Document:

exv10w82

Exhibit 10.82

ENVIRONMENTAL RESERVE ACCOUNT AGREEMENT

     THIS ENVIRONMENTAL RESERVE ACCOUNT AGREEMENT (this “Agreement”), dated as of December
7, 2010, is made by and among SMITH & WESSON HOLDING CORPORATION (the “Borrower
Representative”), a Nevada corporation, SMITH & WESSON CORP., a Delaware corporation,
THOMPSON/CENTER ARMS COMPANY, INC., a New Hampshire corporation, THOMPSON CENTER HOLDING
CORPORATION, a Delaware corporation, UNIVERSAL SAFETY RESPONSE, INC., a Delaware corporation, FOX
RIDGE OUTFITTERS, INC., a New Hampshire corporation, K.W. THOMPSON TOOL COMPANY, INC., a New
Hampshire corporation, O.L. DEVELOPMENT, INC., a New Hampshire corporation, BEAR LAKE HOLDINGS,
INC., a Delaware corporation, and SMITH & WESSON DISTRIBUTING, INC., a Delaware corporation
(collectively, the “Borrowers”) and TD BANK, N.A., in its capacity as administrative agent
for the Lenders referenced below (in such capacity, and together with any successor administrative
agent, the “Administrative Agent”). Any references herein to the “Parties” shall mean the
Borrowers and the Administrative Agent.

BACKGROUND

     WHEREAS, the Borrowers are entering into an Amended and Restated Credit Agreement of even date
herewith (as the same may be amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”) with the Administrative Agent and the lenders from time to
time party thereto (“Lenders”), pursuant to which the Lenders have agreed, subject to the
terms and conditions set forth therein, to make certain loans and other financial accommodations
(collectively, the Loans”) to the Borrowers;

     WHEREAS, certain of the Borrowers are the owners of the real properties described in
Exhibit A (collectively, the “Owned Properties”). Pursuant to the terms of the
Credit Agreement and the other Loan Documents, and in consideration of the Lenders making the Loans
to the Borrowers, each such Borrower has granted a first mortgage, collateral assignment of leases
and rents, security agreement and fixture filing in favor of the Administrative Agent which
encumber the Owned Properties;

     WHEREAS, the Borrowers and the Administrative Agent have entered into an Amended and Restated
Hazardous Materials Indemnity Agreement of even date herewith (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Hazardous Materials
Indemnity Agreement”), pursuant to which the Borrowers have jointly and severally agreed to,
among other things, provide certain indemnification to the Administrative Agent and the Secured
Parties (as defined in the Credit Agreement) and to perform, now and in the future, investigation,
assessment and remediation of environmental contamination on the Premises (as defined in the
Hazardous Materials Indemnity Agreement), including, without limitation, on the Owned Properties.

     WHEREAS, Environmental Compliance Services, Inc. (“ECS”) prepared a Phase I
Environmental Site Assessment report dated October 15, 2010 for each Owned Property (collectively,
the “Existing Reports”), as described in Exhibit B and incorporated herein by reference,
which identified various areas of environmental contamination on or at each such Owned Property.
ECS sent the Administrative Agent an environmental review memorandum dated October 27, 2010 (the
“Existing Memorandum”), a copy of which is attached hereto as Exhibit C and incorporated
herein by reference, which detailed the required additional investigation and remediation
activities to be completed with respect to each such Owned Property to achieve appropriate
regulatory closure;

 

 

     WHEREAS, the Administrative Agent and the Lenders will not make Loans to the Borrowers unless
the Borrowers agree to guarantee financially the cost and expense of completion of all
Environmental Efforts (as defined below); and

     WHEREAS, as a material inducement to the Administrative Agent to make the Loans, the Borrowers
have agreed to enter into this Agreement.

     NOW THEREFORE, for and in consideration of the Administrative Agent’s and the Lenders’
extension of the Loans and the representations, warranties and covenants contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:

     1. Definitions.

          (a) Except as otherwise expressly defined herein or in the exhibits attached hereto, all
capitalized terms shall have the meanings ascribed to them in the Credit Agreement.

