Document:

Form of Fourth Amendment of Third Amended and Restated Credit Agreement

 Exhibit 10.11 
 FORM OF 
 FOURTH AMENDMENT OF 
 THIRD AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS FOURTH AMENDMENT OF THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of             , 2008 (the “Effective
Date”), is by and among INTREPID MINING LLC, a Delaware limited liability company (“IMLLC”), formerly by way of conversion Intrepid Mining LLC, a Colorado limited liability company, INTREPID POTASH-MOAB, LLC, a Delaware limited
liability company (“IPMLLC”), INTREPID POTASH-NEW MEXICO, LLC, a New Mexico limited liability company (“IPNMLLC”), INTREPID POTASH-WENDOVER, LLC, a Colorado limited liability company (“IPWLLC”), INTREPID POTASH, INC., a
Delaware corporation (“IPI”), U.S. BANK NATIONAL ASSOCIATION, a national banking association (“USB”), in its capacity as lead arranger and Agent (“Agent”), and the Lenders (as defined below). 
 RECITALS 
 A. IMLLC, IPMLLC, IPNMLLC
and IPWLLC (“Original Borrowers”), Agent and the lenders named therein (the “Lenders”) are parties to a Third Amended and Restated Credit Agreement dated as of March 9, 2007, as amended pursuant to a First Amendment of Third
Amended and Restated Credit Agreement dated as of May 23, 2007, a Second Amendment of Third Amended and Restated Credit Agreement dated as of September 11, 2007 and a Third Amendment of Third Amended and Restated Credit Agreement dated as
of October 12, 2007 (as so amended, the “Credit Agreement”). Capitalized terms used herein without definition shall have the same meanings as set forth in the Credit Agreement. 
 B. Immediately prior to the Effective Date, IMLLC owned all of the 1,000 issued and outstanding shares of common stock of IPI. 
 C. As of the Effective Date, IMLLC is transferring all of its assets to IPI in exchange for (i) a portion of the net proceeds of the offer and sale
by IPI of its Common Stock to the public in an underwritten initial public offering (the “IPO”), (ii) shares of IPI’s Common Stock, and (iii) the assumption by IPI of substantially all of the liabilities of IMLLC, including
the Obligations (but excluding the Temporary Paydown Obligation (defined below)) (collectively, such transaction is referred to herein as the “Exchange”), in each case as described in the final prospectus for the IPO contained in the
registration statement filed on Form S-1 with the Securities and Exchange Commission (the “Prospectus”). 
 D. In connection with
the Exchange, IPI intends to declare a dividend with respect to the 1,000 shares of its Common Stock currently issued and outstanding (the “Formation Distribution”), which will be paid in shares of Common Stock; provided, however, that for
each share of Common Stock purchased by the underwriters pursuant to the over-allotment option granted in connection with the IPO, the number of shares payable pursuant to the Formation Distribution will be reduced, one-for-one, and in lieu of such
shares, IPI will pay cash in an amount equal to the net proceeds, before offering expenses but after underwriting discounts and commissions, it receives from the exercise of the underwriters’ over-allotment option. 

 E. Original Borrowers, IPI, Agent and the Lenders desire that this Amendment be executed and delivered in
order to amend certain terms and provisions of the Credit Agreement, including without limitation by providing for the terms upon which IPI shall assume the Obligations of IMLLC (other than the Temporary Paydown Obligation), and be substituted for
IMLLC as a party to the Credit Agreement. 
 F. IMLLC is retaining the obligation to repay $18,900,000 of the outstanding principal balance
of the Revolving Loan, together with all unpaid interest accrued thereon and any fees, charges and other costs owing from Original Borrowers to Lenders with respect to the repayment of such principal balance on the Revolving Loan, including any
charges and costs incurred by any Lender under Section 3.5 of the Credit Agreement (collectively, the “Temporary Paydown Obligation”), and has paid to the Lenders, concurrently with the execution and delivery of this Amendment, the
amount of the Temporary Paydown Obligation. 
 AMENDMENT 
 NOW, THEREFORE, in consideration of $10.00 and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Prepayment. Concurrently with the execution and delivery of this Amendment, IMLLC has paid to Lenders in accordance with the Credit Agreement
the amount of the Temporary Paydown Obligation. Other than the Temporary Paydown Obligation, IPI hereby assumes and agrees to pay and perform all of the Obligations of IMLLC. 
 2. Amendment of Credit Agreement. The Credit Agreement shall be, and hereby is, amended as follows, effective as of the Effective Date:

  

	 	a.	By substituting Intrepid Potash, Inc., a Delaware corporation, for Intrepid Mining LLC as a party to the Credit Agreement, inserting in the Credit Agreement the definition of
“IPI” contained in the first paragraph of this Amendment, and changing all references in the Credit Agreement to “IMLLC’ to be references to “IPI”; provided that references to “IMLLC” in the definitions of
“EBITDAX,” “EBITDAX (Adjusted)” and “Fixed Charge Coverage Ratio” and in other places in the Credit Agreement that relate to time periods prior to the Effective Date and time periods from and after the Effective Date
shall be deemed to refer to IMLLC with respect to time periods prior to the Effective Date and to IPI with respect to time periods from and after the Effective Date. 

  

	 	b.	By deleting clause (b) of the definition of “Change in Control” in Section 1.1 on page 3 of the Credit Agreement. 

  

	 	c.	By deleting “(other than IOG)” in clause (d) of the definition of “Collateral” in Section 1.1 on page 4 of the Credit Agreement.

  

 2 

	 	d.	By deleting the definition of “IOG” in Section 1.1 of page 9 of the Credit Agreement. 

  

	 	e.	By deleting clause (b) of the definition of “Mandatory Prepayment Amounts” in Section 1.1 on page 11 of the Credit Agreement. 

  

	 	f.	By substituting the following for the first sentence of Section 5.1(b) on page 32 of the Credit Agreement: 

 IPI is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, having all powers required to carry
on its business and to enter into and carry out the transactions contemplated hereby. 
  

	 	g.	By adding “and arrangements with sureties to provide financial assurances to secure such reclamation obligations” at the end of clause (6)(A) of Section 6.2(d)
on page 42 of the Credit Agreement. 

  

	 	h.	By deleting clause (3) of Section 6.2(g) on page 44 of the Credit Agreement. 

  

	 	i.	By substituting the following for Section 6.2(m) on pages 46 and 47 of the Credit Agreement: 

 (m) Distributions. IPI will not make any Distributions, except as follows (and such exception shall not apply if, immediately
before, immediately after or as of the end of the Fiscal Quarter in which any such Distribution shall have occurred, any Default shall have occurred and be continuing): IPI may make a Distribution at a time when the Cash Flow Leverage Ratio
(Distributions) of IPI and its Consolidated Affiliates shall not be greater than 2.5:1.0 immediately before and immediately after such Distribution and as of both the beginning and the end of the Fiscal Quarter in which such Distribution shall have
occurred. 
 3. The Notes. Each of the Notes shall be amended by an Allonge (collectively, the “Allonges”) in the form of
Exhibit “A” attached hereto and made a part hereof. 
 4. Release. Subject to the fulfillment by IPI and the Original
Borrowers (other than IMLLC) of their obligations under Section 5 below, in consideration of the repayment of the Temporary Paydown Obligation and the substitution of IPI for IMLLC as a Borrower under the Credit Agreement, (a) the security
interests and liens granted to or held by the Agent under and pursuant to (i) the Second Amended and Restated Security Agreement, dated as of March 9, 2007 (the “LLC Interest Security Agreement”), between IMLLC and Agent, in its
capacity as agent for the benefit of Agent and the Lenders (as to the pledge by IMLLC of the limited liability company membership interests in IPMLLC, IPNMLLC and IPWLLC, HB Potash and Moab Gas 

  

