid in cash, be again available for delivery under the Plan with respect to other Awards.

     (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market or from any
Affiliate, the Partnership or any other Person, or any combination of the foregoing, as determined
by the Committee in its sole discretion.

     (c) Anti-Dilution Adjustments. With respect to any “equity restructuring” event that
could result in an additional compensation expense to the Company or the Partnership pursuant to
the provisions of Statement of Financial Accounting Standards No. 123 (“FAS 123R”) if
adjustments to Awards with respect to such event were discretionary, the Committee shall equitably
adjust the number and type of Units covered by each outstanding Award and the terms and conditions,
including the exercise price and performance criteria (if any), of such Award to equitably reflect
such restructuring event and shall adjust the number and type of Units (or other securities or
property) with respect to which Awards may be granted after such event. With respect to any other
similar event that would not result in a FAS 123R accounting charge if the adjustment to Awards
with respect to such event were subject to discretionary action, the Committee shall have complete
discretion to adjust Awards in such manner as it deems appropriate with respect to such other
event. In the event the Committee makes any adjustment pursuant to the foregoing provisions of
this Section 4(c), the Committee shall make a corresponding and proportionate adjustment
with respect to the maximum number of Units that may be delivered with respect to Awards under the
Plan as provided in Section 4(a) and the kind of Units or other securities available for
grant under the Plan. Notwithstanding the foregoing, the Committee shall not take any action
otherwise authorized under this Section 4(c) to the extent that such action would cause the
application of Section 409A of the Code to the Award or create adverse tax consequences under
Section 409A of the Code should that Code section apply to the Award.

5. Eligibility. Any Employee, Consultant or Director shall be eligible to be designated a
Participant by the Committee and receive any number of Awards under the Plan.

5

 

6. Awards.

     (a) Options. The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Options shall be granted, the number of Units to be covered by
each Option, whether DERS are granted with respect to such Option, and the conditions and
limitations applicable to the exercise of such Option, including the following terms and conditions
and such additional terms and conditions, as the Committee shall determine, that are not
inconsistent with the provisions of the Plan.

     (i) Exercise Price. The exercise price per Unit under an Option shall be
determined by the Committee at the time the Option is granted and, except with respect to a
Replacement Award, may not be less than its Fair Market Value as of the date of grant.

     (ii) Time and Method of Exercise. The Committee shall determine (A) the time
or times at which an Option may be exercised in whole or in part, which may include
accelerated vesting upon the achievement of specified performance goals or other events, and
(B) in its discretion the method or methods by which payment of the exercise price with
respect thereto may be made or deemed to have been made, which may include cash, check
acceptable to the Company, a “cashless-broker” exercise through a program approved by the
Company, with the consent of the Company, the withholding of Units that would otherwise be
delivered to the Participant upon the exercise of the Option, or the tender of other
securities or other property (including previously acquired Units), or any combination
thereof, having a Fair Market Value on the exercise date equal to the relevant exercise
price.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting with the Company,
the Partnership and their Affiliates or membership as a Director, whichever is applicable,
for any reason during the applicable Restricted Period, all Options shall be forfeited by
the Participant. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Options.

     (iv) DERs. To the extent provided by the Committee, in its discretion, a grant
of Options may include a tandem DER grant, which may provide that such DERs shall be paid
directly to the Participant, be credited to a bookkeeping account (with or without interest
in the discretion of the Committee) subject to the same vesting restrictions as the tandem
Award, or be subject to such other provisions or restrictions as determined by the Committee
in its discretion. Absent any provision to the contrary with regard to the DERs in the
Award Agreement, DERs shall be subject to the same vesting restrictions as apply to the
Options with respect to which they were granted. Further, as required by Section 409A of
the Code, DERs granted in tandem with Options shall not be directly or indirectly contingent
on the exercise of the Options with respect to which they were granted. Settlement of DERs,
if any, granted in tandem with Options shall comply with Section 6(h)(viii).

     (b) UARs. The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Unit Appreciation Rights shall be granted, the number of

6

 

Units to be covered by each grant, whether DERs are granted with respect to such Unit
Appreciation Right, the exercise price therefor and the conditions and limitations applicable to
the exercise of the Unit Appreciation Right, including the following terms and conditions and such
additional terms and conditions, as the Committee shall determine, that are not inconsistent with
the provisions of the Plan.

