Document:

Exhibit

Exhibit 10.24

American Midstream GP, LLC
Long-Term Incentive Plan
Grant of Phantom Units 

Grantee: 
Grant Date:  

		
	1.
	Grant of Phantom Units.  American Midstream GP, LLC (the “Company”), general partner of American Midstream Partners, LP (the “Partnership”) hereby grants to you, [_________________], a target award of [___] Performance-Based Phantom Units (the “Target Award”) under the American Midstream GP, LLC Long-Term Incentive Plan (the “Plan”) on the terms and conditions set forth herein and in the Plan, which is incorporated herein by reference as a part of this Agreement (“Agreement” or “Grant Agreement”).  In the event of any conflict between the terms of this Agreement and the Plan, the Plan shall control.  Capitalized terms used in this Agreement but not defined herein shall have the meanings ascribed to such terms in the Plan, unless the context requires otherwise. 

 
		
	2.
	Vesting.  Subject to your continuous employment with the Company or any subsidiary thereof or other entity controlled by the Company (each, a “Subsidiary”) through such date and the provisions of Section 4 below, the Phantom Units granted hereunder shall vest fully on the sooner of (1) the closing date of a Change in Control, or (2) [____________] (such date, as applicable, the “Vesting Date”).  “Change in Control” shall have the meaning assigned to such term in the Plan, except that, for the avoidance of doubt, a Change in Control shall also be deemed to have occurred if the Partnership acquires 50% or more of the combined voting power of the equity interests in the Company or upon an underwritten public offering of the equity interests of the Company or a respective successor entity that is registered under the Securities Act of 1933, as amended, following which ArcLight Capital Partners, LLC and its Affiliates no longer control the management of the Company.

		
	3.
	Performance Multiplier

The Target Award shall be subject to a performance multiplier (the “Multiplier”) based on the Fair Market Value of a Unit on the Vesting Date. This Multiplier shall be equal to [__________].  The Target Award will be multiplied by the Multiplier and the product will be the final “Award” that is subject to settlement as described below.
As illustration of the Multiplier is attached as Exhibit A for informational purposes only.
		
	4.
	Events Occurring Prior to Full Vesting.  

		
	(a)
	Termination for Cause or Resignation for Any Reason. If your employment is terminated by the Company or any Subsidiary for Cause or by you for any reason prior to the Vesting Date, all Phantom Units granted hereunder shall be forfeited without payment upon such termination.  

For purposes of this provision, “Cause” means you have (A) engaged in gross negligence in the performance of your duties; (B) engaged in willful misconduct in the performance of your duties resulting in a material detriment to the Company or the Partnership; (C) unlawfully used (including being under the influence of) or possessed illegal drugs on the Company’s (or any Affiliate’s) premises or while performing duties or responsibilities; (D) committed a material act of fraud or embezzlement against the Company, its Affiliates, or any of their respective equityholders; (E) been convicted of (or pleaded guilty or no contest to) a felony, other than a non-injury vehicular offense, that could be reasonably expected to reflect unfavorably and materially on the Company; or (F) materially breached or violated any provision of any material written company policy that has been previously provided or made available you.
		
	(b)
	Death or Disability.  If your employment with the Company or any Subsidiary terminates as a result of your death or Total and Permanent Disability prior to the Vesting Date, the Award will become fully vested 

1     

Exhibit 10.24

upon the Vesting Date.  For purposes of this Agreement, your “Total and Permanent Disability” means that you are qualified for long-term disability benefits under the Company’s long-term disability plan or insurance policy; or, if no such plan or policy is then in existence or you are not eligible to participate in such plan or policy, that you, because of a physical or mental condition resulting from bodily injury, disease, or mental disorder, are unable to perform your duties of employment for a period of six (6) continuous months, as determined in good faith by the Committee.
		
	(c)
	Termination without Cause Within Specified Time Period.  If your employment is terminated without Cause on or after [_______] and prior to the consummation of a Change in Control, the Award shall, subject to your not engaging in any action that disparages, undermines, or otherwise damages the Company, vest on either the date of termination of employment or the Vesting Date that would otherwise apply absent such a termination, as determined in the sole discretion of the Committee, and such date shall thereafter be considered the “Vesting Date” for purposes of the Award.  