          (b) “Environmental Contamination” shall hereinafter be defined as the discharge,
dispersal, release or escape of any solid, liquid, gaseous or thermal irritant or contamination,
including smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, radon and waste materials
into or upon land, or any structure on land, the atmosphere or any watercourse or body of water,
including groundwater, in concentrations or amounts exceeding maximum levels allowed by applicable
Environmental Laws, or by governmental or court order or directive, acting under the authority
granted by Environmental Laws, provided such conditions are not naturally present in the
environment in the concentration or amounts discovered.

          (c) “Environmental Efforts” shall hereinafter be defined as all investigation and
remediation activities to be completed in accordance with the Existing Memorandum or to address
additional Environmental Contamination (“Additional Environmental Contamination”)
subsequently discovered by the Borrowers or the Administrative Agent during the performance of this
remedial work or identified in any environmental report and review memorandum subsequently received
by the Administrative Agent, including without any limitation, any environmental report referenced
in Paragraph 4 below.

     2. Environmental Investigation and Remediation. The Borrowers shall, at its own cost
and expense, and within a reasonable timeframe after the Effective Date, undertake all
Environmental Efforts in accordance with applicable Environmental Laws and the Hazardous Materials
Indemnity Agreement.

     3. Establishment and Operation of Environmental Reserve Account.

          (a) Reserve Funds. The Borrowers have caused the sum of $812,000 to be delivered to
the Administrative Agent, which amount, combined with funds that are currently available to the
Borrowers in existing escrow arrangements or otherwise, is agreed by the Parties to be a reasonable
estimate of the cost of the Environmental Efforts recommended in the Existing Memorandum. The
Borrowers agree (i) that the amount may be increased at the Administrative Agent’s reasonable
discretion if Additional Environmental Contamination is identified during the undertaking of the
Environmental Efforts or otherwise and (ii) upon notice from the Administrative Agent requesting
such increased amount, the Borrowers, jointly and severally, will deposit with the Administrative
Agent, in accordance with this Section 3(a), such increased amount. The funds held by the
Administrative Agent pursuant to this Section 3(a) are herein collectively referred to as the
“Reserve Funds.” The Administrative Agent

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shall hold the Reserve Funds in an interest-bearing account (the “Environmental Reserve
Account”) and shall provide disbursements in accordance with Paragraph 3(b) below. The
Borrowers hereby pledge to the Administrative Agent for the benefit of the Lenders, and grant to
the Administrative Agent for the benefit of the Lenders, a security interest in and to, the
Environmental Reserve Account, as security for the performance of the Borrowers’ obligations
described in this Agreement and the Obligations.

          (b) Environmental Reserve Account Disbursements. The Borrowers and the Administrative
Agent intend that the Reserve Funds shall not be used by the Borrowers to pay contractors in the
performance of the Environmental Efforts. Rather, the Reserve Funds shall be held in the
Environmental Reserve Account until the Borrowers provide the Administrative Agent appropriate
comprehensive written documentation and/or reports evidencing the completion of required
Environmental Efforts, as well as any required documentation evidencing that one or more Owned
Properties (each, a “Remedied Property”) have achieved final regulatory closure under
applicable Environmental Laws. Only after receipt and review of such documentation and reports,
shall the Administrative Agent release to the Borrowers the Reserve Funds, but only to the extent
such funds are attributable to a Remedied Property in the Administrative Agent’s reasonable
discretion. The appropriateness of such documentation and any decision to release Reserve Funds
pursuant to Paragraph 3(b) shall be determined at the Administrative Agent’s reasonable discretion.
The Borrowers agree that any Reserve Funds required to be disbursed to the Borrowers hereunder
shall be disbursed to the Borrower Representative.

     4. Reporting. The Borrowers agree to furnish to the Administrative Agent a report, in
a form satisfactory to the Administrative Agent, detailing the status of all Environmental Efforts
required in the Existing Memorandum and then being undertaken. Such report shall be furnished
concurrently with the delivery of any annual financial statements pursuant to Section 6.01(a) of
the Credit Agreement, commencing with fiscal year ended April 30, 2011.

     5. Miscellaneous Provisions.

          (a) No failure or delay on the part of a party to this Agreement in exercising any power or
right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power preclude any other or further exercise thereof or the exercise of any other
right or power hereunder. No modification or waiver of any provision of this Agreement and no
consent to any departure by any party to this Agreement there from shall be effective unless the
same shall be in writing and signed by the party against whom such modification, waiver, or consent
is being sought to be enforced against, and then such waiver, modification, or consent shall be
effective only in the specific instance and for the purpose for which given. No notice to or
demand on any party to this Agreement in any case shall, of itself, entitle such party to any other
or further notice or demand in similar or other circumstances.

