Document:

Exhibit 10.1

 

Execution Version

 

SECURITIES PURCHASE AGREEMENT

 

by and between

 

AMERICAN MIDSTREAM PARTNERS, LP

 

and

 

MAGNOLIA INFRASTRUCTURE HOLDINGS, LLC

 

 

TABLE OF CONTENTS

 

 

 

	
ARTICLE I
    
	
 
    
	
DEFINITIONS
    
	
 
    	
 
    	
 
    
	
Section 1.1
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    
	
AGREEMENT   TO SELL AND PURCHASE
    
	
 
    	
 
    	
 
    
	
Section 2.1
    	
Sale and Purchase
    	
4
    
	
Section 2.2
    	
Closing
    	
4
    
	
Section 2.3
    	
Mutual Conditions
    	
4
    
	
Section 2.4
    	
Purchaser’s Conditions
    	
4
    
	
Section 2.5
    	
AMID’s Conditions
    	
5
    
	
Section 2.6
    	
AMID Deliveries
    	
5
    
	
Section 2.7
    	
Purchaser’s Deliveries
    	
56
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    
	
REPRESENTATIONS AND WARRANTIES OF AMID
    
	
 
    	
 
    	
 
    
	
Section 3.1
    	
Existence
    	
6
    
	
Section 3.2
    	
Purchased Units;   Capitalization
    	
7
    
	
Section 3.3
    	
No Conflict
    	
7
    
	
Section 3.4
    	
No Default
    	
7
    
	
Section 3.5
    	
Authority
    	
7
    
	
Section 3.6
    	
Approvals
    	
7
    
	
Section 3.7
    	
Compliance with Laws
    	
8
    
	
Section 3.8
    	
Due Authorization
    	
8
    
	
Section 3.9
    	
Valid Issuance; No   Options or Preemptive Rights of Units
    	
8
    
	
Section 3.10
    	
Periodic Reports
    	
8
    
	
Section 3.11
    	
Litigation
    	
9
    
	
Section 3.12
    	
No Material Adverse   Change
    	
9
    
	
Section 3.13
    	
Certain Fees
    	
9
    
	
Section 3.14
    	
No Registration
    	
9
    
	
Section 3.15
    	
No Integration
    	
9
    
	
Section 3.16
    	
Investment Company   Status
    	
9
    
	
Section 3.17
    	
Form S-3   Eligibility
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    
	
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
    
	
 
    	
 
    	
 
    
	
Section 4.1
    	
Existence
    	
10
    
	
Section 4.2
    	
Authorization,   Enforceability
    	
10
    
	
Section 4.3
    	
No Breach
    	
10
    
	
Section 4.4
    	
Certain Fees
    	
10
    
	
Section 4.5
    	
Investment
    	
10
    
	
Section 4.6
    	
Nature of Purchaser
    	
11
    
	
Section 4.7
    	
Restricted Securities
    	
11
    
	
Section 4.8
    	
Legend
    	
11
    

 

 

	
ARTICLE V
    
	
COVENANTS
    
	
 
    	
 
    	
 
    
	
Section 5.1
    	
Taking of Necessary   Action
    	
11
    
	
Section 5.2
    	
Other Actions
    	
11
    
	
Section 5.3
    	
Use of Proceeds
    	
12
    
	
Section 5.4
    	
Tax Characterization
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    
	
INDEMNIFICATION
    
	
 
    	
 
    	
 
    
	
Section 6.1
    	
Indemnification by AMID
    	
12
    
	
Section 6.2
    	
Indemnification by the   Purchaser
    	
12
    
	
Section 6.3
    	
Indemnification   Procedure
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    
	
MISCELLANEOUS
    
	
 
    	
 
    	
 
    
	
Section 7.1
    	
Interpretation and   Survival of Provisions
    	
13
    
	
Section 7.2
    	
Survival of Provisions
    	
13
    
	
Section 7.3
    	
No Waiver;   Modifications in Writing
    	
13
    
	
Section 7.4
    	
Binding Effect;   Assignment
    	
14
    
	
Section 7.5
    	
Communications
    	
14
    
	
Section 7.6
    	
Removal of Legend
    	
14
    
	
Section 7.7
    	
Entire Agreement
    	
15
    
	
Section 7.8
    	
Governing Law
    	
15
    
	
Section 7.9
    	
Execution in   Counterparts
    	
15
    
	
Section 7.10
    	
Termination
    	
15
    
	
Section 7.11
    	
Recapitalization,   Exchanges, Etc. Affecting the LP Units
    	
16
    
	
 
    	
 
    	
 
    
	
Exhibit A —
    	
Form of Transfer   Application
    	
 
    
	
Exhibit B —
    	
Form of Warrant
    	
 
    

 

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT, dated as of April 25, 2016 (this “Agreement”), is entered into by and between AMERICAN MIDSTREAM PARTNERS, LP, a Delaware limited partnership (“AMID”), and Magnolia Infrastructure Holdings, LLC, a Delaware limited liability company (the “Purchaser”).

 

WHEREAS, AMID desires to sell to the Purchaser, and the Purchaser desires to purchase from AMID, certain Series C Units (as defined below), in accordance with the provisions of this Agreement.

 

WHEREAS, to induce Purchaser to enter into this Agreement, AMID has agreed to issue to the Purchaser that certain Warrant (as defined below), in accordance with the provisions of this Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, AMID and the Purchaser hereby agree as follows:

 

ARTICLE I 
 DEFINITIONS

 

Section 1.1 Definitions. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:

 

“Affiliate” means, with respect to a specified Person, any other Person, whether now in existence or hereafter created, directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, “controlling,” “controlled by,” and “under common control with”) means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning set forth in the introductory paragraph.

 

“AMID” has the meaning set forth in the introductory paragraph.

 

“AMID Entities” and each an “AMID Entity” means the General Partner, AMID and each of AMID’s Subsidiaries, other than those Subsidiaries which, individually or in the aggregate, would not constitute a “significant subsidiary” as defined in Regulation S-X.

 

“AMID Related Parties” has the meaning specified in Section 6.2.

 

“AMID SEC Documents” has the meaning specified in Section 3.10.

 

“Business Day” means a day other than (i) a Saturday or Sunday or (ii) any day on which banks located in New York, New York, U.S.A. are authorized or obligated to close.

 

“Closing” has the meaning specified in Section 2.2.

 

“Closing Date” has the meaning specified in Section 2.2.

 

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

 

“Commission” means the United States Securities and Exchange Commission.

 

“Common Units” means common units representing limited partnership interests in AMID.

 

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“Delaware LP Act” means the Delaware Revised Uniform Limited Partnership Act.

 

“D-Day PSA” means that certain Purchase Agreement, by and between Purchaser and American Midstream Delta House, LLC, with respect to the purchase of membership interests in D-Day Offshore Holdings, LLC.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.

 

“General Partner” means American Midstream GP, LLC, a Delaware limited liability company.

 

“Governmental Authority” means, with respect to a particular Person, any country, state, county, city and political subdivision in which such Person or such Person’s Property is located or that exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board, bureau or instrumentality of any of them and any monetary authority that exercises valid jurisdiction over any such Person or such Person’s Property. Unless otherwise specified, all references to Governmental Authority herein with respect to AMID mean a Governmental Authority having jurisdiction over AMID, its Subsidiaries or any of their respective Properties.

 

“Indemnified Party” has the meaning specified in Section 6.3.

 

“Indemnifying Party” has the meaning specified in Section 6.3.

 

“Law” means any federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule or regulation.

 

“Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. For the purpose of this Agreement, a Person shall be deemed to be the owner of any Property that it has acquired or holds subject to a conditional sale agreement, or leases under a financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing.

 

“LP Units” means units representing limited partnership interests in AMID other than the Series C Units.

 

“Material Adverse Effect” has the meaning specified in Section 3.1.

 

“NYSE” means The New York Stock Exchange, Inc.

 

“O PSA” means that certain Purchase and Sale Agreement, by and between Emerald Midstream, LLC and American Midstream Emerald, LLC, with respect to the purchase of membership interests in Okeanos Gas Gathering, LLC.

 

“Operative Documents” means, collectively, this Agreement, the Warrant, or any amendments, supplements, continuations or modifications thereto.

 

“Partnership Agreement” means the Fifth Amended and Restated Agreement of Limited Partnership of AMID dated as of April 25, 2016.

 

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

 

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“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

 

“Purchased Units” means that number of Series C Units required to result in the Purchase Price being equal to $120 million or an amount just in excess of $120 million so as not to result in the issuance of fractional units.

 

“Purchase Price” means, an amount equal to the number of Purchased Units multiplied by the Series C Unit Price.

 

“Purchaser Related Parties” has the meaning specified in Section 6.1.

 

“Purchaser” has the meaning set forth in the introductory paragraph.

 

“Representatives” of any Person means the Affiliates, officers, directors, managers, employees, agents, counsel, accountants, investment bankers and other representatives of such Person.

 

“Securities” means the Purchased Units, the Series C PIK Units, the Warrant and the Common Units underlying the Series C Units and the Warrant.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.

 

“Series C PIK Units” means the Series C Units issuable to holders of Series C Units as a distribution in kind in lieu of cash distributions on the Series C Units

 

“Series C Unit Price” has the meaning specified in Section 2.1(b).

 

“Series C Units” means the Series C Convertible Preferred Units representing limited partnership interests in AMID having the rights and obligations specified in the Partnership Agreement.

 

“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

 

“TWD PSA” means that certain Purchase and Sale Agreement, by and between Emerald Midstream, LLC and American Midstream Emerald, LLC, with respect to the purchase of membership interests in Tri-States NGL Pipeline, L.L.C., Wilprise Pipeline Company, L.L.C. and Destin Pipeline Company, L.L.C.

 

“Warrant” means the warrant to purchase up to 800,000 Common Units (subject to adjustment in accordance with the form of warrant attached hereto as Exhibit B) at an exercise price of $7.25 per Common Unit.

 

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ARTICLE II 
 AGREEMENT TO SELL AND PURCHASE

 

Section 2.1 Sale and Purchase.

 

(a) Subject to the terms and conditions hereof, AMID hereby agrees to issue and sell to the Purchaser and the Purchaser hereby agrees to purchase from AMID 8,571,429 Purchased Units and to pay AMID the Series C Unit Price for each Purchased Unit as set forth in paragraph (b) below.

 

(b) The amount per Series C Unit the Purchaser will pay to AMID to purchase the Purchased Units (the “Series C Unit Price”) hereunder shall be equal to $14.00.

 

(c) Purchaser will also receive the Warrant to purchase in the aggregate 800,000 fully paid and nonassessable Common Units at an exercise price (subject to adjustment in accordance with the provisions of the form of warrant) of $7.25 per Common Unit.

 

Section 2.2 Closing. Subject to the terms and conditions hereof, the consummation of the purchase and sale of the Purchased Units and the issuance of the Warrant hereunder (the “Closing”) shall take place at the offices of American Midstream Partners, LP, 1400 16th Street, Suite 310, Denver, Colorado 80202, or such other location as mutually agreed by the parties, and upon the first Business Day following the satisfaction or waiver of the conditions set forth in Sections 2.3, 2.4 and 2.5 (other than those conditions that are by their terms to be satisfied at the Closing), or such other date as mutually agreed by the parties (the date of such closing, the “Closing Date”).

 

Section 2.3 Mutual Conditions. The respective obligations of each party to consummate the purchase and issuance and sale of the Purchased Units and the issuance of the Warrant shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions (any or all of which may be waived by a party on behalf of itself in writing, in whole or in part, to the extent permitted by applicable Law):

 

(a) no Law shall have been enacted or promulgated, and no action shall have been taken, by any Governmental Authority of competent jurisdiction that temporarily, preliminarily or permanently restrains, precludes, enjoins or otherwise prohibits the consummation of the transactions contemplated hereby or makes the transactions contemplated hereby illegal; and

 

(b) there shall not be pending any suit, action or proceeding by any Governmental Authority seeking to restrain, preclude, enjoin or prohibit the transactions contemplated by this Agreement.

 

Section 2.4 Purchaser’s Conditions. The obligation of the Purchaser to consummate the purchase of the Purchased Units shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions (any or all of which may be waived by the Purchaser in writing with respect to the Purchased Units, in whole or in part, to the extent permitted by applicable Law):

 

(a) AMID shall have performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by AMID on or prior to the Closing Date;

 

(b) (i) The representations and warranties of AMID (A) set forth in Sections 3.1, 3.2 and 3.5 and (B) contained in this Agreement that are qualified by materiality or a Material Adverse Effect shall be true and correct when made and as of the Closing Date and (ii) all other representations and warranties of AMID shall be true and correct, individually and in the aggregate, in all material respects when made and as of the Closing Date, in each case as though made at and as of the Closing Date (except that representations and warranties made as of a specific date shall be required to be true and correct as of such date only, it being expressly understood and agreed that representations and warranties made “As of the date hereof” or “As of the date of this Agreement”, or a similar phrase, are made as of April 25, 2016);

 

4

 

(c) No notice of delisting from the NYSE shall have been received by AMID with respect to the LP Units; and

 

(d) AMID shall have delivered, or caused to be delivered, to each Purchaser at the Closing, AMID’s closing deliveries described in Section 2.6.

 

Section 2.5 AMID’s Conditions. The obligation of AMID to consummate the sale of the Purchased Units and the issuance of the Warrant to the Purchaser shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions (any or all of which may be waived by AMID in writing, in whole or in part, to the extent permitted by applicable Law):

 

(a) the representations and warranties of the Purchaser contained in this Agreement that are qualified by materiality shall be true and correct when made and as of the Closing Date and all other representations and warranties of the Purchaser shall be true and correct in all material respects as of the Closing Date (except that representations of the Purchaser made as of a specific date shall be required to be true and correct as of such date only); and

 

(b) the Purchaser shall have delivered, or caused to be delivered, to AMID at the Closing the Purchaser’s closing deliveries described in Section 2.7.

