Document:

EXHIBIT 10.1

APPOINTMENT AND NOMINATION AGREEMENT

 

This Appointment and Nomination Agreement
(this “Agreement”) dated November 27, 2013, is by and among the persons and entities listed on Schedule A
(collectively, the “Blue Clay Group”, and individually a “member” of the Blue Clay Group),
Famous Dave’s of America, Inc. (together with its subsidiaries, the “Company”) and Adam Wright, in his
individual capacity and as a member of the Blue Clay Group (the “Blue Clay Designee”).

WHEREAS, the Blue Clay Group currently
beneficially owns 580,521 shares of the common stock, par value $0.01 per share, of the Company (the “Common Stock”),
which represented approximately 7.9% of the 7,361,468 issued and outstanding shares of Common Stock as of November 4, 2013;

WHEREAS, the Corporate Governance and
Nominating Committee of the Board (the “Nominating Committee”) and Company’s Board of Directors (the “Board”)
have considered the qualifications of Mr. Wright and conducted such review as they have deemed appropriate, including as to
reviewing materials provided by Mr. Wright and the Blue Clay Group;

WHEREAS, the Nominating Committee has
recommended that the Board appoint the Blue Clay Designee to the Board and thereafter nominate the Blue
Clay Designee for election as a director of the Company at the Company’s 2014 annual shareholders’ meetings
and any adjournments and postponements thereof (the “2014 Annual Meeting”) and the
Board has determined that it is in the best interests of the Company to do so on the terms set forth in this Agreement; 

NOW, THEREFORE, in consideration of and
reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.                  
Board Nomination; Board Composition. 

(a)                
The Company agrees to promptly increase the current number of Board directors to seven, and
to immediately appoint the Blue Clay Designee to fill the vacancy so created, and, for purposes of the Company’s Amended
and Restated 2005 Stock Incentive Plan, the Company shall interpret the Plan such that the Blue Clay Designee shall be considered
(so long as the Blue Clay Designee continues to serve as a member of the Board) as a member of the “Incumbent Board”
(as that term is defined under Section 11.1(b) of such Plan).

(b)                
The Company agrees to include the Blue Clay Designee in its slate of nominees for election
as one of no more than seven directors of the Company at the 2014 Annual Meeting (the “Company Slate”). The
Board will publicly recommend and solicit proxies for the election of the Blue Clay Designee at the 2014 Annual Meeting in the
same manner as it does for all the other members of the Company Slate. 

    	 

    	 

    

 

 

(c)                
As a condition to the Blue Clay Designee’s appointment as a director of the Company,
the Blue Clay Group, including the Blue Clay Designee, agrees to provide to the Company information required to be or customarily
disclosed for directors, candidates for directors, and their affiliates and representatives in a proxy statement or other filings
under applicable law or stock exchange rules or listing standards, information in connection with assessing eligibility, independence
and other criteria applicable to directors or satisfying compliance and legal obligations, including obligations relating to liquor
licensing and franchise operations, and such other information as reasonably requested by the Company from time to time with respect
to the Blue Clay Group and the Blue Clay Designee. 

(d)                
While serving as a member of the Board, the Blue Clay Designee shall comply with all policies,
procedures, processes, codes, rules, standards and guidelines applicable to Board members, including without limitation the Company’s
Code of Ethics and Business Conduct, Policy on Avoidance of Insider Trading, and Corporate Governance Principles and Practices
(as each may be amended from time to time for all directors), and preserve the confidentiality of Company business and information,
including discussions or matters considered in meetings of the Board or Board committees to the extent not disclosed publicly by
the Company. The Company has furnished to the Blue Clay Designee, prior to the execution of this Agreement, copies of all such
policies, procedures, processes, codes, rules, standards and guidelines that are currently in effect. 

(e)                
So long as the Blue Clay Group collectively beneficially owns, in the aggregate, at least
5.0% of the outstanding Common Stock, if, during the Initial Period (as defined below), a vacancy on the Board is created as a
result of the Blue Clay Designee’s death, resignation, disqualification or removal, then the Blue Clay Group and the Company
(acting through the Board) shall work together in good faith to fill such vacancy or replace such nominee with an individual who
(i) meets the disclosure conditions set forth in clause (c) above, (ii) meets the historical standards and criteria applied by
the Company in nominating and appointing directors, and (iii) is otherwise mutually acceptable (in each of their sole discretion)
to the Blue Clay Group and the Company, and thereafter such individual shall serve and/or be nominated as the “Blue Clay
Designee” under this Agreement. 

(f)                 
The Company’s obligations under this Section 1 shall terminate immediately, and
the Blue Clay Designee shall promptly offer to resign from the Board (and, if requested by the Company, promptly deliver his written
resignation to the Board (which shall provide for his immediate resignation) it being understood that it shall be in the Board’s
sole discretion whether to accept or reject such resignation) if the members of the Blue Clay Group, collectively, cease to
beneficially own at least 5.0% of the Company’s outstanding Common Stock. The Blue Clay Group agrees to cause the Blue Clay
Designee to resign from the Board if the Blue Clay Designee fails to resign if and when requested pursuant to this clause (f).

(g)                
The percentage thresholds set forth in clauses (e) and (f) above shall not be deemed
unsatisfied to the extent a failure to maintain the specified ownership thresholds is caused by share issuances or similar Company
actions that increase the number of outstanding shares of Common Stock. 

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(h)                
Upon the Blue Clay Designee’s appointment to the Board, (i) the Board will promptly
appoint him to the Compensation Committee and Corporate Governance and Nominating Committee and Strategic Planning Committee and
will not remove him from serving as a member of each such committee during the Covered Period as long as the rules of the NASDAQ
Stock Market and the Securities and Exchange Commission (“SEC”) and applicable provisions of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder
would allow for such continued service on each such committee, (ii) the Blue Clay Designee will receive the same benefits of directors’
and officers’ insurance and any indemnity and exculpation arrangements available generally to the other Board members and
the same compensation for his service as a director as the compensation received by the other Board members, and (iii) the Blue
Clay Designee will comply with the same requirements as those generally applicable to the other Board members.

