UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

 
FORM 8-K

 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of report (date of earliest event reported): February 5, 2014

 
AMERICAN MIDSTREAM PARTNERS, LP
(Exact name of registrant as specified in its charter)

 

Delaware	 	001-35257	 	27-0855785	
(State or other jurisdiction
of incorporation)	 	(Commission
File No.)	 	(IRS Employer
Identification No.)	

1614 15th Street, Suite 300
Denver, Colorado	 	 
80202	
(Address of principal executive offices)	 	(Zip Code)	
 
(720) 457-6060
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

o	Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b))	

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

 
Item 1.01 Entry into a Material Definitive Agreement.
 
Warrant to Purchase Common Units
 
On February 5, 2014, High Point Infrastructure Partners, LLC (“HPIP”), American Midstream Partners, LP (the “Partnership”) and American Midstream GP, LLC (the “General Partner”) entered into a settlement (the “Settlement”) with AIM Midstream Holdings, LLC (“AIM”) regarding the action filed in Delaware Chancery Court by AIM against HPIP, the Partnership and the General Partner, pursuant to which AIM sought rescission of the Partnership’s August 2013 equity restructuring agreement between the parties (the “Equity Restructuring”), or, in the alternative, monetary damages. Under the Settlement, among other things:
 
·       HPIP and AIM agreed to enter into an amendment to the limited liability company agreement of the General Partner (the “LLC Amendment”) to, among other things, amend the Sharing Percentages (as defined therein) such that HPIP’s sharing percentage thereafter shall be 95% and AIM’s Sharing Percentage shall be 5%;
 
·       HPIP agreed to transfer all of the 85.02% of the Partnership’s outstanding Incentive Distribution Rights held by HPIP to the General Partner such that the General Partner will, immediately after the transfer, own 100% of the outstanding Incentive Distribution Rights; and
 
·       the Partnership issued to AIM a warrant to purchase up to 300,000 common units of the Partnership at an exercise price of $0.01 per common unit (the “Warrant”), which Warrant, among other terms, (i) is exercisable at any time on or after February 8, 2014 until the tenth anniversary of February 5, 2014, (ii) contains cashless exercise provisions and (iii) contains customary anti-dilution and other protections.
 
The Partnership had previously issued a warrant similar to the Warrant in connection with the Equity Restructuring, but such warrant was subsequently cancelled pending resolution of the Equity Restructuring dispute. The description of the Warrant contained herein is not complete and is qualified in its entirety by reference to the full text of the Warrant, which is filed as Exhibit 10.1 hereto and incorporated by reference herein. The description of the LLC Amendment contained herein is not complete and is qualified in its entirety by reference to the full text of the LLC Amendment, which is filed as Exhibit 3.1 hereto and incorporated by reference herein.
 
Item 3.02 Unregistered Sales of Equity Securities.
 
Warrant Issuance
 
The information regarding the issuance of the Warrant set forth in Item 1.01 is incorporated in its entirety herein by reference.  The Partnership issued the Warrant pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended.
 
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Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
 
Amendment of General Partner LLC Agreement in Connection with Settlement
 
The information regarding the issuance of the Warrant set forth in Item 1.01 is incorporated in its entirety herein by reference.
 
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Item 9.01	 	Financial Statements and Exhibits.	
 
(d) Exhibits.

Exhibit Number	 	Description	
 	 	 	
3.1	 	Amendment No. 1 to Second Amended and Restated Agreement Limited Liability Company Agreement of American Midstream GP, LLC dated February 5, 2014	
10.1	 	Warrant to Purchase Common Units of American Midstream Partners, LP dated February 5, 2014	
 
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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	AMERICAN MIDSTREAM PARTNERS, LP	
 	 	 	
 	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	
 
February 7, 2014
 
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EXHIBITS INDEX

Exhibit Number	 	Description	
 	 	 	
3.1	 	Amendment No. 1 to Second Amended and Restated Agreement Limited Liability Company Agreement of American Midstream GP, LLC dated February 5, 2014	
10.1	 	Warrant to Purchase Common Units of American Midstream Partners, LP dated February 5, 2014	
 