          (b) Any notice, request, direction or demand given or made under this Agreement shall be in
writing and (whether or not the other provisions of this Agreement expressly so provide) and shall
be deemed to have been duly given if delivered to the Administrative Agent and the Borrowers in
accordance with the terms of the Credit Agreement.

          (c) If any term, covenant, or provision of this Agreement shall be held to be invalid, illegal
or unenforceable in any respect, this Agreement shall be construed without such term, covenant, or
provision.

          (d) This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

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          (e) This Agreement sets forth the entire agreement and understanding of the parties hereto
with respect to the specific matters agreed to herein and the parties hereto acknowledge that no
oral or other agreements, understandings, representations, or warranties exist with respect to this
Agreement or with respect to the obligations of the parties hereto under this Agreement, except
those specifically set forth in this Agreement.

          (f) This Agreement is, and shall be deemed to be, a contract entered into under and pursuant
to the laws of the State of New York and shall be in all respects governed, construed, applied and
enforced in accordance with the laws of the State of New York. No defense given or allowed by the
laws of any other state or country shall be interposed in any action or proceeding hereon unless
such defense is also given or allowed by the laws of the State of New York.

          (g) The Parties hereto waive all rights to trial by jury as further set forth in the Credit
Agreement and further agree to submit to personal jurisdiction in the State of New York in any
action or proceeding arising out of this Agreement and, in furtherance of such agreement, the
Parties hereto agree that, without limiting other methods of obtaining jurisdiction, personal
jurisdiction over any of the Parties hereto in any such action or proceeding may be obtained within
or without the jurisdiction of any court located in the State of New York and that any process or
notice of motion or other application to any such court in connection with any such action or
proceeding may be served upon the parties hereto by registered or certified mail or by personal
service at the last known address of the parties hereto, whether such parties be within or without
the jurisdiction of any such court.

          (h) This Agreement may be executed in one or more counterparts by some or all of the parties
hereto, each of which counterparts shall be an original and all of which together shall constitute
a single agreement. This Agreement shall be a “Loan Document” as defined in the Credit Agreement.

          (i) The Borrowers and the Administrative Agent hereby unconditionally and irrevocably waive
any and all rights to trial by jury in any action, suit or proceeding arising out of or related to
this Agreement, or any transaction arising there from or related thereto.

[Signature Pages to Follow]

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     IN WITNESS WHEREOF, the Parties have duly executed this Agreement under seal as of the day and
year first above written.

	 	 	 	 	 
	 	BORROWERS:

SMITH & WESSON HOLDING CORPORATION

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	SMITH & WESSON CORP.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	THOMPSON/CENTER ARMS COMPANY, INC.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	UNIVERSAL SAFETY RESPONSE, INC.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	FOX RIDGE OUTFITTERS, INC.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 

*Signatures Continued on Next Page*

[Signature Page to Environmental Reserve Account Agreement]

 

 

	 	 	 	 	 
	 	BEAR LAKE HOLDINGS, INC.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	K.W. THOMPSON TOOL COMPANY, INC.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	O.L. DEVELOPMENT, INC.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	THOMPSON CENTER HOLDING COMPANY

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 
	 
	 	SMITH & WESSON DISTRIBUTING, INC.

 	 
	 	By:  	    /s/ John R. Dineen
 	 
	 	 	Name:  	   John R. Dineen 	 
	 	 	Title:  	Interim Chief Financial Officer 	 

*Signatures Continued on Next Page*

[Signature Page to Environmental Reserve Account Agreement]

 

 

	 	 	 	 	 
	 	Administrative Agent:

TD BANK, N.A.,

 as Administrative Agent

 	 
	 	By:  	/s/ Maria P. Goncalves	 
	 	 	Name:  	Maria P. Goncalves	 
	 	 	Title:  	Regional Vice President	 

[Signature Page to Environmental Reserve Account Agreement]

 

 

EXHIBIT A

Owned Properties

	1.	 	2100 Roosevelt Avenue, Springfield, Massachusetts, owned by Smith & Wesson Corp.
	 
	2.	 	299 Page Boulevard, Springfield, Massachusetts, owned by Smith & Wesson Corp.
	 