(i)                  
The Company hereby acknowledges that the Blue Clay Designee has certain rights to indemnification,
advancement of expenses and/or insurance provided by certain members of the Blue Clay Group and certain affiliates of such members
of the Blue Clay Group (collectively, the “Blue Clay Indemnitors”). The Company hereby agrees that (i) with respect
to any indemnification obligations in favor of the Blue Clay Designee arising under Minnesota law, the Company’s Articles
of Incorporation, the Company’s Bylaws, or by contract, the Company is the indemnitor of first resort (i.e., its obligations
to the Blue Clay Designee are primary and any obligation of the Blue Clay Indemnitors to advance expenses or to provide indemnification
for the same expenses or liabilities incurred by the Blue Clay Designee are secondary), and (ii) the Company irrevocably waives,
relinquishes and releases the Blue Clay Indemnitors from any and all claims against the Blue Clay Indemnitors for contribution,
subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by
the Blue Clay Indemnitors on behalf of the Blue Clay Designee with respect to any claim for which the Blue Clay Designee has sought
indemnification from the Company shall affect the foregoing and the Blue Clay Indemnitors shall have a right of contribution and/or
be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Blue Clay Designee against the
Company. The Company and the Blue Clay Designee agree that the Blue Clay Indemnitors are express third party beneficiaries of the
terms of this clause (i).

(j)                 
In the event the Board offers to re-nominate the Blue Clay Designee for election as a director
of the Company at the Company’s 2015 annual shareholders’ meeting and any adjournments and postponements thereof (the
“2015 Annual Meeting”), the Board shall notify the Blue Clay Group of such offer no later than thirty days prior to
expiration of the period during which shareholders are required to deliver notice of shareholder nominations for the election of
directors at the Company’s 2015 Annual Meeting, and such notice shall state (i) the Company’s intention to re-nominate
the Blue Clay Designee for election to the Board at the 2015 Annual Meeting, and (ii) the Company’s agreement to recommend
that the Company’s shareholders vote to re-elect the Blue Clay Designee as a director. The Blue Clay Group must accept or
reject the Company’s offer to re-nominate the Blue Clay Designee within ten calendar days following the date of the Company’s
notice. If the Blue Clay Group accepts the Company’s offer to re-nominate the Blue Clay Designee, each member of the Blue
Clay Group shall make commercially reasonable efforts to cause all shares of Common Stock beneficially owned, directly or indirectly,
by it to be present for quorum purposes and to be voted, at the 2015 Annual Meeting, and further agrees that at the 2015 Annual
Meeting it shall make commercially reasonable efforts to vote in favor of the Company’s nominees for election to the Board.
Further, in such event, at any subsequent special shareholders’ meeting (or adjournments or postponements thereof) prior
to the Company’s 2016 annual meeting of shareholders, each member of the Blue Clay Group shall make commercially reasonable
efforts to cause all shares of Common Stock beneficially owned, directly or indirectly, by it to be present for quorum purposes
and to be voted in favor of the election to the Board of those director nominees nominated for election by the Board and against
the removal of any directors whose removal is not recommended by the Board.

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2.                  
Standstill. 

(a)                
Each member of the Blue Clay Group agrees that during the Covered Period, unless specifically
requested in writing by the Company, acting through a resolution of a majority of the Company’s directors not including the
Blue Clay Designee, it shall not, and shall cause each of its Affiliates or Associates (as such terms are defined in Rule 12b-2
promulgated by the SEC under the Exchange Act) (collectively and individually, the “Blue Clay Affiliates,” provided
that no portfolio company of the Blue Clay Group shall be deemed a “Blue Clay Affiliate” so long as such portfolio
company (i) has not received from the Blue Clay Group or the Blue Clay Designee information concerning the Company or its business,
and (ii) is not acting at the request of, in coordination with or on behalf of the Blue Clay Group or the Blue Clay Designee),
not to, directly or indirectly, in any manner, alone or in concert with others: 

(i)                  
make, engage in, or in any way participate in, directly or indirectly, any “solicitation”
of proxies (as such terms are used in the proxy rules of the SEC but without regard to the exclusion set forth in Rule 14a-1(l)(2)(iv)
of the Exchange Act) or consents to vote, or seek to advise, encourage or influence any person with respect to the voting of any
securities of the Company or any securities convertible or exchangeable into or exercisable for any such securities (collectively,
“securities of the Company”) for the election of individuals to the Board or to approve stockholder proposals,
or become a “participant” in any contested “solicitation” for the election of directors with respect to
the Company (as such terms are defined or used under the Exchange Act) (other than a “solicitation” or acting as a
“participant” in support of all of the nominees of the Board at any stockholder meeting) or make or be the proponent
of any stockholder proposal (pursuant to Rule 14a-8 under the Exchange Act or otherwise); 

(ii)                
form, join, encourage, influence, advise or in any way participate in any Group (as such term
is defined in Section 13(d)(3) of the Exchange Act) with any persons who are not Blue Clay Affiliates with respect to any
securities of the Company or otherwise in any manner agree, attempt, seek or propose to deposit any securities of the Company in
any voting trust or similar arrangement, or subject any securities of the Company to any arrangement or agreement with respect
to the voting thereof, except as expressly set forth in this Agreement; 

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(iii)               
acquire, offer or propose to acquire, or agree to acquire, directly or indirectly, whether
by purchase, tender or exchange offer, through the acquisition of control of another person, by joining a partnership, limited
partnership, syndicate or other group (including any group of persons that would be treated as a single “person” under
Section 13(d) of the Exchange Act), through swap or hedging transactions or otherwise, any securities of the Company or any
rights decoupled from the underlying securities of the Company that would result in the Blue Clay Group (together with the Blue
Clay Affiliates) owning, controlling or otherwise having any beneficial or other ownership interest in more than 12.9% in the aggregate
of the shares of Common Stock outstanding at such time; provided that nothing herein will require Common Stock to be sold to the
extent the Blue Clay Group and the Blue Clay Affiliates, collectively, exceed the ownership limit under this paragraph solely as
the result of a share repurchase or similar Company action that reduces the number of outstanding shares of Common Stock so long
as the beneficial or other ownership interest of the Blue Clay Group and the Blue Clay Affiliates do not increase thereafter (except
solely as a result of further corporate actions taken by the Company), unless and until such ownership interest before and after
such subsequent increase does not exceed such 12.9% limitation; 

(iv)              
sell, offer or agree to sell directly or indirectly, through swap or hedging transactions
or otherwise, the securities of the Company or any rights decoupled from the underlying securities held by the Blue Clay Group
or any Blue Clay Affiliate to any person or entity not a (A) party to this Agreement, (B) member of the Board, (C) officer of the
Company, (D) a Blue Clay Affiliate (any person or entity not set forth in clauses (A)-(D) shall be referred to as a “Third
Party”) that would knowingly result in such Third Party, together with its affiliates and associates, owning, controlling
or otherwise having any beneficial or other ownership interest of more than 9.9% in the aggregate of the shares of Common Stock
outstanding at such time, except in a transaction approved by the Board;

