Document:

Microsoft Corporation 2001 Stock Plan

 Exhibit 10.1 
 MICROSOFT CORPORATION 
 2001 STOCK PLAN 

(as amended and restated effective as of December 13, 2011) 

1. Purpose of the Plan. The purposes of this Stock Plan are to attract and retain the best available individuals for
positions of substantial responsibility, to provide additional incentive to such individuals, and to promote the success of the Company’s business by aligning the financial interests of Employees and Consultants providing personal services to
the Company or to any Parent or Subsidiary of the Company with long-term shareholder value. 
 Awards granted hereunder
may be Incentive Stock Options, Nonqualified Stock Options, Stock Awards, or SARs, at the discretion of the Board and as reflected in the terms of the Award Agreement. 

2. Definitions. As used herein, the following definitions shall apply: 

(a) “Award” shall mean any award or benefits granted under the Plan, including Options, Stock Awards, and SARs.

 (b) “Award Agreement” shall mean a written or electronic agreement between the Company and the Awardee
setting forth the terms of the Award. 
 (c) “Awardee” shall mean the holder of an outstanding Award.

 (d) “Board” shall mean (i) the Board of Directors of the Company or (ii) both the Board and
the Committee, if a Committee has been appointed in accordance with Section 4(a) of the Plan. 
 (e)
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (f) “Committee”
shall mean the Compensation Committee appointed by the Board of Directors in accordance with Section 4(a) of the Plan, if one is appointed; provided, however, if the Board of Directors appoints more than one Committee pursuant to
Section 4(a), then “Committee” shall refer to the appropriate Committee, as indicated by the context of the reference. 
 (g) “Common Shares” shall mean the common shares of Microsoft Corporation. 
 (h) “Company” shall mean Microsoft Corporation, a Washington corporation and any successor thereto. 
 (i) “Consultant” shall mean any person, except an Employee, engaged by the Company or any Parent or Subsidiary of the Company, to render personal services to such entity, including as an advisor.

 (j) “Continuous Status as a Participant” shall mean (1) for Employees, the absence of any
interruption or termination of service as an Employee, and (2) for Consultants, the absence of any interruption, expiration, or termination of such person’s consulting or advisory relationship with the Company or the occurrence of any
termination event as set forth in such person’s Award Agreement. Continuous Status as a Participant shall not be considered interrupted (i) for an Employee in the case of sick leave, maternity leave, infant care leave, medical emergency
leave, military leave, or any other leave of absence for which Continuous Status is not considered interrupted in accordance with the Company’s policies on such matters, and (ii) for a Consultant, in the case of any temporary interruption
in such person’s availability to provide services to the Company which has been authorized in writing by a Vice President of the Company prior to its commencement. 

  
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 (k) “Conversion Options” shall mean the Options described in
Section 6(c) of the Plan. 
 (l) “Employee” shall mean any person, including an officer, who is a
common law employee of, receives remuneration for personal services to, is reflected on the official human resources database as an employee of, and is on the payroll of the Company or any Parent or Subsidiary of the Company. A person is on the
payroll if he or she is paid from the payroll department of the Company, or any Parent or Subsidiary of the Company. Persons providing services to the Company, or to any Parent or Subsidiary of the Company, pursuant to an agreement with a staff
leasing organization, temporary workers engaged through or employed by temporary or leasing agencies, and workers who hold themselves out to the Company, Parent, or Subsidiary to which they are providing services as being independent contractors, or
as being employed by or engaged through another company while providing the services are not Employees for purposes of this Plan, whether or not such persons are, or may be reclassified by the courts, the Internal Revenue Service, the U. S.
Department of Labor, or other person or entity as, common law employees of the Company, Parent, or Subsidiary, either solely or jointly with another person or entity. 

(m) “Effective Date” shall mean January 1, 2001. 

(n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(o) “Incentive Stock Option” shall mean any Option intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code. 
 (p) “Maximum Annual Participant Award” shall have the meaning
set forth in Section 5(b). 
 (q) “Nonqualified Stock Option” shall mean an Option not intended to
qualify as an Incentive Stock Option. 
 (r) “Option” shall mean a stock option granted pursuant to
Section 6 of the Plan. 
 (s) “Parent” shall mean a “parent corporation,” whether now or
hereafter existing, as defined in Section 424(e) of the Code. 
 (t) “Participant” shall mean an
Employee or Consultant. 
 (u) “Plan” shall mean this 2001 Stock Plan, including any amendments thereto.

 (v) “Share” shall mean one Common Share, as adjusted in accordance with Section 14 of the Plan.

 (w) “SAR” shall mean a stock appreciation right awarded pursuant to Section 8 of the Plan.

 (x) “Stock Award” shall mean a grant of Shares or of a right to receive Shares or their cash
equivalent (or both) pursuant to Section 7 of the Plan. 
 (y) “Subsidiary” shall mean (i) in
the case of an Incentive Stock Option a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, and (ii) in the case of a Nonqualified Stock Option, a Stock Award or an SAR, with the
approval of the Board, Committee or other person authorized to administer the Plan in accordance with Section 4 of the Plan, a limited liability company, partnership or other entity in which the Company controls 50 percent or more of the voting
power or equity interests. 

  
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 3. Shares Subject to the Plan. Subject to the provisions of Sections 14
and 16 of the Plan, the maximum aggregate number of Shares (increased, proportionately, in the event of any stock split, stock dividend or similar event with respect to the Shares) which may be awarded and delivered under the Plan shall not exceed
the sum of (a) any Shares available for future awards, as of the Effective Date, under the Microsoft Corporation 1991 Stock Option Plan, as amended (“1991 Stock Plan”) and (b) any Shares that are represented by awards under the
1991 Stock Plan which, after the Effective Date, are forfeited, expire, are cancelled without delivery of Shares, or otherwise result in the return of Shares to the Company, minus (c) 100,000,000 Shares (unadjusted for any stock split or stock
dividend with respect to the Shares). The Shares may be authorized, but unissued, or reacquired Common Shares. 
 Subject
to the provisions of the following sentence, if an Award should expire or become unexercisable for any reason without having been exercised in full, the undelivered Shares which were subject thereto shall, unless the Plan shall have been terminated,
become available for future Awards under the Plan. Notwithstanding anything to the contrary contained herein, any Awards of Options that are transferred to a third party pursuant to a program under which the holder of certain Options may transfer
such Options to such third party in exchange for cash or other consideration, shall be removed from the Plan and the Shares subject to such Awards shall not be available for regrant under the Plan regardless of whether the transferred Options are
exercised or expire without exercise. 
 4. Administration of the Plan. 

(a) Procedure. The Plan shall be administered by the Board of Directors of the Company. 

(i) The Board of Directors may appoint one or more Committees each consisting of not less than two members of the Board of
Directors to administer the Plan on behalf of the Board of Directors, subject to such terms and conditions as the Board of Directors may prescribe. Once appointed, such Committees shall continue to serve until otherwise directed by the Board of
Directors. 
 (ii) From time to time the Board of Directors may increase the size of the Committee(s) and appoint
additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, or fill vacancies however caused. 
 (iii) The Committee(s) appointed to administer the Plan on behalf of the Board of Directors may delegate its authority to administer the Plan to the extent provided in the charter for the Committee(s) or a
resolution of the Board. 
 (b) Powers of the Board. Subject to the provisions of the Plan, the Board shall have
the authority, in its discretion: (i) to grant Incentive Stock Options, Nonqualified Stock Options, Stock Awards, and SARs; (ii) to determine, in accordance with Section 11(b) of the Plan, the fair market value of the Shares;
(iii) to determine, in accordance with Section 11(a) of the Plan, the exercise price per share of Awards to be granted; (iv) to determine the Participants to whom, and the time or times at which, Awards shall be granted and the number
of Shares to be represented by each Award; (v) to interpret the Plan and the terms of Awards; (vi) to prescribe, amend, and rescind rules and regulations relating to the Plan; including the form of Award Agreement, and manner of acceptance
of an Award, (vii) to determine the terms and provisions of each Award to be granted (which need not be identical) and, with the consent of the Awardee, modify or amend any Award; (viii) to authorize conversion or substitution under the
Plan of any or all Conversion Options; (ix) to accelerate or defer (with the consent of the Awardee) the vesting or exercise date of any Award; (x) to authorize any person to execute on behalf of the Company any instrument required to
effectuate the grant of an Award previously granted by the Board; and (xi) to make all other determinations deemed necessary or advisable for the administration of the Plan; provided that, no consent of an Awardee is necessary under
clauses (vii) or (ix) if the modification, amendment, acceleration, or deferral, in the reasonable judgment of the Board confers a benefit on the Awardee, or is made pursuant to an adjustment in accordance with Section 14. 

