Document:

EX-4.1

 Exhibit 4.1 

 
 2013 Performance Option Plan 
 1. PURPOSE OF PLAN 

Potash Corporation of Saskatchewan Inc. (the “Corporation”) by resolution of its Board of Directors (the “Board”) has established, subject to
shareholder approval at the Corporation’s 2013 Annual and Special Meeting of shareholders, this Potash Corporation of Saskatchewan Inc. 2013 Performance Option Plan (the “Plan”) to support the Corporation’s compensation
philosophy of providing selected employees and officers with an opportunity to: promote the growth and profitability of the Corporation; align their interests with shareholders; and earn compensation commensurate with corporate performance. The
Corporation believes this Plan will directly assist in supporting the Corporation’s compensation philosophy by providing participants with the opportunity through stock options, which will vest, if at all, based on corporate performance over a
three-year period, to acquire common shares of the Corporation (“Common Shares”). 
 2. DURATION OF THIS PLAN 

This Plan was adopted by the Board on February 19, 2013 to be effective as of January 1, 2013 (the “Effective Date”), subject to shareholder
approval at the Corporation’s 2013 Annual and Special Meeting of shareholders, and shall remain in effect, unless sooner terminated as provided herein, until one (1) year from the Effective Date, at which time it will terminate. After this
Plan is terminated, no stock options may be granted but stock options previously granted shall remain outstanding in accordance with their applicable terms and conditions and this Plan’s terms and conditions. 

3. ADMINISTRATION 
 This Plan shall be administered by
the Compensation Committee of the Board or any other committee designated by the Board to administer this Plan (the “Committee”). The Committee shall be responsible for administering this Plan, subject to this Section 3 and the other
provisions of this Plan. The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an employee, and the Committee, the Corporation, and its officers and directors shall be entitled to rely upon
the advice, opinions, or valuations of any such individuals. All actions taken and all interpretations and determinations made by the Committee shall be made in the Committee’s sole discretion and shall be final and binding upon the
participants, the Corporation, and all other interested individuals. To the extent applicable, the Plan shall be administered with respect to optionees subject to the laws of the U.S. so as to avoid the application of penalties pursuant to
Section 409A of the Internal Revenue Code, and stock options hereunder may be subject to such restrictions as the Committee determines are necessary to avoid application of such Section 409A. 

4. AUTHORITY OF THE COMMITTEE 
 The Committee shall have
full and exclusive discretionary power to interpret the terms and the intent of this Plan and any Stock Option Award Agreement or other agreement or document ancillary to or in connection with this Plan, to determine eligibility for stock options
and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as the Committee may deem necessary or proper. Such authority shall include adopting modifications and amendments to any Stock Option Award
Agreement that are necessary to comply with the laws of the countries and other jurisdictions in which the Corporation and/or its subsidiaries operate. 

5. SHARES SUBJECT TO STOCK OPTIONS 
 The aggregate
number of Common Shares issuable after February 19, 2013 pursuant to stock options under this Plan may not exceed 3,000,000 Common Shares. The aggregate number of Common Shares in respect of which stock options have been granted to any one
person pursuant to this Plan and which remain outstanding shall not at any time exceed 750,000. The authorized limits under this Plan shall be subject to adjustment under Sections 12 and 13. 

Notwithstanding anything to the contrary contained in this Plan, no options shall be granted to insiders if such options, together with any other outstanding
security based compensation arrangements, could result in: 
  

	(a)	the number of Common Shares issuable to insiders at any time pursuant to security based compensation arrangements of the Corporation exceeding ten percent (10%) of the
issued and outstanding Common Shares; or 

	(b)	the issuance to insiders pursuant to security based compensation arrangements of the Corporation, within any one year period, of a number of Common Shares exceeding ten percent
(10%) of the issued and outstanding Common Shares. 

 For the purposes of the foregoing paragraphs, “security based
compensation arrangement” and “insider” have the meanings attributed thereto in the TSX Company Manual. 
 If any stock option granted under
this Plan, or any portion thereof, expires or terminates for any reason without having been exercised in full, the Common Shares with respect to which such option has not been exercised shall again be available for further stock options under this
Plan; provided, however, that any stock option that is granted under this Plan that does not vest as a result of a failure to satisfy the Performance Measures, shall not be again available for grant under this Plan. 

6. GRANT OF STOCK OPTIONS 
 From time to time the Board
may designate individual officers and employees of the Corporation and its subsidiaries eligible to be granted options to purchase Common Shares and the number of common Shares which each such person will be granted a stock option to purchase;
provided that the aggregate number of Common Shares subject to such stock options may not exceed the number provided for in Section 5 of this Plan. Non-employee directors and other non-employee contractors and third party vendors are not
eligible to participate in this Plan. 
 7. OPTION PRICE 
 The option price for any option granted under this Plan to any optionee shall be fixed by the Board when the option is granted and shall be not less than the fair market value of the Common Shares at such time
which, for optionees resident in the United States and any other optionees designated by the Board, shall be deemed to be the closing price per Common Share on the New York Stock Exchange on the last trading day immediately preceding the day the
option is granted and, for all other optionees, shall be deemed to be the closing price per Common Share on the Toronto Stock Exchange on the last trading day immediately preceding the day the option is granted; provided that, in either case, if the
Common Shares did not trade on such exchange on such day the option price shall be the closing price per share on such exchange on the last day on which the Common Shares traded on such exchange prior to the day the option is granted. 

8. VESTING OF STOCK OPTIONS 
 Subject to achievement of
Performance Measures as certified and approved by the Audit Committee of the Board, stock options granted under this Plan will vest no later than thirty (30) days after the audited financial statements for the applicable Performance Period have
been approved by the Board. 
 9. PERFORMANCE MEASURES FOR VESTING OF STOCK OPTIONS 

 

	(a)	The Performance Measures which will be used to determine the degree to which stock options will vest over the three-year period beginning the first day of the fiscal year in
which they are granted (the “Performance Period”) shall be cash flow return on investment (“CFROI”) and weighted average cost of net debt and equity capital (“WACC”). 

 

	 	(i)	CFROI is the ratio of after tax operating cash flow to average gross investment over the fiscal year, calculated as A divided by B, where (1) A equals operating income
less/plus nonrecurring or unusual items less/plus change in unrealized gains/losses on derivative instruments included in net income plus accrued incentive awards plus depreciation and amortization less current taxes, and (2) B equals the
average of total assets less/plus the fair value adjustment for investments in available for sale securities less the fair value of derivative instrument assets plus accumulated depreciation plus accumulated amortization less cash and cash
equivalents less non interest bearing current liabilities excluding derivatives. 