	3.	 	19 Aviation Drive, Houlton, Maine, owned by Smith & Wesson Corp.
	 
	4.	 	400 North Main Street, Rochester, New Hampshire, owned by O.L. Development, Inc.

 

 

EXHIBIT B

Existing Reports

	1.	 	Phase I Environmental Site Assessment (ESA) report dated October 15, 2010 prepared by
Environmental Compliance Services, Inc. for Smith & Wesson Corp., relating to the real
property located at 19 Aviation Drive, Houlton, Maine.
	 
	2.	 	Phase I Environmental Site Assessment (ESA) report dated October 15, 2010 prepared by
Environmental Compliance Services, Inc. for Smith & Wesson Corp., relating to the real
property located at 2100 Roosevelt Avenue, Springfield, Massachusetts.
	 
	3.	 	Phase I Environmental Site Assessment (ESA) report dated October 15, 2010 prepared by
Environmental Compliance Services, Inc. for Smith & Wesson Corp., relating to the real
property located at 299 Page Boulevard, Springfield, Massachusetts.
	 
	4.	 	Phase I Environmental Site Assessment (ESA) report dated October 15, 2010 prepared by
Environmental Compliance Services, Inc. for O.L. Development, Inc., relating to the real
property located at 400 North Main Street, Rochester, New Hampshire.

 

 

EXHIBIT C

Existing Memorandum

[See attached]exv4w4

EXHIBIT 4.4

RESTRICTED STOCK AGREEMENT

     THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) evidences an award made as of the _____ day
of _________________, ______ (the “Date of Grant”) by TARGA RESOURCES CORP., a Delaware corporation
(the “Company”), to ____________________ (the “Employee”).

     1. Award. Pursuant to the TARGA RESOURCES CORP. 2010 STOCK INCENTIVE PLAN (the
“Plan”), as of the Date of Grant, ____________ shares (the “Restricted Shares”) of the Company’s
common stock, par value $0.001 per share, shall be issued as hereinafter provided in the Employee’s
name, subject to certain restrictions thereon. This award of Restricted Shares shall be subject to
all of the terms and provisions of the Plan, including future amendments thereto, if any, pursuant
to the terms thereof.

     2. Definitions. Capitalized terms used in this Agreement that are not defined below
or in the body of this Agreement shall have the meanings given to them in the Plan. In addition to
the terms defined in the body of this Agreement, the following capitalized words and terms shall
have the meanings indicated below:

     (a) “Disability” shall mean a disability that entitles the Employee to disability benefits
under the Company’s long-term disability plan.

     (b) “Earned Shares” means the Restricted Shares after the lapse of the Forfeiture Restrictions
without forfeiture.

     (c) “Forfeiture Restrictions” shall have the meaning specified in Section 3(a) hereof.

     (d) “Unvested Dividends” shall have the meaning specified in Section 3(d) hereof.

     (e) “Vested Dividends” shall have the meaning specified in Section 3(d) hereof.

     3. Restricted Shares. The Restricted Shares shall be subject to the following
provisions:

     (a) Forfeiture Restrictions. The Restricted Shares may not be sold, assigned,
pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of, and in the
event of termination of the Employee’s employment with the Company for any reason other than death
or Disability, the Employee shall, for no consideration, forfeit to the Company all Restricted
Shares. The prohibition against transfer and the obligation to forfeit and surrender Restricted
Shares to the Company upon termination of employment as provided in the preceding sentence are
herein referred to as the “Forfeiture Restrictions.” The Forfeiture Restrictions shall be binding
upon and enforceable against any transferee of Restricted Shares.

     (b) Lapse of Forfeiture Restrictions. Provided that the Employee has been
continuously employed by the Company from the Date of Grant through the lapse date set forth

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in the following schedule, the Forfeiture Restrictions shall lapse with respect to a
percentage of the Restricted Shares determined in accordance with the following schedule:

	 	 	 	 	 
	 	 	Percentage of Total Number
	 	 	of Restricted Shares as to Which
	Lapse Date	 	Forfeiture Restrictions Lapse
	 
	 	 	 	 
	1st Anniversary of Date of Grant
	 	 	0	%
	2nd Anniversary of Date of Grant
	 	 	60	%
	3rd Anniversary of Date of Grant
	 	 	40	%