(v)                
effect or seek to effect (including, without limitation, by entering into any discussions,
negotiations, agreements or understandings whether or not legally enforceable with any person), offer or propose to effect, cause
or participate in, or in any way assist or facilitate any other person to effect or seek, offer or propose to effect or participate
in, any tender or exchange offer, merger, consolidation, acquisition, scheme, arrangement, business combination, recapitalization,
reorganization, sale or acquisition of material assets, liquidation, dissolution or other extraordinary transaction involving the
Company or any of its subsidiaries or joint ventures or any of their respective securities (each, an “Extraordinary Transaction”),
or make any public statement with respect to an Extraordinary Transaction; provided, however, that this clause shall
not (A) preclude the tender by the Blue Clay Group or a Blue Clay Affiliate of any securities of the Company into any tender or
exchange offer or vote by the Blue Clay Group or a Blue Clay Affiliate of any securities of the Company with respect to any Extraordinary
Transaction or (B) prohibit any member of the Blue Clay Group or a Blue Clay Affiliate from offering to purchase assets of the
Company if the sale of such assets is initiated by the Company through an open bidding process or from offering to purchase the
securities of the Company if a member of the Company’s management has publicly offered to acquire all or substantially all
of the equity securities of the Company in a “take private” transaction subject to Rule 13e-3 promulgated under the
Exchange Act;

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(vi)              
engage in any short sale or any purchase, sale or grant of any option, warrant, convertible
security, stock appreciation right, or other similar right (including, without limitation, any put or call option or “swap”
transaction) with respect to any security (other than a broad-based market basket or index) that includes, relates to or derives
any significant part of its value from a decline in the market price or value of the securities of the Company; 

(vii)             
(A) call or seek to call, alone or in concert with others, any meeting of shareholders, including
by written action, (B) seek representation on, or nominate any candidate to, the Board, except as set forth herein, (C) seek
the removal of any member of the Board, (D) solicit consents from shareholders or otherwise act or seek to act by written
action, (E) conduct a referendum of shareholders or (F) make a request for any shareholder list or other Company books and
records, whether pursuant to Section 302A.461 of the MBCA or otherwise; 

(viii)           
take any action in support of or make any proposal or request that constitutes: (A) advising,
controlling, changing or influencing the Board or management of the Company, including any plans or proposals to change the number
or term of directors or to fill any vacancies on the Board, except as set forth herein, (B) any material change in the capitalization,
stock repurchase programs and practices or dividend policy of the Company, (C) any other material change in the Company’s
management, business or corporate structure, (D) seeking to have the Company waive or make amendments or modifications to
the Company’s Articles of Incorporation or Bylaws, or other actions that may impede or facilitate the acquisition of control
of the Company by any person, (E) causing a class of securities of the Company to be delisted from, or to cease to be authorized
to be quoted on, any securities exchange; or (F) causing a class of securities of the Company to become eligible for termination
of registration pursuant to Section 12(g)(4) of the Exchange Act; 

(ix)              
except as necessary to enforce the provisions of this Agreement, commence or threaten any
litigation against the Company, or commence or threaten, derivatively on behalf of the shareholders, any litigation against any
of the Company’s officers and directors; 

(x)                
make any public disclosure, announcement or statement regarding any intent, purpose, plan
or proposal with respect to the Board, the Company, its management, policies or affairs, any of its securities or assets or this
Agreement that is inconsistent with the provisions of this Agreement; 

(xi)              
enter into any discussions, negotiations, agreements or understandings with any Third Party
with respect to any of the foregoing, or advise, assist, knowingly encourage or seek to persuade any Third Party to take any action
or make any statement with respect to any of the foregoing, or otherwise take or cause any action or make any statement inconsistent
with any of the foregoing; or

(xii)             
publicly request, directly or indirectly, any amendment or waiver of the foregoing. 

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The foregoing provisions of this Section 2(a)
shall not be deemed to prohibit the Blue Clay Group or its directors, officers, partners, employees, members or agents (acting
in such capacity) (“Representatives”) from communicating privately with the Company’s directors, officers
or advisors so long as such communications are not intended to, and would not reasonably be expected to, require any public disclosure
of such communications.

(b)                
At each annual shareholders’ meeting (or adjournments or postponements thereof) during
the Covered Period, each member of the Blue Clay Group shall make commercially reasonable efforts to cause all shares of Common
Stock beneficially owned, directly or indirectly, by it to be present for quorum purposes and to be voted and further agrees that
it shall make commercially reasonable efforts to vote in favor of the Company Slate. At any special shareholders’ meeting
(or adjournments or postponements thereof) during the Covered Period, each member of the Blue Clay Group shall make commercially
reasonable efforts to cause all shares of Common Stock beneficially owned, directly or indirectly, by it to be present for quorum
purposes and to be voted in favor of the election to the Board of those director nominees nominated for election by the Board and
against the removal of any directors whose removal is not recommended by the Board.

(c)                
Nothing in this Section 2 shall prohibit or in any way limit any actions that
may be taken by the Blue Clay Designee acting solely as a director of the Company (including, without limitation, voting on any
matter submitted for consideration by the Board, participating in deliberations or discussions of the Board and making suggestions
or raising issues to the Board) consistent with his fiduciary duties as a director of the Company (it being understood and agreed
that the Blue Clay Group and the Blue Clay Affiliates shall not seek to do indirectly through the Blue Clay Designee anything that
would be prohibited if done by the Blue Clay Group or the Blue Clay Affiliates). 

(d)                
For purposes of this Agreement:

(i)                  
the “Initial Period” shall mean the period commencing on the date hereof
and continuing until the date that is 10 calendar days prior to the expiration of the period during which shareholders of the Company
are entitled to deliver notice of shareholder nominations for the election of directors at the Company’s 2015 Annual Meeting
as set forth in the advance notice provision of the Company’s Bylaws;

(ii)                
the “Covered Period” shall mean the entire Initial Period and such longer
period, if any, that continues until the earlier of (A) 30 calendar days prior to the date of the 2015 Annual Meeting, and (B)
30 calendar days following the date on which the Blue Clay Designee no longer remains a director serving on the Board. 

(iii)               
the terms “person” or “persons” shall mean any individual,
corporation (including not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint
venture, estate, trust, association, organization or other entity of any kind or nature. 

 

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Notwithstanding the restrictions
set forth in Section 2(a) and the definition of Covered Period under Section 2(d)(ii), the Blue Clay Group shall be permitted,
following expiration of the Initial Period and prior to the expiration of the period during which shareholders of the Company are
entitled to deliver notice of shareholder nominations for the election of directors at the 2015 Annual Meeting, to nominate candidate(s)
for election to the Board at the 2015 Annual Meeting if, and only if, the Blue Clay Designee resigns as a director of the Company
(including from all committees on which the Blue Clay Designee then serves) by delivering written notice of such resignation to
the Chairman of the Board or the Company’s Secretary prior to or contemporaneously with making such nomination and, in such
event, the Covered Period shall terminate immediately upon such resignation.