     (i) Exercise Price. The exercise price per Unit Appreciation Right shall be
determined by the Committee at the time the Unit Appreciation Right is granted but may not
be less than the Fair Market Value of a Unit as of the date of grant.

     (ii) Time of Exercise. The Committee shall determine the Restricted Period,
i.e., the time or times at which a Unit Appreciation Right may be exercised in whole or in
part, which may include accelerated vesting upon the achievement of specified performance
goals.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting with the Company and
its Affiliates or membership as a Director, whichever is applicable, for any reason during
the applicable Restricted Period, all outstanding Unit Appreciation Rights awarded to the
Participant shall be automatically forfeited on such termination. The Committee may, in its
discretion, waive in whole or in part such forfeiture with respect to a Participant’s Unit
Appreciation Rights.

     (iv) Unit Appreciation Right DERs. To the extent provided by the Committee, in
its discretion, a grant of Unit Appreciation Rights may include a tandem DER grant, which
may provide that such DERs shall be paid directly to the Participant, be credited to a
bookkeeping account (with or without interest in the discretion of the Committee) subject to
the same vesting restrictions as the tandem Unit Appreciation Rights Award, or be subject to
such other provisions or restrictions as determined by the Committee in its discretion.
Absent any provision to the contrary with regard to the DERs in the Award Agreement, DERs
shall be subject to the same vesting restrictions as apply to the Unit Appreciation Rights
with respect to which they were granted. Further, as required by Section 409A of the Code,
DERs granted in tandem with UARs shall not be directly or indirectly contingent on the
exercise of the UARs with respect to which they were granted. Settlement of DERs, if any,
granted in tandem with UARs shall comply with Section 6(h)(viii).

     (c) Phantom Units. The Committee shall have the authority to determine the Employees,
Consultants, and Directors to whom Phantom Units shall be granted, the number of Phantom Units to
be granted to each such Participant, the Restricted Period, the time or conditions under which the
Phantom Units may become vested or forfeited, which may include the accelerated vesting upon the
achievement of specified performance goals or other events, and such other terms and conditions as
the Committee may establish with respect to such Awards, including whether DERs are granted with
respect to such Phantom Units.

     (i) DERs. To the extent provided by the Committee in its discretion, a grant
of Phantom Units may include a tandem DER grant, which provides that such DERs shall

7

 

be credited to a bookkeeping account (without interest) and shall be paid to the
Participant in cash upon the vesting of the tandem Phantom Unit. However, the Committee, in
its discretion, may provide such other terms, including different vesting and payment forms
and mediums and the “investment” of such DERs in additional Phantom Units, as it may choose
with respect to DERs and may also provide that a grant of Phantom Units does not include
tandem DERs. Absent any provision to the contrary in the Award Agreement, any DERs granted
in tandem with UARs shall be subject to the same vesting restrictions as the UARs so
granted. Settlement of DERs, if any, granted in tandem with Phantom Units shall comply with
Section 6(h)(viii).

     (ii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting arrangement with the
Company, the Partnership and their Affiliates or membership as a Director, whichever is
applicable, for any reason during the applicable Restricted Period, all outstanding Phantom
Units awarded to the Participant, and any outstanding tandem DERs credited to such
Participant, shall be automatically forfeited on such termination. The Committee may, in
its discretion, waive in whole or in part such forfeiture with respect to a Participant’s
Phantom Units and tandem DERs.

     (iii) Lapse of Restrictions. Upon or as soon as reasonably practicable
following the vesting of each Phantom Unit, subject to the provisions of Section
8(b), the Participant shall be entitled to settlement of such Phantom Unit by receiving
from the Company cash equal to the Fair Market Value of one Unit as of the date on which the
Restricted Period ends by vesting; however, the Committee, in its discretion, may elect to
pay such vested Phantom Unit in the form of one Unit in lieu of cash. In all events,
settlement shall be made no later than the 15th day of the 3rd
calendar month following the date on which the Restricted Period ends by vesting.