 

By acceptance of (i) the certificate or certificates representing the Purchased Units and (ii) the Warrant, the Purchaser shall be deemed to have represented to AMID that the Purchaser has performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by it on or prior to the Closing Date; and the representations and warranties of the Purchaser contained in this Agreement that are qualified by materiality are true and correct as of the Closing Date and all other representations and warranties of the Purchaser are true and correct in all material respects as of the Closing Date (except that representations and warranties made as of a specific date shall be required to be true and correct as of such date only).

 

Section 2.6 AMID Deliveries. At the Closing, subject to the terms and conditions hereof, AMID will deliver, or cause to be delivered, to the Purchaser:

 

(a) (i) A certificate or certificates representing the Purchased Units (bearing the legend set forth in Section 4.8) and meeting the requirements of the Partnership Agreement, free and clear of any Liens, other than transfer restrictions under the Partnership Agreement and applicable federal and state securities laws and (ii) the Warrant, stock powers or other instruments of transfer with respect to the Warrant duly endorsed in blank;

 

(b) A certificate of the Secretary of State of the State of Delaware, dated a recent date, to the effect that each of the General Partner and AMID is in good standing;

 

(c) A cross-receipt executed by AMID and delivered to the Purchaser certifying that it has received the Purchase Price from the Purchaser as of the Closing Date;

 

(d) A certificate, dated the Closing Date and signed by an officer of the General Partner, on behalf of AMID, in its capacity as such, stating that:

 

(i) AMID has performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by AMID on or prior to the Closing Date; and

 

(ii) The representations and warranties of AMID contained in this Agreement that are qualified by materiality or Material Adverse Effect are true and correct as of the Closing Date and all other representations and warranties of AMID are, individually and in the aggregate, true and correct in all

 

5

 

material respects as of the Closing Date (except that representations and warranties made as of a specific date shall be required to be true and correct as of such date only); and

 

(e) A certificate of the Secretary or Assistant Secretary of the General Partner, on behalf of AMID, certifying as to (1) the Amended and Restated Certificate of Limited Partnership of AMID, as amended, and the Partnership Agreement, (2) board resolutions authorizing the execution and delivery of the Operative Documents and the consummation of the transactions contemplated thereby, including the issuance of the Purchased Units and the Warrant, and including the special approval of the Conflicts Committee of the Board of Directors of the General Partner, and (3) its incumbent officers authorized to execute the Operative Documents, setting forth the name and title and bearing the signatures of such officers.

 

Section 2.7 Purchaser’s Deliveries. At the Closing, subject to the terms and conditions hereof, the Purchaser will deliver, or cause to be delivered, to AMID:

 

(a) Payment to AMID of the Purchase Price by wire transfer of immediately available funds to an account designated by AMID in writing at least two Business Days prior to the Closing Date;

 

(b) A cross-receipt executed by the Purchaser and delivered to AMID certifying that it has received the Purchased Units and the Warrant as of the Closing Date; and

 

(c) A transfer application in substantially the form attached hereto as Exhibit A, which shall have been duly executed by the Purchaser.

 

ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF AMID

 

AMID represents and warrants to the Purchaser as follows:

 

Section 3.1 Existence. Each of the AMID Entities has been duly incorporated or formed, as the case may be, and is validly existing as a limited liability company, limited partnership or corporation, as the case may be, in good standing under the Laws of its jurisdiction of incorporation or formation, as the case may be, and has the full limited liability company, limited partnership or corporate, as the case may be, power and authority, and has all governmental licenses, authorizations, consents and approvals, necessary to own, lease or hold its Properties and assets and to conduct the businesses in which it is engaged, and is duly registered or qualified to do business and in good standing as a foreign limited liability company, limited partnership or corporation, as the case may be, in each jurisdiction in which its ownership or lease of Property or the conduct of its business requires such qualification, except where the failure to so register or qualify could not reasonably be expected to (i) have, individually or in the aggregate, a material adverse effect on the condition (financial or other), results of operations, securityholders’ equity, Properties or business of the AMID Entities taken as a whole, the ability of the AMID Entities to meet their obligations under the Operative Documents or the ability of the AMID Entities to consummate the transactions under any Operative Document on a timely basis (a “Material Adverse Effect”) or (ii) subject the limited partners of AMID to any material liability or disability.

 

Section 3.2 Purchased Units; Capitalization.

 

(a) On the Closing Date, the Purchased Units shall have those rights, preferences, privileges and restrictions governing the Series C Units as set forth in the Partnership Agreement.

 

(b) The General Partner is the sole general partner of AMID, with an economic general partner interest in AMID; such general partner interest is the only general partner interest of the Partnership that is issued and outstanding; and such general partner interest has been duly authorized and validly issued.

 

6

 

(c) The limited partners of AMID hold LP Units in AMID, represented as of April 22, 2016 by approximately 40,396,089 LP Units; such LP Units are the only limited partner interests of AMID that are issued and outstanding; all of such LP Units have been duly authorized and validly issued pursuant to the Partnership Agreement and are fully paid and nonassessable (except to the extent such nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

 

Section 3.3 No Conflict. None of (i) the offering, issuance and sale by AMID of the Purchased Units and the application of the proceeds therefrom, (ii) the issuance of the Warrant, (iii) the execution, delivery and performance of the Operative Documents by AMID or the General Partner, or (iv) the consummation of the transactions contemplated hereby or thereby conflicts or will conflict with, or results or will result in a breach or violation of or imposition of any Lien upon any Property or assets of the AMID Entities pursuant to, (A) the formation or governing documents of any of the AMID Entities, (B) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which any of the AMID Entities is a party, by which any of them is bound or to which any of their respective Properties or assets is subject, or (C) any Law applicable to any of the AMID Entities or injunction of any court or governmental agency or body to which any of the AMID Entities of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over any of the AMID Entities or any of their Properties, except in the case of clauses (B) and (C) for such conflict, breach, violation or default that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or materially impair the ability of the AMID Entities to consummate the transactions contemplated by this Agreement.

 

Section 3.4 No Default. None of the AMID Entities is in violation or default of (i) any provision of its respective formation or governing documents, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which it is a party, by which it is bound or to which its property is subject, or (iii) any Law of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the AMID Entities or any of their Properties, as applicable, except, in the case of clauses (ii) or (iii), as could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or materially impair the ability of the AMID Entities to consummate the transactions contemplated by this Agreement.

 

Section 3.5 Authority. On the Closing Date, AMID will have all requisite power and authority to execute, deliver and perform its obligations, in accordance with and upon the terms and conditions set forth in the Operative Documents. On the Closing Date, all partnership or limited liability company action, as the case may be, required to be taken by the General Partner and AMID for the authorization, issuance, sale and delivery of the Purchased Units and the issuance of the Warrant, the execution and delivery of the Operative Documents and the consummation of the transactions contemplated hereby and thereby shall have been validly taken. No approval from the holders of outstanding LP Units is required under the Partnership Agreement or the rules of the NYSE in connection with AMID’s issuance and sale of the Purchased Units or issuance of the Warrant to the Purchaser.

 

Section 3.6 Approvals. No authorization, consent, approval, waiver, license, qualification or written exemption from, nor any filing, declaration, qualification or registration with, any Governmental Authority or any other Person is required in connection with the execution, delivery or performance by AMID of any of the Operative Documents to which it is a party or AMID’s issuance and sale of the Purchased Units or issuance of the Warrant, except (i) as may be required under the state securities or “Blue Sky” Laws, or (ii) where the failure to receive such authorization, consent, approval, waiver, license, qualification or written exemption or to make such filing, declaration, qualification or registration would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

Section 3.7 Compliance with Laws. As of the date hereof, neither AMID nor any of its Subsidiaries is in violation of any Law applicable to AMID or its Subsidiaries, except as would not, individually or in the aggregate, have a Material Adverse Effect. AMID and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not, individually or in the aggregate, have a

 

7

 

Material Adverse Effect, and neither AMID nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit, except where such potential revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect.

 

Section 3.8 Due Authorization. Each of the Operative Documents has been duly and validly authorized and has been or, with respect to the Operative Documents to be delivered at the Closing Date, will be, validly executed and delivered by AMID or the General Partner, as the case may be, and constitutes, or will constitute, the legal, valid and binding obligations of AMID or the General Partner, as the case may be, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

Section 3.9 Valid Issuance; No Options or Preemptive Rights of Units.

 

(a) The Purchased Units to be issued and sold and the Warrant to be issued by AMID to the Purchaser hereunder have been duly authorized in accordance with the Partnership Agreement and, when issued and delivered against payment therefor pursuant to this Agreement, will be validly issued in accordance with the Partnership Agreement, fully paid (to the extent required under the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

 

(b) The Purchased Units shall have those rights, preferences, privileges and restrictions governing the Series C Units, which shall be reflected in the Partnership Agreement.

 

(c) The Common Units issuable upon conversion of the Purchased Units, the Series C PIK Units and the exercise of the Warrant and, in each case, the limited partner interests represented thereby, upon issuance in accordance with the terms of the Series C Units as reflected in the Partnership Agreement, have been and will be duly authorized in accordance with the Partnership Agreement and will be validly issued, fully paid (to the extent required by applicable law and the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

 

(d) Other than the General Partner’s right to maintain its general partner interest, the holders of outstanding LP Units are not entitled to statutory, preemptive or other similar contractual rights to subscribe for LP Units or Series C Units; and, except for the Warrant, no options, warrants or other rights to purchase, agreements or other obligations to issue, or rights to convert any obligations into or exchange any securities for, partnership securities or ownership interests in AMID are outstanding.

 

Section 3.10 Periodic Reports. AMID’s forms, registration statements, reports, schedules and statements required to be filed by it under the Exchange Act or the Securities Act during the 12 months preceding the date hereof (all such documents filed prior to the date hereof, collectively the “AMID SEC Documents”) have been filed with the Commission on a timely basis. The AMID SEC Documents, including, without limitation, any audited or unaudited financial statements and any notes thereto or schedules included therein, at the time filed (or in the case of registration statements, solely on the dates of effectiveness) (except to the extent corrected by a subsequent AMID SEC Document) (a) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, (b) complied in all material respects with the applicable requirements of the Exchange Act and the Securities Act, as the case may be, (c) complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, (d) were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q of the Commission), and (e) fairly present (subject in the case of unaudited statements to normal and recurring audit adjustments) in all material respects the consolidated financial position of AMID and its consolidated subsidiaries as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended. PricewaterhouseCoopers, LLP is an independent registered public accounting firm with respect to AMID and the

 

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General Partner and has not resigned or been dismissed as independent registered public accountants of AMID as a result of or in connection with any disagreement with AMID on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures.

 

Section 3.11 Litigation. As of the date hereof, except as described in the AMID SEC Documents, there are no legal or governmental proceedings pending to which any AMID Entity is a party or to which any Property or asset of any AMID Entity is subject that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or which challenges the validity of any of the Operative Documents or the right of any AMID entity to enter into any of the Operative Documents or to consummate the transactions contemplated hereby and thereby and, to the knowledge of AMID, no such proceedings are threatened by Governmental Authorities or others.

 

Section 3.12 No Material Adverse Change. As of the date hereof, except as set forth in the AMID SEC Documents filed with the Commission on or prior to the date hereof, since December 31, 2015, there has not occurred any material adverse change in the condition (financial or other), results of operations, securityholders’ equity, Properties, prospects or business of the AMID Entities, taken as a whole.

 

Section 3.13 Certain Fees. No fees or commissions are or will be payable by AMID to brokers, finders, or investment bankers with respect to the sale of any of the Securities or the consummation of the transaction contemplated by this Agreement. AMID agrees that it will indemnify and hold harmless the Purchaser from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by AMID in connection with the sale of the Securities or the consummation of the transactions contemplated by this Agreement.

 

Section 3.14 No Registration. Assuming the accuracy of the representations and warranties of the Purchaser contained in Section 4.5 and Section 4.6, the issuance and sale of the Securities pursuant to this Agreement is exempt from registration requirements of the Securities Act, and neither AMID nor, to the knowledge of AMID, any authorized Representative acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.

 

Section 3.15 No Integration. Neither AMID nor any of its Affiliates have, directly or indirectly through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Securities Act) that is or will be integrated with the sale of the Purchased Units or the issuance of the Warrant in a manner that would require registration under the Securities Act.

 

Section 3.16 Investment Company Status. None of the AMID Entities currently is, or following the sale of the Purchased Units or the issuance of the Warrant hereby and the application of proceeds therefrom, will be an “investment company” or a company “controlled by” an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 3.17 Form S-3 Eligibility. As of the date hereof, AMID has been, since the time of filing its most recent Form S-3 Registration Statement, and continues to be eligible to use Form S-3.

 

ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby represents and warrants to AMID that:

 

Section 4.1 Existence. The Purchaser is duly organized and validly existing and in good standing under the Laws of the State of Delaware, with all requisite limited liability company power and authority, to own, lease, use and operate its Properties and to conduct its business as currently conducted.

 

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Section 4.2 Authorization, Enforceability. The Purchaser has all necessary limited liability company power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated thereby, and the execution, delivery and performance by the Purchaser of this Agreement has been duly authorized by all necessary action on the part of the Purchaser; and this Agreement constitutes the legal, valid and binding obligations of the Purchaser, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

Section 4.3 No Breach. The execution, delivery and performance of this Agreement by the Purchaser and the consummation by the Purchaser of the transactions contemplated hereby and thereby will not (a) conflict with or result in a material breach or violation of any of the terms or provisions of, or constitute a default under, any material agreement to which the Purchaser is a party or by which the Purchaser is bound or to which any of the property or assets of the Purchaser is subject, (b) conflict with or result in any violation of the provisions of the organizational documents of the Purchaser, or (c) materially violate any statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Purchaser or the property or assets of the Purchaser, except in the cases of clauses (a) and (c), for such conflicts, breaches, violations or defaults as would not prevent the consummation of the transactions contemplated by this Agreement.