  
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 The Board may, but need not, determine that an award shall vest or be granted subject to the
satisfaction of one or more performance goals. Performance goals for awards will be determined by the Compensation Committee of the Board and will be designed to support the business strategy, and align executives’ interests with customer and
shareholder interests. For awards that are intended to qualify as performance-based compensation under Section 162(m), performance goals will be based on one or more of the following business criteria: sales or licensing volume, revenues,
customer satisfaction, expenses, organizational health/productivity, earnings (which includes similar measurements such as net profits, operating profits and net income, and which may be calculated before or after taxes, interest, depreciation,
amortization or taxes), margins, cash flow, shareholder return, return on equity, return on assets or return on investments, working capital, product shipments or releases, brand or product recognition or acceptance and/or stock price. These
criteria may be measured: individually, alternatively or in any combination; with respect to the Company, a subsidiary, division, business unit, product line, product or any combination of the foregoing; on an absolute basis, or relative to a
target, to a designated comparison group, to results in other periods or to other external measures; and including or excluding items that could affect the measurement, such as extraordinary or unusual and nonrecurring gains or losses, litigation or
claim judgments or settlements, material changes in tax laws, acquisitions or divestitures, the cumulative effect of accounting changes, asset write-downs, restructuring charges, or the results of discontinued operations. 

(c) Effect of Board’s Decision. All decisions, determinations, and interpretations of the Board shall be final and
binding on all Participants and Awardees. 
 5. Eligibility. 

(a) Awards may be granted to Participants and to persons to whom offers of employment as an Employee have been extended; provided
that Incentive Stock Options may only be granted to Employees. For avoidance of doubt, directors are not eligible to participate in the Plan unless they are Employees or Consultants. 

(b) The maximum number of Shares with respect to which an Award or Awards may be granted to any Participant in any one taxable year
of the Company (the “Maximum Annual Participant Award”) shall not exceed 20,000,000 Common Shares for Options or SARs, or 5,000,000 shares for Stock Awards (increased, in both cases proportionately, in the event of any stock split, stock
dividend or similar event with respect to the Shares). If an Option is in tandem with an SAR, such that the exercise of the Option or SAR with respect to a Share cancels the tandem SAR or Option right, respectively, with respect to each Share, the
tandem Option and SAR rights with respect to each Share shall be counted as covering but one Share for purposes of the Maximum Annual Participant Award. 
 6. Options. 
 (a) Each Option shall be designated in the written or electronic
option agreement as either an Incentive Stock Option or a Nonqualified Stock Option. However, notwithstanding such designations, to the extent that the aggregate fair market value of the Shares with respect to which Options designated as Incentive
Stock Options are exercisable for the first time by any Employee during any calendar year (under all plans of the Company) exceeds $100,000, such Options shall be treated as Nonqualified Stock Options. 

(b) For purposes of Section 6(a), Options shall be taken into account in the order in which they were granted, and the fair
market value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 

  
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 (c) Options converted or substituted under the Plan for any or all outstanding stock
options and stock appreciation rights held by employees, consultants, advisors or other option holders granted by entities subsequently acquired by the Company or a subsidiary or affiliate of the Company (“Conversion Options”) shall be
effective as of the close of the respective mergers into, or acquisitions of such entities by, the Company or a subsidiary or affiliate of the Company; provided that such Conversion Options may not be exercised during any periods that may be
specified by the Company immediately following the close of the merger or acquisition necessary to ensure compliance with applicable law. The Conversion Options may be Incentive Stock Options or Nonqualified Stock Options, as determined by the
Committee; provided, however, that stock appreciation rights in the acquired entity shall only be converted to or substituted with Nonqualified Stock Options. The Conversion Options shall be options to purchase the number of Common Shares determined
by multiplying the number of shares of the acquired entity’s common stock underlying each such stock option or stock appreciation right immediately prior to the closing of such merger or acquisition by the number specified in the applicable
merger or acquisition agreement for conversion of each share of such entity’s common stock to a Common Share (the “Merger Ratio”), rounded down to the closest whole share. Such Conversion Options shall be exercisable at an exercise
price per Common Share (increased to the nearest whole cent) equal to the exercise price per share of the acquired entity’s common stock under each such stock option or stock appreciation right immediately prior to closing divided by the Merger
Ratio. No fractional Common Shares will be issued upon exercise of Conversion Options. In lieu of such issuance, the Common Shares issued pursuant to each such exercise shall be rounded to the closest whole Share. Conversion Options may be granted
and exercised without the issuance of an Award Agreement. 
 7. Stock Awards. 

(a) Stock Awards may be granted either alone, in addition to, or in tandem with other Awards granted under the Plan. After the
Committee determines that it will offer a Stock Award, it will advise the Awardee in writing or electronically, by means of an Award Agreement, of the terms, conditions and restrictions, including vesting, if any, related to the offer, including the
number of Shares that the Awardee shall be entitled to receive or purchase, the price to be paid, if any, and, if applicable, the time within which the Awardee must accept the offer. The offer shall be accepted by execution of an Award Agreement in
the manner determined by the Committee; provided that Shares may be issued to an Awardee under a fully vested Stock Award without the issuance of an Award Agreement. 

(b) Unless the Committee determines otherwise, the Award Agreement shall provide for the forfeiture of the non-vested Common Shares
underlying such Stock Award upon the Awardee ceasing to be a Participant. To the extent that the Awardee purchased the Shares granted under such Stock Award and any such Shares remain non-vested at the time the Awardee ceases to be a Participant,
the cessation of Participant status shall cause an immediate sale of such non-vested Shares to the Company at the original price per Common Share paid by the Awardee. 

8. SARs. 
 (a) The Committee shall have the full power and authority, exercisable in its sole discretion, to grant SARs to selected Awardees. The Committee is authorized to grant both tandem stock appreciation rights
(“Tandem SARs”) and stand-alone stock appreciation rights (“Stand-Alone SARs”) as described below. 

  
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 (b) Tandem SARs. 

(i) Awardees may be granted a Tandem SAR, exercisable upon such terms and conditions as the Committee shall establish, to elect
between the exercise of the underlying Section 6 Option for Common Shares or the surrender of the Option in exchange for a distribution from the Company in an amount equal to the excess of (A) the fair market value (on the Option surrender
date) of the number of Shares in which the Awardee is at the time vested under the surrendered Option (or surrendered portion thereof) over (B) the aggregate exercise price payable for such vested Shares. 

(ii) No such Option surrender shall be effective unless it is approved by the Committee, either at the time of the actual Option
surrender or at any earlier time. If the surrender is so approved, then the distributions to which the Awardee shall become entitled under this Section 8(b) may be made in Common Shares valued at fair market value on the Option surrender date,
in cash, or partly in Shares and partly in cash, as the Committee shall deem appropriate. 
 (iii) If the surrender of an
Option is not approved by the Committee, then the Awardee shall retain whatever rights he or she had under the surrendered Option (or surrendered portion thereof) on the Option surrender date and may exercise such rights at any time prior to the
later of (A) five (5) business days after the receipt of the rejection notice or (B) the last day on which the Option is otherwise exercisable in accordance with the terms of the instrument evidencing such Option, but in no event may
such rights be exercised more than ten (10) years after the date of the Option grant. 
 (c) Stand-Alone SARs.