     (d) Restricted Units. The Committee shall have the authority to determine the
Employees, Consultants and Directors to whom Restricted Units shall be granted, the number of
Restricted Units to be granted to each such Participant, the Restricted Period, the conditions
under which the Restricted Units may become vested or forfeited, which may include the accelerated
vesting upon the achievement of specified performance goals or other events, and such other terms
and conditions as the Committee may establish with respect to such Awards.

     (i) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that distributions made by the Partnership with respect to
the Restricted Units shall be subject to such forfeiture and other restrictions as the
Committee may choose and, if so restricted, such distributions shall be held, without
interest, until the UDR vests or is forfeited. In addition, the Committee may provide that
such distributions be used to acquire additional Restricted Units for the Participant. Such
additional Restricted Units may be subject to such vesting and other terms as the Committee
may prescribe. Absent such a restriction on the UDRs in the Award Agreement, UDRs shall be
paid to the holder of the Restricted Unit without restriction. Settlement of UDRs, if any,
granted in tandem with Restricted Units shall comply with Section 6(h)(viii).

8

 

     (ii) Forfeitures. Except as otherwise provided in the terms of the Award
Agreement, upon termination of a Participant’s employment or consulting with the Company,
the Partnership and their Affiliates or membership as a Director, whichever is applicable,
for any reason during the applicable Restricted Period, all outstanding unvested Restricted
Units awarded the Participant, and any unpaid UDRs credited to the Participant, shall be
automatically forfeited on such termination. The Committee may, in its discretion, waive in
whole or in part such forfeitures with respect to a Participant’s Restricted Units and UDRs.

     (iii) Lapse of Restrictions. Upon or as soon as reasonably practical following
the vesting of each Restricted Unit, subject to the provisions of Section 8(b), the
Participant shall be entitled to have the restrictions removed from his or her Unit
certificate so that the Participant then holds an unrestricted Unit.

     (e) Unit Awards. Unit Awards may be granted under the Plan to such Employees,
Consultants and Directors and in such amounts as the Committee, in its discretion, may select.

     (f) Other Unit-Based Awards. Other Unit-Based Awards may be granted under the Plan to
such Employees, Consultants and Directors as the Committee, in its discretion, may select. An
Other Unit-Based Award shall be an award denominated or payable in, valued in or otherwise based on
or related to Units, in whole or in part, and shall include unrestricted Units paid in lieu of any
bonus or incentive compensation otherwise payable in cash. The Committee shall determine the terms
and conditions, if any, of any such Other Unit-Based Award. Upon or as soon as reasonably
practicable following vesting, an Other Unit-Based Award may be settled, as determined by the
Committee in its discretion, in cash, Units (including Restricted Units) or any combination thereof
as determined by the Committee, in its discretion. In all events, settlement shall be made no
later than the 15th day of the 3rd calendar month following the date on which
the Restricted Period ends by vesting.

     (g) Replacement Awards. Awards may be granted under the Plan in substitution or
replacement for similar equity awards cancelled or forfeited by Employees, Consultants and
Directors as a result of a merger or acquisition by the Partnership or an Affiliate of an entity or
the assets of an entity. Such Replacement Awards may have such terms and conditions as the
Committee may determine and the exercise price of an Option may be less than the Fair Market Value
of a Unit on the date of such substitution or replacement. Notwithstanding the foregoing,
Replacement Awards may not be granted to the extent that such grant would cause the application of
Section 409A of the Code to the Award or create adverse tax consequences under Section 409A of the
Code should that Code section apply to the Award.

     (h) General.

     (i) Awards May Be Granted Separately or Together. Awards may, in the
discretion of the Committee, be granted either alone or in addition to, in tandem with, or
in substitution for any other Award granted under the Plan or any award granted under any
other plan of the Company, the Partnership or any Affiliate. No Award shall be issued in
tandem with another Award if the tandem Awards would result in adverse tax consequences
under Section 409A of the Code. Awards granted in addition to or in

9

 

tandem with other Awards or awards granted under any other plan of the Company, the
Partnership or any Affiliate may be granted either at the same time as or at a different
time from the grant of such other Awards or awards.

     (ii) Limits on Transfer of Awards.