Notwithstanding the schedule set forth above, (i) if the Employee’s employment with the Company is
terminated by reason of death or Disability, then the Forfeiture Restrictions shall lapse with
respect to 100% of the Restricted Shares effective as of the date of such termination, and (ii) if
a Change in Control occurs and the Employee has remained continuously employed by the Company from
the Date of Grant to the date upon which such Change in Control occurs, then the Forfeiture
Restrictions shall lapse with respect to 100% of the Restricted Shares on the date upon which such
Change in Control occurs. Any shares with respect to which the Forfeiture Restrictions do not
lapse in accordance with the preceding provisions of this Section 3(b) (and any associated Unvested
Dividends) shall be forfeited to the Company for no consideration as of the date of the termination
of the Employee’s employment with the Company.

     (c) Escrow of Restricted Shares. The Company shall issue in the Employee’s name the
Restricted Shares, and such Restricted Shares shall be held for the Employee in electronic, book
entry form by the Company’s transfer agent with a notation that the shares are subject to
restrictions. The Restricted Shares shall be held subject to restrictions as provided in the
Agreement until such time as the Restricted Shares become Earned Shares. The Employee may not
sell, transfer, pledge, exchange, hypothecate or otherwise dispose of any of the Restricted Shares
that are subject to the Forfeiture Restrictions. A breach of the terms of this Agreement shall
cause a forfeiture of the Restricted Shares. If part or all of the Restricted Shares are forfeited
pursuant to this Agreement, the Company shall have the right to direct the Company’s transfer agent
to cancel such forfeited Restricted Shares or, at the Company’s election, transfer such Restricted
Shares to the Company or to any designee of the Company. Effective as of the Date of Grant, the
Employee shall have all of the rights of a stockholder of the Company with respect to the
Restricted Shares, including, without limitation, voting rights and the right, subject to Section
3(d), to receive all dividends and other distributions paid with respect to such Restricted Shares;
provided, however, that such Restricted Shares shall be subject to the restrictions described
herein, including, without limitation, those described in Section 3 hereof. Upon the lapse of the
Forfeiture Restrictions without forfeiture, the Company shall issue appropriate instructions to the
transfer agent.

     (d) Dividends. Notwithstanding the foregoing, the Employee shall not have the right
to receive any dividends or other distributions, including any special or extraordinary dividends
or distributions (with all references to “dividends” in this Agreement being deemed to also include
reference to any such special distributions), with respect to the Restricted Shares granted hereby
unless and until the Restricted Shares become Earned Shares. Any such dividends

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declared and paid with respect to already Earned Shares shall be paid no later than the end of
the calendar year in which the dividend for such class of stock is paid to stockholders of such
class or, if later, the 15th day of the third month following the date the dividend is
paid to stockholders of such class of stock. In the event the Company declares and pays a dividend
in respect of its Common Stock and, on the record date for such dividend, the Employee holds
Restricted Shares granted pursuant to this Agreement that have not yet become Earned Shares, the
dividends with respect to such Restricted Shares shall be credited to an account maintained by the
Company or the transfer agent for the Employee’s benefit (such dividends, “Unvested Dividends”).
Such account is intended to constitute an “unfunded” account, and neither this Section 3(d) nor any
action taken pursuant to or in accordance with this Section 3(d) shall be construed to create a
trust of any kind. Amounts credited to such account with respect to Restricted Shares that become
Earned Shares will become “Vested Dividends” on the date that such Restricted Shares vest in
accordance with Section 3(b) and will be paid to the Employee as soon as administratively
practicable following that date; provided that, in all cases, any Vested Dividends that become
payable pursuant to this Section 3(d) shall be paid no later than March 15 of the calendar year
following the calendar year during which such dividends become Vested Dividends pursuant to
paragraphs (b) and (d) of this Section 3. The Employee shall not be entitled to receive any
interest with respect to the timing of payment of dividends. In the event all or any portion of
the Restricted Shares granted hereby fail to become Earned Shares, Unvested Dividends accumulated
in the Employee’s account with respect to such Restricted Shares shall be forfeited to the Company.