 3 

 
Pipeline, LLC, a Colorado limited liability company (“Moab Pipeline”)), and (ii) the Second Amended and Restated Security Agreement, dated as
of March 9, 2007 (the “Assets Security Agreement”), between IMLLC and Agent, in its capacity as agent for the benefit of Agent and the Lenders (as to the pledge by IMLLC of accounts, general intangibles, equipment, inventory and the
proceeds of the foregoing), are hereby released, and the LLC Interest Security Agreement and the Assets Security Agreement are terminated and shall be of no further force and effect, (b) Agent shall promptly remove IMLLC as a named debtor from
(or, to the extent that IMLLC is the sole named debtor, terminate) any and all financing statements of record filed by Agent or the Lenders under the Credit Agreement under which IMLLC is named as a debtor, and (c) IMLLC is hereby released and
discharged from all of the Obligations under the Loan Documents, except in each case for indemnification and other provisions of the Loan Documents that by their terms survive the repayment of the Obligations and the termination of the Loan
Documents, but only with respect to any actions, occurrences or events occurring prior to the Effective Date. 
 5. Loan Documents.
All references in any document to the Credit Agreement shall be deemed to refer to the Credit Agreement, as amended pursuant to this Amendment. All references in any document to any Note shall be deemed to refer to such Note, as amended pursuant to
the applicable Allonge. Original Borrowers (other than IMLLC) and IPI (herein collectively referred to as “Borrowers”) shall also deliver to Agent such new Loan Documents and amendments to existing Loan Documents as Agent may request,
including, without limitation, (a) a security agreement between IPI and Agent, in its capacity as agent for the benefit of Agent and the Lenders, granting a security interest and lien on all of its limited liability company membership interests
in IPMLLC, IPNMLLC and IPWLLC, HB Potash and Moab Pipeline, in substantially the form of the LLC Interest Security Agreement released in accordance with Section 4 above, and (ii) a security agreement between IPI and Agent, in its capacity
as agent for the benefit of Agent and the Lenders, granting a security interest in its accounts, general intangibles, equipment, inventory and the proceeds of the foregoing, in substantially the form of the Assets Security Agreement released in
accordance with Section 4 above. 
 6. Consent and Waiver. The undersigned Agent and Lenders hereby consent to the IPO and the
Exchange, including, without limitation, the assignment by IMLLC of all of its assets to IPI, and the assumption by IPI of the Obligations (other than the Temporary Paydown Obligation), in each case as and to the extent described in the Prospectus
(collectively, the “Transactions”). The undersigned Agent and Lenders hereby waive any (a) actual or alleged Default or Event of Default under Section 2.4(b), Section 5.1(b), Section 6.2(f), Section 6.2(m) or
Section 6.2(n) of the Credit Agreement arising out of, resulting from or attributable to the consummation of the Transactions, (b) notice requirements under Section 6.1(d) or Section 6.l(e) of the Credit Agreement with respect to
the Transactions or (c) notice requirements under Section 2.5(a) of the Credit Agreement with respect to the payment of the Temporary Paydown Obligation; provided, that except as provided herein, the execution and delivery by Agent and
Lenders of this Amendment shall not operate as a waiver of any other right, power or remedy of Agent or Lenders. 
 7. Certification by
Borrowers. Borrowers hereby certify to Agent and the Lenders that, as of the date of, and after giving effect to, this Amendment: (a) all of Borrowers’ representations and warranties contained in the Credit Agreement are true, accurate
and complete 

  

 4 

 
in all material respects, (b) Borrowers have performed and complied with all agreements and conditions required to be performed or complied with by them
under the Credit Agreement and/or any Loan Document on or prior to this date, and (c) no Default or Event of Default has occurred and is continuing under the Credit Agreement. 
 8. Continuation of the Credit Agreement. Except as specified in this Amendment, the provisions of the Credit Agreement shall remain in full force
and effect, and if there is a conflict between the terms of this Amendment and those of the Credit Agreement or any other document executed and delivered in connection therewith, the terms of this Amendment shall control. 
 9. Miscellaneous. This Amendment shall be governed by and construed under the laws of the State of Colorado and shall be binding upon and shall
inure to the benefit of the parties hereto and their successors and assigns. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 5 

 EXECUTED as of the date first above written. 
  

					
	ORIGINAL BORROWERS and IPI:
	
	INTREPID MINING LLC
	
	By: IPC Management LLC, its Manager
			
		 	By:	 	  

		 		 	  

		 		 	  

	
	INTREPID POTASH-MOAB, LLC
		
	By:	 	  

		 	  

		 	  

	
	INTREPID POTASH-NEW MEXICO, LLC
		
	By:	 	  

		 	  

		 	  

	
	INTREPID POTASH-WENDOVER, LLC
		
	By:	 	  

		 	  

		 	  

	
	INTREPID POTASH, INC.
		