 (i) An Awardee may be granted a Stand-Alone SAR not tied to any underlying Option under Section 6 of the Plan.
The Stand-Alone SAR shall cover a specified number of Common Shares and shall be exercisable upon such terms and conditions as the Committee shall establish. Upon exercise of the Stand-Alone SAR, the holder shall be entitled to receive a
distribution from the Company in an amount equal to the excess of (A) the aggregate fair market value (on the exercise date) of the Common Shares underlying the exercised right over (B) the aggregate base price in effect for those Shares.

 (ii) The number of Common Shares underlying each Stand-Alone SAR and the base price in effect for those Shares shall
be determined by the Committee at the time the Stand-Alone SAR is granted. In no event, however, may the base price per Share be less than the fair market value per underlying Common Share on the grant date. 

(iii) The distribution with respect to an exercised Stand-Alone SAR may be made in Common Shares valued at fair market value on
the exercise date, in cash, or partly in Shares and partly in cash, as the Committee shall deem appropriate. 
 (d) The
Common Shares underlying any SARs exercised under this Section 8 shall not be available for subsequent issuance under the Plan. 
 9. Term of Plan. The Plan shall become effective as of the Effective Date. It shall continue in effect until terminated under Section 17 of the Plan. 

10. Term of Award; Limitations on Vesting and Repricing. 

(a) The term of each Award shall be no more than ten (10) years from the date of grant. However, in the case of an Incentive
Stock Option granted to a Participant who, at the time the Option is granted, owns Shares representing more than ten percent (10%) of the voting power of all classes of shares of the Company or any Parent or Subsidiary, the term of the Option
shall be no more than five (5) years from the date of grant. 

  
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 (b) Each Award shall vest over a period of not less than three (3) years from
the date of grant, provided that Awards covering up to 50,000,000 shares (increased, proportionately, in the event of any stock split, stock dividend or similar event) may be granted without regard to the 3-year vesting restriction; provided
further, that Conversion Options and awards that are granted or vest based on performance goals or that vest in less than three (3) years based on death, disability, or retirement shall not count toward the limit of this Section 10(b).

 (c) No Award may be repriced, replaced, regranted through cancellation, or modified without approval of the
shareholders of the Company (except in connection with an adjustment pursuant to Section 14) if the effect would be to reduce the exercise price for the Shares underlying such Award. 

11. Exercise Price and Consideration. 

(a) The per Share exercise price under each Award shall be such price as is determined by the Board, subject to the following:

 (i) In the case of an Incentive Stock Option 

(A) granted to an Employee who, at the time of the grant of such Incentive Stock Option, owns shares representing more than ten
percent (10%) of the voting power of all classes of shares of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the fair market value per Share on the date of grant. 

(B) granted to any other Employee, the per Share exercise price shall be no less than 100% of the fair market value per Share on
the date of grant. 
 (ii) Except for Conversion Options under Section 6(c), the per Share exercise price under a
Nonqualified Stock Option or SAR shall be no less than seventy-five percent (75%) of the fair market value per Share on the date of grant. Notwithstanding the foregoing (or any other provision of the Plan), Options and SARs that are granted to
Employees who are non-exempt for purposes of the FLSA, shall satisfy the requirements for exclusion from regular rate of pay for purposes of the FLSA and shall have an exercise price that is at least eighty-five percent (85%) of the fair market
value of the underlying Shares at the time of grant; furthermore, such Options or SARs shall not be exercisable within the six (6) month period immediately following the date of grant, except, if so provided in the Award Agreement, in the event
of the Awardee’s death, disability, or retirement, upon a change in corporate control of the Company, or under such other circumstances as are permitted under the FLSA or rules and regulations thereunder. 

(iii) The maximum aggregate number of Shares underlying all Nonqualified Stock Options and SARs with a per Share exercise price of
less than fair market value on any grant date that may be granted under this Plan is 50,000,000 Shares (increased, proportionately, in the event of any stock split, or stock dividend or similar event with respect to the Shares); provided that
Conversion Options shall not count against the limit of this Section 11(a)(iii). 
 (b) The fair market value per
Share shall be the closing price per share of the Common Share on the Nasdaq Stock Market (“Nasdaq”) on the date of grant. If the Shares cease to be listed on Nasdaq, the Board shall designate an alternative method of determining the fair
market value of the Shares. 
 (c) The consideration to be paid for the Shares to be issued upon exercise of an Award,
including the method of payment, shall be determined by the Board at the time of grant and may consist of cash and/or check. Payment may also be made by delivering a properly executed exercise notice together with irrevocable instructions to a
broker to promptly deliver to the Company the amount of sale proceeds necessary to pay the exercise price. If the Awardee is an officer of the Company within the 

  
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meaning of Section 16 of the Exchange Act, the officer may, in addition, be allowed to pay all or part of the purchase price with Shares which, as of the exercise date, the officer has owned
for six (6) months or more. If the Awardee is a participant in the 1998 Microsoft Corporation Stock Option Gain And Bonus Deferral Program, he may in addition be allowed to pay all or part of the purchase price of any deferred Option with
Shares. Shares used by officers to pay the exercise price shall be valued at their fair market value on the exercise date. 
 (d) Prior to issuance of the Shares upon exercise of an Award, the Awardee shall pay any federal, state, and local income and employment tax withholding obligations applicable to such Award. If an Awardee is an
officer of the Company within the meaning of Section 16 of the Exchange Act, he may elect to pay such withholding tax obligations by having the Company withhold Shares having a value equal to the amount required to be withheld, and any Award
under the Plan may permit or require that such withholding tax obligations be paid by having the Company withhold Shares having a value equal to the amount required to be withheld. The value of the Shares to be withheld shall equal the fair market
value of the Shares on the day the Award is exercised. The right of an officer to dispose of Shares to the Company in satisfaction of withholding tax obligations shall be deemed to be approved as part of the initial grant of an Award, unless
thereafter rescinded, and shall otherwise be made in compliance with Rule 16b-3 and other applicable regulations, and any Award under the Plan may permit or require that such withholding tax obligations be paid by having the Company withhold Shares
having a value equal to the amount required to be withheld. 
 12. Exercise of Award. 

(a) Procedure for Exercise; Rights as a Shareholder. Any Award granted hereunder shall be exercisable at such times and
under such conditions as determined by the Board at the time of grant, and as shall be permissible under the terms of the Plan. 
 An Award may not be exercised for a fraction of a Share. 
 An Award shall be deemed to
be exercised when written or electronic notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is
exercised has been received by the Company. Full payment may, as authorized by the Board, consist of any consideration and method of payment allowable under Section 11(c) of the Plan. Until the issuance (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company) of the share certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares
subject to the Award, notwithstanding the exercise of the Award. The Company shall issue (or cause to be issued) such share certificate promptly upon exercise of the Award. In the event that the exercise of an Award is treated in part as the
exercise of an Incentive Stock Option and in part as the exercise of a Nonqualified Stock Option pursuant to Section 6(a), the Company shall issue a share certificate evidencing the Shares treated as acquired upon the exercise of an Incentive
Stock Option and a separate share certificate evidencing the Shares treated as acquired upon the exercise of a Nonqualified Stock Option, and shall identify each such certificate accordingly in its share transfer records. No adjustment will be made
for a dividend or other right for which the record date is prior to the date the share certificate is issued, except as provided in Section 14 of the Plan. 

Exercise of an Award in any manner and delivery of the Shares subject to such Award shall result in a decrease in the number of
Shares which thereafter may be available, both for purposes of the Plan and for sale under the Award, by the number of Shares as to which the Award is exercised. 