     (e) Corporate Acts. The existence of the Restricted Shares shall not affect in any
way the right or power of the Board or the stockholders of the Company to make or authorize any
adjustment, recapitalization, reorganization or other change in the Company’s capital structure or
its business, any merger or consolidation of the Company, any issue of debt or equity securities,
the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of
all or any part of its assets or business or any other corporate act or proceeding. The
prohibitions of Section 3(a) hereof shall not apply to the transfer of Restricted Shares pursuant
to a plan of reorganization of the Company, but the stock, securities, or other property received
in exchange therefor shall also become subject to the Forfeiture Restrictions and provisions
governing the lapsing of such Forfeiture Restrictions applicable to the original Restricted Shares
for all purposes of this Agreement, and the book entry representing such stock, securities, or
other property shall be legended or notated to show such restrictions.

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

-3-

 

Forfeiture Restrictions, or the forfeiture of any Restricted Shares pursuant to the Forfeiture
Restrictions.

     5. Status of Stock. The Restricted Shares and Earned Shares issued under this
Agreement may not be sold or otherwise disposed of in any manner which would constitute a violation
of any applicable federal or state securities laws. In addition, (a) the book entry representing
the Restricted Shares and Earned Shares may bear such legend or notation as the Company deems
appropriate in order to reflect the Forfeiture Restrictions and to assure compliance with the terms
and provisions of this Agreement and applicable securities laws, (b) the Company may refuse to
register the transfer of the Restricted Shares or Earned Shares on the stock transfer records of
the Company if such proposed transfer would constitute a violation of the Forfeiture Restrictions
or, in the opinion of counsel satisfactory to the Company, of any applicable securities law, and
(c) the Company may give related instructions to its transfer agent, if any, to stop registration
of the transfer of the Restricted Shares.

     6. Clawback. Notwithstanding any provisions in the Agreement to the contrary, any
compensation, payments, or benefits provided hereunder (or profits realized from the sale of Earned
Shares awarded hereunder), whether in the form of cash or otherwise, shall be subject to a clawback
to the extent necessary to comply with the requirements of any applicable law, including but not
limited to, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Section 304 of
the Sarbanes-Oxley Act of 2002, or any regulations promulgated thereunder.

     7. Employment Relationship. For purposes of this Agreement, the Employee shall be
considered to be in the employment of the Company as long as the Employee remains an employee of
either the Company or an Affiliate. Without limiting the scope of the preceding sentence, it is
specifically provided that the Employee shall be considered to have terminated employment with the
Company at the time of the termination of the “Affiliate” status of the entity or other
organization that employs the Employee. Nothing in the adoption of the Plan, nor the award of the
Restricted Shares thereunder pursuant to this Agreement, shall confer upon the Employee the right
to continued employment by the Company or affect in any way the right of the Company to terminate
such employment at any time. Unless otherwise provided in a written employment agreement or by
applicable law, the Employee’s employment by the Company shall be on an at-will basis, and the
employment relationship may be terminated at any time by either the Employee or the Company for any
reason whatsoever, with or without cause or notice. Any question as to whether and when there has
been a termination of such employment, and the cause of such termination, shall be determined by
the Committee or its delegate, and its determination shall be final.

     8. Notices. Any notices or other communications provided for in this Agreement shall
be sufficient if in writing. In the case of the Employee, such notices or communications shall be
effectively delivered if hand delivered to the Employee at the Employee’s principal place of
employment or if sent by registered or certified mail to the Employee at the last address the
Employee has filed with the Company. In the case of the Company, such notices or communications
shall be effectively delivered if sent by registered or certified mail to the Company at its
principal executive offices.

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     9. Entire Agreement; Amendment. This Agreement replaces and merges all previous
agreements and discussions relating to the same or similar subject matters between the Employee and
the Company and constitutes the entire agreement between the Employee and the Company with respect
to the subject matter of this Agreement. This Agreement may not be modified in any respect by any
verbal statement, representation or agreement made by any employee, officer, or representative of
the Company or by any written agreement unless signed by an officer of the Company who is expressly
authorized by the Company to execute such document.

     10. Binding Effect; Survival. This Agreement shall be binding upon and inure to the
benefit of any successors to the Company and all persons lawfully claiming under the Employee. The
provisions of Section 5 shall survive the lapse of the Forfeiture Restrictions without forfeiture.

     11. Controlling Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without regard to conflicts of law principles thereof, or,
if applicable, the laws of the United States.

[Signatures begin on next page.]

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

	 	 	 	 	 
	 	TARGA RESOURCES CORP.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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