	By:	 	  

		 	  

		 	  

  

 6 

			
	AGENT:
	
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	  

		 	J. Tyler Fauerbach
		 	Vice President
	
	LENDERS:
	
	AGFIRST FARM CREDIT BANK
		
	By:	 	  

		 	Bruce Fortner
		 	Vice President
	
	BANK OF THE WEST
		
	By:	 	  

		 	G. S. Todd Berryman
		 	Senior Vice President
	
	 COOPERATIEVE CENTRALE
 RAIFFEISEN-BOERENLEENBANK B.A.,
 “RABOBANK NEDERLAND” NEW YORK BRANCH

		
	By:	 	  

		 	John L. Church
		 	Executive Director
		
	By:	 	  

		 	Brett Delfino
		 	Executive Director

  

 7 

			
	 UNITED FCS, PCA (F/K/A FARM CREDIT
 SERVICES
OF MINNESOTA VALLEY, PCA), D/
 B/A FCS COMMERCIAL FINANCE GROUP

		
	By:	 	  

		 	Daniel J. Best
		 	Assistant Vice President
	
	GUARANTY BANK AND TRUST COMPANY
		
	By:	 	  

		 	Gail Nofsinger
		 	Senior Vice President
	
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	  

		 	J. Tyler Fauerbach
		 	Vice President
	
	UNITED WESTERN BANK
		
	By:	 	  

		 	Steven C. Emmons
		 	Senior Vice President
	
	VECTRA BANK COLORADO NATIONAL ASSOCIATION
		
	By:	 	  

		 	Brad Elliott
		 	Assistant Vice President

  

 8 

			
	 CONSENTED AND AGREED TO BY THE UNDERSIGNED, AS GUARANTORS:

	
	 MOAB GAS PIPELINE, LLC

		
	By:	 	  

		 	  

		 	  

	
	HB POTASH LLC
		
	By:	 	  

		 	  

		 	  

  

 9Employment Offer Letter

 Exhibit 10.12 
 

 
 The Intrepid Companies 
 700 17th St., Suite 1700, 
 Denver, CO 80202 
 303.296.3006 
 303.298.7502 Fax 
 March 19, 2007 
 Mr. Patrick L. Avery 
 8291 S. Locust Grove 
 Meridian, ID 83642 
 Dear Pat, 
 On behalf of Intrepid Mining, LLC (Intrepid), I am pleased to offer you employment with our company with a
planned starting date of April 16, 2007. This letter confirms our offer of employment as described below: 
  

	1.	Job Title: Chief Operating Officer. You will be responsible for all operating facilities. Initially, your direct reports will be Rick York and Randy Foote, the General
Managers of our operations. In addition, you will be provided with an administrative assistant. 

  

	2.	Job Location: Denver, Colorado 

  

	3.	Base Salary: $315,000 to be paid biweekly in the amount of $12,115.38. You will also be eligible for the Intrepid Performance Incentive Plan (PIP), when offered by the
company. Availability, target maximums and minimums of the PIP vary from year to year. There is no guarantee that the PIP will be offered in any year. Performance of the company and performance of the individual greatly impact the amount available
and the amount granted. However, your targeted incentive will be 50% of your annual salary when the PIP is granted. 

  

	4.	Salary Adjustments: Your first eligibility for consideration of a salary increase is April, 2008. 

  

	5.	Recruitment Bonus: You will receive an initial bonus of $50,000. 

  

	6.	Benefits: Your eligibility for benefits such as Health, Life, Disability, 401(k), etc. is determined by the specific Plan provisions which will be provided to you when you
report to work. You will be entitled to four (4) weeks (20 days) vacation and to the paid holidays recognized by our Denver location. You will be eligible for these plans on the first day of the month following your first date of employment.

	7.	Terms and Conditions of Employment: Please review the attached form which describes important responsibilities and obligations as an Intrepid employee.

  

	8.	Testing: You will be expected to submit to the following reviews or tests: Drug screening, background and credit. We strongly encourage you do not resign from your current
position until we have reviewed and accepted the results of these tests. 

  

	9.	Reporting: You will report directly to Hugh Harvey. 

  

	10.	Use of Company Plane: Since it is our expectation that you will be spending an extensive amount of time in Carlsbad, New Mexico and occasionally in Utah, you will be entitled
to utilize the company controlled airplane as needed for business travel. Your use of the plane is subject to the priorities of Bob Jornayvaz and Hugh Harvey. 

  

	11.	Moving Benefits: You will be entitled to moving benefits as described in the attachment to this letter. 

  

	12.	Long-Term Compensation: It is the intention of Intrepid to affect a major financial restructuring over the next 12 to 24 months. If the company is successful in accomplishing
this goal, Intrepid will contract the services of one or more nationally recognized compensation consultants to establish an appropriate long-term compensation reward for you that will be tied to performance. Intrepid will utilize their
recommendations for an appropriate range of compensation for your position. 