(b) Termination of Status as a Participant. In the event of termination of an Awardee’s Continuous Status as a
Participant, such Awardee may exercise his or her rights under any outstanding Awards to the extent exercisable on the date of termination (but in no event later than the date of expiration of the term of such Award as set forth in the Award
Agreement). To the extent that the 

  
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Awardee was not entitled to exercise his or her rights under such Awards at the date of such termination, or does not exercise such rights within the time specified in the individual Award
Agreements, the Awards shall terminate, except as otherwise may be provided in the Award Agreement. 
 (c) Disability
of Awardee. Notwithstanding the provisions of Section 12(b) above, in the event of termination of an Awardee’s Continuous Status as a Participant as a result of total and permanent disability (i.e., by reason of any medically
determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of twelve (12) months): (i) the Awardee is unable to engage in any substantial
gainful activity, or (ii) the Awardee has received income replacement benefits for at least three months under an accident and health plan covering Company employees): 

(i) Any outstanding but unvested Stock Award shall become immediately vested (unless otherwise provided in the Award Agreement);
and 
 (ii) Any outstanding Option or SAR shall vest, but only to the extent of the vesting that would have occurred had
the Awardee remained in Continuous Status as a Participant for a period of twelve (12) months after the date on which the Participant ceased performing services as a result of the total and permanent disability. An Option or SAR that is vested
pursuant to this Section 12(c) must be exercised within eighteen (18) months (or such shorter time as is specified in the grant) from the date on which the Participant ceased performing services as a result of the total and permanent
disability (but in no event later than the date of expiration of the term of such Option or SAR as set forth in the Award Agreement). To the extent that the Awardee was not entitled to exercise such Option or SAR within the time specified herein,
the Award shall terminate. This Section 12(c) shall only apply to a Conversion Option to the extent provided in the Award Agreement for the Conversion Option. 

(d) Death of Awardee. Notwithstanding the provisions of Section 12(b) above, in the event of the death of an Awardee:

 (i) who is at the time of death a Participant with an outstanding Stock Award, all unvested shares under any
outstanding Awards shall become immediately vested (unless otherwise provided in the Award Agreement). Such shares may be claimed by the Awardee’s estate or by a person who acquired the right to the shares by bequest or inheritance within
twelve (12) months following the date of death. Any right to shares not claimed within twelve (12) months from the date of death shall be canceled. 
 (ii) who is at the time of death a Participant with an outstanding Option or SAR, the Option or SAR will vest, but only to the extent of the vesting that would have occurred had the Awardee continued living and
remained in Continuous Status as a Participant twelve (12) months following the date of death. An Option or SAR that is vested pursuant to this Section 12(d)(i) may be exercised, at any time within twelve (12) months following the
date of death, by the Awardee’s estate or by a person who acquired the right to exercise the Award by bequest or inheritance; or 
 (iii) whose Option or SAR has not yet expired but whose Continuous Status as a Participant terminated prior to the date of death, the Option or SAR may be exercised, at any time within twelve (12) months
following the date of death, by the Awardee’s estate or by a person who acquired the right to exercise the Option or SAR by bequest or inheritance, but only to the extent of the right to exercise that had vested at the date of termination.

 This Section 12(d) shall only apply to a Conversion Option to the extent provided in the Award Agreement for the Conversion
Option. 
 (e) Notwithstanding subsections (b), (c), and (d) of this Section 12, the Board shall have the
authority to extend the expiration date of any outstanding Option in circumstances in which it deems such action to be appropriate (provided that no such extension shall extend the term of an Award beyond the date on which the Award would have
expired if no termination of the Employee’s Continuous Status as a Participant had occurred). 

  
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 13. Non-Transferability of Awards. An Award may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Awardee, only by the Awardee; provided that the Board may permit further
transferability, on a general or specific basis, and may impose conditions and limitations on any permitted transferability. 
 14. Adjustments to Shares Subject to the Plan. If any change is made to the Shares by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Shares as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan, (ii) the number and/or
class of securities and/or the price per Share covered by outstanding Awards under the Plan, (iii) the Maximum Annual Participant Award, (iv) the maximum aggregate number of Shares underlying all Nonqualified Stock Options and SARs with a
per Share exercise price of less than fair market value on any grant date that may be granted under the Plan, and (v) the maximum aggregate number of Shares underlying all Awards with a vesting period of less than three years. The Board may
also make adjustments described in (i)-(v) of the previous sentence in the event of any distribution of assets to shareholders other than a normal cash dividend. In determining adjustments to be made under this Section 14, the Board may
take into account such factors as it deems appropriate, including (i) the restrictions of applicable law, (ii) the potential tax consequences of an adjustment and (iii) the possibility that some Awardees might receive an adjustment
and a distribution or other unintended benefit, and in light of such factors or circumstances may make adjustments that are not uniform or proportionate among outstanding Awards, modify vesting dates, defer the delivery of stock certificates or make
other equitable adjustments. Any such adjustments to outstanding Awards will be effected in a manner that precludes the enlargement of rights and benefits under such Awards. Adjustments, if any, and any determinations or interpretations, including
any determination of whether a distribution is other than a normal cash dividend, made by the Board shall be final, binding and conclusive. For purposes of this Section 14, conversion of any convertible securities of the Company shall not be
deemed to have been effected without receipt of consideration. Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of Shares subject to an Award. 
 In the event of the proposed
dissolution or liquidation of the Company, the Award will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such instances,
declare that any Award shall terminate as of a date fixed by the Board and give each Awardee the right to exercise an Award as to all or any part of the Shares subject to an Award, including Shares as to which the Award would not otherwise be
exercisable. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each Award shall be assumed or an equivalent award shall be substituted by such
successor corporation or a parent or subsidiary of such successor corporation, unless such successor corporation does not agree to assume the Award or to substitute an equivalent award, in which case the Board shall, in lieu of such assumption or
substitution, provide for the Awardee to have the right to exercise the Award as to all of the Shares subject to Awards, including Shares as to which the Award would not otherwise be exercisable. If the Board makes an Award fully exercisable in lieu
of assumption or substitution in the event of a merger or sale of assets, the Board shall notify the Awardee that the Award shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Award will terminate
upon the expiration of such period. 
 15. Time of Granting Awards. The date of grant of an Award shall, for all
purposes, be the date on which the Company completes the corporate action relating to the grant of such Award and all conditions to the grant have been satisfied, provided that conditions to the grant, exercise or vesting of an Award shall not defer
the date of grant. Notice of a grant shall be given to each Participant to whom an Award is so granted within a reasonable time after the determination has been made. 

  
 10 

 16. Substitutions and Assumptions. The Board shall have the right to
substitute or assume Awards in connection with mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code applies, provided such substitutions and assumptions are permitted by Section 424 of the Code
and the regulations promulgated thereunder. The number of Shares reserved pursuant to Section 3 may be increased by the corresponding number of Awards assumed and, in the case of a substitution, by the net increase in the number of Shares
subject to Awards before and after the substitution. 
 17. Amendment and Termination of the Plan. 

(a) Amendment and Termination. The Board may amend or terminate the Plan from time to time in such respects as the Board may
deem advisable (including, but not limited to amendments which the Board deems appropriate to enhance the Company’s ability to claim deductions related to stock option exercises); provided that any increase in the number of Shares subject to
the Plan, other than in connection with an adjustment under Section 14 of the Plan, and any amendment described in Section 10(c) of the Plan, shall require approval of or ratification by the shareholders of the Company. 