 

Section 4.4 Certain Fees. No fees or commissions are or will be payable by the Purchaser to brokers, finders, or investment bankers with respect to the purchase of any of the Securities or the consummation of the transaction contemplated by this Agreement. The Purchaser agrees that it will indemnify and hold harmless AMID from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by the Purchaser in connection with the purchase of the Securities or the consummation of the transactions contemplated by this Agreement.

 

Section 4.5 Investment. The Purchased Units and the Warrant are being acquired for the Purchaser’s own account, the account of its Affiliates, or the accounts of clients for whom the Purchaser exercises discretionary investment authority (all of whom the Purchaser hereby represents and warrants are “accredited investors” within the meaning of Rule 501(a) of Regulation D promulgated by the Commission pursuant to the Securities Act), not as a nominee or agent, and with no present intention of distributing the Purchased Units, the Warrant or any part thereof or securities issuable pursuant thereto, and the Purchaser has no present intention of selling or granting any participation in or otherwise distributing the same in any transaction in violation of the securities laws of the United States or any state, without prejudice, however, to the Purchaser’s right at all times to sell or otherwise dispose of all or any part of the Purchased Units or the Warrant or securities issuable pursuant thereto under a registration statement under the Securities Act and applicable state securities laws or under an exemption from such registration available thereunder (including, without limitation, if available, Rule 144 promulgated thereunder). If the Purchaser should in the future decide to dispose of any of the Purchased Units or the Warrant or securities issuable pursuant thereto, the Purchaser understands and agrees (a) that it may do so only in compliance with the Securities Act and applicable state securities law, as then in effect, including a sale contemplated by any registration statement pursuant to which such securities are being offered, or pursuant to an exemption from the Securities Act, and (b) that stop-transfer instructions to that effect will be in effect with respect to such securities.

 

Section 4.6 Nature of Purchaser. The Purchaser represents and warrants to, and covenants and agrees with, AMID that, (a) it is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated by the Commission pursuant to the Securities Act and (b) by reason of its business and financial experience it has such knowledge, sophistication and experience in making similar investments and in business and financial matters generally so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, is able to bear the economic risk of such investment and, at the present time, would be able to afford a complete loss of such investment.

 

Section 4.7 Restricted Securities. The Purchaser understands that the Securities are characterized as “restricted securities” under the federal securities Laws inasmuch as they are being acquired from AMID in a

 

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transaction not involving a public offering and that under such Laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, the Purchaser represents that it is knowledgeable with respect to Rule 144 of the Commission promulgated under the Securities Act.

 

Section 4.8 Legend. The Purchaser understands that the certificates evidencing the Securities will bear the following legend: “THE OFFER OR SALE OF THESE SECURITIES, THE UNDERLYING SECURITIES OR THE SECURITIES INTO WHICH THEY ARE CONVERTIBLE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT OR THE PARTNERSHIP HAS RECEIVED DOCUMENTATION REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER SUCH ACT.  THESE SECURITIES ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN THE FIFTH AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF THE PARTNERSHIP, DATED AS OF APRIL 25, 2016, AS AMENDED, A COPY OF WHICH MAY BE OBTAINED FROM THE PARTNERSHIP AT ITS PRINCIPAL EXECUTIVE OFFICES.”

 

Section 4.9  Tax Matters. Purchaser represents that the Purchaser and the seller under the D-Day PSA, the O PSA and the TWD PSA are disregarded as separate from the same Person for U.S. federal income tax purposes and for purposes of certain state income tax laws that incorporate or follow U.S. federal income tax principles.

 

ARTICLE V 
 COVENANTS

 

Section 5.1 Taking of Necessary Action. Each of the parties hereto shall use its commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause to be done all things necessary, proper or advisable under applicable Law and regulations to consummate and make effective the transactions contemplated by this Agreement. Without limiting the foregoing, each of AMID and the Purchaser shall use its commercially reasonable efforts to make all filings and obtain all consents of Governmental Authorities that may be necessary or, in the reasonable opinion of the other parties, as the case may be, advisable for the consummation of the transactions contemplated by the Operative Documents.

 

Section 5.2 Other Actions. AMID shall (a) promptly following the Closing, file a supplemental listing application with the NYSE to list the Common Units underlying the Purchased Units and the Warrant and (b) file a supplemental listing application with the NYSE to list any Common Units underlying any Series C PIK Units issued by AMID promptly following any such issuance.

 

Section 5.3 Use of Proceeds. AMID shall use the proceeds from the sale of the Securities to provide financing for certain acquisitions by AMID.

 

Section 5.4. Tax Characterization. The Parties intend and agree, solely for U.S. federal income tax purposes and for purposes of certain state income tax laws that incorporate or follow U.S. federal income tax principles, that the transactions contemplated by this Agreement taken together with the transactions contemplated by the D-Day PSA, the O PSA and the TWD PSA, shall, except as otherwise required by Section 707(a)(2)(B) and its implementing Treasury regulations (including, to the extent applicable, Treasury Regulation section 1.707-4(d) and Treasury Regulation section 1.721-2(b)(1)), be treated as contributions to AMID in exchange for a partner interest therein in a transaction consistent with the requirements of Section 721(a) of the Code.

 

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ARTICLE VI 
 INDEMNIFICATION

 

Section 6.1 Indemnification by AMID. AMID agrees to indemnify the Purchaser and its respective Representatives (collectively, “Purchaser Related Parties”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, promptly upon demand, to pay or reimburse each of them for all reasonable costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of AMID contained herein, provided that such claim for indemnification relating to a breach of the representations or warranties is made prior to the expiration of such representations or warranties; and provided further, that no Purchaser Related Party shall be entitled to recover special, consequential (including lost profits or diminution in value) or punitive damages. Notwithstanding anything to the contrary, consequential damages shall be deemed not to include diminution in value of the Purchased Units or the Warrant, which is specifically excluded from damages covered by Purchaser Related Parties’ indemnification.

 

Section 6.2 Indemnification by the Purchaser. The Purchaser agrees to indemnify AMID, the General Partner and their respective Representatives (collectively, “AMID Related Parties”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, promptly upon demand, to pay or reimburse each of them for all reasonable costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of the Purchaser contained herein, provided that such claim for indemnification relating to a breach of the representations and warranties is made prior to the expiration of such representations and warranties; and provided further, that no AMID Related Party shall be entitled to recover special, consequential (including lost profits or diminution in value) or punitive damages.

 

Section 6.3 Indemnification Procedure. Promptly after any AMID Related Party or Purchaser Related Party (hereinafter, the “Indemnified Party”) has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the Indemnified Party believes in good faith is an indemnifiable claim under this Agreement, the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such claim or the commencement of such action, suit or proceeding, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and the basis of such claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be entitled (i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has failed to assume the defense or employ counsel reasonably acceptable to the

 

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Indemnified Party or (B) if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable defenses available to the Indemnified Party that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Party.

 

ARTICLE VII 
 MISCELLANEOUS

 

Section 7.1 Interpretation and Survival of Provisions. Article, Section and Exhibit references are to this Agreement, unless otherwise specified. All references to instruments, documents, contracts, and agreements are references to such instruments, documents, contracts, and agreements as the same may be amended, supplemented, and otherwise modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited to.” Whenever any party has an obligation under the Operative Documents, the expense of complying with that obligation shall be an expense of such party unless otherwise specified. Whenever any determination, consent, or approval is to be made or given by the Purchaser, such action shall be in the Purchaser’s sole discretion unless otherwise specified in this Agreement. If any provision in the Operative Documents is held to be illegal, invalid, not binding, or unenforceable, such provision shall be fully severable and the Operative Documents shall be construed and enforced as if such illegal, invalid, not binding, or unenforceable provision had never comprised a part of the Operative Documents, and the remaining provisions shall remain in full force and effect. The Operative Documents have been reviewed and negotiated by sophisticated parties with access to legal counsel and shall not be construed against the drafter.

 

Section 7.2 Survival of Provisions. The representations and warranties set forth in Sections 3.1, 3.2, 3.5, 3.9, 3.10, 3.15, 4.1, 4.2, 4.5, 4.6 and 4.7 hereunder shall survive the execution and delivery of this Agreement indefinitely, and the other representations and warranties set forth herein shall survive for a period of twelve months following the Closing Date regardless of any investigation made by or on behalf of AMID or the Purchaser. The covenants made in this Agreement or any other Operative Document shall survive the Closing of the transactions described herein and remain operative and in full force and effect regardless of acceptance of any of the Purchased Units and the Warrant and payment therefor and repayment, conversion, exercise or repurchase thereof.

 

Section 7.3 No Waiver; Modifications in Writing.

 

(a) Delay. No failure or delay on the part of any party in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise.

 

(b) Specific Waiver. Except as otherwise provided herein, no amendment, waiver, consent, modification, or termination of any provision of this Agreement or any other Operative Document (except in the case of the Partnership Agreement, for amendments adopted pursuant to the terms thereof) shall be effective unless signed by each of the parties hereto or thereto affected by such amendment, waiver, consent, modification, or termination. Any amendment, supplement or modification of or to any provision of this Agreement or any other Operative Document, any waiver of any provision of this Agreement or any other Operative Document, and any consent to any departure by AMID from the terms of any provision of this Agreement or any other Operative Document shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is

 

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specifically required by this Agreement, no notice to or demand on a party hereto in any case shall entitle such party to any other or further notice or demand in similar or other circumstances.

 

Section 7.4 Binding Effect; Assignment.

 

(a) Binding Effect. This Agreement shall be binding upon AMID, the Purchaser, and their respective successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement and their respective successors and permitted assigns.

 

(b) Assignment of Rights. All or any portion of the rights and obligations of the Purchaser under this Agreement may be transferred by the Purchaser to any Affiliate of the Purchaser without the consent of AMID. No portion of the rights and obligations of the Purchaser under this Agreement may be transferred by the Purchaser to a non-Affiliate without the written consent of AMID (which consent shall not be unreasonably withheld by AMID).

 

Section 7.5 Communications. All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, telecopy, air courier guaranteeing overnight delivery or personal delivery to the following addresses:

 

	
(a)
    	
If to the Purchaser:
    
	
 
    	
 
    
	
 
    	
Magnolia Infrastructure Holdings, LLC
    
	
 
    	
c/o ArcLight Capital Partners, LLC
    
	
 
    	
200 Clarendon Street, 55th Floor
    
	
 
    	
Boston, MA 02116
    
	
 
    	
Attention: General Counsel
    
	
 
    	
Facsimile: 617-867-4698
    
	
 
    	
 
    
	
(b)
    	
If to AMID:
    
	
 
    	
 
    
	
 
    	
American Midstream   Partners, LP
    
	
 
    	
1400 16th Street, Suite 300
    
	
 
    	
Denver, CO 80202
    
	
 
    	
Attention: General Counsel
    
	
 
    	
Facsimile: 720.457.6040
    

 

or to such other address as AMID or the Purchaser may designate in writing. All notices and communications shall be deemed to have been duly given: (i) at the time delivered by hand, if personally delivered; (ii)  if sent via electronic mail, upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the “read receipt requested” function, if applicable, return e-mail or other written acknowledgment) excluding “out of office” and similar automatic replies; (iii) upon actual receipt if sent by certified mail, return receipt requested, or regular mail, if mailed; (iv) when receipt acknowledged, if sent via facsimile (except, that, if not given during normal business hours for the recipient, such notice shall be deemed to have been given at the opening of business on the next Business Day for the recipient); and (v) upon actual receipt when delivered to an air courier guaranteeing overnight delivery.

 

Section 7.6 Removal of Legend. In connection with a sale of any Securities by the Purchaser in reliance on Rule 144, the Purchaser or its broker shall deliver to the transfer agent and AMID a broker representation letter providing to the transfer agent and AMID any information AMID deems necessary to determine that the sale of such Securities is made in compliance with Rule 144, including a certification that the Purchaser is not an Affiliate of

 

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AMID and regarding the length of time such Securities have been held. Upon receipt of such representation letter, AMID shall promptly direct its transfer agent to exchange unit certificates bearing a restrictive legend for unit certificates without the legend (or a credit for such units to book-entry accounts maintained by the transfer agent), including the legend referred to in Section 4.8, and AMID shall bear all costs associated therewith. After the Purchaser or its permitted assigns have held the Securities for one year, if the certificate for such Purchased Units still bears the restrictive legend referred to in Section 4.8, AMID agrees, upon request of the Purchaser or permitted assignee, to take all steps necessary to promptly effect the removal of the legend described in Section 4.8 from the Securities, and AMID shall bear all costs associated therewith, regardless of whether the request is made in connection with a sale or otherwise, so long as the Purchaser or its permitted assigns provide to AMID any information AMID deems necessary to determine that the legend is no longer required under the Securities Act or applicable state laws, including a certification that the holder is not an Affiliate of AMID (and a covenant to inform AMID if it should thereafter become an Affiliate and to consent to exchange its certificates for certificates bearing an appropriate restrictive legend) and regarding the length of time the Securities have been held.

 

Section 7.7 Entire Agreement. This Agreement, the other Operative Documents and the other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein or the other Operative Documents with respect to the rights granted by AMID or any of its Affiliates or the Purchaser or any of its Affiliates set forth herein or therein. This Agreement, the other Operative Documents and the other agreements and documents referred to herein or therein supersede all prior agreements and understandings between the parties with respect to such subject matter.

 

Section 7.8 Governing Law. This Agreement will be construed in accordance with and governed by the laws of the State of New York.

 

Section 7.9 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

 

Section 7.10 Termination.

 

(a) Notwithstanding anything herein to the contrary, this Agreement may be terminated at any time at or prior to the Closing by the Purchaser, upon a breach in any material respect by AMID of any covenant or agreement set forth in this Agreement.

 

(b) Notwithstanding anything herein to the contrary, this Agreement shall automatically terminate at any time at or prior to the Closing:

 

(i) if a statute, rule, order, decree or regulation shall have been enacted or promulgated, or if any action shall have been taken by any Governmental Authority of competent jurisdiction that permanently restrains, permanently precludes, permanently enjoins or otherwise permanently prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement illegal; or

 

(ii) if the Closing shall not have occurred by April 26, 2016.