  

	 	(ii)	WACC is the weighted average cost of net debt and equity capital, calculated as [A times the product of B divided by C] plus [D times the product of E divided by C], where
(1) A equals the after-tax market yield cost of debt, (2) B equals the market value of debt less cash and cash equivalents (3) C equals the market value of debt less cash and cash equivalents, plus the market value of equity,
(4) D equals the cost of equity, and (5) E equals the market value of equity. 

	(b)	In determining the number of stock options that will actually vest based on the degree to which the Performance Measures have been attained during the applicable Performance
Period, the following chart shall be utilized which shows the three year average excess of CFROI being greater than WACC and the respective portion of the stock option that will vest: 

 

					
	Performance Measure
3 year average excess of
CFROI>WACC	  	Vesting Scale
% of Stock Option
Grant Vesting	 
	 <0%
	  	 	0%	  
	 0.20%
	  	 	30%	  
	 1.20%
	  	 	70%	  
	 2.20%
	  	 	90%	  
	 2.50%
	  	 	100%	  

  

	(c)	In assessing the portion of the stock options that shall vest in accordance with the above chart, the following shall be done: 

 

	 	(i)	Each year, the CFROI and WACC will be calculated in accordance with the definitions herein, based on the audited financial statements and approved by the Audit Committee.

  

	 	(ii)	In each Performance Period, the average of the three fiscal years shall be calculated by taking the simple average of the individual years’ results.

  

	 	(iii)	The resulting three-year average will then be applied, using the scale above to determine the number of stock options, if any, that will vest as of the end of the Performance
Period. 

  

	 	(iv)	For results falling between the reference points in the chart above, the level of vesting shall be mathematically interpolated between the reference points.

 10. TERMS OF STOCK OPTIONS 

The period during which a stock option is exercisable (the “Term”) may not exceed 10 years from the date the stock option is granted (the
“Initial Exercise Period”), plus any Additional Exercise Period (as defined below). If such Initial Exercise Period would otherwise expire (i) during a Blackout Period (as defined below) applicable to the relevant optionee or
(ii) within 10 trading days after the expiration of the Blackout Period applicable to the relevant optionee, the Term of the related stock option shall expire on the date that is the tenth trading day after the end of such Blackout Period (an
“Additional Exercise Period”). For purposes of this Plan, “Blackout Period” means any period during which the relevant optionee is prohibited by the Corporation’s trading policy from trading in the Corporation’s
securities. The Stock Option Award Agreement may contain provisions limiting the number of Common Shares with respect to which stock options may be exercised in any one year. Each stock option agreement shall contain provisions to the effect that:

  

	(a)	if the employment of an optionee as an officer or employee of the Corporation or a subsidiary terminates, by reason of his or her death, or if an optionee who is a retiree
pursuant to Section 10(b) dies, the legal personal representatives of the optionee will be entitled to exercise any unexercised vested options, including such stock options that may vest after the date of death, during the period ending at the
end of the twelfth calendar month following the calendar month in which the optionee dies, failing which exercise the stock options terminate; 

  

	(b)	subject to the terms of Section 10(a) above, if the employment of an optionee as an officer or employee of the Corporation or a subsidiary terminates, by reason of
retirement in accordance with the then prevailing retirement policy of the Corporation or subsidiary, the optionee will be entitled to exercise any unexercised vested stock options, including such stock options that may vest after the date of
retirement, during the period ending at the end of the 36th month following the calendar month in which the optionee retires, failing which exercise the stock options terminate; 

 

	(c)	subject to the terms of Section 14 below, if the employment of an optionee as an officer or employee of the Corporation or a subsidiary terminates, for any reason other than
as provided in Sections 10(a) or (b), the optionee will be entitled to exercise any unexercised vested stock options, to the extent exercisable at the date of such event, during the period ending at the end of the calendar month immediately
following the calendar month in which the event occurs, failing which exercise the stock options terminate; 

  

	(d)	 for greater certainty and for these purposes, an optionee’s employment with the Corporation or a subsidiary shall be considered to have terminated effective
on the last day of the optionee’s actual and active employment with the Corporation or subsidiary whether such 

	 	
day is selected by agreement with the optionee or unilaterally by the Corporation or subsidiary and whether with or without advance notice to the optionee. For the avoidance of doubt, no period
of notice, if any, or payment in lieu of notice that is given or ought to have been given under applicable law in respect of such termination of employment that follows or is in respect of a period after the optionee’s last day of actual and
active employment shall be considered as extending the optionee’s period of employment for the purposes of determining an optionee’s entitlement under the Plan. The employment of an optionee with the Corporation shall be deemed to have
terminated for all purposes of the Plan if such person is employed by or provides services to a person that is a subsidiary of the Corporation and such person ceases to be a subsidiary of the corporation, unless the Committee determines
otherwise; and 

  

	(e)	each stock option is personal to the optionee and is not assignable, except (i) as provided in Section 10(a), and (ii) at the election of the Board, a stock option
may be assignable to the spouse, children and grandchildren of the original optionee and to a trust, partnership or limited liability company, the entire beneficial interest of which is held, directly or indirectly, by one or more of the optionee or
the spouse, children or grandchildren of the optionee (each, a “Permitted Assignee”). If a stock option is assigned to one or more Permitted Assignees, nothing contained in this section 10(e) shall prohibit a subsequent assignment of
such stock option to one or more other Permitted Assignees or back to the optionee. 

 Nothing contained in Sections 10(a), (b) or
(c) shall extend the Term beyond its stipulated expiration date or the date on which it is otherwise terminated in accordance with the provisions of this Plan. 
 If a stock option is assigned pursuant to Section 10(e)(ii), the references in Sections 10(a), (b) and (c) to the termination of employment or death of an optionee shall not relate to the
assignee of a stock option but shall relate to the original optionee. In the event of such assignment, legal personal representatives of the original optionee shall not be entitled to exercise the assigned stock option, but the assignee of the stock
option or the legal personal representatives of the assignee may exercise the stock option during the applicable specified period. 
 11. EXERCISE
OF STOCK OPTIONS 
 Subject to the provisions of this Plan, a vested stock option may be exercised from time to time by delivering to the Corporation
at its registered office a written notice of exercise specifying that number of Common Shares with respect to which the stock option is being exercised and accompanied by payment in cash or certified cheque in full of the purchase price of the
Common Shares then being purchased. 
 12. ADJUSTMENTS 
 Appropriate adjustments to the authorized limits set forth in Section 5, in the number, class and/or type of Common Shares optioned and in the option price per share, both as to stock options granted or to be
granted, shall be made by the Board to give effect to adjustments in the number of Common Shares which result from subdivisions, consolidations or reclassifications of the Common Shares, the payment of share dividends by the Corporation, the
reconstruction, reorganization or recapitalization of the Corporation or other relevant changes in the capital of the Corporation. 

