Document:

Exhibit

Exhibit 10.2

American Midstream GP, LLC 
Long-Term Incentive Plan 
Grant of Phantom Units 
Grantee: Lynn L. Bourdon III
Grant Date: December 10, 2015

		
	1.
	Grant of Phantom Units. American Midstream GP, LLC (the “Company”), general partner of American Midstream Partners, LP (the “Partnership”), hereby grants to you, Lynn L. Bourdon III, 200,000 Phantom Units under the American Midstream GP, LLC Long-Term Incentive Plan (the “Plan”) on the terms and conditions set forth herein and in the Plan, which is incorporated herein by reference as a part of this Agreement (“Agreement” or “Grant Agreement”).  Notwithstanding any provision of the Plan to the contrary, in no event will any amendment to the Plan materially and adversely affect your rights with respect to the Phantom Units granted hereunder without your consent. In addition, in no event will the Committee take the action described in Section 6(h)(vii)(E) of the Plan unless, in connection with the applicable transaction or circumstance, the Committee accelerates the vesting of the Phantom Units granted hereby (and allows you to make any applicable election with respect to the underlying Units in such transaction or circumstance (a “Transaction Election”)).  Any accelerated vesting in connection with the foregoing sentence may be conditioned on the closing or occurrence of the applicable transaction or circumstance, provided that in all events, you shall have the right to make any applicable Transaction Election.  Capitalized terms used in this Agreement but not defined herein shall have the meanings ascribed to such terms in the Plan, unless the context requires otherwise.  This grant of Phantom Units is being made pursuant to your Employment Agreement with the Company dated as of the Grant Date (your “Employment Agreement”).

		
	2.
	Grant of Tandem DERs. Subject to the limitations set forth in this Section 2, each Phantom Unit granted hereunder is hereby granted in tandem with a corresponding DER, which shall remain outstanding from the Grant Date set forth above (the “Grant Date”) until the earlier of the payment or forfeiture of the related Phantom Unit, and which shall be subject to all of the terms and conditions contained in this Agreement and the Plan.  Each DER shall entitle you to receive cash distribution equivalent payments in respect of the Unit underlying the Phantom Unit to which such DER relates only in the same proportion as the Partnership’s Series A Preferred Units receive distributions in cash (as opposed to such Series A Preferred Units receiving distributions in the form of paid-in-kind units (“PIK Units”)), subject to and in accordance with this Agreement.  For example, if, for a given quarter when the grant of Phantom Units hereunder is outstanding, the Partnership pays distributions on the Partnership’s Series A Preferred 

Exhibit 10.2

Units 50% in cash and 50% in the form of PIK Units, you will only receive a cash distribution equivalent payment in respect of the Phantom Units granted hereunder for 50% of the Units subject to the grant. For the avoidance of doubt, you will not receive any distribution payment or equivalent (or any accrual or paid-in-kind units or distributions relating thereto) with respect to the remaining portion of the Phantom Units for which no cash distribution equivalent payment is due in accordance with the foregoing provisions.  If for any reason the PIK Units cease to be outstanding before the Phantom Units granted hereby fully vest, you will instead receive the same cash distributions per Phantom Unit as are received by holders the Partnership’s common units.  Any cash distribution equivalent payments will be made as soon as practicable after the applicable distribution payment date.  The DER corresponding to a Phantom Unit shall expire upon the settlement of that Phantom Unit.  Similarly, upon the forfeiture of a Phantom Unit, the DER with respect to such forfeited Phantom Unit shall also be forfeited without payment of consideration. 
		
	3.
	Vesting. Except as otherwise provided in Paragraph 4 below, the Phantom Units granted hereunder shall vest entirely upon the third anniversary of the Grant Date. 

		
	4.
	Events Occurring Prior to Full Vesting.

		
	a.
	Termination for Cause or Without Good Reason.  If your Employment is terminated by the Company for Cause or by you without Good Reason (as those terms are defined in your Employment Agreement), all then-unvested Phantom Units shall be forfeited without payment.

		
	b.
	Death or Disability. If your employment with the Company terminates as a result of your death or disability (as described in your Employment Agreement), the unvested Phantom Units then held by you automatically will become fully vested and payable upon termination.

		
	c.
	Termination for Good Reason, Without Cause or Company’s Non-Renewal. If your employment with the Company terminates for Good Reason (as defined in your Employment Agreement), the unvested Phantom Units then held by you automatically will become fully vested and payable upon such termination.  If (i) your employment with the Company is terminated by the Company without Cause (as defined in your Employment Agreement), or by the Company or you due to the Company’s Notice of Non-Renewal (as defined in the Employment Agreement) and (ii) the Company elects not to waive its right to enforce the provisions of paragraph 5.5(a) of the Employment Agreement, the unvested Phantom Units then held by you automatically will become fully vested and 