 

(c) In the event of the termination of this Agreement as provided in this Section 7.10, this Agreement shall forthwith become null and void. In the event of such termination, there shall be no liability on the part of any party hereto, except as set forth in Article VI of this Agreement; provided that nothing herein shall relieve any party from any liability or obligation with respect to any willful breach of this Agreement.

 

Section 7.11 Recapitalization, Exchanges, Etc. Affecting the Securities. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all equity interests of AMID or any successor or

 

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assign of AMID (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution of, the Securities, and shall be appropriately adjusted for combinations, recapitalizations and the like occurring after the date of this Agreement and prior to the Closing.

 

[Signature pages follow.]

 

16

 

IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written.

 

	
 
    	
American   Midstream Partners, L.P.
    
	
 
    	
 
    
	
 
    	
By:   American Midstream GP, LLC
    
	
 
    	
Its:   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Daniel C. Campbell
    
	
 
    	
Name:
    	
Daniel   C. Campbell
    
	
 
    	
Title:
    	
Senior   Vice President and Chief
    
	
 
    	
 
    	
Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Magnolia   Infrastructure Holdings, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Daniel R. Revers
    
	
 
    	
Name:
    	
Daniel   R. Revers
    
	
 
    	
Title:
    	
President
    

 

Signature Page to Securities Purchase Agreement

 

 

Exhibit A — Form of Transfer Application

 

No transfer of the Series C Convertible Preferred Units evidenced hereby will be registered on the books of the Partnership, unless the Partnership provides authentication instructions to the Transfer Agent and Registrar and an Application for Transfer of Units has been executed by a transferee on the form set forth below. A transferor of the Series C Units shall have no duty to the transferee with respect to execution of the transfer application in order for such transferee to obtain registration of the transfer of the Series C Convertible Preferred Units.

 

APPLICATION FOR TRANSFER OF SERIES C CONVERTIBLE PREFERRED UNITS

 

The undersigned (“Assignee”) hereby applies for transfer to the name of the Assignee of the Series C Convertible Preferred Units evidenced hereby.

 

The Assignee (a) requests admission as an additional Limited Partner and agrees to comply with and be bound by, and hereby executes, the Fifth Amended and Restated Agreement of Limited Partnership of American Midstream Partners, LP (the “Partnership”), as amended, supplemented or restated to the date hereof (the “Partnership Agreement”), (b) represents and warrants that the Assignee has all right, power and authority and, if an individual, the capacity necessary to enter into the Partnership Agreement, (c) appoints the General Partner of the Partnership and, if a Liquidator shall be appointed, the Liquidator of the Partnership as the Assignee’s attorney-in-fact, to execute, swear to, acknowledge and file any document, including, without limitation, the Partnership Agreement and any amendment thereto and the Amended and Restated Certificate of Limited Partnership of the Partnership and any amendment thereto, necessary or appropriate for the Assignee’s admission as an additional Limited Partner and as a party to the Partnership Agreement, (d) gives the power of attorney provided for in the Partnership Agreement, and (e) makes the waivers and gives the consents and approvals contained in the Partnership Agreement. Capitalized terms not defined herein have the meanings assigned to such terms in the Partnership Agreement.

 

Date: April   , 2016

 

 

	
Tax Identification   Number of assignee
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
$120,000,006
    	
 
    	
By:
    	
 
    
	
Purchase Price   including commissions, if any
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Magnolia Infrastructure   Holdings, LLC
   200 Clarendon Street, 55th Floor
    
	
 
    	
 
    	
 
    	
Boston, MA 02116
    
	
 
    	
 
    	
Name and address of   assignee
    

 

 

	
Type   of Entity (check one):
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
o   Individual
    	
o   Partnership
    	
o   Corporation
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
o   Trust
    	
o   Other (specify)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Nationality (check one):
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
o U.S. Citizen, Resident or Domestic Entity
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
o Foreign Corporation 
    	
o Non resident Alien
    	
 
    
						

 

If the U. S. Citizen, Resident or Domestic Entity box is checked, the following certification must be completed.

 

Under Section 1445(e) of the Internal Revenue Code of 1986, as amended (the “Code”), the Partnership must withhold tax with respect to certain transfers of property if a holder of an interest in the Partnership is a foreign person. To inform the Partnership that no withholding is required with respect to the undersigned interestholder’s interest in it, the undersigned hereby certifies the following (or, if applicable, certifies the following on behalf of the interestholder).

 

 

Complete Either A or B:

 

	
 
    	
A.
    	
 
    	
Individual Interestholder
    
	
 
    	
 
    	
1.
    	
 
    	
I am not a non-resident alien for purposes of U.S.   income taxation.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
My U.S. taxpayer identification number (Social   Security Number) is                      .
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
My home address is                       .
    
	
 
    	
B.
    	
 
    	
Partnership, Corporation or Other Interestholder
    
	
 
    	
1.
    	
 
    	
                   .   is not a foreign corporation, foreign partnership, foreign trust or foreign   estate (as those terms are defined in the Code and Treasury Regulations).
    
	
 
    	
2.
    	
 
    	
                  .   is not a disregarded entity as defined in   Section 1.1445-2(b)(2)(iii) of the Treasury Regulations.
    
	
 
    	
 
    	
2.
    	
 
    	
The interestholder’s U.S. employer identification   number is               .
    
	
 
    	
3.
    	
 
    	
The interestholder’s office address and place of   incorporation (if applicable) is                     (incorporated in                   .
    

 

The interestholder agrees to notify the Partnership within sixty (60) days of the date the interestholder becomes a foreign person.

 

The interestholder understands that this certificate may be disclosed to the Internal Revenue Service by the Partnership and that any false statement contained herein could be punishable by fine, imprisonment or both.

 

[The remainder of this page is intentionally left blank]

 

 

Under penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete and, if applicable, I further declare that I have authority to sign this document on behalf of:

 

Date:                , 2016

 

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Note: If the Assignee is a broker, dealer, bank, trust company, clearing corporation, other nominee holder or an agent of any of the foregoing, and is holding for the account of any other person, this application should be completed by an officer thereof or, in the case of a broker or dealer, by a registered representative who is a member of a registered national securities exchange or a member of the National Association of Securities Dealers, Inc., or, in the case of any other nominee holder, a person performing a similar function. If the Assignee is a broker, dealer, bank, trust company, clearing corporation, other nominee owner or an agent of any of the foregoing, the above certification as to any person for whom the signee will hold the Units shall be made to the best of the Assignee’s knowledge.

 

[The remainder of this page is intentionally left blank.]

 

 

	
Acknowledged by:
    	
 
    
	
 
    	
 
    
	
AMERICAN MIDSTREAM PARTNERS, LP
    	
 
    
	
 
    	
 
    
	
By: American Midstream   GP, LLC
    	
 
    
	
Its: General Partner
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
Daniel C. Campbell
    	
 
    
	
Title:
    	
Senior Vice President   and Chief Financial Officer
    	
 
    

 

 

Exhibit B — Form of Warrant

 

THIS WARRANT HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE (THE “STATE LAWS”).  THIS WARRANT MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF, IN WHOLE OR IN PART, IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR THE AVAILABILITY OF AN APPLICABLE EXEMPTION FROM THE REGISTRATION AND QUALIFICATION REQUIREMENTS OF SUCH ACT AND STATE LAWS EVIDENCED BY AN OPINION OF LEGAL COUNSEL, WHICH OPINION AND LEGAL COUNSEL ARE SATISFACTORY TO THE PARTNERSHIP.

 

FORM OF WARRANT TO PURCHASE COMMON UNITS OF

 

AMERICAN MIDSTREAM PARTNERS, LP

 

This Warrant certifies that, for value received, Magnolia Infrastructure Holdings, LLC, or its registered assigns (collectively, the “Holder”), is entitled to purchase from American Midstream Partners, LP, a Delaware limited partnership (the “Partnership”), up to 800,000 common units representing limited partner interests in the Partnership (the “Common Units”), subject to adjustment as set forth herein, for an exercise price of $7.25 per Common Unit (the “Exercise Price”). This Warrant shall be exercisable after the date hereof and on or before the seventh anniversary of the date hereof (the “Exercise Period”).

 

As used herein, the term “Warrant Exercised Units” refers to the Common Units issuable upon exercise of this Warrant.  Terms used but not defined in this Warrant are defined in the Fifth Amended and Restated Agreement of Limited Partnership of the Partnership dated April 25, 2016 (the “Fifth A/R Partnership Agreement”).

 

This Warrant, together with all warrants issued upon transfer, exchange or in replacement hereof pursuant to Section 4 (collectively, the “Warrants”), is subject to the following additional terms, provisions and conditions:

 

Section 1.                                           Manner of Exercise; Issuance of Certificates; Payment for Warrant Exercised Units.  Subject to the provisions hereof, this Warrant may be exercised by the Holder, in whole or in part, during the Exercise Period by the surrender of this Warrant, together with a completed Exercise Agreement in the form attached hereto, to the Partnership during normal business hours on any Business Day at the Partnership’s office in Denver, Colorado (or such other office or agency of the Partnership as it may designate by notice to the Holder).

 

On a net unit settlement basis, the Warrant Exercised Units shall be deemed to be issued to the Holder or its designees as the record owner of such Common Units as of the close of business on the date or dates on which this Warrant shall have been surrendered and the completed Exercise Agreement delivered (the “Exercise Date”).

 

The Warrant Exercised Units deemed to be issued on the Exercise Date (which in no event will be less than zero) (the “Net Unit Amount”) shall equal (i) the number of Common Units with respect to which the Holder is exercising purchase rights as specified in the Exercise Agreement, multiplied by (ii) the Closing Sale Price (as defined below) on the relevant Exercise Date, minus the Exercise Price, divided by (iii) the arithmetic average of the daily VWAP (as defined below) for the ten (10) consecutive trading days ending on the Exercise Date, provided that any fractional units will be rounded up or down to the nearest whole Common Unit.

 

As used herein, the term “VWAP”means the dollar volume-weighted average price for the Common Units on the New York Stock Exchange during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg L.P. through its “Volume at Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of the Common Units in the over-the-counter market on the electronic bulletin board for the Common Units during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg L.P., or, if no dollar volume weighted average price is reported for the Common Units by Bloomberg L.P. for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for the Common Units as reported in the OTC Link or “pink

 

 

sheets” by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.). If the VWAP cannot be calculated for the Common Units on a particular date on any of the foregoing bases, the VWAP of the Common Units on such date shall be the fair market value as mutually determined by the Partnership and the Holder.

 

Section 2.                                           Certain Actions Prohibited.  The Partnership will not, by amendment of the Fifth A/R Partnership Agreement or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed by it hereunder, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the Holder of this Warrant in order to protect the exercise privilege of the Holder of this Warrant against dilution or other impairment, consistent with the tenor and purpose of this Warrant.

 

Section 3.                                           Anti-Dilution Provisions and Other Adjustments. The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment, from time to time, as follows:

 

(a)                                 Consolidation or Merger.  If, at any time while this Warrant remains outstanding and unexpired, the Partnership shall (i) consolidate or merge with any other entity (regardless of whether the Partnership is the continuing or surviving entity, except that in connection with a consolidation or merger where the Partnership is not the continuing or surviving entity, the Common Units shall be changed into or exchanged for units, stock or other securities of the surviving entity or cash or any other property), (ii) transfer all or substantially all of its properties or assets to any other person or entity or (iii) effect a capital reorganization or reclassification of the Common Units, the Partnership, or such successor entity as the case may be, shall, without payment of any additional consideration therefor, execute a new warrant providing that the Holder shall have the right to exercise such new warrant (upon terms no less favorable to the Holder than those applicable to this Warrant and subject to the same Exercise Period that is applicable to this Warrant) and to receive upon such exercise, in lieu of each Common Unit theretofore issuable upon exercise of this Warrant, the kind and amount of units, shares of stock or other securities, money or property receivable upon such capital reorganization, reclassification, change, consolidation, merger or sale or conveyance by the holder of one Common Unit issuable upon exercise of this Warrant had it been exercised immediately prior to such capital reorganization, reclassification, change, consolidation, merger or sale or conveyance.  The provisions of this Section 3(a) shall similarly apply to successive capital reorganizations, reclassifications, changes, consolidations, mergers, sales and conveyances.

 

(b)                                 Dividends and Distributions in Common Units.  If the Partnership shall pay or make a dividend or other distribution on its Common Units in additional Common Units, the Exercise Price in effect at the opening of business on the day following the date fixed for the determination of unitholders entitled to receive such dividend or other distribution (the “Determination Date”) shall be reduced by multiplying such Exercise Price by a fraction, (i) the numerator of which shall be the number of Common Units outstanding as of the close of business on the Determination Date and (ii) the denominator of which shall be the sum of (x) the number of Common Units outstanding at the close of business on the Determination Date and (y) the total number of Common Units constituting such dividend or other distribution.  Such reduction shall become effective immediately after the opening of business on the day following the Determination Date.  For the purposes of this Section 3(b), the number of Common Units at any time outstanding shall not include Common Units held in the treasury of the Partnership.  The Partnership will not pay any dividend or make any distribution on Common Units held in the treasury of the Partnership.

 

(c)                                  Unit Splits or Combinations.  In case the outstanding Common Units shall be subdivided into a greater number of Common Units, the Exercise Price in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be reduced, and, conversely, in case the outstanding Common Units shall each be combined into a smaller number of Common Units, the Exercise Price in effect at the opening of business on the day following the date upon which such combination becomes effective shall be increased, in each case, to equal the product of the Exercise Price in effect on such date and a fraction, (i) the numerator of which shall be the number of Common Units outstanding immediately prior to such subdivision or combination, as applicable, and (ii) the denominator of which shall be the number of Common Units outstanding immediately after such subdivision or combination,

 

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as applicable.  Such reduction or increase, as applicable, shall become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective (the “Alteration Date”).