3.                  
Representations of the Company. The Company represents and warrants as follows: (a) the
Company has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate
the transactions contemplated hereby; and (b) this Agreement has been duly and validly authorized, executed and delivered
by the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company
in accordance with its terms. 

4.                  
Representations of the Blue Clay Group. The Blue Clay Group, jointly and severally,
represent and warrant as follows: (a) the Blue Clay Group has the power and authority to execute, deliver and carry out the
terms and provisions of this Agreement and to consummate the transactions contemplated hereby; (b) this Agreement has been
duly and validly authorized, executed and delivered by the Blue Clay Group, constitutes a valid and binding obligation and agreement
of the Blue Clay Group and is enforceable against the Blue Clay Group in accordance with its terms; and (c) the Blue Clay
Group beneficially owns, directly or indirectly, an aggregate of 580,521 shares of Common Stock and such shares of Common Stock
constitute all of the Common Stock beneficially owned by the Blue Clay Group or in which the Blue Clay Group have any interest
or right to acquire, whether through derivative securities, voting agreements or otherwise. 

5.                  
Mutual Non-Disparagement. Each member of the Blue Clay Group, on the one hand, and
the Company, on the other hand, agrees that, during the Covered Period and thereafter so long as the Blue Clay Designee remains
on the Board, it will not, and it will cause each of its Affiliates not to, directly or indirectly, cause, express or cause to
be expressed, orally or in writing, any disparaging or unfavorable remarks, comments or criticisms with regard to (or make any
other public statement or communication that might reasonably be construed to be derogatory or critical of, or negative toward)
the other party, any Affiliate thereof, its business, or any of its current, future or former directors, officers, executives,
management, employees, agents, representatives and auditors. Notwithstanding anything to the contrary contained in this Section
5, following the 2015 Annual Meeting the restrictions contained in this Section 5 shall be inapplicable to any communications,
whether oral or in writing, expressed, or caused to be expressed, by any member of the Blue Clay Group or any of its Affiliates
relating to (i) the nomination of directors or submission of business proposals by any member of the Blue Clay Group or its
Affiliates with respect to any annual or special meeting of shareholders of the Company and the solicitation of proxies in connection
therewith, (ii) the calling of a special meeting of shareholders of the Company by any member of the Blue Clay Group or its
Affiliates and the solicitation of proxies or consent in connection therewith, or (iii) the views of any member of the Blue
Clay Group or its Affiliates with respect to any “Fundamental Transaction” publicly announced by the Company. A “Fundamental
Transaction” means a dissolution or liquidation of the Company, a sale of substantially all of the assets of the Company,
a merger or consolidation of the Company with or into any other corporation, regardless of whether the Company is the surviving
corporation, or a statutory share exchange involving capital stock of the Company.

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6.                  
Public Announcement and SEC Filing. 

(a)                
The Company shall file promptly a Form 8-K reporting entry into this Agreement (the “Form
8-K”) and appending or incorporating by reference this Agreement as an exhibit thereto. 

(b)                
The Blue Clay Group shall promptly file an amendment to its Amendment No. 1 to Schedule 13D
with respect to the Company filed with the SEC on May 21, 2013, reporting the entry into this Agreement, amending applicable items
to conform to its obligations hereunder and appending or incorporating by reference this Agreement as an exhibit thereto. Except
for amendments to the Schedule 13D filed by the Blue Clay Group made solely to report material changes to the information contained
therein, including a change in the level of ownership of Common Stock and the entry into this Agreement, none of the Blue Clay
Group, the Blue Clay Affiliates or the Blue Clay Designee shall, during the Covered Period, (i) issue a press release in connection
with this Agreement or the actions contemplated hereby or (ii) otherwise make any public statement, disclosure or announcement
with respect to this Agreement or the actions contemplated hereby, in each case without the prior written consent of the Company,
with such consent to be approved by the Board, unless required by law.

7.                  
Confidential Information. Each member of the Blue Clay Group acknowledges that information
concerning the business and affairs of the Company (“Confidential Information”) may be disclosed to the Blue
Clay Designee by the Company or its subsidiaries, or by the Company’s or its subsidiaries’ directors, officers, employees,
agents, consultants, advisors or other representatives, including legal counsel, accountants and financial advisors (collectively,
“Representatives”). Each member of the Blue Clay Group agrees that the Confidential Information will be kept
confidential by the Blue Clay Designee and that the Blue Clay Designee will not disclose any of the Confidential Information in
any manner whatsoever, including without limitation to other members of the Blue Clay Group, without the specific prior written
consent of the Company unless disclosure is required by applicable laws or regulations or in connection with any judicial or regulatory
proceedings (including by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative
demand or similar process); provided, however, that the term “Confidential Information” shall not include information
that (a) was in or enters the public domain, or was or becomes generally available to the public, other than as a result of disclosure
by the Blue Clay Designee in violation of this Agreement, or (b) was independently acquired or developed by the Blue Clay Designee
without violating any of the obligations of the Blue Clay Designee or any other confidentiality agreement, or under any other contractual,
legal, fiduciary or binding obligation of the Blue Clay Designee. Notwithstanding the foregoing, the Blue Clay Designee may disclose
Confidential Information to his attorneys and, with the advance written permission of the Company, to his other Representatives,
in each case who are instructed to keep such information confidential in accordance with the provisions of this Agreement and the
Blue Clay Designee will be responsible for any failure by such Representatives to keep such information confidential. The Blue
Clay Designee agrees to undertake reasonable precautions to safeguard and protect the confidentiality of the Confidential Information.
Each member of the Blue Clay Group acknowledges that the U.S. securities laws prohibit any person who has received from an issuer
material, non-public information concerning such issuer from purchasing or selling securities of such issuer or from communicating
such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase
or sell such securities.

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8.                  
Release of Claims. On behalf of themselves and each of their respective directors,
officers, managers, members and employees, the Company and each member of the Blue Clay Group hereby release and forever discharge
each other, and each of their respective successors, assigns, parent and subsidiary companies, joint ventures, partnerships, owners,
directors, officers, partners, principals, managers, members, employees, attorneys, consultants, financial advisors, shareholders,
insurers and agents from all claims and demands, rights and causes of action of any kind arising out of or relating to this Agreement
or the circumstances preceding the execution of this Agreement from the beginning of time through the date of this release. Notwithstanding
anything to the contrary in this Section 8, the Company and each member of the Blue Clay Group do not release any obligations
or claims related to the enforcement of the terms and provisions of this Agreement. 