		
	(d)
	Other Terminations.  If your employment terminates for any reason other than as provided in Paragraph 4(a), 4(b) or 4(c) above, all Phantom Units granted hereunder shall be forfeited without payment upon such termination.

For purposes of this Paragraph 4, you will not be deemed to have terminated employment for so long as you maintain continuous status as an Employee of the Company or any Subsidiary.
		
	5.
	Payment.   As administratively practicable after the Vesting Date, but not later than seven days thereafter, you shall be paid a lump sum payment in Units equal to the number of vested Phantom Units subject to your final Award.  Notwithstanding the foregoing, however, the Committee may, in its sole discretion, direct that payment be made to you in the form of cash (in lieu of Units) for each vested Phantom Unit subject to your final Award.  

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

		
	7.
	Restrictions. By accepting this grant, you agree that any Units that you may acquire upon payment of this Award will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws.  You also agree that (i) any certificates representing the Units acquired under this Award may bear such legend or legends as the Committee deems appropriate in order to assure compliance with applicable securities laws and any restrictions set forth in this Agreement, (ii) the Company may refuse to register the transfer of the Units to be acquired under this Award on the transfer records of the Partnership if such proposed transfer would in the opinion of counsel satisfactory to the Partnership constitute a violation of any applicable securities law, and (iii) the Partnership may give related instructions to its transfer agent, if any, to stop registration of the transfer of the Units to be acquired under this Award.

		
	8.
	Withholding of Taxes.  To  the extent that the grant, vesting or payment of any amounts pursuant to this Award results in the receipt of compensation by you with respect to which the Company or an Affiliate has a tax withholding obligation pursuant to applicable law, unless other arrangements have been made by you that are acceptable to the Company or such Affiliate, you shall deliver to the Company or the Affiliate such amount of money as the Company or the Affiliate may require to meet its withholding obligations under such applicable law.  If you fail to do so, the Company is authorized to withhold from any cash or Unit remuneration (including withholding any Units to be distributed to you under this Agreement) then or thereafter payable to you any tax required to be withheld by reason of such resulting compensation income.  No payment of a vested Phantom Unit shall be made pursuant to this Agreement until you have paid or made arrangements approved by the Company or the Affiliate to satisfy in full the applicable tax withholding requirements of the Company or Affiliate with respect to such event.    

2     

Exhibit 10.24

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

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

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

		
	12.
	Entire Agreement.  This Agreement and the Plan constitute the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the Award granted hereby.  

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

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

American Midstream GP, LLC

                

By:                            
Lynn L. Bourdon, III
President, Chairman of the Board & Chief Executive Officer 

“GRANTEE”

                                            
                

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Exhibit 10.24

Exhibit A

Sample Award Calculations

The following sample calculations are provided for illustrative purposes only.  The market price of the common units of the Partnership on the applicable Vesting Date may differ materially from the examples shown below.  All samples assume continuous employment with the Company through the Vesting Date

[_____________]

4Exhibit

Exhibit 10.25

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

	Grant Date:
	[ ]

	Exercise Price Per Unit:
	$[ ]

	Units Subject to the Option:
	[ ]

	Final Expiration Date:
	[ ]

	Vesting Schedule:
	[ ]