 

(d)                                 Reclassifications.  The reclassification or change of Common Units (other than any reclassification upon a consolidation or merger to which Section 3(a) shall apply) into securities, including securities other than Common Units, shall be deemed to involve (i) a distribution of such securities other than Common Units to all holders of Common Units (and the effective date of such reclassification shall be deemed to be the Determination Date within the meaning of Section 3(b)), and (ii) a subdivision or combination, as applicable, of the number of Common Units outstanding immediately prior to such reclassification into the number of Common Units outstanding immediately thereafter (and the effective date of such reclassification shall be deemed to be the Alteration Date within the meaning of Section 3(c)).

 

(e)                                  Adjustment of Number of Units.  Upon each adjustment in the Exercise Price pursuant to Section 3.1(a)-(d), the number of Common Units purchasable hereunder at the Exercise Price shall be adjusted, to the nearest whole Common Unit, to the product obtained by multiplying such number of Common Units purchasable immediately prior to such adjustment in the Exercise Price by a fraction, (i) the numerator of which shall be the Exercise Price immediately prior to such adjustment and (ii) the denominator of which shall be the Exercise Price immediately thereafter.

 

(f)                                   Increase in Warrant Exercised Units.  On the first anniversary of the date hereof, the number of Common Units purchasable hereunder at the Exercise Price shall be adjusted, to the nearest whole Common Unit, to the product obtained by performing the following calculation:

 

(i) 400,000 multiplied by (ii) (A) the Series C Issue Price multiplied by the number of Series C Preferred Units then outstanding less $45,000,000 divided by (B) the Series C Issue Price multiplied by the number of Series C Preferred Units issued less $45,000,000.

 

(g)                                  PIK Units.  Each issuance of the Series C PIK Preferred Units will result in an increase in the number of Warrant Exercised Units (to the nearest whole Common Unit) to the number that is equal to the product obtained by performing the following calculation:

 

(i) The total number of Warrant Exercised Units immediately before the most recent issuance of Series C PIK Preferred Units multiplied by (ii) (A) the total number of outstanding Series C Preferred Units immediately after the most recent issuance of Series C PIK Preferred Units divided by (B) the total number of outstanding Series C Preferred Units immediately before the most recent issuance of Series C PIK Preferred Units.

 

(h)                                 Other Provisions Applicable to Adjustments Under This Section.  The following provisions will be applicable to the making of adjustments in the Exercise Price provided in this Section 3:

 

(i)                                     No adjustment in the Exercise Price need be made under Section 3(b) if the Partnership issues or distributes (or holds in a segregated manner pending exercise of this Warrant into Common Units and upon such exercise distributes) to the Holder the Common Units, evidences of indebtedness, assets, rights, options or warrants referred to in those paragraphs that such Holder would have been entitled to receive had this Warrant been exercised for Common Units prior to the happening of such event or the record date with respect thereto.

 

(ii)                                  All calculations under this Section 3 shall be made to the nearest 1/100th of a cent or to the nearest whole Common Unit, as applicable.  No adjustment in the Exercise Price shall be required unless such adjustment (plus any adjustments not previously made by reason of this Section 3(h)(ii)) would require an increase or decrease of at least 1% in such Exercise Price.

 

(i)                                     Notice to the Holder.  The Partnership will deliver to the Holder written notice, at the same time and in the same manner that it is required to give such notice under the Fifth A/R Partnership

 

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Agreement of any event or transaction potentially giving rise to an adjustment or modification of the terms and provisions of the Warrant Exercised Units.  The Partnership will take all steps reasonably necessary in order to insure that the Holder is able to exercise this Warrant prior to the time of such event or transaction so as to participate in or vote with respect to such event or transaction.

 

Section 4.                                           Transfer, Exchange and Replacement of Warrant; Representations and Covenants.

 

(a)                                 Warrant Transferable.  The Holder of this Warrant may transfer and assign it to any Affiliate, provided that such party is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), as presently in effect. The Holder of this Warrant may not transfer and assign it to any other person without the prior written consent of the Partnership, which consent shall not be unreasonably withheld.  The permitted or approved transfer of this Warrant and all rights hereunder, in whole or in part, is registrable at the office or agency of the Partnership referred to in Section 5 by the Holder in person or by his duly authorized attorney, upon surrender of this Warrant properly endorsed. Upon any permitted or approved transfer of this Warrant to any person, other than a person who is at that time a holder of other Warrants, the Partnership shall have the right to require the Holder and the transferee to make customary representations to the extent reasonably necessary to assure that the transfer will comply with the Securities Act and any applicable state securities laws.  The Holder of this Warrant, by taking or holding the same, consents and agrees that this Warrant, when endorsed in blank, shall be deemed negotiable, and that the Holder, when this Warrant shall have been so endorsed, may be treated by the Partnership and all other persons dealing with this Warrant as the absolute owner and holder for any purpose and as the person entitled to exercise the rights represented by this Warrant and to the registration of transfer hereof on the books of the Partnership; but until due presentment for registration of transfer on such books the Partnership may treat the registered Holder as the owner and holder of this Warrant for all purposes, and the Partnership shall not be affected by any notice to the contrary.

 

(b)                                 Warrant Exchangeable for Different Denominations.  This Warrant is exchangeable, upon the surrender of this Warrant by the Holder at the office or agency of the Partnership referred to in Section 5, for new warrants of like tenor representing in the aggregate the right to purchase the number of Common Units that may be purchased hereunder, each of such new warrants to be imprinted with the same legend appearing on the face of this Warrant and to represent the right to purchase such number of Common Units as shall be designated by the Holder at the time of such surrender.

 

(c)                                  Replacement of Warrant.  Upon receipt of evidence reasonably satisfactory to the Partnership of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft, or destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and amount to the Partnership, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Partnership, at its expense, will execute and deliver, in lieu thereof, a new warrant of like tenor.

 

(d)                                 Cancellation; Payment of Expenses.  Upon the surrender of this Warrant in connection with any transfer, exchange, or replacement as provided in Section 4(c), this Warrant shall be promptly cancelled by the Partnership.  The Partnership shall pay all taxes (other than securities transfer taxes) and all other expenses and charges payable in connection with the preparation, execution and delivery of Warrants pursuant to this Section 4.

 

(e)                                  Register.  The Partnership shall maintain, at its office in Denver, Colorado (or such other office or agency of the Partnership as it may designate by notice to the Holder), a register for this Warrant, in which the Partnership shall record the name and address of the person in whose name this Warrant has been issued, as well as the name and address of each transferee and each prior owner of this Warrant.

 

(f)                                   Representations and Covenants of the Partnership.  The Partnership represents and covenants that all Warrant Exercised Units will, when issued, be validly issued, fully paid and nonassessable (except to the extent such nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware Revised Uniform Limited Partnership Act).  Upon the exercise of this Warrant, the issuance of the Warrant Exercised Units will not be subject to any preemptive or similar rights, other than pursuant to Section 5.8 of the Fifth A/R Partnership Agreement.

 

(g)                                  Representations and Covenants of the Holder.  The Holder is acquiring this Warrant and will acquire the Warrant Exercised Units for its own account, with no present intention of distributing or reselling this Warrant or

 

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the Warrant Exercised Units or any part thereof in violation of applicable securities laws.  The Holder acknowledges that this Warrant has not been, and when issued the Warrant Exercised Units will not be, registered under the Securities Act or the securities laws of any state in the United States or any other jurisdiction and may not be offered or sold by such Holder unless subsequently registered under the Securities Act (if applicable to the transaction) and any other securities laws or unless exemptions from the registration or other requirements of the Securities Act and any other securities laws are available for the transaction.  The Holder represents that it is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act, as presently in effect.

 

Section 5.                                           Notices.  All notices, requests, and other communications required or permitted to be given or delivered hereunder to the Holder of this Warrant shall be in writing, and shall be personally delivered, or shall be sent by certified or registered mail, postage prepaid, or by delivery service with proof of delivery, and addressed to the Holder at the address shown for the Holder on the books of the Partnership, or at such other address as shall have been furnished to the Partnership by notice from the Holder.  All notices, requests, and other communications required or permitted to be given or delivered hereunder to the Partnership shall be in writing, and shall be personally delivered, or shall be sent by certified or registered mail, postage prepaid, or by delivery service with proof of delivery, and addressed to the office of the Partnership at 1400 16th Street, Suite 310, Denver, Colorado 80202, Attention: General Counsel, or at such other address as shall have been furnished to the Holder of this Warrant by notice from the Partnership.  Any such notice, request, or other communication may be sent by facsimile but shall in such case be subsequently confirmed by a writing personally delivered or sent by certified or registered mail as provided above.  All notices, requests, and other communications shall be deemed to have been given either at the time of the delivery thereof to (or the receipt by, in the case of a facsimile) the person entitled to receive such notice at the address of such person for purposes of this Section 5 or, if mailed, at the completion of the third full day following the time of such mailing thereof to such address, as the case may be.

 

Section 6.                                           GOVERNING LAW.  THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ANY CHOICE OF LAW PRINCIPLES OF SUCH STATE.

 

Section 7.                                           Remedies.  The Partnership stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Partnership in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate, and that such terms may be specifically enforced by a decree for the specific enforcement of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

 

Section 8.                                           Miscellaneous.

 

(a)                                 Amendments.  This Warrant and any provision hereof may not be changed, waived, discharged, or terminated orally, but only by an instrument in writing signed by the party (or any predecessor in interest thereof) against which enforcement of the same is sought.

 

(b)                                 Descriptive Headings.  The descriptive headings of the several sections of this Warrant are inserted for purposes of reference only, and shall not affect the meaning or construction of any of the provisions hereof.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Partnership has caused this Warrant to be signed by its duly authorized officer on this     day of April 2016.

 

	
 
    	
AMERICAN MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By: American Midstream   GP, LLC,
    
	
 
    	
Its: General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Daniel C. Campbell
    
	
 
    	
Title:
    	
Senior Vice President   and Chief Financial Officer
    

 

 

FORM OF EXERCISE AGREEMENT

 

Dated:              

 

	
To:
    	
American Midstream Partners,   LP
    
	
 
    	
1400 16th Street,   Suite 310
    
	
 
    	
Denver, CO 80202
    

 

Attention:  General Counsel

 

The undersigned, Holder of the foregoing Warrant, hereby elects to exercise purchase rights represented thereby for, and to purchase thereunder,           Common Units covered by such Warrant pursuant to Section 1 of such Warrant and requests that book-entries evidencing such Common Units or certificates for such Common Units be issued in the name of, and delivered to                       .

 

The undersigned, Holder of the foregoing Warrant, is acquiring such Common Units for its own account, with no present intention of distributing or reselling such units or any part thereof in violation of applicable securities laws.  The Holder acknowledges that such units have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state in the United States or any other jurisdiction and may not be offered or sold by such Holder unless subsequently registered under the Securities Act (if applicable to the transaction) and any other securities laws or unless exemptions from the registration or other requirements of the Securities Act and any other securities laws are available for the transaction.  The Holder represents that it is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act.

 

	
 
    	
Signature:
    	
 
    
	
 
    	
Title of Signing   Officer or Agent
    
	
 
    	
(if any):
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Note:
    	
The above signature   should correspond exactly with the name on the face of the within Warrant or   with the name of the assignee appearing in the assignment form.
    
				

 

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers all the rights represented by and under the within Warrant, with respect to the number of Common Units covered thereby set forth below, to:

 

	
Name of Assignee
    	
 
    	
Address
    	
 
    	
No. of Common Units
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

The undersigned hereby irrevocably constitutes and appoints                     as agent and attorney-in-fact to transfer said Warrant on the books of the within-named Partnership, with full power of substitution in the premises.

 

Dated:                   ,          

 

	
In the presence of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
 
    
	
 
    	
Title of Signing   Officer or Agent
    
	
 
    	
(if any):
    	
 
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Note:
    	
The above signature should   correspond exactly with the name on the face of the within Warrant.
    
					

 

2Exhibit 10.2

 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND FIRST AMENDMENT TO AMENDED AND RESTATED GUARANTY AND COLLATERAL AGREEMENT

 

THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND FIRST AMENDMENT TO AMENDED AND RESTATED GUARANTY AND COLLATERAL AGREEMENT (this “Amendment”) dated as of April 25, 2016, is by and among AMERICAN MIDSTREAM, LLC, a Delaware limited liability company (the “AMID Borrower”), BLACKWATER INVESTMENTS, INC., a Delaware corporation (the “Blackwater Borrower” and together with the AMID Borrower, the “Borrowers”), AMERICAN MIDSTREAM PARTNERS, LP, a Delaware limited partnership (“Parent”), the other Loan Parties party hereto, BANK OF AMERICA, N.A., as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the lenders party to the Credit Agreement referred to below (the “Lenders”), and the Lenders party hereto.

 

R E C I T A L S

 

A.                                    The Borrowers, Parent, the Lenders, the Administrative Agent and the other agents referred to therein are parties to that certain Amended and Restated Credit Agreement dated as of September 5, 2014, as amended by that certain First Amendment and Incremental Commitment Agreement dated as of September 18, 2015 (the “Credit Agreement”), pursuant to which the Lenders have made certain Loans and provided certain Commitments (subject to the terms and conditions thereof) to the Borrowers.

 

B.                                    In connection with the Credit Agreement, the Borrowers and the other Guarantors entered into that certain Amended and Restated Guaranty and Collateral Agreement dated as of September 5, 2014 (the “Security Agreement”), pursuant to which the Guarantors have provided Liens and security interests in respect of certain of their assets to secure the obligations of the Borrowers under the Credit Agreement.