     (A) Except as provided in Section 6(h)(ii)(C), each Option and Unit
Appreciation Right shall be exercisable only by the Participant during the
Participant’s lifetime, or by the Person to whom the Participant’s rights shall pass
by will or the laws of descent and distribution.

     (B) Except as provided in Section 6(h)(ii)(C), 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 Company, the Partnership or any Affiliate.

     (C) To the extent specifically provided by the Committee with respect to an
Award, an Award may be transferred by a Participant without consideration to
immediate family members or related family trusts, limited partnerships or similar
entities on such terms and conditions as the Committee may from time to time
establish.

     (iii) Term of Awards. The term of each Award shall be for such period as may
be determined by the Committee, but shall not exceed 10 years.

     (iv) Issuance of Units. The Units purchased or delivered pursuant to an Award
may be evidenced in any manner deemed appropriate by the Committee in its sole discretion,
including in the form of a certificate issued in the name of the Participant or by book
entry, electronic or otherwise, subject to such stop transfer orders and other restrictions
as the Committee may deem advisable under the Plan or the rules, regulations, and other
requirements of the SEC, any stock exchange upon which such Units or other securities are
then listed, and any applicable federal or state laws, and the Committee may cause a legend
or legends to be inscribed on any certificates to make appropriate reference to such
restrictions.

     (v) Consideration for Grants. Awards may be granted for such consideration,
including services, as the Committee determines.

     (vi) Delivery of Units or Other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any Award Agreement to the
contrary, if the Company is not reasonably able to obtain Units to deliver pursuant to such
Award without violating the rules or regulations of any applicable law or securities
exchange, no delivery shall occur until such time as the Committee, in good faith,
determines that the delivery of Units may be made without violating applicable law or the
applicable rules or regulations of any governmental agency or securities exchange. No Units
or other securities shall be delivered pursuant to any Award until payment in full of

10

 

any amount required to be paid pursuant to the Plan or the applicable Award Agreement
(including any exercise price or tax withholding) is received by the Company.

     (vii) Change of Control, Similar Events. Upon the occurrence of a Change of
Control, a recapitalization, reorganization, merger, consolidation, combination, exchange or
other relevant change in capitalization of or involving the Partnership, any change in
applicable law or regulation affecting the Plan or Awards thereunder, or any change in
accounting principles affecting the financial statements of the Partnership, the Committee,
in its sole discretion, without the consent of any Participant or holder of an Award, and on
such terms and conditions as it deems appropriate, may take any one or more of the following
actions in order to either prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan or an outstanding Award or mitigate
any unfavorable accounting consequences:

     (A) provide for either (1) the cancellation and termination of any Award in
exchange for an amount of cash, other property or securities, if any, equal to the
amount that would have been attained upon the exercise of such Award or realization
of the Participant’s rights or if the Participant were a unitholder on the
occurrence of such event (and, for the avoidance of doubt, if as of the date of the
occurrence of such transaction or event the Committee determines in good faith that
no amount would have been attained upon the exercise of such Award or realization of
the Participant’s rights, then such Award may be terminated by the Company without
payment) or (2) the replacement of such Award with or the conversion of such Award
into cash or other securities with other rights or property selected by the
Committee in its sole discretion;

     (B) provide that such Award be assumed by the successor or survivor entity, or
a parent or subsidiary thereof, or be exchanged for similar options, rights or
awards covering the equity of the successor or survivor, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of equity interests
and prices;

     (C) make adjustments in the number and type of Units (or other securities or
property) subject to outstanding Awards, and in the number and kind of outstanding
Awards or in the terms and conditions of (including the exercise price), and the
vesting and performance criteria included in, outstanding Awards, or both;

     (D) provide that such Award shall be exercisable or payable, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

     (E) provide that the Award cannot be exercised or become payable after such
event, i.e., that it shall terminate upon such event.