(b) Participants in Foreign Countries. The Board shall have the authority to adopt such modifications, procedures, and
subplans as may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or its Subsidiaries may operate to assure the viability of the benefits from Awards granted to Participants performing services
in such countries and to meet the objectives of the Plan. 
 (c) Effect of Amendment or Termination. Except as
otherwise provided in Sections 4 and 14, any such amendment or termination of the Plan shall not affect Awards already granted and such Awards shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually
agreed otherwise between the Awardee and the Board, which agreement must be in writing and signed by the Awardee and the Company. 
 18. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares
may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 19. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

 20. No Employment/Service Rights. Nothing in the Plan shall confer upon any Participant the right to an Award or
to continue in service as an Employee or Consultant for any period of specific duration, or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining such person), or of any
Participant or Awardee, which rights are hereby expressly reserved by each, to terminate such person’s services at any time for any reason, with or without cause. 
  

	*	 All share numbers in the Plan reflect the 2-for-1 stock split effected February 2003. 

  
 11Exhibit 10.3

 Exhibit 10.3 
 TARGA RESOURCES 
 EXECUTIVE OFFICER CHANGE IN CONTROL SEVERANCE
PROGRAM 
 SUMMARY PLAN DESCRIPTION AND PLAN
DOCUMENT 
 (Effective as of January 12, 2012) 

 

	1.	 Purpose of the Plan 

 The purposes of the Targa Resources Executive Officer Change in Control Severance Program, effective as of January 12, 2012 (the “Plan”), are: 

 

	(a)	 To make Severance Benefits available to eligible Executive Officers that will financially assist with their transition following a Qualifying
Termination while the Plan is in effect; and 

  

	(b)	 To resolve any possible claims arising out of employment, including its termination, by providing such Employees with Severance Benefits in return
for a Waiver and Release from liability. 

 The Plan is voluntarily offered by the Company, and payments under
the Plan are not required by any legal obligation other than the Plan itself. 
  

	2.	 Definitions 

 As used in this Plan, the following terms shall have the following meanings (and the singular includes the plural, unless the context clearly indicates otherwise): 

Affiliate: The Company and any corporation or organization that, together with the Company, is a member of a controlled group of
corporations under Section 414(b) of the Code, is a member of an affiliated service group under Section 414(m) of the Code, or is under common control pursuant to Section 414(c) of the Code. 

Annual Base Salary: The Employee’s annual rate of base salary, excluding bonuses, commissions, premium pay, cost-of-living
adjustments or other special pay, as of the date of a Change in Control or the Employee’s Termination Date, whichever date the Employee’s annual base salary is greater. 
 Board: The Board of Directors of the Company. 
 Cause: Discharge of an Employee by
the Employer on the following grounds: 
  

	(a)	 the Employee’s gross negligence or willful misconduct in the performance of his or her duties; 

 

	(b)	 the Employee’s conviction of a felony or other crime involving moral turpitude; 

	(c)	 the Employee’s willful refusal, after 15 days’ written notice from the Chief Executive Officer or President, to perform the material
lawful duties or responsibilities required of him; 

  

	(d)	 the Employee’s willful and material breach of any corporate policy or code of conduct; or 

 

	(e)	 the Employee’s willfully engaging in conduct that is known or should be known to be materially injurious to the Company or any of its
subsidiaries. 

 Change in Control: Any of the following events: 

 

	(a)	 any “Person”, including any partnership, limited partnership, syndicate or other group deemed a “person” for purposes of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, other than Targa Resources Partners LP, becomes the beneficial owner, directly or indirectly, of more than 20% of the voting interest in the Company or Targa Resources
GP LLC; 

  

	(b)	 any sale, lease, exchange or other transfer (in one transaction or a series of related transactions, whether by merger or otherwise) of all or
substantially all of the assets of the Company or Targa Resources GP LLC, other than to Targa Resources Partners LP and/or its affiliates; 

  

	(c)	 a transaction resulting in a person other than Targa Resources GP LLC or an affiliate of Targa Resources GP LLC being the general partner of Targa
Resources Partners LP; 

  

	(d)	 the consummation of any merger, consolidation, or reorganization, whether in one transaction or in a series of related transactions, involving the
Company or Targa Resources GP LLC in which, immediately after giving effect to such merger, consolidation or reorganization, less than 51% of the total voting power of outstanding stock of the surviving or resulting entity is then “beneficially
owned” (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in the aggregate by the stockholders of the Company and/or Targa Resources GP LLC, as applicable, immediately prior to the consummation of such
transaction or commencement of such series of transactions; or 

  

	(e)	 a majority of the members of the Board or the Board of Directors of Targa Resources GP LLC is replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the Board or by the Board of Directors of Targa Resources GP LLC, as applicable, before the date of the appointment or election. 

Notwithstanding the foregoing, no Change in Control shall occur solely by reason of the direct or indirect purchase of the Company and/or
Targa Resources GP LLC by Targa Resources Partners LP. 
 For purposes of this definition of Change in Control,
“affiliate” means, with respect to any Person, any other Person that, as of the date immediately prior to the event that gives rise to a Change in Control, directly or indirectly, controls, is controlled by or is under common control with,
such specified Person through one or more intermediaries or otherwise. For the purposes 

  
 2 

 
of this definition, “control” means, where used with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have correlative meanings. 

COBRA: The Consolidated Omnibus Budget Reconciliation Act of 1985, currently embodied in Section 4980B of the Code, which
provides for continuation of group health plan coverage in certain circumstances. 
 Code: The Internal Revenue Code of 1986, as amended,
and the regulations thereunder. 
 Committee: The Compensation Committee of the Board. 

Company: Targa Resources Corp., a Delaware corporation, and any successor to the Company. 

Employee: An active employee of the Employer. 
 Employer: The Company and any Affiliate identified on the attached Exhibit A, as such exhibit may be updated by the Plan Administrator from time to time. 

ERISA: The Employee Retirement Income Security Act of 1974, as amended. 
 Executive Officer: An Employee with an executive officer title such as Chief Executive Officer; President; Executive Chairman; Executive Vice President; Executive Vice President and Chief
Operating Officer; Executive Vice President, General Counsel and Secretary; President, Finance and Administration; Advisor to Chairman & CEO; as well as the Senior Vice President , Chief Financial Officer and Treasurer: Senior Vice
President and Chief Accounting Officer; and Senior Vice President (in charge of engineering and operations). 
 Good Reason: Any of the
following conditions: 
  

	(a)	 material diminution in the Employee’s base compensation; 

 

	(b)	 material diminution in the Employee’s authority, duties or responsibilities; or 

 

	(c)	 material change in the geographical location at which the Employee must perform services. 

In order to terminate employment for Good Reason, an Employee must, within 90 days of the initial existence of the circumstances
constituting Good Reason, notify the Plan Administrator in writing of the existence of such circumstances, and the Company shall then have 30 days to remedy the circumstances. If the circumstances have not been fully remedied by the Company, the
Employee shall have 60 days following the end of such 30-day period to exercise the right to terminate for Good Reason. The initial existence of the circumstances constituting Good Reason shall be conclusively deemed to have occurred on the date of
any written notice to the Plan Administrator concerning such circumstances. If the Employee does not timely notify the Plan Administrator in writing of the existence of the circumstances constituting Good Reason, the right to terminate for Good
Reason shall lapse and be deemed waived, and the Employee shall not thereafter have the right to terminate for Good Reason unless further circumstances occur which themselves give rise to a right to terminate for Good Reason.

  
 3 

 Participant: An Employee who meets the requirements set forth in Section 3 of the Plan.

 Plan Administrator: The Vice President-Human Resources of the Company or any other officer designated by the Board;
provided, however, that if any determination is made with respect to the Vice President-Human Resources as a Participant or claimant, the Plan Administrator shall be the Chief Financial Officer of the Company unless another officer is designated by
the Board. 
 Protection Period: The 18-month period beginning on the date of a Change in Control. 

Qualifying Termination: An Employee’s (a) involuntary termination of employment by an Employer without Cause during the
Protection Period, or (b) voluntary termination of employment for Good Reason in which the initial existence of the circumstances constituting Good Reason occurs during the Protection Period. 