13. MERGERS 
 If the Corporation proposes to amalgamate
or merge with another body corporate, the Corporation shall give written notice thereof to optionees in sufficient time to enable them to exercise outstanding vested stock options, to the extent they are otherwise exercisable by their terms
(including stock options that are accelerated pursuant to Section 14), prior to the effective date of such amalgamation or merger if they so elect. The Corporation shall use its best efforts to provide for the reservation and issuance by the
amalgamated or continuing corporation of an appropriate number of Common Shares, with appropriate adjustments, so as to give effect to the continuance of the stock options to the extent reasonably practicable. In the event that the Board determines
in good faith that such continuance is not in the circumstances practicable, it may upon 30 days’ notice to optionees terminate the stock options for a payment equal to the excess, if any, between the per share exercise price and the per
share market price of the Common Shares on the date the stock option is cancelled and all stock options with a per share exercise price that exceeds the per share market price of the Common Shares on the date of cancellation will be cancelled for
no consideration. 

 14. CIRCUMSTANCES FOR ACCELERATED VESTING 

 

	(a)	If a “change in control” of the Corporation occurs and at least one of the two additional circumstances described below occurs, then each outstanding stock option
granted under this Plan may be exercised, in whole or in part, even if such option is not otherwise exercisable by its terms: 

  

	 	(i)	Upon a “change in control” the surviving corporation (or any affiliate thereto) or the potential successor (or any affiliate thereto) fails to continue or assume the
obligations with respect to each stock option or fails to provide for the conversion or replacement of each stock option with an equivalent stock option; or 

 

	 	(ii)	In the event that the stock options were continued, assumed, converted or replaced as contemplated in (i), during the two-year period following the effective date of a change in
control, the optionee is terminated by the Corporation without Cause (as defined below) or the optionee resigns employment for Good Reason (as defined below). 

 

	(b)	For purposes of this Plan, a change in control of the Corporation shall be deemed to have occurred if any of the following occur, unless the Board adopts a plan after the
Effective Date of this Plan that has a different definition (in which case such definition shall be applied), or the Committee decides to modify or amend the following definition through an amendment of this Plan: 

 

	 	(i)	within any period of two consecutive years, individuals who at the beginning of such period constituted the Board and any new directors whose appointment by the Board or
nomination for election by shareholders of the Corporation was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of the period or whose appointment or nomination for election
was previously so approved, cease for any reason to constitute a majority of the Board; 

  

	 	(ii)	there occurs an amalgamation, merger, consolidation, wind-up, reorganization or restructuring of the Corporation with or into any other entity, or a similar event or series of
such events, other than any such event or series of events which results in securities of the surviving or consolidated corporation representing 50% or more of the combined voting power of the surviving or consolidated corporation’s then
outstanding securities entitled to vote in the election of directors of the surviving or consolidated corporation being beneficially owned, directly or indirectly, by the persons who were the holders of the Corporation’s outstanding securities
entitled to vote in the election of directors of the Corporation prior to such event or series of events in substantially the same proportions as their ownership immediately prior to such event of the Corporation’s then outstanding
securities entitled to vote in the election of directors of the Corporation; 

  

	 	(iii)	50% or more of the fixed assets (based on book value as shown on the most recent available audited annual or unaudited quarterly consolidated financial statements) of the
Corporation are sold or otherwise disposed of (by liquidation, dissolution, dividend or otherwise) in one transaction or series of transactions within any twelve month period; 

 

	 	(iv)	any party, including persons acting jointly or in concert with that party, becomes (through a take-over bid or otherwise) the beneficial owner, directly or indirectly, of
securities of the Corporation representing 20% or more of the combined voting power of the Corporation’s then outstanding securities entitled to vote in the election of directors of the Corporation, unless in any particular situation the Board
determines in advance of such event that such event shall not constitute a change in control; or 

  

	 	(v)	there is a public announcement of a transaction that would constitute a change in control under clause (ii), (iii) or (iv) of this Section 14(b) and the Committee
determines that the change in control resulting from such transaction will be deemed to have occurred as of a specified date earlier than the date under (ii), (iii) or (iv), as applicable. 

 

	(c)	For the purposes of Section 14(a) of this Plan, the obligations with respect to each stock option shall be considered to have been continued or assumed by the surviving
corporation (or any affiliate thereto) or the potential successor (or any affiliate thereto), if each of the following conditions are met, which determination shall be made solely in the discretionary judgment of the Committee, which determination
may be made in advance of the effective date of a particular change in control: 

  

	 	(i)	the Common Shares remain publicly held and widely traded on an established stock exchange; and 

 

	 	(ii)	the terms of the Plan and each option grant are not altered or impaired without the consent of the optionee. 

	(d)	For the purposes of Section 14(a) of this Plan, the obligations with respect to each stock option shall be considered to have been converted or replaced with an equivalent
stock option by the surviving corporation (or any affiliate thereto) or the potential successor (or any affiliate thereto), if each of the following conditions are met, which determination shall be made solely in the discretionary judgment of the
Committee, which determination may be made in advance of the effective date of a particular change in control: 

  

	 	(i)	each stock option is converted or replaced with a replacement option in a manner that complies with Section 409A of the Internal Revenue Code, in the case of an optionee
that is taxable in the United States on all or any portion of the benefit arising in connection with the grant, exercise and/or other disposition of such stock option, or in a manner that qualifies under subsection 7(1.4) of the Income Tax Act
(Canada), in the case of an optionee that is taxable in Canada on all or any portion of the benefit arising in connection with the grant, exercise and/or other disposition of such stock option; 

 

	 	(ii)	the converted or replaced option preserves the existing value of each underlying stock option being replaced, contains provisions for scheduled vesting and treatment on
termination of employment (including the definition of Cause and Good Reason) that are no less favourable to the optionee than the underlying option being replaced, and all other terms of the converted option or replacement option, including the
underlying performance measures (but other than the security and number of shares represented by the continued option or replacement option) are substantially similar to the underlying stock option being replaced; and 

 

	 	(iii)	the security represented by the converted or replaced option is of a class that is publicly held and widely traded on an established stock exchange. 