  

	13.	Salary Guarantee: In the event that Intrepid Mining is involved in a sale or control of ownership and if you are terminated as a result of said actions, you will be entitled
to a severance equal to two (2) times your annual salary. This benefit will be reduced monthly for each month you are employed by Intrepid. Therefore, this benefit will have no value after two (2) full years of employment with Intrepid.
This benefit is waived if you resign voluntarily or if you are asked to resign as the result of any impropriety. This benefit is also waived if you receive the benefit of the Long-Term compensation identified in paragraph 12.

  

	14.	Travel expenses and paid time off prior to moving: To accommodate your family remaining in Idaho, Intrepid will pay for your travel expenses to Idaho on an as-needed basis
until July 1, 2007. This reimbursement is in addition to any other home-buying trips that are included within the attached relocation assistance program. 

  

	15.	Company Vehicle: Intrepid will provide a company-owned vehicle to you for personal and business use. All expenses related to the operation and maintenance of this vehicle
will be the expense of Intrepid. You will have a $50,000 limit to spend on an SUV-type vehicle of your choice. 

  

	16.	Family Move: It is our expectation that you will offer your home for sale as soon as practically possible upon acceptance of this offer, utilizing the services of our
designated relocation company. It is also our expectation that you will move your family to the Denver area as soon as practically possible after the 2006-2007 school year. 

 Please contact me if you have any questions regarding our offer. Upon verbal acceptance of these terms, we will proceed
with preparing for your arrival. Personally, I look forward to working with you. 
  

	
	Sincerely,
	
	/s/ Jamie Whyte
	
	Jamie Whyte
	Vice President
	Human Resources

 Terms & Conditions of Employment 
 Intrepid Mining, LLC (or Company) is engaged in extracting and processing of Potash, and is subject to strict Federal and State regulations. Mining Potash requires
special attention to workplace health and safety. The Company desires that every employee understand and accept their individual responsibility for several important terms and conditions which are necessary to comply with applicable regulations,
ensure consistency in employee relations, and provide stable business operations in our industry. 
  

	1.	“AT WILL” EMPLOYMENT: I understand that my employment is “at will” for an indefinite period of time and may be terminated at any time by me or the
Company, for any reason without liability whatsoever, except for unpaid wages or salary earned through the date of termination. 

  

	2.	EMPLOYMENT AGREEMENTS: I understand that only a duly authorized official of the Company has the authority to enter into any agreement for employment for a specified
period of time. This is not an employment contract, rather an offer for employment. 

  

	3.	EQUAL EMPLOYMENT OPPORTUNITY: I understand that Intrepid is committed to comply with all laws and regulations pertaining to employment practices. The Company does not
discriminate with regard to race, religion, national origin, age, sex, or disability. The Company offers equal employment opportunity for employment, pay, and advancement to all qualified applicants and employees. 

  

	4.	COMPLIANCE WITH HEALTH, & SAFETY REGULATION: I acknowledge my responsibility to work safely, and to understand and comply with all regulations to which
Intrepid is subject. I understand that I may be subject to personal liabilities and/or penalties imposed by Federal or State agencies should I knowingly violate or cause Intrepid Mining to violate any regulations of the of the Mine Safety and
Health Administration (MSHA) or the Occupational Safety and Health Administration (OSHA). 

  

	5.	SEXUAL HARASSMENT: Company employees are prohibited from engaging in sexual harassment, retaliation against a person for opposing sexual harassment, or aiding or
abetting sexual harassment of any employee. 

  

	6.	DRUG-FREE WORKPLACE: In compliance with the Drug-Free Workplace Act of 1988, the Company will not hire or employ individuals who use illegal drugs or abusively use
alcohol. You will be expected to sign and endorse the most current version of the Intrepid Substance Abuse Policy. 

  

	7.	HEALTH & MEDICAL SCREENING: I agree to submit to medical evaluations and/or examinations, including tests for the presence of illegal drugs or alcohol (or
other Company-required workplace-related health screening requirements) during employment, or upon my employment termination, as requested by the Company. 

 Page 2 of 2 
  

 Terms & Conditions of Employment, Continued 
  

	8.	PROBLEM RESOLUTION: Intrepid desires that work-related problems or complaints be resolved fairly through appropriate supervisory and management review. I agree to
submit my problems to the Company’s Problem Resolution procedure as it is communicated to me. 