Severance Benefit: A benefit described in Section 5 of the Plan. 
 Target Bonus: The product of the Employee’s Annual Base Salary and the most recent target bonus percentage specified by the Committee prior to the Change in Control. 

Termination Date: The last date on which an Employee is in active employment with the Company or an Employer. 

Waiver and Release: The legal document in which an Employee, in exchange for Severance Benefits under the Plan, releases the
Company, the Employer, the Affiliates, their directors, officers, employees and agents, their employee benefit plans and the fiduciaries and agents of said plans from liability and damages in any way related to the Employee’s employment with or
separation from the Company, the Employer or any of their Affiliates. 
 Waiver and Release Requirement: The requirement
that an Employee in exchange for certain Severance Benefits under the Plan, in accordance with the provisions of Section 7: (a) timely execute and return a Waiver and Release to the Plan Administrator, and (b) not revoke the Waiver
and Release. 
  

	3.	 Participation 

 (a) Eligibility. An Employee who is an Executive Officer of the Company or its Affiliates immediately prior to the Change in Control shall become a Participant and be eligible to receive a
Severance Benefit only in the event of his or her Qualifying Termination. 
 (b) Cessation of Participation. An
individual shall cease to be eligible to become a Participant and shall have no rights hereunder, without further action, when the individual ceases to be an Employee (unless such individual is then entitled to Severance Benefits provided in
Section 5). A Participant entitled to Severance Benefits under Section 5 shall remain a Participant in the Plan until the Severance Benefits under the Plan have been paid or provided to the Participant in full. 

  
 4 

 (c) No Employment Rights. Nothing in the Plan will reduce or eliminate the right of
the Company and its Affiliates to terminate an Employee’s employment at any time for any reason. 
  

	4.	 Eligibility Conditions 

 (a) Failure to Satisfy Qualifying Termination Requirement. An Employee whose termination of employment is not a Qualifying Termination is not eligible to receive Severance Benefits. The following
shall not constitute a Qualifying Termination: 
  

	 	(i)	 termination of employment due to death or disability; 

 

	 	(ii)	 termination of employment during an unpaid leave of absence (except for leave required by law or other leave designated as an exception by the
Company at the time the leave is authorized); 

  

	 	(iii)	 voluntary termination of employment for any reason other than Good Reason; 

 

	 	(iv)	 termination for Cause; 

  

	 	(v)	 any termination of employment during the Protection Period if (A) the Employee is hired by, and remains in substantially the same job with, the
purchaser of any business or assets of any Employer, and (B) the Plan is assumed by the purchaser and provides continued severance protection to the Employee for the remainder of the Protection Period. 

(b) Failure to Satisfy Qualifying Waiver and Release Requirement. An Employee who fails to timely satisfy the Waiver and Release
Requirement, as provided in Section 7, is not eligible to receive Severance Benefits. 
  

	5.	 Severance Benefits Upon Qualified Termination 

Subject to the provisions of Section 7, in the event a Participant becomes eligible to receive Severance Benefits in accordance with
Section 3, the Participant shall be entitled to receive the payments and benefits provided below: 
 (a) Cash Severance
Payments. Cash severance payments shall be equal to three times the sum of the Participant’s (A) Annual Base Salary and (B) Target Bonus. 
 Cash severance payments under this Section 5(a) shall be made in a single lump sum payment 60 days following the Participant’s Termination Date, provided that the Waiver and Release Requirement
described in Section 7 has been satisfied. 
 (b) Welfare Benefit Continuation. The Participant and the
Participant’s eligible dependents shall be entitled to continue to participate in the Company’s medical and dental plans in which the Participant participated immediately prior to the Participant’s Termination Date, for three years
commencing with the first calendar month following the Termination Date (the “Benefit Continuation Period”); provided, however, that the Benefit Continuation Period shall cease when the Participant becomes eligible for any such coverage
under a plan maintained by another 

  
 5 

 
employer of the Participant. The Participant’s continued participation in the Company’s medical and dental plans shall be on terms not less favorable than those in effect for active
employees of the Company, subject to the Participant making the monthly premium payment of the amount required for such coverage during the Benefit Continuation Period by active employees of the Company. The Benefit Continuation Period shall run
concurrently with (and shall count against) the Company’s obligation to provide continuation coverage pursuant to COBRA. 

Except as provided in this Section 5(b), a Participant’s participation in all employee benefit plans and/or programs of any
Employer shall cease as of his Termination Date, subject to the terms and conditions of the governing documents of those employee benefit plans and/or programs. 
  

	6.	 Taxes 

 (a) Withholding. The Company shall have the right to deduct and withhold from any amounts payable under the Plan such federal, state, local or other taxes as are required to be withheld pursuant to
any applicable law or regulation 
 (b) Impact of Section 4999 Excise Tax. The payments and benefits to Participants
under Section 5 may be subject to reduction, if applicable, in accordance with the provisions of Exhibit B. 
  

	7.	 Waiver and Release 

 The Severance Benefits to be provided under Section 5 shall be provided only if the Participant timely satisfies the Waiver and Release Requirement. The Waiver and Release must be signed by the
Participant (or his legal representative, if applicable) and become effective and irrevocable in accordance with its terms (taking into account any applicable revocation period set forth therein) on or before the date specified by the Company,
provided that such date is no later than the fiftieth day after the Participant’s Termination Date. If the Participant fails to execute and furnish the Waiver and Release, or if the Waiver and Release furnished by the Participant has not become
effective and irrevocable in accordance with its terms (taking into account any applicable revocation period set forth therein) on or before the date specified by the Company, but no later than the fiftieth day after the Participant’s
Termination Date, the Participant will fail to timely satisfy the Waiver and Release Requirement and will not be entitled to any Severance Benefits under the Plan. 
  

	8.	 No Mitigation 

 In no event shall the Participant be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Participant under any of the provisions of the Plan and
such amounts shall not be reduced whether or not the Participant obtains other employment, except as otherwise provided in Section 5(b). Payments under this Plan will not be reduced because of any unemployment benefits an Employee may be
eligible to receive under applicable federal or state unemployment laws. 

  
 6 

	9.	 Effect on Other Plans, Agreements and Benefits 

Notwithstanding any provision of the Plan to the contrary, the Plan shall supersede any other severance program for which a Participant
is otherwise eligible in the event of a Change in Control; provided that, the Plan shall not supersede, nor be superseded by, the accelerated vesting of options, restricted stock and performance units under the terms of the governing plans.

 Except as provided in the immediately preceding paragraph of this Section 9 or to the extent otherwise expressly set
forth herein, any benefit or compensation to which a Participant is entitled under any agreement between the Participant and the Company or any of its Affiliates or under any plan maintained by the Company or any of its Affiliates in which the
Participant participates or participated shall not be modified or lessened in any way, but shall be payable or provided according to the terms of the applicable plan or agreement. 

 

	10.	 Plan Amendment and Termination 

 The Committee may at any time amend (in whole or in part) or terminate the Plan, or make continued existence of the Plan conditioned on approval by shareholders of the Company, provided that (a) the
benefits under the Plan payable to a Participant who has satisfied the Waiver and Release Requirement (without regard to item (b) of the Waiver and Release Requirement set forth in Section 2 of the Plan) and has otherwise met all of the
requirements for Severance Benefits hereunder before the Plan is amended or terminated shall not be adversely affected, and (b) the Plan cannot be amended or terminated during the Protection Period. Any amendment or termination shall be set out
in an instrument in writing duly authorized by the Committee. Changes to Exhibit A may be made by the Plan Administrator and do not require Committee approval. 
  

