Targa Resources Investments Inc. Restricted Stock Agreement



 Exhibit 10.16 
 TARGA RESOURCES INVESTMENTS INC. 
 RESTRICTED STOCK AGREEMENT 
 This RESTRICTED STOCK AGREEMENT (this “Agreement”) is made as of the __ day of ___________, 200_ (the “Date of Issue”),
between TARGA RESOURCES INVESTMENTS INC., a Delaware corporation (the “Company”), and _______________ (the “Employee”). 
 1. Award. Pursuant to the TARGA RESOURCES INVESTMENTS INC. 2005 STOCK INCENTIVE PLAN (the “Plan”), as of the Date of Issue, ___________
(            ) shares (the “Restricted Shares”) of the Company’s common stock, par value $0.001 per share, shall be issued as hereinafter provided in the
Employee’s name subject to certain restrictions thereon. The Restricted Shares shall be issued upon acceptance hereof by the Employee and upon satisfaction of the conditions of this Agreement. The Employee acknowledges receipt of a copy of the
Plan and of the Stockholders’ Agreement (as defined below), and agrees that this award of Restricted Shares shall be subject to all of the terms and provisions of the Plan and the Stockholders’ Agreement, including future amendments
thereto, if any, pursuant to the respective terms thereof. 
 2. Definitions. For purposes of this Agreement, the following
capitalized words and terms shall have the meanings indicated below: 
 (a) “Committee” shall mean the committee that administers
the Plan or, if a committee has not been appointed under the Plan, the Board of Directors of the Company. 
 (b) “Stockholders’
Agreement” shall mean that certain Amended and Restated Stockholders’ Agreement dated as of October 28, 2005, among the Company and the other parties thereto, including any later dated Addendum Agreement pursuant to which Employee is
a party thereto, as the same may be amended from time to time. 
 3. Restricted Shares. The Employee hereby accepts the
Restricted Shares when issued and agrees with respect thereto as follows: 
 (a) Stockholders’ Agreement; Forfeiture
Restrictions. The Restricted Shares shall be subject to the terms of the Stockholders’ Agreement, including without limitation the provisions of Sections 4.1 and 4.2 thereof. The Employee agrees that (i) the Employee and the
Employee’s spouse, if any, will, upon request of the Company, execute and deliver to the Company such documents and instruments as the Board of Directors, in its discretion, may require to evidence such persons’ agreement to be bound by
the terms of the Stockholders’ Agreement, (ii) the Employee shall be deemed to be a “Management Stockholder” thereunder and (iii) the Restricted Shares shall be deemed to be “Management Stock” thereunder. For
purposes of this Agreement, the repurchase options and forfeiture provisions to which the Restricted Shares are subject pursuant to Section 4.2 of the Stockholders’ Agreement are herein referred to as the “Forfeiture
Restrictions.” The Forfeiture Restrictions shall be binding upon and enforceable against any transferee of Restricted Shares as provided in the Stockholders’ Agreement. In the event of any conflict between the terms of this Agreement and
the Stockholders’ Agreement (except to the extent this Agreement imposes additional restrictions or obligations on Employee), the provisions of the Stockholders’ Agreement shall control. 







 (b) Certificates. A certificate evidencing the Restricted Shares shall be issued by the
Company in the Employee’s name, pursuant to which the Employee shall have all of the rights of a stockholder of the Company with respect to the Restricted Shares, including, without limitation, voting rights and the right to receive dividends
(provided, however, that dividends paid in shares of the Company’s stock shall be subject to the Stockholders’ Agreement, including without limitation the Forfeiture Restrictions; and further provided that dividends that are paid other
than in shares of the Company’s stock shall be paid no later than the end of the calendar year in which the dividend for such class of stock is paid to stockholders of such class or, if later, the 15th day of the third month following the date
the dividend is paid to stockholders of such class of stock). The Employee may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Restricted Shares unless (i) such sale, transfer, pledge, exchange, hypothecation, or
disposition is approved of in writing by the Company and (ii) such sale, transfer, pledge, exchange, hypothecation, or disposition is made in accordance with the Stockholders’ Agreement. The certificate shall be delivered upon issuance to
the Secretary of the Company or to such other depository as may be designated by the Committee as a depository for safekeeping until the forfeiture or repurchase of such Restricted Shares occurs or the Forfeiture Restrictions lapse pursuant to the
terms of the Plan, this Agreement and the Stockholders’ Agreement. Upon the lapse of the Forfeiture Restrictions without forfeiture, the Company shall cause a new certificate or certificates to be issued without legend (except for any legend
required pursuant to applicable securities laws or any other agreement to which the Employee is a party or otherwise required pursuant to the Stockholders’ Agreement) in the name of the Employee in exchange for the certificate evidencing the
Restricted Shares. 
 (c) Corporate Acts. The existence of the Restricted Shares shall not affect in any way the right or power
of the Board of Directors of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of
the Company, any issue of debt or equity securities, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding. 