  

	9.	MEDIATION/ARBITRATION: When a dispute arises out of the employer/employee relationship which cannot be settled through the Problem Resolution process described in the
previous statement (No. 8), I and the Company agree to submit the dispute to Mediation and/or binding Arbitration in accordance with rules and procedures provided by the American Arbitration Association. 

  

	10.	CONFIDENTIAL INFORMATION: I agree not to disclose nor use for my own or someone else’s benefit, during or after my employment, any confidential information about
the business, operations, or technical processes of Intrepid which may become known to me. Should I terminate employment I will promptly deliver to the Company all materials in my possession containing confidential information.

  

	11.	CONFLICTS OF INTEREST: I agree not to engage in activities or have personal or financial interests which impair, or appear to impair my independence or
judgment or otherwise conflict with my responsibilities to Intrepid Mining. If unsure of a potential conflict I will review the situation with Human Resources. 

  

	12.	POLICIES, PROCEDURES, & RULES: In consideration of my employment I agree to abide by policies, procedures, and rules established by the Company for its
operating purposes, including any and all conditions of employment. I accept the Company’s exclusive right to add, change, or discontinue these terms and conditions or any of its policies, benefits, procedures, and rules as it deems necessary,
with or without notice, subject to applicable laws. 

 Relocation Assistance Program 
 Purpose 
 The purpose of this policy is to establish guidelines and requirements that must be met for
reimbursement of relocation expenses incurred in relocating an employee and his/her family. For purposes of this policy, “family” means the members of the employee’s immediate family sharing residence with the employee in a bona fide
dependency status, e.g., spouse, children, or other relatives whose status qualifies them as dependents under the tax statutes at the employee’s point of origin. 
 Scope 
 This policy applies to newly-hired, regular full-time exempt employees with a minimum of five years of
directly related work experience in the job category or discipline for which the person is being hired. 
 Policy Statement 
 This policy, or any part thereof, shall be applied on a case-by-case basis at the discretion of the Company, taking into account the marketability of the employee’s
existing residence, the need to obtain the new employee, and other factors. 
 Introduction 
 It is expected that the employee will be conscientious and use good judgment with regard to incurring Company-supported costs during the move. In all cases, receipts
verifying reimbursable costs must be maintained and submitted on the Relocation Expense Report within thirty (30) days of incurring the expense. All relocation benefits must be incurred within twelve (12) months of the effective date of
the employee’s new assignment. 
 Reimbursable Relocation Expenses 
 The Company will pay for: 
  

	A.	Home Search: The Company will reimburse for one (1) Home Search trip, up to seven (7) continuous days, by the employee and one family member to visit the new
location for the purpose of securing a permanent residence. 

 Reimbursable Home Search Expenses: 
  

	 	•	 	 Round-trip economy class airfare 

  

	 	•	 	 Rental car 

  

	 	•	 	 Hotel/motel 

  

	 	•	 	 Meals and tips (reasonable meal expenses) 

  

	 	•	 	 Related incidental expenses 

 The employee may prefer to drive to the new location for a Home Search trip. Mileage for the employee’s personal car
will be reimbursed at the current Company rate. 
  

	B.	En Route to New Location: The Company will reimburse for transportation, meals and lodging incurred by the employee and the employee’s family for the purpose of
traveling to the new final destination. Whenever possible, the employee is expected to drive to the new location. The employee will be reimbursed at the current Company rate for up to two (2) personal vehicles. 

 En route expenses begin in the departure location the evening before the employee leaves their old location, if the employee is unable to reside in their old home. En
route expenses end the morning after the employee arrives at the new destination city. 
 If the employee is unable to move into their permanent housing the
day after their arrival, additional lodging and meal expenses must be claimed as Temporary Living Expenses. 
  

	C.	Temporary Living Expenses: Intrepid agrees to provide temporary living expenses until July 1, 2007 or until you have relocated to Denver, whichever comes first.
Extensions beyond this timeframe may be allowed if necessary and approved by Hugh Harvey. 

 Temporary living expenses include reasonable and
actual lodging (hotel, motel, apartment and rental/leased/company vehicle). 
 The employee must complete a Relocation Expense Report on a monthly basis.

  

	D.	Renters at Old Location: The Company will reimburse the employee for reasonable fees related to a lease cancellation. Written verification that lease cancellation fees must
be and were paid as a result of the employee’s move to the new location must be submitted with the employee’s Relocation Expense Report. 