Exhibit 10.2

payable upon such termination. If (i) your employment with the Company is terminated by the Company without Cause (as defined in your Employment Agreement), or by the Company or you due to the Company’s Notice of Non-Renewal (as defined in the Employment Agreement) and (ii) the Company elects to waive its right to enforce the provisions of paragraph 5.5(a) of the Employment Agreement, then only those unvested Phantom Units that would have vested during the calendar year in which your employment with the Company is terminated shall become vested and payable upon such termination and any other then-unvested Phantom Units shall be forfeited without payment.
		
	d.
	Change in Control. Upon a Change in Control (as defined in the Employment Agreement), the unvested Phantom Units then held by you automatically will become fully vested and payable as of the date of the Change in Control. 

For purposes of this Paragraph 4, you will not be deemed to have terminated employment for so long as you maintain continuous status as an Employee or a Director of the Company or any Affiliate.
		
	5.
	Payment.  If vesting of a Phantom Unit shall occur pursuant to Paragraphs 3 or 4(a)–(d), above, then as soon as administratively practicable after the vesting of such Phantom Unit, but not later than seven days thereafter, you shall be paid a lump sum payment in Units equal to the number of vested Phantom Units.  Notwithstanding the foregoing, however, the Committee may direct that payment be made to you in the form of cash (in lieu of units) for each vested Phantom Unit if the issuance of such Phantom Units would be prohibited by federal securities laws or the rules of the New York Stock Exchange or such other national securities exchanges on which the securities of the Partnership are then listed. 

		
	6.
	Limitations Upon Transfer. All rights under this Agreement shall belong to you alone and may not be transferred, assigned, pledged, or hypothecated by you in any way (whether by operation of law or otherwise), other than by will or the laws of descent and distribution and shall not be subject to execution, attachment, or similar process. Upon any attempt by you to transfer, assign, pledge, hypothecate, or otherwise dispose of such rights contrary to the provisions in this Agreement or the Plan, or upon the levy of any attachment or similar process upon such rights, such rights shall immediately become null and void.

		
	7.
	Restrictions. By accepting this grant, you agree that any Units that you may acquire upon payment of this Award will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws. You also 

Exhibit 10.2

agree that (i) any certificates representing the Units acquired under this Award may bear such legend or legends as the Committee deems appropriate in order to assure compliance with applicable securities laws and any restrictions set forth in this Agreement, (ii) the Company may refuse to register the transfer of the Units to be acquired under this Award on the transfer records of the Partnership if such proposed transfer would in the opinion of counsel satisfactory to the Partnership constitute a violation of any applicable securities law, and (iii) the Partnership may give related instructions to its transfer agent, if any, to stop registration of the transfer of the Units to be acquired under this Award.
		
	8.
	Withholding of Taxes. To the extent that the grant, vesting or payment of a Phantom Unit results in the receipt of compensation by you with respect to which the Company or an Affiliate has a tax withholding obligation pursuant to applicable law, unless other arrangements have been made by you that are acceptable to the Company or such Affiliate, you shall deliver to the Company or the Affiliate such amount of money as the Company or the Affiliate may require to meet its withholding obligations under such applicable law. If you fail to do so, the Company is authorized to withhold from any cash or Unit remuneration (including withholding any Units to be distributed to you under this Agreement) then or thereafter payable to you any tax required to be withheld by reason of such resulting compensation income. No payment of a vested Phantom Unit shall be made pursuant to this Agreement until you have paid or made arrangements approved by the Company or the Affiliate to satisfy in full the applicable tax withholding requirements of the Company or Affiliate with respect to such event. You may request that the Committee settle in cash, rather than in Units, a portion of any vested and payable Phantom Units to provide for the satisfaction of any tax withholding obligation resulting from such Phantom Units, and the Committee will determine the approval or the Company’s performance of such request on a case by case basis. 

		
	9.
	Rights as Unitholder. Phantom Units awarded under the Plan do not have voting nor consent rights. You, or your executor, administrator, heirs, or legatees shall have the right to vote and receive distributions on Units and all the other privileges of a unitholder of the Partnership only from the date of issuance of a Unit certificate in your name representing payment of a vested Phantom Unit.