4. Withholding of Tax; Taxes. To the extent that the receipt of the Restricted Shares or the lapse of any Forfeiture Restrictions
results in compensation income or wages to the Employee for federal, state or local tax purposes, the Employee shall deliver to the Company at the time of such receipt or lapse, as the case may be, such amount of money as the Company may require to
meet its minimum obligation under applicable tax laws or regulations, and if the Employee fails to do so, the Company is authorized to withhold from any cash or stock remuneration (including withholding any Restricted Shares distributable to the
Employee under this Agreement) then or thereafter payable to the Employee any tax required to be withheld by reason of such resulting compensation income or wages. The Employee acknowledges and agrees that the Company is making no representation or
warranty as to the tax consequences to the Employee as a result of the receipt of the Stock, the lapse of any Forfeiture Restrictions or the repurchase of any stock pursuant to the Forfeiture Restrictions. 
  

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 5. Status of Stock. The Employee agrees that the Restricted Shares issued under this
Agreement will not be sold or otherwise disposed of in any manner that would constitute a violation of the terms and provisions of the Stockholders’ Agreement or any applicable federal or state securities laws. The Employee also agrees that
(i) the certificates representing the Restricted Shares may bear such legend or legends as the Committee deems appropriate in order to reflect the Forfeiture Restrictions and to assure compliance with the terms and provisions of the
Stockholders’ Agreement and applicable securities laws, (ii) the Company may refuse to register the transfer of the Restricted Shares on the stock transfer records of the Company if such proposed transfer would, in the opinion of counsel
satisfactory to the Company, constitute a violation of the terms and provisions of the Stockholders’ Agreement, including without limitation the Forfeiture Restrictions, or any applicable securities law, and (iii) the Company may give
related instructions to its transfer agent, if any, to stop registration of the transfer of the Restricted Shares. 
 6. Employment
Relationship. For purposes of this Agreement, the Employee shall be considered to be in the employment of the Company as long as the Employee remains an Employee, Director or Consultant (each as defined in the Plan) of either the Company or
an Affiliate (as such term is defined in the Plan). Without limiting the scope of the preceding sentence, it is specifically provided that the Employee shall be considered to have terminated employment with the Company at the time of the termination
of the “Affiliate” status under the Plan of the entity or other organization that employs the Employee. Nothing in the adoption of the Plan, nor the award of the Restricted Shares thereunder pursuant to this Agreement, shall confer upon
the Employee the right to continued employment by the Company or affect in any way the right of the Company to terminate such employment at any time. Unless otherwise provided in a written employment agreement or by applicable law, the
Employee’s employment by the Company shall be on an at-will basis, and the employment relationship may be terminated at any time by either the Employee or the Company for any reason whatsoever, with or without cause. Any question as to whether
and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Committee, and its determination shall be final. 
 7. Notices. Any notices or other communications provided for in this Agreement shall be sufficient if in writing. In the case of the Employee, such notices or communications shall be effectively
delivered if hand delivered to the Employee at his principal place of employment or if sent by registered or certified mail to the Employee at the last address the Employee has filed with the Company. In the case of the Company, such notices or
communications shall be effectively delivered if sent by registered or certified mail to the Company at its principal executive offices. 
 8. Entire Agreement; Amendment. This Agreement, together with the Stockholders’ Agreement, replaces and merges all previous agreements and discussions relating to the same or similar subject matters between the Employee
and the Company and constitutes the entire agreement between the Employee and the Company with respect to the subject matter of this Agreement. This Agreement may not be modified in any respect by any verbal statement, representation or agreement
made by any employee, officer, or representative of the Company or by any written agreement unless signed by an officer of the Company who is expressly authorized by the Company to execute such document and agreed to by the Company and the Employee.

  

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 9. Binding Effect. This Agreement shall be binding upon and inure to the benefit of any
successors to the Company and all persons lawfully claiming under the Employee. 
 10. Controlling Law. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of law principles thereof. 
  

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 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer
thereunto duly authorized, and the Employee has executed this Agreement, all as of the date first above written. 
  

			
	TARGA RESOURCES INVESTMENTS INC.
		
	By:	 	 
	Name: 	 	 
	Title: 	 	 


  

	
	  
	[Employee]


  

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