 

	(e)	For purposes of this Plan, “Cause” means dishonest or willful misconduct or lack of good faith resulting in material harm to the Corporation, financial or otherwise.

  

	(f)	For purposes of this Plan, “Good Reason” means: 

  

	 	(i)	a substantial diminution in the optionee’s authorities, duties, responsibilities, status (including offices, titles, and reporting requirements) from those in effect
immediately prior to the change in control; 

  

	 	(ii)	the Corporation requires the optionee to be based at a location in excess of fifty (50) miles from the location of the optionee’s principal job location or office
immediately prior to the change in control, except for required travel on Corporation business to an extent substantially consistent with the optionee’s business obligations immediately prior to the change in control; 

 

	 	(iii)	a reduction in the optionee’s base salary, or a substantial reduction in optionee’s target compensation under any incentive compensation plan, as in effect as of the
date of the change in control; 

  

	 	(iv)	the failure to increase the optionee’s base salary in a manner consistent (both as to frequency and percentage increase) with practices in effect immediately prior to the
change in control or with practices implemented subsequent to the change in control with respect to similarly positioned employees; or 

  

	 	(v)	the failure of the Corporation to continue in effect the optionee’s participation in the Corporation’s short and long-term incentive plans, stock option plans, and
employee benefit and retirement plans, policies or practices, at a level substantially similar or superior to and on a basis consistent with the relative levels of participation of other similarly-positioned employees, as existed immediately prior
to the change in control. 

 A termination of employment by the optionee for one of the reasons set forth in clause (i), (ii), (iii),
(iv) or (v) of this Section 14(f), will not constitute Good Reason unless, within the 30-day period immediately following the optionee’s knowledge of the occurrence of such Good Reason event, the optionee has given written notice
to the Corporation of the event relied upon for such termination and the Corporation has not remedied such event within 30 days (the “Cure Period”) of the receipt of such notice. For the avoidance of doubt, the optionee’s
employment shall not be deemed to terminate for Good Reason unless and until the Cure Period has expired and, if curable, the Corporation has not remedied the applicable Good Reason event. The Corporation and the optionee may mutually waive in
writing any of the foregoing provisions with respect to an event that otherwise would constitute Good Reason. 
 15. RECOUPMENT POLICY

 Each stock option granted under this Plan to an optionee that, as of the date the option is granted, participates in the Corporation’s
Medium-Term Incentive Plan shall be subject to the terms and conditions of the Corporation’s Policy on Recoupment of Unearned Compensation (as previously adopted and, from time to time, amended by the Board) attached to such optionee’s
Stock Option Award Agreement (as defined below). 

 16. FORFEITURE AND REPAYMENT 

 

	(a)	Notwithstanding anything to the contrary in this Plan or any other stock option plan of the Corporation that was established prior to the date of this Plan (each, a “Prior
Plan”), in the event the Committee determines that the optionee has engaged in a Detrimental Activity (a “Forfeiture Event”) during the optionee’s employment or within one year following the optionee’s termination of
employment for any reason (the “Restricted Period”), the Committee may, but is not obligated to, cancel any outstanding unexercised stock options of such optionee (whether vested or unvested), whether granted under this Plan or a
Prior Plan, by written notice to the optionee. 

  

	(b)	If a Forfeiture Event occurs during the Restricted Period, the Committee may, but is not obligated to, require the optionee to pay to the Corporation an amount in cash up to (but
not in excess of) the difference between the option price and market price of each stock option on the date of exercise with respect to any Common Shares for which a stock option has been exercised within the period of one year prior to the date of
the Forfeiture Event (the “Forfeited Spread Amount”). Any Forfeited Spread Amount shall be paid by the optionee within sixty (60) days of receipt from the Corporation of written notice requiring payment of such Forfeited Spread
Amount. To the extent that such amounts are not paid to the Corporation, in addition to any other legal remedy that the Corporation may have, the Corporation may set off the amounts so payable to it against any amounts that may be owing from time to
time by the Corporation or a subsidiary to the optionee, whether as wages, deferred compensation, severance entitlement or vacation pay or in the form of any other benefit or for any other reason, in a manner consistent with Section 409A of the
U.S. Internal Revenue Code of 1986, if applicable. 

  

	(c)	This Section 16 shall apply notwithstanding any provision to the contrary in this Plan or any Prior Plan and is meant to provide the Corporation with rights in addition to
any other remedy which may exist in law or in equity. This Section 16 shall not apply to the optionee following the effective time of a change in control. 

 

	(d)	For purposes of this Section 16, the term “Detrimental Activity” shall include: 

 

	 	(i)	Engaging in any activity, including without limitation, as an officer, director, employee, principal, manager, agent, or consultant for another entity that directly competes or
is seeking to compete with the Corporation, any subsidiary or Canpotex Limited in any actual product, service, or business activity (or in any product, service, or business activity which was under active development while the optionee was employed
by the Corporation or a subsidiary if such development is being actively pursued by the Corporation or a subsidiary during the one-year period first referred to in Section 16(b)) in any territory in which the Corporation, a subsidiary or
Canpotex Limited operates, engages in any business activity or sells its products. 

  

	 	(ii)	Soliciting or hiring, including without limitation, as an officer, director, employee, principal, manager, agent, or consultant for another entity, any individual who was
employed by, or provided services as a consultant or contractor to, the Corporation, any subsidiary or Canpotex Limited at any time within the six months immediately preceding such solicitation or hire. 

 

	 	(iii)	The disclosure to anyone outside the Corporation or a subsidiary, or the use in other than the Corporation or a subsidiary’s business, without prior written authorization
from the Corporation, of any confidential, proprietary or trade secret information or material relating to the business of the Corporation or its subsidiaries, acquired by the optionee during his or her employment with the Corporation or its
subsidiaries or while acting as a consultant for the Corporation or its subsidiaries thereafter. For greater certainty, nothing contained herein shall limit an optionee’s ongoing obligations regarding confidentiality that may exist pursuant to
any other agreement, Corporation policy or legal obligation imposed on such optionee. 