		
	10.
	Insider Trading Policy. The terms of the Company’s Insider Trading Policy with respect to Units are incorporated herein by reference. The timing of the delivery of any Units pursuant to a vested Phantom Unit shall be subject to and comply with such Policy.

Exhibit 10.2

		
	11.
	Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and upon any person lawfully claiming under you.

		
	12.
	Entire Agreement. This Agreement, the Plan and your Employment Agreement constitute 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 the Award granted hereby. 

		
	13.
	Modifications. Except as provided below, any modification of this Agreement shall be effective only if it is in writing and signed by both you and an authorized officer of the Company.

		
	14.
	Governing Law. This grant shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.

[Signature Page Follows]

Exhibit 10.2

	
				
	AMERICAN MIDSTREAM GP, LLC
	 
	EMPLOYEE

	By:
	/s/ Daniel R. Revers
	 
	/s/ Lynn L. Bourdon III

	Name:
	Daniel R. Revers
	 
	Lynn L. Bourdon III

	Title:
	Director
	 
	 

[Signature Page to Phantom Unit Award Agreement]Exhibit

Exhibit 10.3

American Midstream Partners, LP 
AMERICAN MIDSTREAM GP, LLC LONG-TERM INCENTIVE PLAN

UNIT PURCHASE OPTION GRANT NOTICE
Capitalized terms not specifically defined in this Unit Purchase Option Grant Notice (the “Grant Notice”) have the meanings given to them in the American Midstream GP, LLC Long-Term Incentive Plan (as amended and restated from time to time, the “Plan”) of American Midstream GP, LLC (the “Company”), the general partner of American Midstream Partners, LP (“AMID”).
Pursuant to the terms of an employment agreement between the Company and the participant listed below (“Participant”) (the “Employment Agreement”), the Company has granted to the Participant the Unit purchase option described in this Grant Notice (the “Option”), subject to the terms and conditions of the Plan and the Unit Option Agreement attached as Exhibit A (the “Agreement”), both of which are incorporated into this Grant Notice by reference.

	
		
	Participant:
	Lynn L. Bourdon III

	Grant Date:
	December 10, 2015

	Exercise Price per Unit:
	$7.50

	Units Subject to the Option:
	200,000

	Final Expiration Date:
	March 15 of the calendar year following the calendar year in which the Option becomes vested and exercisable in accordance with the vesting terms below

	Vesting Schedule:
	Subject to the terms of the Agreement, the Option will become vested and exercisable as to all of the Units subject to the Option on January 1, 2019, subject to Participant’s continued employment with the Company on such date.  Notwithstanding the foregoing:
(i)    The Option will become fully vested immediately prior to the occurrence of a Change in Control (as defined in the Employment Agreement), subject to Participant’s continued service to the Company through the date of such Change in Control; and

(ii)    The Option will become fully vested upon a termination of Participant’s employment with the Company (A) by reason of Participant’s death or disability, as described in the Employment Agreement, (B) for Good Reason, (C) without Cause, or (D) due to the Company’s Non-Renewal (as such capitalized terms are defined in the Employment Agreement). 

	 
	 

By Participant’s signature below, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement.  Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement.  

[Signature Page to Unit Purchase Option Agreement]

	
				
	AMERICAN MIDSTREAM GP, LLC
	 
	PARTICIPANT

	By:
	/s/ Daniel R. Revers
	 
	/s/ Lynn L. Bourdon III

	Name:
	Daniel R. Revers
	 
	Lynn L. Bourdon III

	Title:
	Director
	 
	 

[Signature Page to Unit Purchase Option Agreement]