; provided, however, that notwithstanding the foregoing, with respect to an
above event that is an “equity restructuring” event that would be subject to a compensation
expense

11

 

pursuant FAS 123R if a discretionary change were made, the provisions in Section
4(c) shall control to the extent they are in conflict with the discretionary provisions
of this Section 6; and provided further, however, that,
notwithstanding the foregoing, the Committee shall have no discretion under this Section
6(h)(vii) to modify the time at which a payment related to an award that provides for
the deferral of compensation within the meaning of Section 409A of the Code shall be made to
any Participant except that, upon a Change in Control that constitutes change in the
ownership or effective control of the Partnership or in the ownership of a substantial
portion of the assets of the Partnership (both as defined for purposes of Section 409A of
the Code), all such awards shall become immediately payable, to the extent then vested,
unless and to the extent the Committee specifically provides to the contrary in the
applicable Award Agreement.

     (viii) Payment of DERs and UDRs. Except as otherwise provided in the Award
Agreement, DERs and UDRs that are not subject to a Restricted Period (whether because the
DERs or UDRs were originally granted without restrictions or the Restricted Period ended by
vesting) shall be currently paid to the Participant at the time of the distribution are made
to unitholders. Except as otherwise provided in the Award Agreement, to the extent DERs or
UDRs are subject to a Restricted Period, such amounts shall be paid to the Participant in a
single lump sum no later than the 15th day of the 3rd calendar month
following the date on which the Restricted Period ends by vesting.

7. Amendment and Termination. Except to the extent prohibited by applicable law:

     (a) Amendments to the Plan. Except as required by the rules of the principal
securities exchange or inter-dealer quotation system on which the Units are traded or listed, by
the Code or by the Exchange Act or other applicable law, and subject to Section 7(b), the
Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner,
including increasing the number of Units available for Awards under the Plan, without the consent
of any Partner, Participant, other holder or beneficiary of an Award, or any other Person.
Notwithstanding the foregoing, no amendment, alteration, suspension, discontinuance, or termination
of the Plan will modify the time at which a payment related to an award that provides for the
deferral of compensation within the meaning of Section 409A of the Code shall be made to any
Participant except to the extent such a modification is permitted by, and in compliance with,
Section 409A and the applicable guidance issued thereunder.

     (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive
any conditions or rights under, amend any terms of, or alter any Award theretofore granted,
provided no change, other than pursuant to Section 6(h)(vii) or, as determined by the
Committee, in its sole discretion, as being necessary or appropriate to comply with applicable law
in any Award shall materially reduce the benefit of a Participant without the consent of such
Participant. Notwithstanding the foregoing, if the terms of an Award would result in the
imposition of the additional tax under Section 409A of the Code, the Award will be reformed, if
possible, to avoid imposition of such tax in a manner that will result in the least adverse
economic impact on the Participant and, for purposes of the Plan, such reformation shall be deemed
not to reduce the Participant’s rights thereunder and shall not require the Participant’s consent.

8. General Provisions.

12

 

     (a) No Rights to Award. No Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each Participant.

     (b) Tax Withholding. Unless other arrangements have been made that are acceptable to
the Company, the Company or any Affiliate is authorized to withhold from any Award, from any
payment due or transfer made under any Award or from any compensation or other amount owing to a
Participant the amount (in cash, Units, other securities or property, or Units that would otherwise
be issued or delivered pursuant to such Award) of any applicable taxes payable in respect of the
grant or settlement of an Award, its exercise, the lapse of restrictions thereon, or any payment or
transfer under an Award or under the Plan and to take such other action as may be necessary in the
opinion of the Company to satisfy its withholding obligations for the payment of such taxes.

     (c) No Right to Employment or Services. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company, the Partnership or
any Affiliate or to remain a Director or continue to provide services as a Consultant, as
applicable. Further, the Company, the Partnership or an Affiliate may at any time dismiss a
Participant from employment or services, free from any liability or any claim under the Plan,
unless otherwise expressly provided in the Plan or in any Award Agreement or other agreement.

     (d) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Delaware without regard to its conflicts of laws principles.