 17. AMENDMENT OR DISCONTINUANCE OF
THIS PLAN 
 The Board may amend or discontinue the Plan at any time, without obtaining the approval of shareholders of the Corporation unless
required by the relevant rules of the Toronto Stock Exchange, provided that, subject to Sections 12, 13, and 14, no such amendment may increase the aggregate maximum number of Common Shares that may be subject to stock options under this Plan,
change the manner of determining the minimum option price, extend the Term under any option beyond 10 years (plus any Additional Exercise Period) or the date on which the option would otherwise expire under the Plan, expand the assignment
provisions of the Plan, permit non-employee directors to participate in the Plan or, without the consent of the holder of the option, alter or impair any option previously granted to an optionee under this Plan; and, provided further, for greater
certainty, that, without the prior approval of the Corporation’s shareholders, stock options issued under this Plan shall not be repriced, replaced, or regranted through cancellation, or by lowering the option price of a previously granted
stock option. Pre-clearance of the Toronto Stock Exchange of amendments to the Plan will be required to the extent provided under the relevant rules of the Toronto Stock Exchange. 

 18. EVIDENCE OF STOCK OPTIONS 
 Each stock option granted under this Plan shall be evidenced by a written stock option agreement between the Corporation and the optionee which shall give effect to the provisions of this Plan and include such
other terms as the Committee shall determine (“Stock Option Award Agreement”). 
 19. WITHHOLDING 

To the extent that the Corporation is required to withhold federal, provincial, state, local or foreign taxes in connection with any payment made or benefit
realized by an optionee or other person hereunder, and the amounts available to the Corporation for such withholding are insufficient, it shall be a condition to the receipt of such payment or the realization of such benefit that the optionee or
such other person make arrangements satisfactory to the Corporation for payment of the balance of such taxes required to be withheld, which arrangements (in the discretion of the Board) may include relinquishment of a portion of such benefit.
Participants shall also make such arrangements in connection with the disposition of Common Shares acquired upon the exercise of option rights with respect to this Plan. 

			
		
	

 	  	Potash Corporation of Saskatchewan Inc.

 This certificate evidences and confirms the grant to
             (the “Optionee”) of options to purchase the number of Common Shares of the Corporation specified under Paragraph (1) on the terms and subject to the conditions
of the Potash Corporation of Saskatchewan Inc. 2013 Performance Option Plan (the “2013 Plan”) and the terms and conditions set forth below. In the event of any inconsistency between the terms of the 2013 Plan and those set forth below, the
terms of the 2013 Plan shall control. Capitalized terms used below that are not defined in this certificate shall have the meanings specified in the 2013 Plan. 
 As a condition to the Optionee’s participation in the 2013 Plan and as a further condition to the Optionee’s receipt of the options granted under the 2013 Plan, the Optionee hereby acknowledges and
agrees that all of the Optionee’s outstanding options shall be subject to the Detrimental Activity Forfeiture and Repayment provisions set out in paragraph 16 of the 2013 Plan. 

 

	1.	Number of Shares: The Optionee is hereby granted options under the 2013 Plan to purchase             
Common Shares. 

	2.	Option Exercise Price: The exercise price for each Common Share is $            .

	3.	Time and Conditions to Vesting: The options will become vested following the end of the Performance Period of January 1, 2013 through December 31, 2015 if, and
to the extent, the applicable Performance Measures for the Performance Period are achieved. Subject to applicable conditions under the 2013 Plan with respect to continued employment during the Performance Period and achievement of the minimum
Performance Measures, the date for vesting will be determined but will not be later than 30 days after the audited financial statements of the Corporation for the 2015 fiscal year of the Corporation have been approved by the Board. Upon vesting, the
Optionee will have the right to purchase a number of Common Shares covered by the option equal to the percentage determined in accordance with the Performance Measure and Vesting Scale provided under the 2013 Plan. 

	4.	Once vested, the options will continue to be exercisable until the expiry date for the options of May 16, 2023. 

	5.	Notwithstanding the provisions of paragraph 4 above, this option will terminate as provided in paragraph 10 of the 2013 Plan in the event that the actual and active employment of
the Optionee ceases. The option is personal to the Optionee and is not assignable, except in accordance with the conditions attached hereto as Appendix I. 

	6.	Notice of exercise of the option is to be given in accordance with paragraph 11 of the 2013 Plan. 

	7.	Adjustments to the option may be made as provided in paragraph 12 of the 2013 Plan, the provisions of paragraph 13 of the 2013 Plan shall apply in the event of a proposed
amalgamation or merger of the Corporation, and the provisions of paragraph 14 of the 2013 Plan will apply in the event of a “change in control” of the Corporation as defined in that paragraph. 

	8.	This grant of option is subject to receipt of any necessary regulatory approvals and shall be governed by the laws of Saskatchewan. 

	9.	This grant of options is subject to receipt of the Optionee’s Acknowledgement below on or before June 17, 2013. 

 

													
		 		 	Optionee Acknowledgement:	 		 	Potash Corporation of Saskatchewan Inc.
							
	Date: May 16, 2013	 		 	By:	 	 	 		 	By:	 	
		 		 		 		 		 		 	
		 		 	Date:	 	                               
         , 2013	 		 		 	President and Chief Executive Officer

  

  

 Potash Corporation of Saskatchewan Inc. 

