ex10-22.htm


    Exhibit
10.22

     

    
 

    Targa Resources, Inc. 2010
Annual Incentive Plan Description

    


    On
February 9, 2010, the Compensation Committee (the “Committee”) of the
Board of Directors (the “Board”) of Targa
Resources Investments Inc. (“Targa Investments”), the indirect parent of Targa
Resources, Inc. (the “Company”), approved the Targa Investments 2010 Annual
Incentive Compensation Plan (the “Bonus
Plan”).  The Bonus Plan is a discretionary annual cash bonus
plan available to all of the Company’s employees, including its executive
officers.  The purpose of the Bonus Plan is to reward employees for
contributions toward the Company’s business priorities (including business
priorities of Targa Resources Partners LP) approved by the Committee and to aid
the Company in retaining and motivating employees.  Under the Bonus
Plan, funding of a discretionary cash bonus pool is expected to be recommended
by the Company’s chief executive officer (the “CEO”) and approved by
the Committee based on the Company’s achievement of certain strategic, financial
and operational objectives (or “business priorities”).  The Bonus Plan
is approved by the Committee, which considers certain recommendations by the
CEO. Near or following the end of the year, the CEO recommends to the Committee
the total amount of cash to be allocated to the bonus pool based upon the
overall performance of the Company relative to these objectives, generally
ranging from 0 to 2x the total target bonus for the employees in the pool. Upon
receipt of the CEO’s recommendation, the Committee, in its sole discretion,
determines the total amount of cash to be allocated to the bonus
pool.  Additionally, the Committee, in its sole discretion, determines
the amount of the cash bonus award to each of the Company’s executive officers,
including the CEO. The executive officers determine the amount of the cash bonus
pool to be allocated to the Company’s departments, groups and employees (other
than the executive officers of the Company) based on performance and upon the
recommendation of their supervisors, managers and line officers.

     

    The
Committee has established the following nine key business priorities for
2010:

    


    
      	
               
      

            	
              ·

            	
              continue
      to control all operating, capital and general and administrative
      costs,

            


    

    
      	
               
      

            	
              ·

            	
              invest
      in our businesses primarily within existing cash
  flow,

            


    

    
      	
               
      

            	
              ·

            	
              continue
      priority emphasis and strong performance relative to a safe
      workplace,

            


    

    
      	
               
      

            	
              ·

            	
              reinforce
      business philosophy and mindset that promotes environmental and regulatory
      compliance,

            


    

    
      	
               
      

            	
              ·

            	
              continue
      to tightly manage the Downstream Business’ inventory
    exposure,

            


    

    
      	
               
      

            	
              ·

            	
              execute
      on major capital and development projects, such as finalizing
      negotiations, completing projects on time and on budget, and optimizing
      economics and capital funding,

            


    

    
      	
               
      

            	
              ·

            	
              pursue
      selected opportunities including new shale play gathering and processing
      build-outs, other fee-based capex projects and potential purchases of
      strategic assets,

            


    

    
      	
               
      

            	
              ·

            	
              pursue
      commercial and financial approaches to achieve maximum value and manage
      risks, and

            


    

    
      	
               
      

            	
              ·

            	
              execute
      on all business dimensions, including the financial business
      plan.

            


    

    


    The
Committee has targeted a total cash bonus pool for achievement of the business
priorities based on the sum of individual employee market-based target
percentages ranging from approximately 3% to 50% of each employee’s eligible
earnings.  Generally, eligible earnings are an employee’s base salary
and overtime pay.  The Committee has discretion to adjust the cash
bonus pool attributable to the business priorities based on accomplishment of
the applicable objectives as determined by the Committee and the
CEO.  Funding of the Company’s cash bonus pool and the payment of
individual cash bonuses to employees are subject to the sole discretion of the
Committee.