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Exhibit 3.1
 
AMENDMENT NO. 1 TO
 
SECOND AMENDED AND RESTATED AGREEMENT
 
LIMITED LIABILITY COMPANY AGREEMENT
 
OF
 
AMERICAN MIDSTREAM GP, LLC
 
This Amendment No. 1 (this “ Amendment ”) to the Second Amended and Restated Limited Liability Company of American Midstream GP, LLC (the “ Company ”), dated as of April 15, 2013 (the “ LLC Agreement ”), is hereby adopted effective as of February 5, 2014, by and between High Point Infrastructure Partners, LLC, a Delaware limited liability company (“ HPIP ”), and AIM Midstream Holdings, LLC, a Delaware limited liability company (“ AIM Midstream Holdings ”). HPIP and AIM Midstream Holdings shall be referred to collectively herein as the “ Parties .”  Capitalized terms used but not defined herein have the meaning given such terms in the LLC Agreement.
 
WHEREAS , HPIP, as holder of 100% of the issued and outstanding Class A membership interests of the Company, and AIM Midstream Holdings, as holder of 100% of the issued and outstanding Class B membership interests of the Company, collectively own all of the issued and outstanding membership interests of the Company;
 
WHEREAS , Section 14.5 of the LLC Agreement provides that the LLC Agreement may be amended or restated only by a written instrument approved by the Board of Directors of the Company (the “ Board ”);
 
WHEREAS , Section 14.5 of the LLC Agreement further provides that the Board shall not amend or restate the LLC Agreement without the prior written consent of the Class B Members if such amendment or restatement would (i) alter the method of division of profits and losses or a method of distributions made to the Class B Members, (ii) increase or extend any financial obligation or liability of the Class B Members, or (iii) materially and adversely affect the rights and privileges of the Class B Members in relation to the Class A Members under the LLC Agreement;
 
WHEREAS , the Parties have entered into that certain Stipulation and Agreement of Compromise, Settlement and Release, dated as of February 5, 2014, pursuant to which, among other things, the parties have agreed to amend certain provisions of the LLC Agreement as set forth below in this Amendment; and
 
WHEREAS , the Board has approved this Amendment.
 
NOW THEREFORE , the Parties do hereby amend the LLC Agreement as follows:
 
Section 1 .                                           Section 3.1(f)  of the LLC Agreement is hereby amended and restated in its entirety as follows:
 
SECTION 3.1                                              Membership Interests; Additional Members.
 
(f)                                    Additional Person(s) may be admitted to the Company as a Member(s) in exchange for such consideration and upon such other terms and conditions, in each case as determined by the Board in good faith. The terms of admission or issuance must specify the Sharing Percentages

 
applicable thereto and may provide for the creation of different classes or groups of Members having different rights, powers and duties, including rights, powers and duties that are senior in preference to existing Members. The Board may reflect the creation of any new class or group in an amendment to this Agreement indicating the different rights, powers and duties, and such an amendment shall be deemed approved and executed by the Members. Any such admission is effective only after such new Member has executed and delivered to the Members and the Company an instrument containing the notice address of the new Member and such new Member’s ratification of this Agreement and agreement to be bound by it. Upon the admission of a new Member, Exhibit A will be updated to reflect such admission. Notwithstanding the foregoing, no additional Membership Interest shall be issued to HPIP or any of its Affiliates without (i) the prior written consent of AIM Midstream Holdings, which consent shall not be unreasonably withheld or denied, or (ii) offering the Class B Members a right to participate in such issuance on a proportionate basis to the Class B Members’ Sharing Percentage at the lower of (A) the price at which the Membership Interests are being issued to HPIP or its Affiliate or (B) the fair market value of such Membership Interests (it being agreed that any price of a Membership Interest issued to an Affiliate of HPIP in which a third party owns an interest shall be presumed to be fair market value). In addition, except with respect to the Company’s exercise of the preemptive rights provided to the Company pursuant to the Partnership Agreement, no Class A Member shall take any action, and shall cause the Board and any officer(s) not to take any action, that would result in the issuance of any security of the Partnership to an Affiliate of HPIP, the issuance of which would have a disproportionate adverse effect on the Class B Members as compared to the Class A Members, without (i) the approval of the Conflicts Committee or (ii) the prior written consent of AIM Midstream Holdings, which consent shall not be unreasonably withheld or denied.
 
Section 2 .                                           Section 5.4 of the LLC Agreement is hereby amended and restated in its entirety as follows:
 
SECTION 5.4                                              Distributions.
 