  

	E.	Forfeiture of Prepaid Rent: Reimbursement may be made for up to one month of prepaid rent at the old location when the employee moves before the end of the rental period
covered and when, as a condition of the lease, prepaid rent is non-refundable. 

  

	F.	Home Sales Expenses: The Company will reimburse the employee for the selling costs of their principal residence in the old location, provided the old residence is sold within
one year from the effective date of employment. 

 Home Sales expenses are reimbursed for the employee’s principal residence, which must
be an employee-owned one or two family house, or an employee-owned condominium or townhouse. 
 Additional land adjoining the employee’s principal
residence, not to exceed one (1) acre, may be included if the Company determines it is an integral part of your principal residence. 
 Ineligible
properties include cooperative apartments, seasonal residences, income-producing farms, uninhabitable structures, homes under construction, properties with significant structural, safety or health problems that cannot be fully remediated, and
properties with excessive liens and/or encumbrances that cannot be satisfied at time of closing. 
 Reimbursable costs include: 
  

	 	•	 	 Real estate agent commissions (maximum of seven percent (7)). 

  

	 	•	 	 Other necessary closing expenses: Legal fees, documentary stamps, transfer taxes, survey, title search, or other expenses incurred as normal seller’s expenses
in connection with the closing. 

 Selling expenses which are not reimbursable: 
  

	 	•	 	 Buyer prepaid items 

  

	 	•	 	 Inspections typically paid by the buyer 

  

	 	•	 	 Home Warrantee Insurance Premiums 

  

	 	•	 	 Cost of repairs/improvements 

  

	 	•	 	 Yard of home maintenance 

  

	 	•	 	 Any cost usually paid by the buyer 

  

	 	•	 	 Duplicate title insurance costs 

  

	 	•	 	 Discount points paid by the buyer 

 To receive your
reimbursement you must submit a Relocation Expense Report with a copy of the complete Closing Statement. 
  

	G.	Transporting Personal Effects and Household Goods: The Company will reimburse the employee for the reasonable costs of transporting personal effects and household goods
packed and moved to the new location and, if necessary, stored for a maximum of thirty (30) days, which may include: 

  

	 	•	 	 Packing 

  

	 	•	 	 Loading 

  

	 	•	 	 Transporting 

  

	 	•	 	 Unloading 

  

	 	•	 	 Unpacking 

  

	 	•	 	 Insurance for 100% of replacement value for damage or loss 

  

	 	•	 	 Shipment of one (1) vehicle on the moving van 

  

	 	•	 	 Routine disconnection and connection of major appliances at origin and destination when performed by carrier (not to include electrical, plumbing or duct work)

 Loading and transporting items of exceptional dimensions and weight, crating or special packing services require pre-approval by the
Company. 
 The Company will not reimburse costs for any of the following: 
  

	 	•	 	 Shipment of: 

  

			
	 Above ground Pools
	  	
	 Boats over 14 feet
	  	Building Materials
	 Farm Equipment
	  	Firearms
	 Firewood
	  	Flammable or toxic substances
	 Furnishings of second homes
	  	Horse trailers
	 Hot tubs/spas
	  	Jewelry
	 Liquor
	  	Plants
	 RVs
	  	Other perishable items

  

	 	•	 	 House cleaning 

  

	 	•	 	 Labor to take down draperies, curtains, shades, blinds 

  

	 	•	 	 Cost of extra pick up or delivery at second location 

  

	 	•	 	 Hanging of mirrors, pictures, etc. 

  

	 	•	 	 Piano or organ tuning, clock servicing, electronic equipment tuning, etc. 

  

	 	•	 	 Dismantling or set up of swing sets, outdoor recreational equipment, etc. 

	H.	Using a Moving Company: Human Resources will coordinate the selection of a moving company using a third-party relocation company. 

  

	I.	Moving Yourself: The employee may prefer renting a truck or trailer to transport their belongings to the new location in lieu of moving company services. Rental fees for this
purpose are reimbursable. 

 If the employee chooses to move their own household goods, the employee should obtain adequate insurance to cover
the value of their belongings. The Company will reimburse this expense. 
  

	J.	Home Purchase Assistance: The Company will reimburse the employee for customary buyer’s closing costs in the new location if the employee purchases a home within twelve
(12) months from the transfer date and the employee is a Company employee at the time of the employee’s purchase. 