2013 Performance Option Plan 
 1. PURPOSE OF
PLAN. Potash Corporation of Saskatchewan Inc. (the “Corporation”) by resolution of its Board of Directors (the “Board”) has established, subject to shareholder approval at the Corporation’s 2013 Annual and Special
Meeting of shareholders, this Potash Corporation of Saskatchewan Inc. 2013 Performance Option Plan (the “Plan”) to support the Corporation’s compensation philosophy of providing selected employees and officers with an opportunity to:
promote the growth and profitability of the Corporation; align their interests with shareholders; and earn compensation commensurate with corporate performance. The Corporation believes this Plan will directly assist in supporting the
Corporation’s compensation philosophy by providing participants with the opportunity through stock options, which will vest, if at all, based on corporate performance over a three-year period, to acquire common shares of the Corporation
(“Common Shares”). 
 2. DURATION OF THIS PLAN. This Plan was adopted by the Board on February 19, 2013 to be effective as of
January 1, 2013 (the “Effective Date”), subject to shareholder approval at the Corporation’s 2013 Annual and Special Meeting of shareholders, and shall remain in effect, unless sooner terminated as provided herein, until one
(1) year from the Effective Date, at which time it will terminate. After this Plan is terminated, no stock options may be granted but stock options previously granted shall remain outstanding in accordance with their applicable terms and
conditions and this Plan’s terms and conditions. 
 3. ADMINISTRATION. This Plan shall be administered by the Compensation Committee of the
Board or any other committee designated by the Board to administer this Plan (the “Committee”). The Committee shall be responsible for administering this Plan, subject to this Section 3 and the other provisions of this Plan. The
Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an employee, and the Committee, the Corporation, and its officers and directors shall be entitled to rely upon the advice, opinions, or
valuations of any such individuals. All actions taken and all interpretations and determinations made by the Committee shall be made in the Committee’s sole discretion and shall be final and binding upon the participants, the Corporation, and
all other interested individuals. To the extent applicable, the Plan shall be administered with respect to optionees subject to the laws of the U.S. so as to avoid the application of penalties pursuant to Section 409A of the Internal
Revenue Code, and stock options hereunder may be subject to such restrictions as the Committee determines are necessary to avoid application of such Section 409A. 
 4. AUTHORITY OF THE COMMITTEE. The Committee shall have full and exclusive discretionary power to interpret the terms and the intent of this Plan and any Stock Option Award Agreement or other agreement or
document ancillary to or in connection with this Plan, to determine eligibility for stock options and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as the Committee may deem necessary or proper.
Such authority shall include adopting modifications and amendments to any Stock Option Award Agreement that are necessary to comply with the laws of the countries and other jurisdictions in which the Corporation and/or its subsidiaries operate.

 5. SHARES SUBJECT TO STOCK OPTIONS. The aggregate number of Common Shares issuable after February 19, 2013 pursuant to stock options under
this Plan may not exceed 3,000,000 Common Shares. The aggregate number of Common Shares in respect of which stock options have been granted to any one person pursuant to this Plan and which remain outstanding shall not at any time exceed 750,000.
The authorized limits under this Plan shall be subject to adjustment under Sections 12 and 13. 
 Notwithstanding anything to the
contrary contained in this Plan, no options shall be granted to insiders if such options, together with any other outstanding security based compensation arrangements, could result in: 
 (a) the number of Common Shares issuable to insiders at any time pursuant to security based compensation arrangements of the Corporation exceeding ten percent (10%) of the issued and outstanding Common
Shares; or 
 (b) the issuance to insiders pursuant to security based compensation arrangements of the Corporation, within any one year period, of a
number of Common Shares exceeding ten percent (10%) of the issued and outstanding Common Shares. 
 For the purposes of the foregoing
paragraphs, “security based compensation arrangement” and “insider” have the meanings attributed thereto in the TSX Company Manual. 
 If any stock option granted under this Plan, or any portion thereof, expires or terminates for any reason without having been exercised in full, the Common Shares with respect to which such option has not been
exercised shall again be available for further stock options under this Plan; provided, however, that any stock option that is granted under this Plan that does not vest as a result of a failure to satisfy the Performance Measures, shall not be
again available for grant under this Plan. 
 6. GRANT OF STOCK OPTIONS. From time to time the Board may designate individual officers and employees
of the Corporation and its subsidiaries eligible to be granted options to purchase Common Shares and the number of common Shares which each such person will be granted a stock option to purchase; provided that the aggregate number of Common Shares
subject to such stock options may not exceed the number provided for in Section 5 of this Plan. Non-employee directors and other non-employee contractors and third party vendors are not eligible to participate in this Plan. 

7. OPTION PRICE. The option price for any option granted under this Plan to any optionee shall be fixed by the Board when the option is granted and shall be
not less than the fair market value of the Common Shares at such time which, for optionees resident in the United States and any other optionees designated by the Board, shall be deemed to be the closing price per Common Share on the New York Stock
Exchange on the last trading day immediately preceding the day the option is granted and, for all other optionees, shall be deemed to be the closing price per Common Share on the Toronto Stock Exchange on the last trading day immediately preceding
the day the option is granted; provided that, in either case, if the Common Shares did not trade on such exchange on such day the option price shall be the closing price per share on such exchange on the last day on which the Common Shares traded on
such exchange prior to the day the option is granted. 
 8. VESTING OF STOCK OPTIONS. Subject to achievement of Performance Measures as certified
and approved by the Audit Committee of the Board, stock options granted under this Plan will vest no later than thirty (30) days after the audited financial statements for the applicable Performance Period have been approved by the Board.

	9.	PERFORMANCE MEASURES FOR VESTING OF STOCK OPTIONS. 

 (a) The
Performance Measures which will be used to determine the degree to which stock options will vest over the three-year period beginning the first day of the fiscal year in which they are granted (the “Performance Period”) shall be cash flow
return on investment (“CFROI”) and weighted average cost of net debt and equity capital (“WACC”). 
 (i) CFROI is the ratio of after
tax operating cash flow to average gross investment over the fiscal year, calculated as A divided by B, where (1) A equals operating income less/plus nonrecurring or unusual items less/plus change in unrealized gains/losses on derivative
instruments included in net income plus accrued incentive awards plus depreciation and amortization less current taxes, and (2) B equals the average of total assets less/plus the fair value adjustment for investments in available for sale
securities less the fair value of derivative instrument assets plus accumulated depreciation plus accumulated amortization less cash and cash equivalents less non interest bearing current liabilities excluding derivatives. 

(ii) WACC is the weighted average cost of net debt and equity capital, calculated as [A times the product of B divided by C] plus [D times the product of E divided
by C], where (1) A equals the after-tax market yield cost of debt, (2) B equals the market value of debt less cash and cash equivalents (3) C equals the market value of debt less cash and cash equivalents, plus the market value of
equity, (4) D equals the cost of equity, and (5) E equals the market value of equity. 
 (b) In determining the number of stock options that will
actually vest based on the degree to which the Performance Measures have been attained during the applicable Performance Period, the following chart shall be utilized which shows the three year average excess of CFROI being greater than WACC and the
respective portion of the stock option that will vest: 
  

			
	Performance Measure
3 year average excess of
CFROI >
WACC	 	Vesting Scale
% of Stock Option
Grant Vesting
	 <0%
	 	 0%

	 0.20%
	 	 30%

	 1.20%
	 	 70%

	 2.20%
	 	 90%

	 2.50%
	 	 100%

 (c) In assessing the portion of the stock options that shall vest in accordance with the above chart, the following shall be done:

 (i) Each year, the CFROI and WACC will be calculated in accordance with the definitions herein, based on the audited financial statements and approved
by the Audit Committee. 
 (ii) In each Performance Period, the average of the three fiscal years shall be calculated by taking the simple average of the
individual years’ results. 
 (iii) The resulting three-year average will then be applied, using the scale above to determine the number of stock
options, if any, that will vest as of the end of the Performance Period. 
 (iv) For results falling between the reference points in the chart above, the
level of vesting shall be mathematically interpolated between the reference points. 
 10. TERMS OF STOCK OPTIONS. The period during which a stock
option is exercisable (the “Term”) may not exceed 10 years from the date the stock option is granted (the “Initial Exercise Period”), plus any Additional Exercise Period (as defined below). If such Initial Exercise Period
would otherwise expire (i) during a Blackout Period (as defined below) applicable to the relevant optionee or (ii) within 10 trading days after the expiration of the Blackout Period applicable to the relevant optionee, the Term of the
related stock option shall expire on the date that is the tenth trading day after the end of such Blackout Period (an “Additional Exercise Period”). For purposes of this Plan, “Blackout Period” means any period during which the
relevant optionee is prohibited by the Corporation’s trading policy from trading in the Corporation’s securities. The Stock Option Award Agreement may contain provisions limiting the number of Common Shares with respect to which stock
options may be exercised in any one year. Each stock option agreement shall contain provisions to the effect that: 
 (a) if the employment of an optionee
as an officer or employee of the Corporation or a subsidiary terminates, by reason of his or her death, or if an optionee who is a retiree pursuant to Section 10(b) dies, the legal personal representatives of the optionee will be entitled to
exercise any unexercised vested options, including such stock options that may vest after the date of death, during the period ending at the end of the twelfth calendar month following the calendar month in which the optionee dies, failing which
exercise the stock options terminate; 
 (b) subject to the terms of Section 10(a) above, if the employment of an optionee as an officer or employee
of the Corporation or a subsidiary terminates, by reason of retirement in accordance with the then prevailing retirement policy of the Corporation or subsidiary, the optionee will be entitled to exercise any unexercised vested stock options,
including such stock options that may vest after the date of retirement, during the period ending at the end of the 36th month following the calendar month in which the optionee retires, failing which exercise the stock options terminate;

 (c) subject to the terms of Section 14 below, if the employment of an optionee as an officer or employee of the Corporation or a subsidiary
terminates, for any reason other than as provided in Sections 10(a) or (b), the optionee will be entitled to exercise any unexercised vested stock options, to the extent exercisable at the date of such event, during the period ending at the end
of the calendar month immediately following the calendar month in which the event occurs, failing which exercise the stock options terminate; 
 (d) for
greater certainty and for these purposes, an optionee’s employment with the Corporation or a subsidiary shall be considered to have terminated effective on the last day of the optionee’s actual and active employment with the Corporation or
subsidiary whether such day is selected by agreement with the optionee or unilaterally by the Corporation or subsidiary and whether with or without advance notice to the optionee. For the avoidance of doubt, no period of notice, if any, or payment
in lieu of notice that is given or ought to have been given under applicable law in respect of such termination of employment that follows or is in respect of a period after the optionee’s last day of actual and active employment shall be
considered as extending the optionee’s period of employment for the purposes of determining an optionee’s entitlement under the Plan. The employment of an optionee with the Corporation shall be deemed to have terminated for all purposes of
the Plan if such person is employed by or provides services to a person that is a subsidiary of the Corporation and such person ceases to be a subsidiary of the corporation, unless the Committee determines otherwise; and 

(e) each stock option is personal to the optionee and is not assignable, except (i) as provided in Section 10(a), and (ii) at the election of the
Board, a stock option may be assignable to the spouse, children and grandchildren of the original optionee and to a trust, partnership or limited liability company, the entire beneficial interest of which is held, directly or indirectly, by one or
more of the optionee or the spouse, children or grandchildren of the optionee (each, a “Permitted Assignee”). If a stock option is assigned to one or more Permitted Assignees, nothing contained in this section 10(e) shall prohibit a
subsequent assignment of such stock option to one or more other Permitted Assignees or back to the optionee. 
 Nothing contained in
Sections 10(a), (b) or (c) shall extend the Term beyond its stipulated expiration date or the date on which it is otherwise terminated in accordance with the provisions of this Plan. 

If a stock option is assigned pursuant to Section 10(e)(ii), the references in Sections 10(a), (b) and (c) to the termination of
employment or death of an optionee shall not relate to the assignee of a stock option but shall relate to the original optionee. In the event of such assignment, legal personal representatives of the original optionee shall not be entitled to
exercise the assigned stock option, but the assignee of the stock option or the legal personal representatives of the assignee may exercise the stock option during the applicable specified period. 

11. EXERCISE OF STOCK OPTIONS. Subject to the provisions of this Plan, a vested stock option may be exercised from time to time by delivering to the
Corporation at its registered office a written notice of exercise specifying that number of Common Shares with respect to which the stock option is being exercised and accompanied by payment in cash or certified cheque in full of the purchase price
of the Common Shares then being purchased. 
 12. ADJUSTMENTS. Appropriate adjustments to the authorized limits set forth in Section 5, in the
number, class and/or type of Common Shares optioned and in the option price per share, both as to stock options granted or to be granted, shall be made by the Board to give effect to adjustments in the number of Common Shares which result from
subdivisions, consolidations or reclassifications of the Common Shares, the payment of share dividends by the Corporation, the reconstruction, reorganization or recapitalization of the Corporation or other relevant changes in the capital of the
Corporation. 
 13. MERGERS. If the Corporation proposes to amalgamate or merge with another body corporate, the Corporation shall give written
notice thereof to optionees in sufficient time to enable them to exercise outstanding vested stock options, to the extent they are otherwise exercisable by their terms (including stock options that are accelerated pursuant to Section 14), prior
to the effective date of such amalgamation or merger if they so elect. The Corporation shall use its best efforts to provide for the reservation and issuance by the amalgamated or continuing corporation of an appropriate number of Common Shares,
with appropriate adjustments, so as to give effect to the continuance of the stock options to the extent reasonably practicable. In the event that the Board determines in good faith that such continuance is not in the circumstances practicable, it
may upon 30 days’ notice to optionees terminate the stock options for a payment equal to the excess, if any, between the per share exercise price and the per share market price of the Common Shares on the date the stock option is cancelled
and all stock options with a per share exercise price that exceeds the per share market price of the Common Shares on the date of cancellation will be cancelled for no consideration. 