Except as otherwise provided in Section 12.2 , cash may be distributed at such time and in such amounts as the Board of Directors of the Company (the “ Board ”) shall determine to the Members in accordance with their respective Sharing Percentages. Such distributions shall be made concurrently to the Members (or their Assignees) as reflected on the books of the Company on the date set for purposes of such distribution; provided , however , that within 50 days following the end of each Quarter, an amount equal to 100% of Available Cash with respect to such Quarter shall be distributed in accordance with this Article V to all Members simultaneously pro rata in accordance with each Member’s Sharing Percentage (at the time the amounts of such distributions are determined). Notwithstanding any other provision of this Agreement, in no event shall the aggregate amount of distributions with respect to the Class B Membership Interest exceed an amount equal to (i) $40,000,000, plus (ii) two times the amount of any Capital Contributions made by AIM Midstream Holdings to the Company on or after January 31, 2014.
 
Section 3 .                                           Section 9.4(b)  of the LLC Agreement is hereby amended and restated in its entirety as follows:
 
SECTION 9.4                                              Resolution of Conflicts of Interest; Standards of Conduct and Modification of Duties.
 
(b)                                  Whenever the Board makes a determination or takes or declines to take any other action, or any of its Affiliates causes it to do so, whether under this Agreement, any Group Member
 
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Agreement or any other agreement contemplated hereby or otherwise, then, unless another express standard is provided for in this Agreement, the Board, or such Affiliates causing it to do so, shall make such determination or take or decline to take such other action in good faith and shall not be subject to any other or different standards (including fiduciary standards) imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Act or any other law, rule or regulation or at equity. Whenever the Conflicts Committee makes a determination or takes or declines to take any other action, it shall make such determination or take or decline to take such other action in good faith and shall not be subject to any other or different standards (including fiduciary standards) imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Act or any other law, rule or regulation or at equity. In order for a determination or other action to be in “good faith” for purposes of this Agreement, the Person or Persons making such determination or taking or declining to take such other action must believe that the determination or other action is in the best interests of the Partnership.
 
Section 4 .                                           Section 13.7(a)  of the LLC Agreement is hereby amended and restated in its entirety as follows:
 
(a)                                  The Company shall have the right and option to purchase all, but not less than all, of the Class B Membership Interest, by delivery of a written notice (the “ Call Notice ”) to the Class B Member at any time, and such Class B Member and such Class B Member’s Transferees (the “ Call Group ”) shall be required to sell all of the Class B Membership Interest owned by the Call Group at the time the Company exercises such option (collectively, the “ Call Securities ”), at an aggregate price equal to (i) $40,000,000, plus (ii) two times the amount of any Capital Contributions made by AIM Midstream Holdings to the Company on or after January 31, 2014, less (iii) any amounts distributed with respect to the Class B Membership Interest (the “ Call Price ”); provided , that if the Call Price equals zero, the Class B Membership Interest will be cancelled by the Company and deemed to be terminated.
 
Section 5 .                                           Article XIII of the LLC Agreement is hereby amended to add a new Section 13.10 as follows:
 
SECTION 13.10                                Transfer of Incentive Distribution Rights.
 
The Company shall not transfer any incentive distribution rights of the Partnership (the “ Incentive Distribution Rights ”) to HPIP or an Affiliate of HPIP (it being understood that members of the Partnership Group (as defined in the Partnership Agreement) shall not be considered Affiliates of HPIP for purposes of this Section 13.10 ) without (i) the prior written consent of AIM Midstream Holdings, which consent shall not be unreasonably withheld or delayed, or (ii) offering the Class B Members a right to participate in such transfer on a proportionate basis to the Class B Members’ Sharing Percentage at the lower of (A) the price at which the Incentive Distribution Rights are being transferred to HPIP or an Affiliate of HPIP or (B) the fair market value of such Incentive Distribution Rights (it being agreed that any price of a transfer of Incentive Distribution Rights to an Affiliate of HPIP in which a third party owns an interest shall be presumed to be fair market value).
 
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Section 6 .                                           Article XIV of the LLC Agreement is hereby amended to add a new Section 14.12 as follows:
 
SECTION 14.12                                Confidentiality.
 