 

C.                                    American Midstream Emerald, LLC, a Delaware limited liability company (the “Emerald Buyer”), a newly formed direct wholly-owned subsidiary of the AMID Borrower, as buyer, and Emerald Midstream, LLC, a Delaware limited liability company, as seller, have entered into (1) a Purchase and Sale Agreement (the “Emerald PSA I”) dated as of April 25, 2016 pursuant to which the Emerald Buyer has agreed to purchase (i) a 49.67% ownership interest in Destin Pipeline Company, L.L.C., a Delaware limited liability company (“Destin”);  (ii) a 16.67% ownership interest in Tri-States NGL Pipeline, L.L.C., a Delaware limited liability company (“Tri-States”); and (iii) a 25.30% ownership interest in Wilprise Pipeline Company, L.L.C., a Delaware limited liability company (“Wilprise”); and (2) a Purchase and Sale Agreement (the “Emerald PSA II” and together with the Emerald PSA I, the “Emerald PSAs”) pursuant to which the Emerald Buyer has agreed to purchase a 66.67% ownership interest in Okeanos Gas Gathering Company, LLC, a Delaware limited liability company (“Okeanos”) (such acquisitions collectively, the “Emerald Acquisition”).

 

D.                                    American Midstream AMPAN, LLC, a Delaware limited liability company (the “AMP Panther”), a newly formed direct wholly owned subsidiary of the AMID Borrower, holds

 

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60% of the Equity Interests in American Panther, LLC, a Delaware limited liability company (the “American Panther”). American Panther, as Buyer, has entered into that certain Asset Sale and Purchase Agreement (the “Panther PSA”), effective as of August 1, 2015, with Chevron Pipe Line Company, a Delaware corporation and Chevron Midstream Pipelines LLC, a Delaware limited liability company, as Sellers, resulting in, upon the consummation of the transactions in the Panther PSA, the acquisition of 194 miles of crude, natural gas and salt water pipelines in the Gulf of Mexico and certain associated assets more particularly described in the Panther PSA (the acquisition contemplated by the Panther PSA, the “Panther Acquisition,” and together with the Emerald Acquisition, the “Offshore Acquisition”).

 

E.                                     In connection with the Offshore Acquisition, the Borrowers have requested that the Credit Agreement be amended to permit the Offshore Acquisition and to make certain other changes as more fully described herein.

 

F.                                      The Lenders signatory hereto and the Administrative Agent are willing to amend the Credit Agreement as more fully described herein, and upon satisfaction of the conditions set forth herein, this Amendment shall become effective.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.                                          Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement.  Unless otherwise indicated, all article, schedule, exhibit and section references in this Amendment refer to articles and sections of the Credit Agreement.

 

1.1                               Amendments to Section 1.01 (Defined Terms) of the Credit Agreement.

 

(a)                                 The definition of “Agreement” is hereby amended by adding the words “and by the Second Amendment” after the words “, as amended by the First Amendment.”

 

(b)                                 The definition of “Consolidated EBITDA” is hereby amended by (i) replacing the words “, except with respect to the acquisition contemplated by the Delta House PSA which shall instead be subject to the penultimate sentence hereof,” after the first occurrence of the words “provided that” therein with the words “, except with respect to (x) the acquisition contemplated by the Delta House PSA and (y) for purposes of calculating Consolidated EBITDA for each period of four fiscal quarters ending on each of March 31, 2016 and June 30, 2016 only, any additional investment in Delta House made in accordance with Section 7.02(n)(ii), each of which shall instead be subject to the penultimate sentence hereof”, (ii) replacing the penultimate sentence thereof with the following sentence:

 

With respect to each period of four fiscal quarters ending on each of June 30, 2015, September 30, 2015, December 31, 2015, March 31, 2016 and June 30, 2016, notwithstanding anything else herein to the contrary, Consolidated EBITDA in respect of Delta House Buyer shall be deemed to be (a) with respect to each period of four fiscal quarters ending on each of June 30, 2015 and September 30, 3015, $37,300,000, (b) with respect to the

 

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period of four fiscal quarters ending December 31, 2015, the aggregate amount of cash distributions received by Delta House Buyer from the Consolidated Net Income of Delta House Sub and attributable to Delta House during the most recently ended fiscal quarter multiplied by four, (c) with respect to the period of four fiscal quarters ending March 31, 2016, the aggregate amount of cash distributions received by Delta House Buyer from the Consolidated Net Income of Delta House Sub and attributable to Delta House during the two most recently ended fiscal quarters (after giving pro forma effect to any additional Equity Interests in Delta House Sub or any other ownership interest in Delta House, acquired (whether directly or indirectly) in each case since the Second Amendment Effective Date in accordance with Section 7.02(n)(ii)) multiplied by two, and (d) with respect to the period of four fiscal quarters ending June 30, 2016, the aggregate amount of cash distributions received by Delta House Buyer from the Consolidated Net Income of Delta House Sub and attributable to Delta House during the three most recently ended fiscal quarters (after giving pro forma effect to any additional Equity Interests in Delta House Sub or any other ownership interest in Delta House, acquired (whether directly or indirectly) in each case since the Second Amendment Effective Date in accordance with Section 7.02(n)(ii)) multiplied by 4/3.

 

and (iii) replacing clause (y) of the last sentence thereof as follows:

 

(y) Consolidated EBITDA shall be deemed to exclude the effect of any one-time non-recurring fees and expenses of Parent and its Subsidiaries incurred in connection with (1) the Existing Credit Agreement, (2) the 2013 Acquisition Transactions, (3) the 2013 Blackwater Transaction, (4) costs and expenses incurred by the Borrower in connection with the relocation of its chief executive offices, as determined in good faith by the Borrower in a manner satisfactory to the Administrative Agent in its reasonable discretion, and (5) Permitted Acquisitions and any amendments to this Agreement in connection therewith; provided that such exclusion of fees and expenses pursuant to clauses (4) and (5) may not exceed 10% of Consolidated EBITDA for the period of the most recent four fiscal quarters then ended (calculated without regard to such exclusions).

 

(c)                                  The definition of “Consolidated Net Income” is hereby amended by amending and restating clause (d) thereof as follows:

 

(d) any income (or loss) of any Person if such Person is not a Subsidiary, except that Parent’s equity in the Consolidated Net Income of any such Person (including but not limited to DCP MPOG and, for so long as they are non-wholly owned subsidiaries of Parent, EnerTrade, American Panther, Destin, and Okeanos and for so long as the Midla Natchez Lateral Debt is outstanding, Midla Financing, Midla and MLGT) shall be included in Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person to Parent or a Subsidiary as a dividend or other

 

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distribution (and in the case of a dividend or other distribution to a Subsidiary, such Subsidiary is not precluded from further distributing such amount to Parent as described in clause (c) of this proviso)

 

(d)                                 The definition of “Consolidated Total Indebtedness” is hereby amended and restated in its entirety as follows:

 

“Consolidated Total Indebtedness” means, as of any date of determination, an amount equal to the sum of all Indebtedness of Parent and its Subsidiaries (on a consolidated basis); provided, that Consolidated Total Indebtedness shall not include (a) the Convertible Preferred Units, (b) the Midla Natchez Lateral Debt or (c) the Transmission Bond, the Chevron Performance Bond and other unsecured surety bonds contemplated by Section 7.03(m) to the extent undrawn.

 

(e)                                  The definition of “Defaulting Lender” is hereby amended by (i) deleting the word “or” immediately before clause (iii) of clause (d) thereof and (ii) inserting the following words “or (iv) become the subject of a Bail-in Action” immediately before the words “; provided that” at the end thereof.

 

(f)                                   The definition of “Excluded Property” is hereby amended and restated in its entirety as follows:

 

“Excluded Property” means (i) the Excluded Seacrest Assets, (ii) such interests owned by Blackwater Holdings or the Blackwater Subsidiaries as of the Closing Date with respect to the terminals located in Brunswick, Georgia and Salisbury, Maryland and reasonable expansions thereof, (iii) for so long as the Midla Natchez Lateral Debt is outstanding and is secured by such Equity Interests, Equity Interests in Midla Financing, Midla and MLGT, and (iv) Equity Interests in any Person (other than Loan Parties) to the extent a grant of a Lien in respect thereof under the Security Documents is not permitted by the terms of such Person’s organizational or joint venture documents, in each case solely to the extent that the applicable Loan Party (y) has previously used commercially reasonable efforts to obtain any required consents to eliminate or waive any such restrictions contained in such organizational or joint venture documents and (z) has not, and will not, directly or indirectly, create, assume, incur or suffer to exist any Lien on or with respect to such Equity Interests, other than Liens permitted under Section 7.01.

 

(g)                                  The definition of “Permitted Acquisition” is hereby amended and restated in its entirety as follows:

 

“Permitted Acquisition” means each of (a) the Offshore Acquisition and (b) each purchase and other acquisition made pursuant to Section 7.02(g).

 

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(h)                                 The definition of “Specified Acquisition Period” is hereby amended by amending and restating in its entirety as follows:

 

“Specified Acquisition Period” means a period, elected by the AMID Borrower by notice to the Administrative Agent, that commences from the funding date of the purchase price of a Specified Acquisition and ending on the earliest of (a) the third quarterly testing date occurring after the consummation of the Specified Acquisition (b) the date designated by the AMID Borrower as the termination date of such Specified Acquisition Period, such election to be exercised by the AMID Borrower delivering notice thereof to the Administrative Agent; or (c) other than with respect to the Specified Acquisition Period elected for the acquisition of Delta House, the quarterly testing date on which the AMID Borrower is in compliance with Section 7.19, such compliance to be determined as if such period was not a Specified Acquisition Period; provided, following the election of a Specified Acquisition Period, the AMID Borrower may not elect a subsequent Specified Acquisition Period until (i) the termination of such Specified Acquisition Period then in effect and (ii) the Borrower has delivered at least one Compliance Certificate reflecting compliance with Section 7.19 with respect to a period of four fiscal quarters ending after the expiration of the last Specified Acquisition Period. Only one Specified Acquisition Period may be elected (or deemed elected) with respect to any particular Specified Acquisition.

 

(i)                                     The definition of “Subsidiary” is hereby amended by amending and restating the clause following the words “provided, however,” in its entirety as follows:

 

(i) DCP MPOG, (ii) for so long as the Midla Natchez Lateral Debt is outstanding, Midla Financing, Midla and MLGT, and, (iii) for so long as such entities are non-wholly owned subsidiaries of Parent, American Panther, Destin, Okeanos and EnerTrade, shall each be deemed not to be a Subsidiary for purposes of this Agreement and the other Loan Documents.

 

(j)                                    The following definitions are hereby added to Section 1.01 of the Credit Agreement where alphabetically appropriate:

 

“American Panther” means American Panther, LLC, a Delaware limited liability company.

 

“AMP Panther” means American Midstream AMPAN, LLC, a Delaware limited liability company.

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the

 

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European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Chevron Performance Bond” means that certain Performance Bond in the amount of $10,000,000 dated April 15, 2016 by and among American Panther, LLC, as principal, Aspen American Insurance Company, as surety, and Chevron Pipe Line Company and Chevron Midstream Pipelines LLC, as obligees, to provide support for certain contractual obligations of American Panther, LLC to Chevron Pipe Line Company and Chevron Midstream Pipelines LLC.

 

“Destin” means Destin Pipeline Company, LLC, a Delaware limited liability company.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Emerald Buyer” means American Midstream Emerald, LLC, a Delaware limited liability company.

 

“Emerald PSA I” means that Purchase and Sale Agreement, by and between Emerald Buyer, as buyer, and Emerald Midstream, LLC, as seller, dated as of April 25, 2016, pursuant to which the Emerald Buyer has agreed to purchase (i) a 49.67% ownership interest in Destin,  (ii) a 16.67% ownership interest in Tri-States, and (iii) a 25.30% ownership interest in Wilprise.

 

“Emerald PSA II” means that Purchase and Sale Agreement, by and between Emerald Buyer, as buyer, and Emerald Midstream, LLC, as seller, pursuant to which the Emerald Buyer has agreed to purchase a 66.67% ownership interest in Okeanos.

 

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“Emerald PSAs” means the Emerald PSA I and the Emerald PSA II.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“Midla” means American Midstream (Midla), LLC, a Delaware limited liability company.

 

“Midla Financing” means American Midstream Midla Financing, LLC.

 

“Midla Natchez Lateral Project” means the construction of the Natchez lateral off of the “Midla mainline” transportation system owned by Midla.

 

“Midla Natchez Lateral Debt” means Indebtedness of Midla Financing, Midla and/or MLGT issued or incurred with one or more commercial banks or other financial institutions to finance or facilitate the Midla Natchez Lateral Project which Indebtedness may be secured by, in whole or in part, the assets or property owned or used by Midla Financing, Midla and/or MLGT related to the Midla Natchez Lateral Project and/or the Equity Interests in Midla Financing, Midla and/or MLGT; provided that, for the avoidance of doubt, the “Midla Natchez Lateral Debt” shall in all cases, except with respect to such Equity Interests in Midla Financing, Midla and/or MLGT, be non-recourse to the Loan Parties.

 

“MLGT” means Mid Louisiana Gas Transmission, LLC, a Delaware limited liability company.

 

“Non-Wholly Owned Person” means any Person (regardless of whether such Person otherwise constitutes a Subsidiary) that is owned jointly by the Parent (or any of its subsidiaries) and one or more Persons other than the Parent and its subsidiaries; provided that none of DCP MPOG, EnerTrade or Delta House Sub shall constitute a Non-Wholly Owned Person for purposes of this Agreement.

 

“Offshore Acquisition” means, collectively, the acquisitions contemplated by each of the Emerald PSAs and the Panther PSA.

 

“Okeanos” means Okeanos Gas Gathering Company, LLC, a Delaware limited liability company.

 

“Panther PSA” means that Asset Sale and Purchase Agreement dated as of August 1, 2015, by and among American Panther, LLC, a Delaware limited liability company, as buyer, Chevron Pipe Line

 

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Company, a Delaware corporation and Chevron Midstream Pipelines LLC, a Delaware limited liability company, as sellers.

 

“Second Amendment” means the Second Amendment to Amended and Restated Credit Agreement, dated as of April 25, 2016, by and among the Parent, the Borrowers, the Administrative Agent and the Lenders party thereto.

 

“Second Amendment Effective Date” has the meaning specified in the Second Amendment.

 

“Tri-States” means Tri-States NGL Pipeline, L.L.C., a Delaware limited liability company.