 Typical
reimbursable closing costs may include: 
  

	 	•	 	 Mortgage application fee 

  

	 	•	 	 Credit check 

  

	 	•	 	 Appraisal fee 

  

	 	•	 	 Improvement survey (if lender required) 

  

	 	•	 	 Title search 

  

	 	•	 	 Title insurance 

  

	 	•	 	 Recording fees 

  

	 	•	 	 Transfer taxes 

  

	 	•	 	 Attorney fees (if state required for real estate transactions) 

  

	 	•	 	 Structural inspection 

  

	 	•	 	 Radon gas inspection 

 Items, which are not
reimbursable, are: 
  

	 	•	 	 Real estate commissions or finder’s fees 

  

	 	•	 	 Any customary seller’s closing costs 

  

	 	•	 	 Attorney fees in states not requiring an attorney for real estate transactions 

  

	 	•	 	 Reserves or pre-paid expenses such as mortgage insurance, prorated property taxes, mortgage interest, homeowners insurance, repair and other reserves/prepayments

  

	K.	Advance Payment: The company will provide an advance payment to you in the amount of $15,000 for qualifying moving expenses. This payment will be issued upon receipt of an
executed purchase and sale agreement on your existing home. Within 30 days after your move you should submit a reconciliation of all of these expenses to the HR Department. Any funds not used for the expenses outlined above should be refunded to the
company at this time. Should you need additional funds during the transition, you may request them from the HR Department. 

  

	L.	Inconvenience Payment: The company will provide an advance payment to you in the amount of $25,000 to cover any incidental expenses that the Relocation Policy may not cover.
You are not required to submit a reimbursement form for these expenses and you are entitled to keep any portion of this payment not expended. 

 Tax Treatment 
  

	 	A.	Relocation Expenses/Taxable Income: 

 Certain
Company-paid and reimbursed expenses associated with the employee’s move are considered taxable income to the employee and will, therefore, be reported on the employee’s W-2 for the calendar year(s) in which such expenses are reimbursed or
paid. Under the Tax Reform Act of 1986, some of this additional income may be taken as an itemized deduction on the employee’s federal income tax return for the year(s) in which such expenses are paid. State laws may differ. Since each
individual’s tax circumstances will vary, the employee should consult his or her tax advisor to ascertain the specific tax consequences of this policy. IRS Publication 521, Moving Expenses, can also provide valuable assistance. 
 If a reimbursed expense is eligible for a deduction, that item of income will be considered income not subject to withholding by the Company. Hence, while the Company
must include that amount in the employee’s income, the Company will not withhold any taxes on such income. This does not mean that there will be no additional tax liability resulting from this additional income. If an employee has additional
income subject to withholding (i.e., not deductible on your federal income tax return), that withholding will be taken from the employee’s wages as soon as all bills and reimbursements for a particular calendar year have been processed. All
meal expense reimbursements are treated by the Company as compensation to the employee and therefore are subject to withholding. 
 Some relocation
reimbursements may be fully or partially deductible on the employee’s federal and/or state tax returns. Other reimbursements may not be deductible as relocation expenses and may be subject to federal and/or state personal income tax. . The
Company will report to the employee all relocation expense reimbursements and payments for relocation services made on the employee’s behalf. The Company form will be mailed to the employee after the close of the calendar year in which the
employee incurred relocation expenses. 
  

	 	B.	Tax Equalizations: Because relocations often result in increased tax liability, the Company will provide the employee with a one-time state and federal tax allowance.
The allowance is meant to provide the employee with the funds to largely offset the increased tax liability from non-deductible moving expenses subject to withholding. It is calculated only on annualized Company income plus the non-deductible moving
expenses using appropriate deductions and marginal tax rates. Since the tax reimbursement is also income subject to withholding, it is increased to help offset the additional (compounded) tax liability. This is called a “gross-up”. You
will be provided with a copy of the calculation of your tax reimbursement. The employee should note that the tax reimbursement does not include any reimbursement for social security withholding, principally under the assumption that annualized
income including the moving expenses will exceed the social security withholding threshold. Medicare taxes will be covered by the reimbursement and gross-up. Employees who leave the Company for any reason during the calendar year in which relocation
expenses were paid will be ineligible for year-end “make whole” consideration. 

 Administration 
 The general supervision and administering of this policy is the responsibility of the Human Resources Department. Exceptions to this policy may be made to
accommodate specific local conditions with the approval of the Vice President of Human Resources.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]