9.                  
Miscellaneous. The parties agree that irreparable damage would occur in the event any
of the provisions of this Agreement were not performed in accordance with the terms hereof and that such damage would not be adequately
compensable in monetary damages. Accordingly, the parties hereto shall be entitled to an injunction or injunctions to prevent breaches
of this Agreement, to enforce specifically the terms and provisions of this Agreement exclusively in the United States District
Court for the District of Minnesota located in Hennepin County, or, if jurisdiction in such court is not available, the Hennepin
County District Court in the State of Minnesota, in addition to any other remedies at law or in equity. Each of the parties hereto
agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way
of equitable relief. Furthermore, each of the parties hereto (a) consents to submit itself to the personal jurisdiction of
the United States District Court for the District of Minnesota located in Hennepin County, or, if jurisdiction in such court is
not available, the Hennepin County District Court in the State of Minnesota, in the event any dispute arises out of this Agreement
or the transactions contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction
by motion or other request for leave from such court, (c) agrees that it shall not bring any action relating to this Agreement
or the transactions contemplated by this Agreement in any court other than the United States District Court for the District of
Minnesota located in Hennepin County, or, if jurisdiction in such court is not available, the Hennepin County District Court in
the State of Minnesota, and each of the parties irrevocably waives the right to trial by jury, and (d) each of the parties
irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the address
set forth in Section 12 of this Agreement or as otherwise provided by applicable law. THIS AGREEMENT SHALL BE GOVERNED IN
ALL RESPECTS, INCLUDING WITHOUT LIMITATION VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF MINNESOTA APPLICABLE
TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH
STATE. 

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10.               
Expenses. Within five business days following receipt of reasonably satisfactory documentation
thereof, the Company will reimburse the Blue Clay Group for its reasonable out-of-pocket legal fees incurred through the date of
the execution of this Agreement solely in connection with the negotiation and drafting of this Agreement, in an amount not to exceed
$10,000.

11.               
Entire Agreement; Amendment. This Agreement contains the entire agreement and understanding
of the parties with respect to the subject matter hereof and supersedes any and all prior and contemporaneous agreements, memoranda,
arrangements and understandings, both written and oral, between the parties, or any of them, with respect to the subject matter
hereof. This Agreement may be amended only by an agreement in writing executed by the parties hereto, and no waiver of compliance
with any provision or condition of this Agreement and no consent provided for in this Agreement shall be effective unless evidenced
by a written instrument executed by the party against whom such waiver or consent is to be effective. No failure or delay by a
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder. 

12.               
Notices. All notices, consents, requests, instructions, approvals and other communications
provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served
when delivered in person or sent by overnight courier, when actually received during normal business hours at the address
specified in this subsection: 

	 	 	if to the Company:	 	
        Famous Dave’s of America, Inc.

        12701 Whitewater Drive, Suite 200

        Minnetonka, MN 55343

        Attention: Chief Executive Officer

         

        with a copy to

         

        Maslon Edelman Borman & Brand, LLP

        3300 Wells Fargo Tower

        90 South 7th Street

        Minneapolis, Minnesota 55402

        Attention: William M. Mower, P.A.

 

	 	 	if to the Blue Clay Group:	 	
        Blue Clay Capital Management, LLC

        800 Nicollet Mall, Suite 2870

        Minneapolis, MN 55402

        Attention: Adam Wright, Managing Partner

         

        with a copy to

         

        Lindquist & Vennum LLP

        4200 IDS Center

        80 South 8th Street

        Minneapolis, MN 55402

        Attention: April Hamlin

	 	 	 	 	 

 

    	11

    	 

    

 

 

13.               
Severability. If at any time subsequent to the date hereof, any provision of this Agreement
shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force
and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of
any other provision of this Agreement. 

14.               
Counterparts. This Agreement may be executed in two or more counterparts either manually
or by electronic or digital signature (including by facsimile or electronic mail transmission), each of which shall be deemed to
be an original and all of which together shall constitute a single binding agreement on the parties, notwithstanding that not all
parties are signatories to the same counterpart. 

15.               
No Third Party Beneficiaries; Assignment. This Agreement is solely for the benefit
of the parties hereto and is not binding upon or enforceable by any other persons. No party to this Agreement may assign its rights
or delegate its obligations under this Agreement, whether by operation of law or otherwise, and any assignment in contravention
hereof shall be null and void. Nothing in this Agreement, whether express or implied, is intended to or shall confer any rights,
benefits or remedies under or by reason of this Agreement on any persons other than the parties hereto, nor is anything in this
Agreement intended to relieve or discharge the obligation or liability of any third persons to any party. 

16.               
Interpretation and Construction. When a reference is made in this Agreement to a Section,
such reference shall be to a Section of this Agreement, unless otherwise indicated. The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words
“include,” “includes” and “including” are used in this Agreement, they shall be deemed to be
followed by the words “without limitation.” The words “hereof, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement. The word “will” shall be construed to have the same meaning as the word “shall.” The
words “dates hereof” will refer to the date of this Agreement. The word “or” is not exclusive. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such terms. Any agreement, instrument,
law, rule or statute defined or referred to herein means, unless otherwise indicated, such agreement, instrument, law, rule or
statute as from time to time amended, modified or supplemented. Each of the parties hereto acknowledges that it has been represented
by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed
the same with the advice of said independent counsel. Each party cooperated and participated in the drafting and preparation of
this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall
be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation.
Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against
any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any
controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation. 

[Signature Pages Follow]

 

    	12

    	 

    

IN WITNESS WHEREOF, each of the parties
hereto has executed this Nomination Agreement, or caused the same to be executed by its duly authorized representative as of the
date first above written.  

	 	FAMOUS DAVE’S OF AMERICA, INC.	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Dean A. Riesen	 
	 	 	Name: 	Dean A. Riesen	 
	 	 	Title: 	Chairman of the Board	 

 

 

	 	BLUE CLAY CAPITAL MANAGEMENT, LLC	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Gary S. Kohler	 
	 	 	Name: 	Gary S. Kohler	 
	 	 	Title: 	Founding Principal, Portfolio

Manager and Chief Investment Officer	 

 

 

	 	BLUE CLAY CAPITAL MASTER FUND LTD.	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Gary S. Kohler	 
	 	 	Name: 	Gary S. Kohler	 
	 	 	Title: 	Director	 

 

 

	 	BLUE CLAY CAPITAL PARTNERS CO I LP	 
	 	 	 	 
	 	 	 	 
	 	By: 	BLUE CLAY CAPITAL MANAGEMENT, LLC

 its General Partner	 

 

 

	 	 	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Gary S. Kohler	 
	 	 	Name: 	Gary S. Kohler	 
	 	 	Title: 	Founding Principal, Portfolio

Manager and Chief Investment Officer	 

 

 

	 	/s/  Adam Wright	 
	 	Adam Wright, Individually	 

 

 

	 	/s/  Gary S. Kohler	 
	 	Gary S. Kohler, Individually	 

 

 

	 	/s/  Brian Durst	 
	 	Brian Durst, Individually	 

 

 

    	 

    	 

    

 

Schedule A

 

Members of Blue Clay Group

 

Blue Clay Capital Management, LLC

 

Blue Clay Capital Master Fund Ltd.