 

“Wilprise” means Wilprise Pipeline Company, L.L.C., a Delaware limited liability company.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

1.2                               Addition of new Section 5.25 (EEA Financial Institutions) to the Credit Agreement.  A new Section 5.25 is hereby added to Article V as follows:

 

5.25  EEA Financial Institutions. No Loan Party is an EEA Financial Institution.

 

1.3                               Amendments to Section 7.02 (Investments) of the Credit Agreement.

 

(a)                                 Section 7.02 is hereby amended by replacing subsection (c) thereof with the following new subsection (c):

 

(c)                                  Investments of (i) Parent in the AMID Borrower and Finance Co (subject to the limitations on the activities of Finance Co set forth in the definition thereof), (ii) either of the Borrowers in any wholly-owned Subsidiary that is a Guarantor, and (iii) any wholly-owned Subsidiary that is a Guarantor in either of the Borrowers or in another wholly-owned Subsidiary that is a Guarantor; provided, however, that clauses (ii) and (iii) shall not permit Investments in Burns Point Sub, Republic, Delta House Buyer, Emerald Buyer or AMP Panther, it being understood that Investments in Burns Point Sub may only be made pursuant to and to the extent permitted by Section 7.02(j), Investments in Republic may only be made pursuant to and to the extent permitted by Section 7.02(j), Investments in Delta House Buyer may only be made pursuant to and to the extent permitted by Section 7.02(n), Investments in Emerald Buyer may only be made pursuant to and to the extent permitted by Section

 

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7.02(q) or, for the avoidance of doubt, Section 7.02(j), Investments in AMP Panther may only be made pursuant to and to the extent permitted by Section 7.02(r) or, for the avoidance of doubt, Section 7.02(j) and, for so long as the Midla Natchez Lateral Debt is outstanding, Investments in Midla Financing, Midla and MLGT may only be made pursuant to and to the extent permitted by Section 7.02(s).

 

(b)                                 Section 7.02 is hereby amended by deleting the words “(each, a “Permitted Acquisition”)” in subsection (g) thereof.

 

(c)                                  Section 7.02 is hereby amended by replacing subsection (j) thereof with the following new subsection (j):

 

(j)                                    other Investments (it being understood that on and after the Second Amendment Effective Date, Investments made pursuant to this clause (j) prior to the Second Amendment Effective Date in connection with the acquisition contemplated by the Panther PSA shall be deemed made pursuant to Section 7.02(r)) in an aggregate amount at any time outstanding not to exceed the greater of (i) $15,000,000 and (ii) 2.5% of Consolidated Net Tangible Assets; provided that no Default or Event of Default shall have occurred and be continuing or shall result from the making of such Investment;

 

(d)                                 Section 7.02 is hereby amended by replacing subsection (m) thereof with the following new subsection (m):

 

(m)                             [Reserved];

 

(e)                                  Section 7.02 is hereby amended by replacing subsection (n) thereof with the following new subsection (n):

 

(n)                                 (i) Investments made in connection with the acquisition contemplated by the Delta House PSA and (ii) after the Second Amendment Effective Date, other Investments of cash or cash equivalents in Delta House not to exceed $50,000,000 in the aggregate for all such investments made pursuant to this Section 7.02(n)(ii);

 

(f)                                   Section 7.02 is hereby amended by (i) deleting the word “and” at the end of subsection (n) thereof, (ii) deleting the period at the end of subsection (o) thereof and (iii) inserting the following new subsections (p), (q), (r) and (s) at the end thereof as follows:

 

(p)                                 Investments in DCP MPOG made as of the Second Amendment Effective Date;

 

(q)                                 (i) Investments in each of Destin,  Tri-States and Wilprise pursuant to the Emerald PSA I and (ii) Investments in Okeanos made pursuant to and in accordance with applicable law and the Emerald PSA II (which shall be in form and substance reasonably satisfactory to the

 

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Administrative Agent) so long as such Investments are made within fourteen (14) calendar days of the Second Amendment Effective Date;

 

(r)                                    Investments made in connection with the acquisition contemplated by the Panther PSA; and

 

(s)                                   for so long as the Midla Natchez Lateral Debt is outstanding, (i) Investments in Midla Financing, Midla and MLGT made as of the Second Amendment Effective Date and (ii) other Investments in Midla Financing, Midla and MLGT in an aggregate amount not to exceed $15,000,000.

 

1.4                               Amendments to Section 7.03 (Indebtedness) of the Credit Agreement.

 

(a)                                 Section 7.03 is hereby amended by replacing subsection (m) thereof with the following new subsection (m):

 

(m)                             Indebtedness in respect of (i) the Transmission Bond, not to exceed $15,000,000 at any time outstanding, (ii) the Chevron Performance Bond, not to exceed $10,000,000 at any time outstanding, and (iii) any other unsecured additional or replacement bonds required to be posted by the Bureau of Ocean Energy Management.

 

(b)                                 Section 7.03 is hereby amended by (i) deleting the period at the end of subsection (p) thereof and replacing it with “; and” and (ii) inserting the following new subsection (q) at the end thereof as follows:

 

(q)      Midla Natchez Lateral Debt.

 

1.5                               Amendment to Section 7.06 (Restricted Payments) of the Credit Agreement.

 

(a)                                 Section 7.06 is hereby amended by restating subsections (c) thereof as follows:

 

(c)                                  Parent may purchase, redeem or otherwise acquire Equity Interests (including, without limitation, “Series A Convertible Preferred Units” issued pursuant to the Partnership Agreement) issued by it with the proceeds received from the substantially concurrent issue of new shares of its Equity Interests (other than Disqualified Equity Interests); provided that, to the extent any such purchase, redemption, or acquisition, as applicable, of common Equity Interests is funded with the proceeds of an issuance of “Series A Convertible Preferred Units” or other preferred Equity Interests, such issuance of new shares of preferred Equity Interests shall be deemed to be substantially concurrent for purposes of this clause (c) so long as the purchase, redemption or acquisition, as applicable, of common Equity Interests occurs within 180 days of such issuance of preferred Equity Interest.

 

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1.6                               Addition of new Section 7.26 (Limitations on Non-Wholly Owned Persons) to the Credit Agreement.  A new Section 7.26 is hereby added to Article VII as follows:

 

7.26  Limitations on Non-Wholly Owned Persons. Notwithstanding anything to the contrary in this Agreement, and without limiting any restrictions on Subsidiaries of the Parent otherwise set forth in this Article VII, neither Parent nor AMID Borrower shall:

 

(a)                                 permit any Non-Wholly Owned Person to create, issue, incur, assume or permit to exist any Indebtedness or Disqualified Equity Interest;

 

(b)                                 permit any Non-Wholly Owned Person to create, incur, assume or permit to exist any Lien on any Property now owned or hereafter acquired by it, except Liens permitted by Section 7.01 or permit any Lien to exist on the Equity Interests of such Non-Wholly Owned Person other than pursuant to the Loan Documents; and

 

(c)                                  permit any Non-Wholly Owned Person to enter into, incur or permit to exist any Contractual Obligation that prohibits, restricts or imposes any condition on the ability of such any Non-Wholly Owned Person to make Restricted Payments with respect to any of its Equity Interests.

 

1.7                               Addition of new Section 10.21 (Acknowledgement and Consent to Bail-In of EEA Financial Institutions) to the Credit Agreement.  A new Section 10.21 is hereby added to Article X as follows:

 

10.21  Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)                                     a reduction in full or in part or cancellation of any such liability;

 

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(ii)                                  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)                               the variation of the terms of such liability  in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

1.8                               Amendments to Section 1.01 (Definitions) of the Security Agreement.          The following definitions are hereby added to Section 1.01 of the Security Agreement where alphabetically appropriate:

 

“JV LLC Agreements” shall mean, collectively, the Tri-States Agreement and the Wilprise Agreement.

 

“Tri-States Agreement” shall mean that certain Limited Liability Company Agreement of Tri-States NGL Pipeline, L.L.C. dated January 13, 1999, as amended prior to the Second Amendment Effective Date.

 

“Wilprise Agreement” shall mean that certain Amended and Restated Limited Liability Company Agreement of Wilprise Pipeline Company, L.L.C. dated May 27, 1999, as amended prior to the Second Amendment Effective Date.

 

1.9                               Amendment to Section 3.01 (Grant of Security Interest) of the Security Agreement.     Section 3.01 of the Security Agreement is hereby amended by adding the following as the last sentence thereof:

 

Notwithstanding anything to the contrary, the Liens created hereby on Pledged Securities in respect of each of Tri-States and Wilprise shall be subject to, and the exercise of any remedies hereunder in respect of such Pledged Securities shall be taken in accordance with, the terms and conditions of the applicable JV LLC Agreement, including, without limitation, Articles XII and XIV of the applicable JV LLC Agreement.

 

1.10                        Amendment to Section 3.02 (Transfer of Pledged Securities) of the Security Agreement.   Section 3.02 of the Security Agreement is hereby amended by restating the third, fourth and fifth sentences thereof in their entirety as follows:

 

During the continuance of an Event of Default, after the expiration of any applicable cure period, the Collateral Agent shall have the right (subject, in the case of the Pledged Securities in respect of each of Tri-States and Wilprise, to the terms and conditions of the applicable JV LLC Agreement), at any time in its discretion and after prior written notice by

 

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the Collateral Agent of its intent to exercise the rights provided for in this section to the relevant Grantor or Grantors or Pledgor, to transfer to or to register in the name of the Collateral Agent, any Secured Party or any of its nominees any or all of the Pledged Securities. In addition, during the continuance of an Event of Default, the Collateral Agent shall have the right (subject, in the case of the Pledged Securities in respect of each of Tri-States and Wilprise, to the terms and conditions of the applicable JV LLC Agreement) at any time to exchange certificates or instruments representing or evidencing limited partnership interests or shares for certificates or instruments of smaller or larger denominations. Each of Pledgor and each of the Grantors hereunder agrees that upon the exercise of remedies in respect of the Pledged Securities (subject, in the case of the Pledged Securities in respect of each of Tri-States and Wilprise, to the terms and conditions of the applicable JV LLC Agreement), a transferee or assignee of a membership interest or partnership interest, as the case may be, of such Person, shall become a member or partner, as the case may be, of such Person, entitled to participate in the management thereof and, upon the transfer of the entire interest of Pledgor or such Grantor, as the case may be, Pledgor or such Grantor shall cease to be a member or partner, as the case may be.

 

1.11                        Amendment to Section 5.07 (Pledged Securities) of the Security Agreement.   Section 5.07 of the Security Agreement is hereby amended by restating the fourth and fifth sentences thereof in their entirety as follows:

 

Notwithstanding anything to the contrary in this Section 5.07, other than as set forth in the JV LLC Agreements, there are no restrictions on transfer (that have not been waived or otherwise consented to) in the Organization Documents governing the Pledged Securities or any other agreement relating thereto which would limit or restrict (a) the grant of a security interest in the Pledged Securities; (b) the perfection of such security interest; or (c) the exercise of remedies in respect of such perfected security interest in the Pledged Securities; in each case, as contemplated by this Agreement. Upon the exercise of remedies in respect of the Pledged Securities (in the case of the Pledged Securities in respect of each of Tri-States and Wilprise, in accordance with the terms and conditions of the applicable JV LLC Agreement), a transferee or assignee of a membership interest or partnership interest, as the case may be, of such Person, shall become a member or partner, as the case may be, of such Person, entitled to participate in the management thereof and, upon the transfer of the entire interest of Pledgor or such Grantor, Pledgor or such Grantor shall cease to be a member or partner, as the case may be.

 

1.12                        Amendment to Section 6.05 (Pledged Securities) of the Security Agreement.   Section 6.05 of the Security Agreement is hereby amended by (a) inserting the words “and as set forth in the JV LLC Agreements” immediately after the words “the security interests created by this Agreement” in clause (iii) of Section 6.05(b), (b) inserting the words “except as set forth in

 

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the JV LLC Agreements,” immediately before the words “enter into any agreement” in clause (iv) of Section 6.05(b), (c) inserting the words “, or with respect to each of Destin, Tri-States and Wilprise, within forty-five (45) days of the Second Amendment Effective Date,” immediately after the word “promptly” in the last sentence of Section 6.05(c) and (d) inserting the words “, or with respect to each of Destin, Tri-States and Wilprise, use commercially reasonable efforts to cause,” immediately after the word “cause” in the last sentence of Section 6.05(c).

 

1.13                        Amendment to Section 7.01 (Pledged Securities) of the Security Agreement.   Section 7.01 of the Security Agreement is hereby amended by inserting the words “and, to the extent applicable, the terms and conditions of the JV LLC Agreements” immediately after the words “Article VIII of the Credit Agreement” in Section 7.01(b) thereof.

 

Section 2.                                          Conditions Precedent.  This Amendment shall become effective on the date (the “Second Amendment Effective Date”) on which each of the following conditions is satisfied (or waived in accordance with Section 10.01 of the Credit Agreement):

 

2.1                               Amendment Counterparts.  The Administrative Agent shall have received executed counterparts (in such number as may be requested by the Administrative Agent) of this Amendment from the Administrative Agent, the Collateral Agent, the L/C Issuers, the Required Lenders and the Loan Parties.

 

2.2                               Corporate Documents.  The Administrative Agent shall have received (a) with respect to each of the Joinder Parties (defined below): (A) certificates of good standing as of a recent date issued by the appropriate Governmental Authority of the state or jurisdiction of its incorporation or organization, where applicable; (B) a certificate of the Secretary, Assistant Secretary or a Responsible Officer of AMID Borrower dated the Second Amendment Effective Date and certifying (1) that attached thereto are true and correct copies of the organizational documents of each such Joinder Party, (2) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors or other governing body of the General Partner authorizing the execution, delivery and performance of this Amendment and any related Loan Documents, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, and (3) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith; and (C) a certificate of another officer as to the incumbency and specimen signature of the Secretary, Assistant Secretary or such Responsible Officer executing the certificate pursuant to clause (B) above, and (b) true and correct copies of the organizational documents of each of Tri-States NGL Pipeline, L.L.C. and Wilprise Pipeline Company, L.L.C.