Exhibit A

UNIT PURCHASE OPTION AGREEMENT
Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.
ARTICLE I. 
GENERAL
1.1    Grant of Option.  The Company has granted to Participant the Option effective as of the grant date set forth in the Grant Notice (the “Grant Date”).
1.2    Incorporation of Terms of Plan.  The Option is subject to the terms and conditions set forth in the Employment Agreement, this Agreement and the Plan, which are incorporated herein by reference.  Notwithstanding any provision of the Plan to the contrary, in no event will any amendment to the Plan materially and adversely affect the Participant’s rights with respect to the Option without the Participant’s consent.  In addition, in no event will the Committee take the action described in Section 6(h)(vii)(E) of the Plan unless, in connection with the applicable transaction or circumstance, the Committee accelerates the vesting of the Option and notifies and allows the Participant a reasonable period of time to exercise the Option prior to the closing or occurrence of such transaction or circumstance (and allows the Participant to make any applicable election with respect to the underlying Units in such transaction or circumstance (a “Transaction Election”)).  Any accelerated vesting in connection with the foregoing sentence may be conditioned on the closing or occurrence of the applicable transaction or circumstance, provided that in all events the Participant shall have the right to make any applicable Transaction Election. 
ARTICLE II.     
PERIOD OF EXERCISABILITY
2.1    Commencement of Exercisability.  The Option will vest and become exercisable according to the vesting schedule in the Grant Notice.
2.2    Duration of Exercisability.  Any portion of the Option which vests and becomes exercisable will remain vested and exercisable until the Option expires.  The Option will be forfeited immediately upon its expiration.
2.3    Expiration of Option.  The Option may not be exercised to any extent by anyone after, and will expire on, the final expiration date in the Grant Notice.
ARTICLE III.     
EXERCISE OF OPTION
3.1    Person Eligible to Exercise.  During Participant’s lifetime, only Participant may exercise the Option.
3.2    Manner of Exercise.  To exercise the Option, Participant must deliver a written exercise notice to the Company, in such form as may be prescribed by the Committee, along with payment in full of 

the exercise price for the portion of the Option being exercised in cash or by check acceptable to the Company, provided that at Participant’s election he may pay the exercise price in a “cashless-broker” exercise through a program approved by the Company or with the withholding of Units that would otherwise be delivered to the Participant upon the exercise of the Option.
3.3    Partial Exercise.  The Option, if exercisable, may be exercised, in whole or in part, according to the procedures in the Plan at any time prior to the time the Option expires, except that the Option may only be exercised for whole Units.
3.4    Tax Withholding.  To the extent that the exercise of the Option results in the receipt of compensation by Participant with respect to which the Company or an Affiliate has a tax withholding obligation pursuant to applicable law, unless other arrangements have been made by Participant that are acceptable to the Company or such Affiliate for the satisfaction of such withholding obligations, Participant shall deliver to the Company or the Affiliate such amount of money as the Company or the Affiliate may require to meet its withholding obligations under such applicable law. If Participant fails to do so, the Company is authorized to withhold from any cash or Unit remuneration (including withholding any Units to be issued upon exercise of the Option) then or thereafter payable to Participant any tax required to be withheld by reason of such resulting compensation income.  No Units shall be issued pursuant to this Agreement until Participant has paid or made arrangements approved by the Company or the Affiliate to satisfy in full the applicable tax withholding requirements of the Company or Affiliate with respect to such event. 
ARTICLE IV.     
OTHER PROVISIONS
4.1    Adjustments.  Participant acknowledges that the Option is subject to adjustment, modification and termination in certain events as provided in this Agreement, the Plan and the Employment Agreement. 
4.2    Notices.  Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company’s General Counsel at the Company’s principal office or the General Counsel’s then-current email address or facsimile number.  Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant at Participant’s last known mailing address, email address or facsimile number in the Company’s personnel files.  By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party.  Any notice will be deemed duly given when actually received, when sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post office regularly maintained by the United States Postal Service, when delivered by a nationally recognized express shipping company or upon receipt of a facsimile transmission confirmation.
4.3    Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

A-2

4.4    Conformity to Securities Laws.  Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all applicable laws and, to the extent applicable laws permit, will be deemed amended as necessary to conform to applicable laws.
4.5    Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth in the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
4.6    Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the Option will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b‐3) that are requirements for the application of such exemptive rule.  To the extent applicable laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.
4.7    Entire Agreement.  The Plan, the Grant Notice, this Agreement (including any exhibit hereto) and the Employment Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.
4.8    Agreement Severable.  In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.
4.9    Limitation on Participant’s Rights.  Participation in the Plan confers no rights or interests other than as herein provided.  This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust.  Neither the Plan nor any underlying program, in and of itself, has any assets.  Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Option, and rights no greater than the right to receive the Units as a general unsecured creditor with respect to the Option, as and when exercised pursuant to the terms hereof.
4.10    Not a Contract of Employment.  Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company, AMID or their Affiliates or interferes with or restricts in any way the rights of the Company, AMID or their Affiliates, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company, AMID or their Affiliates and Participant.
4.11    Insider Trading Policy.  The terms of the Company’s Insider Trading Policy with respect to Units are incorporated herein by reference.

A-3

4.12    Counterparts.      The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to applicable laws, each of which will be deemed an original and all of which together will constitute one instrument.
4.13    Modifications. Except as provided below, any modification of this Agreement shall be effective only if it is in writing and signed by both you and an authorized officer of the Company.
4.14    Governing Law. This grant shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof. 
* * * * *

A-4

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