 

Blue Clay Capital Partners Co I LP

 

Gary S. Kohler

 

Adam Wright

 

Brian DurstAPU 2013 10K EX 10.22

EXHIBIT 10.22
AMERIGAS PROPANE, INC. 
2010 LONG-TERM INCENTIVE PLAN 
ON BEHALF OF AMERIGAS PARTNERS, L.P.
PERFORMANCE UNIT GRANT LETTER
This PERFORMANCE UNIT GRANT, dated May 20, 2013 (the “Date of Grant”), is delivered by AmeriGas Propane, Inc. (the “Company”) to Hugh J. Gallagher (the “Participant”).
RECITALS
WHEREAS, the AmeriGas Propane, Inc. 2010 Long-Term Incentive Plan on Behalf of AmeriGas Partners, L.P. (the “Plan”) provides for the grant of performance units (“Performance Units”) with respect to common units of AmeriGas Partners, L.P. (“APLP”);
WHEREAS, the Plan has been adopted by the Board of Directors of the Company, and approved by the common unit holders of APLP (“Unitholders”); 
WHEREAS, a Performance Unit is a performance unit that represents the value of one common unit of APLP (“Common Unit”);
WHEREAS, the Compensation/Pension Committee of the Board of Directors of the Company (the “Committee”) has decided to grant Performance Units to the Participant on the terms described below; 
NOW, THEREFORE, the parties to this Grant Letter, intending to be legally bound hereby, agree as follows:
1.Grant of Performance Units.  Subject to the terms and conditions set forth in this Grant Letter and in the Plan, the Committee hereby grants to the Participant a target award of 1,100  Performance Units (the “Target Award”).  The Performance Units are contingently awarded and will be earned and payable if and to the extent that the Performance Goals (described below) and other conditions of the Grant Letter are met.  The Performance Units are granted with Distribution Equivalents (as defined in the Plan).
2.    Performance Goals.
(a)    The Participant shall earn the right to payment of the Performance Units if the Performance Goals described below are met for the Performance Period, and if the Participant continues to be employed by, or provide service to, the Company and its Affiliates (as defined in the Plan) through December 31, 2015.  The Performance Period is the period beginning January 1, 2013 and ending December 31, 2015.  The Total Unit Holder Return (“TUR”) goals and other requirements of this Section 2 are referred to as the “Performance Goals.”

1

(b)    The Target Award level of Performance Units and Distribution Equivalents will be payable if APLP’s TUR equals the median TUR of the comparison group designated by the Committee (the “Peer Group”) for the Performance Period.  The Peer Group consists of those master limited partnerships that are in the Alerian MLP Index as in effect as of the beginning of the Performance Period, as set forth on the attached Exhibit A (the “Alerian MLP Index”).  If a company is added to the Alerian MLP Index during the Performance Period, that company is not included in the TUR calculation.  A company that is included in the Alerian MLP Index at the beginning of the Performance Period will be removed from the TUR calculation only if the company ceases to exist as a publicly traded entity during the Performance Period, consistent with the methodology described in subsection (c) below.  The actual amount of the award of Performance Units may be higher or lower than the Target Award, or it may be zero, based on APLP’s TUR percentile rank relative to the companies in the Peer Group, as follows:
APLP’s TUR Rank 
      (Percentile)           Percentage of Target Award Earned
90th        200%
75th        162.5%
60th        125%
50th        100%
40th          70%
25th          25%
less than 25th        0%
The award percentage earned will be interpolated between each of the measuring points.  
(c)    TUR shall be calculated by the Company using the comparative returns methodology used by Bloomberg L.P. or its successor at the time of the calculation.  The price used for determining TUR at the beginning and the end of the Performance Period will be the average price for the calendar quarter preceding the beginning of the Performance Period (i.e., the calendar quarter ending on December 31, 2012) and the calendar quarter ending on the last day of the Performance Period (i.e., the calendar quarter ending on December 31, 2015), respectively.  The TUR calculation gives effect to all dividends throughout the three-year Performance Period as if they had been reinvested.  
(d)    The Target Award is the amount designated for 100% (50th TUR rank) performance.  The Participant can earn up to 200% of the Target Award if APLP’s TUR percentile rank exceeds the 50th TUR percentile rank, according to the foregoing schedule.
(e)    At the end of the Performance Period, the Committee will determine whether and to what extent the Performance Goals have been met and the amount to be paid with respect to the Performance Units.  Except as described in Sections 3 and 6 below, the Participant must be employed by, or providing services to, the Company or its Affiliates on December 31, 2015 in order for the Participant to receive payment with respect to the Performance Units.

2

3.    Termination of Employment or Service.  
(a)    Except as described below, if the Participant ceases to be employed by, or provide services to, the Company and its Affiliates before December 31, 2015, the Performance Units and all Distribution Equivalents credited under this Grant Letter will be forfeited.  
(b)    If the Participant terminates employment or service on account of Retirement (as defined below), Disability (as defined in the Plan) or death, the Participant will earn a pro-rata portion of the Participant’s outstanding Performance Units and Distribution Equivalents, if the Performance Goals and the requirements of this Grant Letter are met.  The prorated portion will be determined as the amount that would otherwise be paid after the end of the Performance Period, based on achievement of the Performance Goals, multiplied by a fraction, the numerator of which is the number of calendar years during the Performance Period in which the Participant has been employed by, or provided service to, the Company or its Affiliates and the denominator of which is three.  For purposes of the proration calculation, the calendar year in which the Participant’s termination of employment or service on account of Retirement, Disability, or death occurs will be counted as a full year.  
(c)    In the event of termination of employment or service on account of Retirement, Disability or death, the prorated amount shall be paid after the end of the Performance Period pursuant to Section 4, except as provided in Section 6.
4.    Payment with Respect to Performance Units.  If the Committee determines that the conditions to payment of the Performance Units have been met, the Company shall pay to the Participant (i) Common Units equal to the number of Performance Units to be paid according to achievement of the Performance Goals, up to the Target Award, provided that the Company may withhold Common Units to cover required tax withholding in an amount equal to the minimum statutory tax withholding requirement in respect of the Performance Units earned up to the Target Award, and (ii) cash in an amount equal to the Fair Market Value (as defined in the Plan) of the number of Common Units equal to the Performance Units to be paid in excess of the Target Award, subject to applicable tax withholding.  Payment shall be made between January 1, 2016 and March 15, 2016, except as provided in Section 6 below.  
5.    Distribution Equivalents with Respect to Performance Units.  
(a)    Distribution Equivalents shall accrue with respect to Performance Units and shall be payable subject to the same Performance Goals and terms as the Performance Units to which they relate.  Distribution Equivalents shall be credited with respect to the Target Award of Performance Units from the Date of Grant until the payment date.  If and to the extent that underlying Performance Units are forfeited, all related Distribution Equivalents shall also be forfeited.  
(b)    While the Performance Units are outstanding, the Company will keep records of Distribution Equivalents in a bookkeeping account for the Participant.  On each payment date for a distribution paid by APLP on its Common Units, the Company shall credit to the Participant’s account an amount equal to the Distribution Equivalents associated with the Target Award of 