 

2.3                               Security Documents. The Collateral Agent shall have received (a) from Emerald Buyer, AMP Panther, American Midstream Terminaling, LLC, a Delaware limited liability company, American Midstream Piney Woods, LLC, a Delaware limited liability company, American Midstream Midla Financing, LLC, and American Midstream Midla Reconfiguration, LLC (collectively, the “Joinder Parties”) an executed counterpart of the Guaranty and Collateral Agreement or a joinder thereto in form and substance satisfactory to the Collateral Agent; (b) with respect to the Joinder Parties, (i) all necessary financing statements, (ii) all judgment, tax and lien searches reasonably requested by the Collateral Agent and (iii) all duly completed UCC-3 termination statements requested by the Collateral Agent with respect to any Liens reflected in

 

14

 

such search results that are not permitted by the Credit Agreement; and (c) such supplements or amendments to the Security Documents and/or other deliverables as the Collateral Agent shall reasonably request in order for each applicable Loan Party to grant to the Collateral Agent for the benefit of the Secured Parties a first priority Lien of record on all of the Equity Interests in the Joinder Parties that constitute Collateral owned by such Loan Party, in each case, duly completed and executed (as applicable) in sufficient number of counterparts and in proper form for recording, if necessary, in form and substance satisfactory to the Collateral Agent.

 

2.4                               Approvals.  The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower Representative satisfactory to the Administrative Agent either (A) attaching copies of all consents, licenses and approvals required in connection with the Emerald Acquisition or Panther Acquisition, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required.

 

2.5                               Insurance.  The Administrative Agent shall have received, in form satisfactory to the Administrative Agent, evidence that all insurance required to be maintained pursuant to the Credit Agreement has been obtained and is in full force and effect, including certificates of insurance naming the Collateral Agent, on behalf of the Lenders, as loss payee and as an additional insured, as the case may be, under all insurance policies maintained with respect to the assets and properties of the Joinder Parties that constitute Collateral.

 

2.6                               Legal Opinion. The Administrative Agent shall have received, on behalf of itself, the Collateral Agent, the Lenders party hereto and each L/C Issuer on the Second Amendment Effective Date, the favorable written opinion of Andrews Kurth LLP, special counsel to the Loan Parties, covering such matters relating to the Joinder Parties, this Amendment and the Loan Documents as the Administrative Agent shall reasonably request and in form and substance satisfactory to the Administrative Agent, dated as of the Second Amendment Effective Date.  The Borrowers hereby request such counsel to deliver such opinions.

 

2.7                               Patriot Act.  The Administrative Agent and each of the Lenders shall have received, at least five (5) Business Days prior to the Second Amendment Effective Date, and be reasonably satisfied in form and substance with, all documentation and other information with respect to the Joinder Parties required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including but not restricted to the USA Patriot Act and the Anti-Terrorism Laws.

 

2.8                               Corporate Structure. The Borrowers shall have delivered the necessary supplements to Schedule 5.13 of the Credit Agreement as required by Section 5.13 of the Credit Agreement.

 

2.9                               Consummation of the Offshore Acquisition.  Prior to or substantially simultaneously with the Second Amendment Effective Date, the Emerald Acquisition (other than the Investment in Okeanos contemplated by the Emerald PSA II) and Panther Acquisition will be consummated in accordance with applicable law and the terms of the Emerald PSA I and Panther PSA, as applicable, in all material respects.  The Administrative Agent shall have received full and complete copies of all material documents relating to the Panther Acquisition and the portion of the Emerald Acquisition to be consummated as of the Second Amendment Effective Date

 

15

 

including an executed copy of the Emerald PSA I and Panther PSA which shall be in form and substance reasonably satisfactory to the Administrative Agent.

 

2.10                        Financial Information. The Administrative Agent shall have received (a) pro forma projected financial information regarding the Emerald Acquisition and Panther Acquisition, (b) audited financial statements with respect to each of Destin, Okeanos, Tri-States and Wilprise for the fiscal year ended December 31, 2014 and (c) such historical financial information with respect to the Panther Acquisition as shall be delivered to the Borrowers in connection with the Panther Acquisition, in each case, in form and substance reasonably satisfactory to the Administrative Agent.

 

2.11                        Equity Contribution. After March 31, 2016 and on or prior to the Second Amendment Effective Date, the AMID Borrower shall have received at least $115,000,000 in cash proceeds from the issuance or sale of Equity Interests in the form of common units or other qualified preferred equity of the Parent (in the case of qualified preferred equity, on terms reasonably satisfactory to the Administrative Agent), which net cash proceeds are applied, on the Second Amendment Effective Date, to finance in part the portion of the Offshore Acquisition to be consummated as of the Second Amendment Effective Date.

 

2.12                        Representations and Warranties; No Default; Pro Forma Compliance. The Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower Representative certifying that as of the Second Amendment Effective Date (A) before and after giving effect to the portion of the Offshore Acquisition to be consummated as of the Second Amendment Effective Date, the representations and warranties contained in Article V of the Credit Agreement and the other Loan Documents are true and correct on and as of the Second Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement; (B) no Default or Event of Default exists and is continuing; and (C) the financial covenants contained in Section 7.19 of the Credit Agreement are satisfied on a pro forma basis after giving effect to this Amendment and the portion of the Offshore Acquisition to be consummated as of the Second Amendment Effective Date.

 

2.13                        Fees. The Administrative Agent, on behalf of each of the Arrangers and each of the Lenders, shall have received all fees and other amounts due and payable on or prior to the Second Amendment Effective Date, including (A) to the extent invoiced, reimbursement or payment of all out of pocket expenses required to be reimbursed or paid by the Borrowers under the Credit Agreement and (B) all upfront fees payable for the account of the Lenders due and payable under the Fee Letter, dated as of April 12, 2016 (the “Fee Letter”), by and among the Borrowers, Parent, Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated.

 

2.14                        Other Documents.  The Administrative Agent and the Collateral Agent shall have received such other documents as the Administrative Agent, the Collateral Agent or special counsel to the Administrative Agent or Collateral Agent may reasonably request.

 

16

 

Section 3.                                          Miscellaneous.

 

3.1                               Confirmation.  The provisions of the Loan Documents, as amended by this Amendment, shall remain in full force and effect in accordance with their terms following the effectiveness of this Amendment.

 

3.2                               Ratification and Affirmation; Representations and Warranties.  Each of the undersigned does hereby adopt, ratify, and confirm each Loan Document to which it is a party, as amended hereby, and its obligations thereunder.  Each of the Loan Parties hereby (a) acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein and (b) represents and warrants to the Lenders that:  (i) as of the date hereof, after giving effect to the terms of this Amendment, all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (except for such representations and warranties that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (except for such representations and warranties that have a materiality or Material Adverse Effect qualification, which shall be true and correct in all respects) as of such specified earlier date as supplemented or subject to such qualifications as are set forth in the applicable Schedule(s) as of the Second Amendment Effective Date and (ii) (A) as of the date hereof, no Default has occurred and is continuing and (B) immediately after giving effect to this Amendment, no Default will have occurred and be continuing.

 

3.3                               Loan Document.  This Amendment and each agreement, instrument, certificate or document executed by the Borrowers or any of their respective officers in connection therewith are “Loan Documents” as defined and described in the Credit Agreement and all of the terms and provisions of the Loan Documents relating to other Loan Documents shall apply hereto and thereto.

 

3.4                               Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

3.5                               NO ORAL AGREEMENT.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

 

3.6                               GOVERNING LAW.  THIS AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE

 

17

 

GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

3.7                               FATCA. For purposes of determining withholding Taxes imposed under FATCA, from and after the Second Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Credit Agreement (as amended hereby) and the Loans as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

[signature pages follow]

 

18

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first written above.

 

	
 
    	
AMERICAN   MIDSTREAM PARTNERS, LP,
    
	
 
    	
 
    	
By:   American Midstream GP, LLC, its sole general partner
    
	
 
    	
AMERICAN   MIDSTREAM, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM FINANCE CORPORATION,
    
	
 
    	
AMERICAN   MIDSTREAM MARKETING, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (ALABAMA GATHERING), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (ALABAMA INTRASTATE), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (ALATENN), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (LOUISIANA INTRASTATE), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (MIDLA), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (MISSISSIPPI), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (SIGCO INTRASTATE), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM (TENNESSEE RIVER), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM ONSHORE PIPELINES, LLC,
    
	
 
    	
MID   LOUISIANA GAS TRANSMISSION, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM OFFSHORE (SEACREST), LP,
    
	
 
    	
 
    	
By:   American Midstream, LLC, its general partner
    
	
 
    	
AMERICAN   MIDSTREAM (BURNS POINT), LLC,
    
	
 
    	
AMERICAN   MIDSTREAM CHATOM, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM CHATOM UNIT 1, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM CHATOM UNIT 2, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM MADISON, LLC,
    
	
 
    	
HIGH   POINT GAS TRANSMISSION HOLDINGS, LLC,
    
	
 
    	
HIGH   POINT GAS TRANSMISSION, LLC,
    
	
 
    	
HIGH   POINT GAS GATHERING HOLDINGS, LLC,
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
HIGH   POINT GAS GATHERING, L.L.C. ,
    
	
 
    	
AMERICAN   MIDSTREAM (LAVACA), LLC,
    
	
 
    	
CENTANA   GATHERING, LLC,
    
	
 
    	
CENTANA   OIL GATHERING, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM REPUBLIC, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM COSTAR, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM GAS SOLUTIONS, LP,
    
	
 
    	
 
    	
By:   American Midstream Gas Solutions GP, LLC, its general partner
    
	
 
    	
AMERICAN   MIDSTREAM GAS SOLUTIONS GP, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM GAS SOLUTIONS LP, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM BAKKEN, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM PERMIAN, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM EAST TEXAS RAIL, LLC,
    
	
 
    	
AMERICAN   MIDSTREAM DELTA HOUSE, LLC
    
	
 
    	
AMERICAN   MIDSTREAM MESQUITE, LLC
    
	
 
    	
AMERICAN   MIDSTREAM TRANSTAR GAS PROCESSING, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel C. Campbell
    
	
 
    	
Name:
    	
Daniel   C. Campbell
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BLACKWATER   INVESTMENTS, INC.,
    
	
 
    	
AMERICAN   MIDSTREAM BLACKWATER, LLC,
    
	
 
    	
BLACKWATER   MIDSTREAM CORP.,
    
	
 
    	
BLACKWATER   GEORGIA, L.L.C.,
    
	
 
    	
BLACKWATER   HARVEY, LLC,
    
	
 
    	
BLACKWATER   MARYLAND, L.L.C.,
    
	
 
    	
BLACKWATER   NEW ORLEANS, L.L.C.   ,
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel C. Campbell
    
	
 
    	
Name:
    	
Daniel   C. Campbell
    
	
 
    	
Title:
    	
Executive   Vice President
    
				

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
as Administrative Agent   and Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin L. Ahart
    
	
 
    	
Name:
    	
Kevin   L. Ahart
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Adam H. Fey
    
	
 
    	
Name:
    	
Adam   H. Fey
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
ABN   AMRO CAPITAL USA LLC,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Darrell Holley
    
	
 
    	
Name:
    	
Darrell   Holley
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kaylan Hopson
    
	
 
    	
Name:
    	
Kaylan   Hopson
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
BARCLAYS   BANK PLC,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ronnie Glenn
    
	
 
    	
Name:
    	
Ronnie   Glenn
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
BNP   PARIBAS,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vincent Trapet
    
	
 
    	
Name:
    	
Vincent   Trapet
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sriram Chandrasekaran
    
	
 
    	
Name:
    	
Sriram   Chandrasekaran
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
CADENCE   BANK, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William W. Brown
    
	
 
    	
Name:
    	
William   W. Brown
    
	
 
    	
Title:
    	
Executive   Vice President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
CAPITAL   ONE, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Victor Ponce de Leon
    
	
 
    	
Name:
    	
Victor   Ponce de Leon
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
CITIBANK,   N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas Benavides
    
	
 
    	
Name:
    	
Thomas   Benavides
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
COMERICA   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Garrett R. Merrell
    
	
 
    	
Name:
    	
Garrett   R. Merrell
    
	
 
    	
Title:
    	
Relationship   Manager
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
COMPASS   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark H. Wolf
    
	
 
    	
Name:
    	
Mark   H. Wolf
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
DEUTSCHE   BANK AG — NEW YORK BRANCH,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shai Bandner
    
	
 
    	
Name:
    	
Shai   Bandner
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Susana Fornies
    
	
 
    	
Name:
    	
Susana   Fornies
    
	
 
    	
Title:
    	
Assistant   Vice President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
BANK MIDWEST,   A DIVISION OF NBH BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ben W. Suh
    
	
 
    	
Name:
    	
Ben   W. Suh
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
NATIXIS,   NEW YORK BRANCH,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Carlos Quinteros
    
	
 
    	
Name:
    	
Carlos   Quinteros
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jarrett C. Price
    
	
 
    	
Name:
    	
Jarrett   C. Price
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
ROYAL   BANK OF CANADA,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jay T. Sartain
    
	
 
    	
Name:
    	
Jay   T. Sartain
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
SANTANDER   BANK, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   George Louis McKinley
    
	
 
    	
Name:
    	
George   Louis McKinley
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Puiki Lok
    
	
 
    	
Name:
    	
Puiki   Lok
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
SUNTRUST   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shannon Juhan
    
	
 
    	
Name:
    	
Shannon   Juhan
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
UBS   AG, STAMFORD BRANCH
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Darlene Arias
    
	
 
    	
Name:
    	
Darlene   Arias
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Craig Pearson
    
	
 
    	
Name:
    	
Craig   Pearson
    
	
 
    	
Title:
    	
Associate   Director
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

 

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jacob L. Osterman
    
	
 
    	
Name:
    	
Jacob   L. Osterman
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

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