     (e) Compliance with Section 409A of the Code. Nothing in the Plan or any Award
Agreement shall operate or be construed to cause the Plan or an Award, to the extent subject to
Section 409A, to fail to comply with the requirements of Section 409A of the Code. With respect to
any Award that is subject to Section 409A of the Code, the applicable provisions of Section 409A
the Code and the regulations thereunder are hereby incorporated by reference and shall control over
any provision of the Plan or any Award Agreement that is in conflict therewith. For purposes of
such compliance, in the event that an Award that is subject to Section 409A of the Code is payable
in connection with a Participant’s termination of service as an Employee, Consultant or Director,
such payments shall be made only in connection with a “separation from service” within the meaning
of Section 409A of the Code and the regulations thereunder (a “Separation from Service”)
and the provisions of the Plan (including the adjustment provisions of Section 4(c),
Section 6(g) and Section 6(h)(vii)) shall be applied in a manner consistent with
the requirements of Section 409A. Further, notwithstanding anything to the contrary in this Plan,
in the event an Award issued under the Plan is subject to Section 409A of the Code, if upon a
Participant’s Separation from Service, the Participant is a “specified employee” within the meaning
of Section 409A of the Code, and the deferral of any amounts or benefits otherwise payable or to be
provided under any Award made pursuant to this Plan as a result of the Participant’s Separation
from Service is necessary in order to prevent any accelerated or additional tax to the Participant
under Section 409A of the Code, then the Company will delay the payment of any such amounts or the
provision of any such benefits hereunder until the earliest of (x) the date that is six (6) months following the date of the

13

 

Participant’s
Separation from Service and (y) the date of the Participant’s death following such Separation from
Service. Upon the expiration of the applicable deferral period, any delayed amounts will be paid
to the Participant in a single lump sum, with interest from the date otherwise payable, at the
prime rate as published in The Wall Street Journal on the Participant’s Separation from Service,
and any delayed benefits will be provided on such date.

     (f) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award,
or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award and the remainder of the Plan and any such Award shall remain in full force and
effect.

     (g) Other Laws. The Committee may refuse to issue or transfer any Units or other
consideration under an Award if, in its sole discretion, it determines that the issuance or
transfer of such Units or such other consideration might violate any applicable law or regulation,
the rules of the principal securities exchange on which the Units are then traded, or result in
recoverable short-swing profits under Section 16(b) of the Exchange Act, and any payment tendered
to the Company by a Participant, other holder or beneficiary in connection with the exercise of
such Award shall be promptly refunded to the relevant Participant, holder or beneficiary.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any participating Affiliate and a Participant or any other Person. To the extent that
any Person acquires a right to receive payments from the Company or any participating Affiliate
pursuant to an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

     (i) No Fractional Units. No fractional Units shall be issued or delivered pursuant to
the Plan or any Award, and the Committee shall determine, in its sole discretion, whether cash,
other securities, or other property shall be paid or transferred in lieu of any fractional Units or
whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise
eliminated, with or without consideration.

     (j) Facility Payment. Any amounts payable hereunder to any Person under legal
disability or who, in the judgment of the Committee, is unable to properly manage his or her
financial affairs, may be paid to the legal representative of such Person, or may be applied for
the benefit of such Person in any manner that the Committee may select, and the Company shall be
relieved of any further liability for payment of such amounts.

     (k) No Guarantee of Tax Consequences. None of the Board, the Partnership, nor the
Committee makes any commitment or guarantee that any federal, state or local tax treatment will
apply or be available to any person participating or eligible to participate hereunder.

14

 

9. Term of the Plan. The Plan shall become effective on the date of its approval by the
Board and shall terminate on, and no Awards may be granted after, the earliest of (a) the date
established by the Board or the Committee, (b) the 10th anniversary of the date the Plan was
adopted by the Company (or such earlier anniversary, if any, required by the rules of the exchange
on which Units are traded) or (c) the date Units are no longer available for delivery pursuant to
Awards under the Plan. Unless otherwise expressly provided in the Plan or in an applicable Award
Agreement, any Award granted prior to any Plan termination, and the authority of the Board or the
Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive
any conditions or rights under such Award, shall extend beyond such termination date.

[SIGNATURE ON NEXT PAGE]

15

 

     IN WITNESS WHEREOF,
the Company has caused this instrument to be executed as of
May 25, 2010
by the undersigned officer of the Company.

	 	 	 	 	 
	 	American Midstream GP, LLC

 	 
	 	/s/ Brian Bierbach
 	 
	 	Brian Bierbach 	 
	 	Chief Executive Officer 	 
	 

16

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