	11.	 Disputes—Making A Claim 

 How to Submit a Claim about a Disputed Benefit 
 If Severance Benefits due
under the Plan have not been provided within the applicable time frame specified for such Severance Benefits, a Participant, or in the case of the Participant’s death, his authorized representative (a “Claimant”), must request
Severance Benefits in writing from the Plan Administrator within 90 days of the Termination Date. Such application shall set forth the nature of the claim and any other information that the Plan Administrator may reasonably request. The Plan
Administrator shall notify the Claimant of his determination within a reasonable time after receipt of the claim, such time not to exceed 90 days unless special circumstances require an extension of time for processing the claim. If such an
extension is required, written notice of the extension shall be furnished to the Claimant prior to the end of the initial 90-day period. In no event shall such an extension exceed a period of 90 days from the end of the initial period. The extension
notice shall indicate the special circumstances requiring an extension of time, and the date by which a final decision is expected to be rendered. 
 Notice of a claim denial, in whole or in part, shall contain the following: 
  

	(a)	 the specific reason or reasons for the denial; 

  

	(b)	 specific reference to the pertinent Plan provisions on which the denial is based; 

  
 7 

	(c)	 a description of any additional material or information necessary in order to perfect the claim and an explanation of why such material or
information is necessary; and 

  

	(d)	 an explanation of the Plan’s claims review procedure. 

No action at law or in equity shall be brought to recover benefits under the Plan prior to the date the Claimant has exhausted the
administrative process of appeal available under the Plan. 
 Claims Review Procedure 

If a written claim results in a claim denial, either in whole or in part, the Claimant has the right to appeal. The appeal must be in
writing. The administrative process for appealing a claim is as follows: 
 Upon receipt of a claim denial, a Claimant may send
a written request, including any additional information supporting the claim, for reconsideration to the Plan Administrator within 60 days of receiving notification that the claim is denied. 

The Plan Administrator must make its decision on the appeal within a reasonable period after receiving the appeal, but not later than 60
days after the appeal was received (plus up to an additional 60 days if special circumstances require an extension of the deadline for making a decision on appeal). The Claimant shall be notified in writing, within 60 days after the date that the
appeal was received by the Plan Administrator, if any extension is necessary. That notice shall state why the extension is required and the date by which the Plan Administrator expects to make the decision on the appeal. The Claimant may request a
formal hearing before the Plan Administrator which the Plan Administrator may grant in its discretion. 
 The Plan Administrator
shall provide written notice of its final determination. If the claim is denied on appeal, the decision shall include: 
  

	(a)	 the specific reason or reasons for the denial; 

  

	(b)	 specific reference to the pertinent Plan provisions on which the denial is based; 

 

	(c)	 a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the claim for benefits; 

  

	(d)	 a statement describing any voluntary appeal procedures offered by the Plan and the Claimant’s right to obtain further information about any
such procedures; and 

  

	(e)	 a statement of the Claimant’s right to file a lawsuit under ERISA. 

Subject to a Claimant’s right to file a lawsuit under ERISA, the decision on appeal shall be final and binding on the Claimant, the
Plan Administrator and all other interested parties. 

  
 8 

	12.	 Successors 

 (a) Company Successors. The Plan shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the
same manner and to the same extent that the Company would be obligated under the Plan if no succession had taken place. In the case of a Change in Control or any transaction in which a successor would not by the foregoing provision or by operation
of law be bound by the Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s obligations under the Plan, in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place. The term “Company,” as used in the Plan, shall mean the Company as heretofore defined and any successor or assignee to the business or assets which by reason hereof becomes bound
by the Plan. 
 (b) Participant Successors. The Plan shall inure to the benefit of and be enforceable by the
Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees and/or legatees. The rights under the Plan are personal in nature and neither the Company nor any Participant shall, without the consent
of the other, assign, transfer or delegate any rights or obligations hereunder except as expressly provided in this Section. Without limiting the generality of the foregoing, the Participant’s right to receive any Severance Benefits hereunder
shall not be subject to anticipation, alienation, sale, transfer, assignment, encumbrance or charge, voluntary or involuntary, whether by pledge, creation of a security interest or otherwise, other than by a transfer by his will or by the laws of
descent and distribution and, any attempt at such a transaction contrary to this paragraph shall be void and the Company shall have no liability to pay any amount so attempted to be assigned, transferred or delegated. 

 

	13.	 Unfunded Plan Status 

 All payments pursuant to the Plan shall be made from the general funds of the Company and no special or separate fund shall be established or other segregation of assets made to assure payment. No
Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company as a result of his or her participation in the Plan. 

 

	14.	 Notice 

 For the purpose of the Plan, notices and all other communications provided for in the Plan shall be in writing and shall be deemed to have been duly given when actually delivered or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed to the Vice President-Human Resources at the Company’s corporate headquarters address, and to the Participant (at the last address of the Participant on the
Company’s books and records), or at such other address as may be provided by the Participant in writing. 
  

	15.	 Plan Document Controls 

 In the event of any inconsistency between the Plan document and any other communication regarding the Plan, the Plan document controls. 

  
 9 

	16.	 Governing Law 

 The Plan is an employee welfare benefit plan under ERISA. The Plan and the Waiver and Release shall be interpreted under ERISA and the laws of the State of Texas to the extent that state law is
applicable, without regard to the conflict of law provisions thereof. Any controversy or dispute arising under or as a result of the Plan shall be subject to the exclusive jurisdiction of the United States and shall be brought in Houston, Harris
County, Texas. As a condition to participating in and receiving any Severance Benefits under the Plan, a Participant agrees to waive all of the Participant’s rights to pleas regarding subject matter jurisdiction, personal jurisdiction, or venue
with respect to any matter(s) or dispute(s) arising out of or connected with the Plan. 
  

	17.	 Validity and Severability 

 The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  

	18.	 Headings; Interpretation 

 Headings in the Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof. Unless the context clearly requires otherwise, the masculine
pronoun wherever used herein shall be construed to include the feminine pronoun. 
  

	19.	 WARN Act 

 The Severance Benefit provided to an Employee under the Plan shall be reduced (but not below zero) by any payment the Company or any Employer is required to make to the Employee pursuant to the Workers
Adjustment and Retraining Notification Act. 
  

	20.	 Indemnification 

 To the extent permitted by applicable law and in addition to any other indemnities or insurance provided by the Company, the Company shall indemnify and hold harmless its (and its Affiliates’)
current and former officers, directors, and employees against all expenses, liabilities, and claims (including legal fees incurred to defend against liabilities and claims) arising out of the discharge or omission in good faith of their
administrative and fiduciary responsibilities with respect to the Plan. Expenses and liabilities arising out of willful misconduct shall not be covered under this indemnity. 

 

	21.	 Code Section 409A 

 (a) It is intended that the payments and benefits provided under the Plan shall be exempt from the application of the requirements of Code Section 409A. The Plan shall be construed, administered and
governed in a manner that effects such intent, and the Committee and Plan Administrator shall not take any action that would be inconsistent with such intent. Specifically, any taxable benefits or payments provided under the Plan are intended to be
separate payments that qualify for the “short-term deferral” exception to Code Section 409A to the maximum extent possible, and to the extent they do not so qualify, are intended to qualify for the separation pay

  
 10 

 
exceptions to Code Section 409A, to the maximum extent possible. To the extent that none of these exceptions (or any other available exception) applies, then notwithstanding anything
contained herein to the contrary, and to the extent required to comply with Code Section 409A, if a Participant is a “specified employee,” as determined under the Company’s policy for identifying specified employees on his
Termination Date, then all amounts due under the Plan that constitute a “deferral of compensation” within the meaning of Code Section 409A, that are provided as a result of a separation from service within the meaning of Code
Section 409A, and that would otherwise be paid or provided during the first six months following the specified employee’s Termination Date, shall be accumulated through and paid or provided on the first business day that is more than six
months after the Termination Date (or, if the Participant dies during such six-month period, within 90 days after the Participant’s death). 
 (b) The payments and benefits provided under the Plan may not be deferred, accelerated, extended, paid out or modified in a manner that would result in the imposition of an additional tax under Code
Section 409A upon Participants. The tax treatment of the benefits provided under the Plan is not warranted or guaranteed. Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers shall be held liable
for any taxes, interest, penalties or other monetary amounts owed by a Participant (or any other individual claiming a benefit through the Participant) as a result of the Plan. 