The Members agree that all non-public information related to the business, financial condition or prospects of the Company, the Partnership and their Subsidiaries and Affiliates, including any information related to a prospective investment or equity issuance by the Company, the Partnership or their Subsidiaries or Affiliates, shall be considered confidential, shall be kept confidential and shall not be disclosed by a Member to any Person that is not a Member until the date that is two years after the disclosure of such confidential information by the Company or the Partnership to such Member, except such information may be disclosed by such Member: (i) to an Affiliate of such Member; (ii) to the extent such information is required to be furnished in compliance with Applicable Law, or pursuant to any legal proceedings or because of any order of any Governmental Authority binding upon such Member; (iii) to representatives, agents and counsels employed or engaged by such Member where disclosure of such information is essential to such representative’s, agent’s or counsel’s work for such Member; (iv) to a bona fide prospective transferee of such Member’s Membership Interest to the extent appropriate in order to allow the assessment of such Membership Interest (including a Person with whom a Member and/or its Affiliates are conducting bona fide negotiations directed toward a merger, consolidation or the sale of majority ownership of the Member or an Affiliate); (v) to a bona fide prospective investor in such Member to the extent appropriate in order to allow the assessment of such investment opportunity; and (vi) to the extent such information: (a) through no fault of such Member, is, was or becomes a part of the public domain; (b) is, was or becomes available to such Member on a non-confidential basis from a source other than the Company or the Partnership, which source represents that it had the right to disseminate such information at the time it was acquired by such party; or (c) is third party non-public information that is, was or becomes available to such party from a source other than the Company or the Partnership; provided , however , that, with respect to clauses (iii), (iv) and (v) above, prior to such disclosure, the disclosing Member has obtained a written undertaking from the recipient to keep the information strictly confidential until the date that is two years after the disclosure of such confidential information by the Company or the Partnership to such Member (unless the recipient is subject to legal obligations of confidentiality providing protections similar to those set forth above).  The restrictions set forth in this Section 14.12 do not apply to any disclosure made by a Member to an existing or bona fide prospective investor in such Member of the terms of its investment in the Company and the performance of that investment.
 
Section 7 .                                           Exhibit A of the LLC Agreement is hereby amended and restated in its entirety as follows

MEMBER	 	CLASS A
MEMBERSHIP
INTEREST	 	CLASS B
MEMBERSHIP
INTEREST	 	SHARING
PERCENTAGE	 	CAPITAL
CONTRIBUTION	 	CAPITAL
ACCOUNT
BALANCE	 	
High Point Infrastructure Partners, LLC	 	100	%	 	 	95	%	$	21,949,066	 	$	21,949,066	 	
AIM Midstream Holdings, LLC	 	 	 	100	%	5	%	$	1,155,214	 	$	1,155,214	 	
 
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Section 8 .                                           Except as hereby amended, the LLC Agreement shall remain unchanged and unmodified and in full force and effect.
 
Section 9 .                                           This Amendment shall be governed by, and interpreted in accordance with, the laws of the State of Delaware, all rights and remedies being governed by such laws without regard to principles of conflicts of laws.
 
Section 10.                                    Whenever possible, each provision or portion of any provision of this Amendment will be interpreted in such manner as to be effective and valid under applicable law, but if any provision or portion of any provision of this Amendment is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Amendment will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.
 
[Signature page follows]
 
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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the effective date written above.

 	 HIGH POINT INFRASTRUCTURE PARTNERS, LLC	

 	By:	/s/ Daniel R. Revers	
 	 Name:	Daniel R. Revers	
 	 Title:	President	

 	 AIM MIDSTREAM HOLDINGS, LLC	

 	By:	/s/ Robert B. Hellman, Jr.	
 	 Name:	Robert B. Hellman, Jr.	
 	 Title:	Managing Member	
 
Signature Page to Amendment No. 1

Exhibit 10.1
 
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.
 
WARRANT TO PURCHASE COMMON UNITS OF
 
AMERICAN MIDSTREAM PARTNERS, LP

February 5, 2014	300,000 Common Units	
 
This Warrant certifies that, for value received, AIM Midstream Holdings, LLC, or its registered assigns (collectively, the “ Holder ”), are entitled to purchase from American Midstream Partners, LP, a Delaware limited partnership (the “ Partnership ”), up to 300,000 common units representing limited partner interests in the Partnership (the “ Common Units ”) for an exercise price of $0.01 per Common Unit (the “ Exercise Price ”). This Warrant shall be exercisable as of and from February 8, 2014 until the tenth anniversary of the date hereof.
 