3

Performance Units held by the Participant on the record date for the distribution.  No interest will be credited to any such account.
(c)    The target amount of Distribution Equivalents (100% of the Distribution Equivalents credited to the Participant’s account) will be earned if APLP’s TUR rank is at the 50th TUR percentile rank for the Performance Period.  The Participant can earn up to 200% of the target amount of Distribution Equivalents if APLP’s TUR rank exceeds the 50th TUR percentile rank, according to the schedule in Section 2 above.  Except as described in Section 3(b) above or Section 6, if the Participant’s employment or service with the Company and its Affiliates terminates before December 31, 2015, all Distribution Equivalents will be forfeited.
(d)    Distribution Equivalents will be paid in cash at the same time and on the same terms as the underlying Performance Units are paid, after the Committee determines that the conditions to payment have been met.    
6.    Change of Control.  
(a)    If a Change of Control (as defined in the Plan) occurs, the Performance Units and Distribution Equivalents shall not automatically become payable upon the Change of Control but, instead, shall become payable as described in this Section 6.  The Committee may take such other actions with respect to the Performance Units and Distribution Equivalents as it deems appropriate pursuant to the Plan. 
(b)    If a Change of Control occurs during the Performance Period, the Committee shall calculate a Change of Control Amount as follows:
(i)    The Performance Period shall end as of the closing date of the Change of Control (the “Change of Control Date),” and the TUR ending date calculation for the Performance Period shall be based on the 90 calendar day period ending on the Change of Control Date.  
(ii)    The Committee shall calculate a “Change of Control Amount” equal to the greater of (i) the Target Award amount or (ii) the amount of Performance Units that would be payable based on the Company’s achievement of the Performance Goals as of the Change of Control Date, as determined by the Committee.  The Change of Control Amount shall include related Distribution Equivalents and, if applicable, interest, as described below.
(iii)    The Committee shall determine whether the Change of Control Amount attributable to Performance Units shall be (A) converted to units with respect to shares or other equity interests of the acquiring company or its parent (“Successor Units”), in which case Distribution Equivalents shall continue to be credited on the Successor Units, or (B) valued based on the Fair Market Value of the Performance Units as of the Change of Control Date and credited to a bookkeeping account for the Participant, in which case interest shall be credited on the amount so determined at a market rate for the period between the Change of Control Date and the applicable payment date.  Notwithstanding 

4

the provisions of Section 4, all payments on and after a Change of Control shall be made in cash.  If alternative (A) above is used, the cash payment shall equal the Fair Market Value on the date of payment of the number of shares or other equity interests underlying the Successor Units, plus accrued Distribution Equivalents.  All payments shall be subject to applicable tax withholding.  
(c)    If a Change of Control occurs during the Performance Period and the Participant continues in employment or service through December 31, 2015, the Change of Control Amount shall be paid in cash between January 1, 2016 and March 15, 2016.
(d)    If a Change of Control occurs during the Performance Period, and the Participant has a Termination without Cause or a Good Reason Termination upon or within two years after the Change of Control Date and before December 31, 2015, the Change of Control Amount shall be paid in cash within 30 days after the Participant’s separation from service, subject to Section 13 below.
(e)    If a Change of Control occurs during the Performance Period, and the Participant terminates employment or service on account of Retirement, Disability or death upon or after the Change of Control Date and before December 31, 2015, the Change of Control Amount shall be paid in cash within 30 days after the Participant’s separation from service, subject to Section 13 below; provided that, if required by section 409A, if the Participant’s Retirement, Disability or death occurs more than two years after the Change of Control Date, payment will be made between January 1, 2016 and March 15, 2016, and not upon the earlier separation from service.  
(f)    If a Participant’s employment or service terminates on account of Retirement, death or Disability before a Change of Control, and a Change of Control subsequently occurs before the end of the Performance Period, the prorated amount described in Section 3(b) shall be calculated by multiplying the fraction described in Section 3(b) by the Change of Control Amount.  The prorated Change of Control Amount shall be paid in cash within 30 days after the Change of Control Date, subject to Section 13 below.
7.    Definitions.  For purposes of this Grant Letter, the following terms will have the meanings set forth below:
(a)    “Employed by, or provide service to, the Company or its Affiliates” shall mean employment or service as an employee or director of the Company or its Affiliates.  The Participant shall not be considered to have a termination of employment or service under this Grant Letter until the Participant is no longer employed by, or performing services for, the Company.
(b)    “Good Reason Termination” shall mean a termination of employment or service initiated by the Participant upon or after a Change of Control upon one or more of the following events:
(i)    a material diminution in the authority, duties or responsibilities held by the Participant immediately prior to the Change of Control;

5

(ii)    a material diminution in the Participant’s base salary as in effect immediately prior to the Change of Control; or 
(iii)    a material change in the geographic location at which the Participant must perform services (which, for purposes of this Agreement, means the Participant is required to report, other than on a temporary basis (less than 12 months), to a location which is more than 50 miles from the Participant’s principal place of business immediately before the Change of Control, without the Participant’s express written consent).
Notwithstanding the foregoing, the Participant shall be considered to have a Good Reason Termination only if the Participant provides written notice to the Company, pursuant to Section 15, specifying in reasonable detail the events or conditions upon which the Participant is basing such Good Reason Termination and the Participant provides such notice within 90 days after the event that gives rise to the Good Reason Termination.  Within 30 days after notice has been provided, the Company shall have the opportunity, but shall have no obligation, to cure such events or conditions that give rise to the Good Reason Termination.  If the Company does not cure such events or conditions within the 30-day period, the Participant may terminate employment or service with the Company based on Good Reason Termination within 30 days after the expiration of the cure period.    
Notwithstanding the foregoing, if the Participant has in effect a Change in Control Agreement with the Company or an Affiliate, the term “Good Reason Termination” shall have the meaning given that term in the Change in Control Agreement.
(c)    “Retirement” means the Participant’s separation from employment or service upon or after attaining (i) age 55 with at least 10 years of service with the Company and its Affiliates, or (ii) age 65 with at least 5 years of service with the Company and its Affiliates.
(d)    “Termination without Cause” means termination of employment or service by the Company for the convenience of the Company for any reason other than (i) misappropriation of funds, (ii) habitual insobriety or substance abuse adversely affecting the performance of duties, (iii) conviction of a crime involving moral turpitude, or (iv) gross negligence in the performance of duties, which gross negligence has had a material adverse effect on the business, operations, assets, properties or financial condition of the Company.  
8.    Withholding.  All payments under this Grant Letter are subject to applicable tax withholding.  The Participant shall be required to pay to the Company, or make other arrangements satisfactory to the Company to provide for the payment of, any federal (including FICA), state, local or other taxes that the Company is required to withhold with respect to the payments under this Grant Letter.  The Company may withhold from cash distributions to cover required tax withholding, or may withhold Units to cover required tax withholding in an amount equal to the minimum applicable tax withholding amount.  
9.    Grant Subject to Plan Provisions and Company Policies.  