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

Exhibit 10.25

Exhibit A
UNIT PURCHASE OPTION AGREEMENT
Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.
ARTICLE 1.
GENERAL
1.1 Grant of Option. The Company has granted to Participant the Option effective as of the grant date set forth in the Grant Notice (the "Grant Date").
1.2 Incorporation of Terms of Plan. The Option is subject to the terms and conditions set forth in this Agreement and the Plan, which are incorporated herein by reference. Notwithstanding any provision of the Plan to the contrary, in no event will any amendment to the Plan materially and adversely affect the Participant's rights with respect to the Option without the Participant's consent. In addition, in no event will the Committee take the action described in Section 6(h)(vii)(E) of the Plan unless, in connection with the applicable transaction or circumstance, the Committee accelerates the vesting of the Option and notifies and allows the Participant a reasonable period of time to exercise the Option prior to the closing or occurrence of such transaction or circumstance (and allows the Participant to make any applicable election with respect to the underlying Units in such transaction or circumstance (a "Transaction Election")). Any accelerated vesting in connection with the foregoing sentence may be conditioned on the closing or occurrence of the applicable transaction or circumstance, provided that in all events the Participant shall have the right to make any applicable Transaction Election.
ARTICLE 11.
PERIOD OF EXERCISABILITY
2.1 Commencement of Exercisability. The Option will vest and become exercisable according to the vesting schedule in the Grant Notice.
2.2 Duration of Exercisability. Any portion of the Option which vests and becomes exercisable will remain vested and exercisable until the Option expires. The Option will be forfeited immediately upon its expiration.
2.3 Expiration of Option. The Option may not be exercised to any extent by anyone after, and will expire on, the final expiration date in the Grant Notice.
ARTICLE 111.
EXERCISE OF OPTION
3.1 Person Eligible to Exercise. During Participant's lifetime, only Participant may exercise the Option.
3.2 Manner of Exercise. To exercise the Option, Participant must deliver a written exercise notice to the Company, in such form as may be prescribed by the Committee, along with payment in full of the exercise price for the portion of the Option being exercised in cash or by check acceptable to the Company, provided that at Participant's election he may pay the exercise price in a "cashless-broker" exercise through a program approved by the Company or with the withholding of Units that would otherwise be delivered to the Participant upon the exercise of the Option.
3.3 Partial Exercise. The Option, if exercisable, may be exercised, in whole or in part, according to the procedures in the Plan at any time prior to the time the Option expires, except that the Option may only be exercised for whole Units.
3.4 Tax Withholding. To the extent that the exercise of the Option results in the receipt of compensation by Participant with respect to which the Company or an Affiliate has a tax withholding obligation pursuant to applicable 

Exhibit 10.25

law, unless other arrangements have been made by Participant that are acceptable to the Company or such Affiliate for the satisfaction of such withholding obligations, Participant shall deliver to the Company or the Affiliate such amount of money as the Company or the Affiliate may require to meet its withholding obligations under such applicable law. If Participant fails to do so, the Company is authorized to withhold from any cash or Unit remuneration (including withholding any Units to be issued upon exercise of the Option) then or thereafter payable to Participant any tax required to be withheld by reason of such resulting compensation income. No Units shall be issued pursuant to this Agreement until Participant has paid or made arrangements approved by the Company or the Affiliate to satisfy in full the applicable tax withholding requirements of the Company or Affiliate with respect to such event.
ARTICLE N.
OTHER PROVISIONS
4.1 Adjustments. Participant acknowledges that the Option is subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan.
4.2 Notices. Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company's General Counsel at the Company's principal office or the General Counsel's then-current email address or facsimile number. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant at Participant's last known mailing address, email address or facsimile number in the Company's personnel files. By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party. Any notice will be deemed duly given when actually received, when sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post office regularly maintained by the United States Postal Service, when delivered by a nationally recognized express shipping company or upon receipt of a facsimile transmission confirmation.
4.3 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
4.4 Conformity to Securities Laws. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all applicable laws and, to the extent applicable laws permit, will be deemed amended as necessary to conform to applicable laws.
4.5 Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
4.6 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the Option will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent applicable laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.
4.7 Entire Agreement. The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.
4.8 Agreement Severable. In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.
4.9 Limitation on Participant's Rights. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any 

Exhibit 10.25

assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Option, and rights no greater than the right to receive the Units as a general unsecured creditor with respect to the Option, as and when exercised pursuant to the terms hereof.
4.10 Not a Contract of Employment. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company, AMID or their Affiliates or interferes with or restricts in any way the rights of the Company, AMID or their Affiliates, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company, AMID or their Affiliates and Participant.
4.11 Insider Trading Policy. The terms of the Company's Insider Trading Policy with respect to Units are incorporated herein by reference.
4.12 Counterparts. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to applicable laws, each of which will be deemed an original and all of which together will constitute one instrument.
4.13 Modifications. Except as provided below, any modification of this Agreement shall be effective only if it is in writing and signed by both you and an authorized officer of the Company.
4.14 Governing Law. This grant shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.

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