(c) The term “termination of employment” or any similar term used in the Plan shall be interpreted to mean “separation
from service” within the meaning of Code Section 409A and Section 1.409A-1(h) of the Treasury Regulations, to the extent necessary to comply with Code Section 409A. 

 

	22.	 Participant Rights 

 As a participant in the Plan you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan Participants shall be entitled to: 

Receive Information About the Plan and Benefits 
 Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as work sites and union halls, all documents governing the Plan, including insurance contracts and
collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. 

Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance
contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. 

Receive a summary of the Plan’s annual financial report, if any. The Plan Administrator is required by law to furnish each
Participant with a copy of this summary annual report. 

  
 11 

 Prudent Actions by Plan Fiduciaries 

In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of the
employee benefit plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries. No one, including your employer, your union,
or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. 
 Enforce Your Rights 
 If your claim for a benefit is denied or ignored, in
whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce
the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan
Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied
or ignored, in whole or in part, you may file suit in a state or Federal court after you have exhausted all of the appeal procedures provided for in Section 11 of the Plan. If it should happen that Plan fiduciaries misuse the Plan’s money,
or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. 

Assistance with Questions 
 If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA or if you need assistance in obtaining
documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration. 
  

	23.	 General Information 

  

	(a)	 Plan Sponsor: Targa Resources Corp., 1000 Louisiana, Suite 4300, Houston, TX 77002, (713) 584-1000. 

 

	(b)	 Employer Identification Number of Plan Sponsor: 20-3701075. 

 

	(c)	 Plan Number: 507. 

  

	(d)	 Plan Year: The plan year for reporting to governmental agencies and employees shall be the calendar year. 

  
 12 

	(e)	 Plan Administrator: The Vice President-Human Resources of Targa Resources Corp., 1000 Louisiana, Suite 4300, Houston, TX 77002,
(713) 584-1000. 

 The Plan Administrator is responsible for the operation and administration of the
Plan. The Plan Administrator is authorized to construe and interpret the Plan, and his or her decisions shall be final and binding. Benefits under the Plan shall be paid only if the Plan Administrator decides, in his or her discretion, that the
applicant is entitled to them. The Plan Administrator shall make all reports and disclosures required by law. The Plan Administrator may appoint such agents, counsel, accountants and consultants as may be required to assist in administering the
Plan, and, by written instrument, may allocate and delegate his or her fiduciary responsibilities in accordance with Section 405 of ERISA. 
  

	(f)	 Agent for Service of Legal Process: The General Counsel of Targa Resources Corp., 1000 Louisiana, Suite 4300, Houston, TX 77002,
(713) 584-1000. 

 IN WITNESS WHEREOF, Targa Resources Corp. has executed these presents,
as evidenced by the signature of its officer affixed hereto, this 12th day of January, 2012. 
  

							
		 		 	 TARGA RESOURCES CORP.

				
		 		 	By	 	 
		 		 		 	Jeffrey J. McParland
		 		 		 	President—Finance and Administration

  
 13 

 EXHIBIT A 
 Targa Resources Executive Officer Change in Control Severance Program 

Employers 
 The following
Affiliates are Employers under the Targa Resources Executive Officer Change in Control Severance Program: 
 Targa Resources LLC

  
 14 

 EXHIBIT B 
 Targa Resources Executive Officer Change in Control Severance Program 

Effect of Section 4999 Excise Tax 
 (a) Notwithstanding anything in the Plan to the contrary, in the event it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or
distribution) by the Company or any Affiliate or any entity which effectuates a Change in Control (or any of its affiliated entities) to or for the benefit of a Participant, whether pursuant to the terms of the Plan or otherwise (the
“Payments”), would be subject to the excise tax (the “Excise Tax”) imposed with respect to parachute payments by Section 4999 of the Code, then the amounts payable to the Participant under the Plan shall be reduced in order
that this limit not be exceeded, but only if, by reason of such reduction, the net after-tax benefit to the Participant shall exceed the net after-tax benefit if such reduction, together with all other reductions of parachute payments otherwise
applicable, were not made. Any such reduction shall occur first by reducing the payments under Section 5(a) and then by reducing the medical and dental coverage under Section 5(b) to the maximum amounts that will result in no portion of
the Payments being subject to such excise tax (the “Safe Harbor Cap”). For purposes of reducing the Payments to the Safe Harbor Cap, only amounts payable to the Participant under the Plan (and no other Payments) shall be reduced, unless
consented to by the Participant. 
 (b) All determinations required to be made under this Exhibit B shall be made by the public
accounting firm that is retained by the Company as its auditor or tax advisor as of the date immediately prior to the Change in Control (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and
the Participant within ten (10) business days of the receipt of notice from the Company or the Participant that there has been a Payment, or such earlier time as is requested by the Company. Notwithstanding the foregoing, in the event
(i) the Board shall determine prior to the Change in Control that the Accounting Firm is precluded from performing such services under applicable auditor independence rules, (ii) the Audit Committee of the Board determines that it does not
want the Accounting Firm to perform such services because of auditor independence concerns, or (iii) the Accounting Firm is serving as accountant or auditor for the person(s) effecting the Change in Control, the Board shall appoint another
nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses (including, but not limited to, the costs of
retaining experts) of the Accounting Firm shall be borne solely by the Company and the Company shall enter into any agreement requested by the Accounting Firm in connection with the performance of the services hereunder. 

If the Accounting Firm determines that payments shall be reduced to the Safe Harbor Cap, it shall furnish the Participant with a written
statement to that effect, and to the effect that the Participant is not required to report any Excise Tax on the Participant’s federal income tax return. If the Accounting Firm determines that no Excise Tax would otherwise be payable by the
Participant, it shall furnish the Participant with a written statement to such effect, and to the effect that the Participant is not required to report any Excise Tax on the Participant’s federal income tax return. The determination by the
Accounting Firm shall be binding upon the Company and the Participant, except as provided in Paragraph (c) below. 

  
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 (c) If it is established pursuant to a final determination of a court or the Internal
Revenue Service (the “IRS”) proceeding which has been finally and conclusively resolved, that Payments have been made to, or provided for the benefit of, the Participant by the Company which are in excess of the limitations provided in
this Exhibit B (hereinafter referred to as an “Excess Payment”), the Participant shall repay the Excess Payment to the Company on demand, together with interest on the Excess Payment at the applicable federal rate (as defined in
Section 1274(d) of the Code) from the date of the Participant’s receipt of such Excess Payment until the date of such repayment. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the
determination, it is possible that Payments which will not have been made by the Company should have been made (an “Underpayment”), consistent with the calculations required to be made under this Section. In the event that it is determined
(i) by the Accounting Firm, the Company (which shall include the position taken by the Company, or together with its consolidated group, on its federal income tax return) or the IRS, or (ii) pursuant to a determination by a court, that an
Underpayment has occurred, the Company shall pay an amount equal to such Underpayment to the Participant within ten (10) days of such determination together with interest on such amount at the applicable federal rate from the date such amount
would have been paid to the Participant until the date of payment. The Participant shall cooperate, to the extent the Participant’s expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any
contests or disputes with the IRS in connection with the Excise Tax or the determination of the Excess Payment. Notwithstanding the foregoing, in the event that amounts payable under the Plan were reduced pursuant to paragraph (a) of this
Exhibit B and the value of stock options is subsequently re-determined by the Accounting Firm within the context of Treasury Regulation §1.280G-1 Q/A 33 that reduces the value of the Payments attributable to such options, the Company shall
promptly pay to the Participant any amounts payable under the Plan that were not previously paid solely as a result of paragraph (a) up to the Safe Harbor Cap. 

  
 16

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