6

(a)    This grant is made pursuant to the Plan which is incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan.  The grant and payment of Performance Units and Distribution Equivalents are subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) the registration, qualification or listing of the Common Units, (ii) adjustments pursuant to Section 5(c) of the Plan and (iii) other requirements of applicable law.  The Committee shall have the authority to interpret and construe the grant pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.
(b)    This Performance Unit grant and all Common Units issued pursuant to this Performance Unit grant shall be subject to the UGI Corporation Stock Ownership Policy as adopted by the Board of Directors of UGI Corporation or the Company and any applicable clawback and other policies implemented by the Board of Directors of UGI Corporation or the Company, as in effect from time to time.
10.    No Employment or Other Rights.  The grant of Performance Units shall not confer upon the Participant any right to be retained by or in the employ or service of the Company and shall not interfere in any way with the right of the Company to terminate the Participant’s employment at any time. The right of the Company to terminate at will the Participant’s employment at any time for any reason is specifically reserved.
11.    No Unit Holder Rights.  Neither the Participant, nor any person entitled to receive payment in the event of the Participant’s death, shall have any of the rights and privileges of a Unitholder with respect to the Common Units related to the Performance Units, unless and until Common Units have been distributed to the Participant or successor.
12.    Assignment and Transfers.  The rights and interests of the Participant under this Grant Letter may not be sold, assigned, encumbered or otherwise transferred except, in the event of the death of the Participant, by will or by the laws of descent and distribution.  If the Participant dies, any payments to be made under this Grant Letter after the Participant’s death shall be paid to the Participant’s estate.  The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and Affiliates.  
13.    Compliance with Code Section 409A.  Notwithstanding the other provisions hereof, this Grant Letter is intended to comply with the requirements of section 409A of the Internal Revenue Code of 1986, as amended, or an exception, and shall be administered accordingly.    Any reference to a Participant’s termination of employment shall mean a Participant’s “separation from service,” as such term is defined under section 409A.  For purposes of section 409A, each payment of compensation under this Grant Letter shall be treated as a separate payment. Notwithstanding anything in this Grant Letter to the contrary, if the Participant is a “key employee” under section 409A and if payment of any amount under this Grant Letter is required to be delayed for a period of six months after separation from service pursuant to section 409A, payment of such amount shall be delayed as required by section 409A and shall be paid within 10 days after the end of the six-month period.  If the Participant dies during such six-month period, the amounts withheld on account of section 409A shall be paid to the personal 

7

representative of the Participant’s estate within 60 days after the date of the Participant’s death.  Notwithstanding anything in this Grant Letter to the contrary, if a Change of Control is not a “change in control event” under section 409A, any Performance Units and Distribution Equivalents that are payable pursuant to Section 6 shall be paid to the Participant between January 1, 2016 and March 15, 2016, and not upon the earlier separation from service, if required by section 409A.  
14.    Applicable Law.  The validity, construction, interpretation and effect of this Grant Letter shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to the conflicts of laws provisions thereof.
15.    Notice.  Any notice to the Company provided for in this Grant Letter shall be addressed to the Company in care of the Corporate Secretary at the Company’s headquarters, and any notice to the Participant shall be addressed to such Participant at the current address shown on the payroll of the Company, or to such other address as the Participant may designate to the Company in writing.  Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.
IN WITNESS WHEREOF, the Company has caused its duly authorized officers to execute and attest this Grant Letter, and the Participant has executed this Grant Letter, effective as of the Date of Grant.

AmeriGas Propane, Inc.
Attest

By:                         
Matthew A. Woodard                      Monica M. Gaudiosi
Assistant Secretary                      Vice President and Secretary                   
        
      
I hereby acknowledge receipt of the Plan incorporated herein.  I accept the Performance Units described in this Grant Letter, and I agree to be bound by the terms of the Plan and this Grant Letter. I hereby further agree that all the decisions and determinations of the Committee shall be final and binding on me and any other person having or claiming a right under this grant.

                    
Hugh J. Gallagher

8

EXHIBIT A
Performance Period January 1, 2013 through December 31, 2015
Alerian MLP Index 

9

Access Midstream Partners LP
Alliance Resource Partners LP
AmeriGas Partners, L.P. 
Atlas Pipeline Partners LP
Boardwalk Pipeline Partners LP
BreitBurn Energy Partners LP
Buckeye Partners LP
Calumet Specialty Products Partners LP
Copano Energy LLC
Crestwood Midstream Partners LP
Crosstex Energy LP
DCP Midstream Partners LP
El Paso Pipeline Partners LP
Enbridge Energy Partners LP
Energy Transfer Equity LP
Energy Transfer Partners LP
Enterprise Products Partners LP
EV Energy Partner LP
Exterran Partners LP
Ferrellgas Partners LP
Genesis Energy LP
Holly Energy Partners LP
Kinder Morgan Energy Partners LP
Kinder Morgan Management LLC
Legacy Reserves LP
Linn Energy LLC
Magellan Midstream Partners LP
MarkWest Energy Partners LP
Martin Midstream Partners LP
Natural Resource Partners LP
Navios Maritime Partners LP
NuStar Energy LP
NuStar GP Holdings LLC 
ONEOK Partners LP
PAA Natural Gas Storage LP
Pioneer Southwest Energy Partners LP
Plains All American Pipeline LP
PVR Partners LP
QR Energy LP
Regency Energy Partners LP
Spectra Energy Partners LP
Suburban Propane Partners LP
Sunoco Logistics Partners LP
Targa Resources Partners LP

1

TC Pipelines LP
Teekay LNG Partners LP
Teekay Offshore Partners LP
Vanguard Natural Resources LLC
Western Gas Partners LP
Williams Partners LP

2

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