As used herein, the term “ Warrant Exercised Units ” refers to the Common Units issuable upon exercise of this Warrant.  “Common Units” shall mean the common units of the Partnership, which, for the avoidance of doubt shall not include the Partnership’s Series A Preferred Units, Series B Units, or other similar units issued by the Partnership hereafter.  Terms used but not defined in this Warrant are defined in the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership dated August 9, 2013, as amended (the “ Fourth 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 (i) may be exercised by the Holder, in whole or in part, on or after the date hereof and (ii) must be exercised by the Holder, in whole, if a Series A Change of Control occurs, in each case 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).  Payment of the Exercise Price shall be made by the Holder in cash, by wire transfer of immediately available funds,  by certified or official bank check or pursuant to the Conversion Right (defined below).
 
In lieu of the payment of the Exercise Price in cash, by wire transfer of immediately available funds,  by certified or official bank check, Holder shall have the right (but not the obligation), to require the Partnership to convert this Warrant, in whole or in part, into Common Units (the “ Conversion Right ”).  Upon exercise of the Conversion Right, the Partnership shall deliver to Holder (without payment by Holder of any of the Exercise Price) that number of Warrant Exercised Units equal to the number Common Units set forth on any Exercise Agreement less a number of common units equal to the quotient obtained by dividing (x) the aggregate Exercise Price for the number of Common Units set forth on the Exercise Agreement by (y) the closing trading price of one (1) Common Unit on the day immediately prior to the exercise of the Conversion Right. The Warrant Exercised Units so purchased or converted 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, the completed Exercise Agreement delivered and payment (by means of wire transfer of immediately available funds,  by certified or official bank check or pursuant to the Conversion Right)  made for such Warrant Exercised Units as aforesaid.

 
If this Warrant has been exercised in part, the Partnership shall, at the time of delivery of the acknowledgement reflecting the ownership of the Warrant Exercised Units, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Common Units called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant, or, at the request of Holder, appropriate notation may be made on this Warrant and the same returned to Holder.
 
Section 2.                                            Certain Actions Prohibited .  The Partnership will not, by amendment of the Fourth 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 immediately exercisable) 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
 
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immediately after such subdivision or combination, 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 any provision of this Section 3 , 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)                                    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(f)(ii) ) would require an increase or decrease of at least 1% in such Exercise Price.
 
(g)                                   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 Fourth A/R Partnership 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.  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
 
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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 which 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 as of the date hereof and as of the date of any exercise hereof that:
 
1.                                       The Partnership is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware.
 
2.                                       The Warrant has been duly authorized, validly issued and is a valid and binding obligation of the Partnership, enforceable against the Partnership in accordance with the terms hereof (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)).
 
3.                                       All Warrant Exercised Units have been duly authorized and 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).
 
4.                                       The issuance of the Warrant does not, and the issuance of the Warrant Exercised Units upon exercise of the Warrant will not, conflict with (i) the Partnership’s certificate of limited partnership, (ii) the Fourth A/R Partnership Agreement, (iii) any other agreement of the Partnership or (iv) any applicable laws (except in the case of clauses (iii) and (iv) for such conflict that would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the condition (financial or other), results of operations, unitholders’ equity, properties or business of the Partnership).
 
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5.                                       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 Sections 5.2 and 5.8 of the Fourth 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 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 16 th  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 5th day of February, 2014.

 	AMERICAN MIDSTREAM PARTNERS, LP	
 	 	
 	By:	 American Midstream GP, LLC,	
 	 	its general partner	

 	By:	/s/ Stephen W. Bergstrom	
 	Name:	Stephen W. Bergstrom	
 	Title:	President and Chief Executive Officer	

Signature Page to Warrant

 
FORM OF EXERCISE AGREEMENT
 
Dated:

To:	American Midstream Partners, LP	
 	1614 15th Street, Suite 300	
 	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, herewith makes payment in full for such Common Units by
 
cash, by wire transfer of immediately available funds,  by certified or official bank check or certified or official bank check
 
[          ] Common Units pursuant to the Conversion Right
 
The undersigned requests that 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.