	14.	CIRCUMSTANCES FOR ACCELERATED VESTING. 

 (a) If a “change
in control” of the Corporation occurs and at least one of the two additional circumstances described below occurs, then each outstanding stock option granted under this Plan may be exercised, in whole or in part, even if such option is not
otherwise exercisable by its terms: 
 (i) Upon a “change in control” the surviving corporation (or any affiliate thereto) or the potential
successor (or any affiliate thereto) fails to continue or assume the obligations with respect to each stock option or fails to provide for the conversion or replacement of each stock option with an equivalent stock option; or 

(ii) In the event that the stock options were continued, assumed, converted or replaced as contemplated in (i), during the two-year period following the effective
date of a change in control, the optionee is terminated by the Corporation without Cause (as defined below) or the optionee resigns employment for Good Reason (as defined below). 
 (b) For purposes of this Plan, a change in control of the Corporation shall be deemed to have occurred if any of the following occur, unless the Board adopts a plan after the Effective Date of this Plan that has a
different definition (in which case such definition shall be applied), or the Committee decides to modify or amend the following definition through an amendment of this Plan: 
 (i) within any period of two consecutive years, individuals who at the beginning of such period constituted the Board and any new directors whose appointment by the Board or nomination for election by shareholders
of the Corporation was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of the period or whose appointment or nomination for election was previously so approved, cease for any
reason to constitute a majority of the Board; 
 (ii) there occurs an amalgamation, merger, consolidation, wind-up, reorganization or restructuring of the
Corporation with or into any other entity, or a similar event or series of such events, other than any such event or series of events which results in securities of the surviving or consolidated corporation representing 50% or more of the combined
voting power of the surviving or consolidated corporation’s then outstanding securities entitled to vote in the election of directors of the surviving or consolidated corporation being beneficially owned, directly or indirectly, by the persons
who were the holders of the Corporation’s outstanding securities entitled to vote in the election of directors of the Corporation prior to such event or series of events in substantially the same proportions as their ownership immediately prior
to such event of the Corporation’s then outstanding securities entitled to vote in the election of directors of the Corporation; 
 (iii) 50% or more
of the fixed assets (based on book value as shown on the most recent available audited annual or unaudited quarterly consolidated financial statements) of the Corporation are sold or otherwise disposed of (by liquidation, dissolution, dividend or
otherwise) in one transaction or series of transactions within any twelve month period; 
 (iv) any party, including persons acting jointly or in concert
with that party, becomes (through a take-over bid or otherwise) the beneficial owner, directly or indirectly, of securities of the Corporation representing 20% or more of the combined voting power of the Corporation’s then outstanding
securities entitled to vote in the election of directors of the Corporation, unless in any particular situation the Board determines in advance of such event that such event shall not constitute a change in control; or 

(v) there is a public announcement of a transaction that would constitute a change in control under clause (ii), (iii) or (iv) of this Section 14(b)
and the Committee determines that the change in control resulting from such transaction will be deemed to have occurred as of a specified date earlier than the date under (ii), (iii) or (iv), as applicable 

(c) For the purposes of Section 14(a) of this Plan, the obligations with respect to each stock option shall be considered to have been continued or assumed by
the surviving corporation (or any affiliate thereto) or the potential successor (or any affiliate thereto), if each of the following conditions are met, which determination shall be made solely in the discretionary judgment of the Committee, which
determination may be made in advance of the effective date of a particular change in control: 

	(i)	the Common Shares remain publicly held and widely traded on an established stock exchange; and 

 (ii) the terms of the Plan and each option grant are not altered or impaired without the consent of the optionee. 
 (d)
For the purposes of Section 14(a) of this Plan, the obligations with respect to each stock option shall be considered to have been converted or replaced with an equivalent stock option by the surviving corporation (or any affiliate thereto) or
the potential successor (or any affiliate thereto), if each of the following conditions are met, which determination shall be made solely in the discretionary judgment of the Committee, which determination may be made in advance of the effective
date of a particular change in control: 
 (i) each each stock option is converted or replaced with a replacement option in a manner that complies with
Section 409A of the Internal Revenue Code, in the case of an optionee that is taxable in the United States on all or any portion of the benefit arising in connection with the grant, exercise and/or other disposition of such stock option, or in
a manner that qualifies under subsection 7(1.4) of the Income Tax Act (Canada), in the case of an optionee that is taxable in Canada on all or any portion of the benefit arising in connection with the grant, exercise and/or other disposition
of such stock option; 
 (ii) the converted or replaced option preserves the existing value of each underlying stock option being replaced, contains
provisions for scheduled vesting and treatment on termination of employment (including the definition of Cause and Good Reason) that are no less favourable to the optionee than the underlying option being replaced, and all other terms of the
converted option or replacement option, including the underlying performance measures (but other than the security and number of shares represented by the continued option or replacement option) are substantially similar to the underlying stock
option being replaced; and 
 (iii) the security represented by the converted or replaced option is of a class that is publicly held and widely traded
on an established stock exchange. 
 (e) For purposes of this Plan, “Cause” means dishonest or willful misconduct or lack of good faith resulting
in material harm to the Corporation, financial or otherwise. 

	(f)	For purposes of this Plan, “Good Reason” means: 

 (i) a
substantial diminution in the optionee’s authorities, duties, responsibilities, status (including offices, titles, and reporting requirements) from those in effect immediately prior to the change in control; 

(ii) the Corporation requires the optionee to be based at a location in excess of fifty (50) miles from the location of the optionee’s principal job
location or office immediately prior to the change in control, except for required travel on Corporation business to an extent substantially consistent with the optionee’s business obligations immediately prior to the change in control;

 (iii) a reduction in the optionee’s base salary, or a substantial reduction in optionee’s target compensation under any incentive compensation
plan, as in effect as of the date of the change in control; 
 (iv) the failure to increase the optionee’s base salary in a manner consistent (both as
to frequency and percentage increase) with practices in effect immediately prior to the change in control or with practices implemented subsequent to the change in control with respect to similarly positioned employees; or 

(v) the the failure of the Corporation to continue in effect the optionee’s participation in the Corporation’s short and long-term incentive plans, stock
option plans, and employee benefit and retirement plans, policies or practices, at a level substantially similar or superior to and on a basis consistent with the relative levels of participation of other similarly-positioned employees, as existed
immediately prior to the change in control. 
 A termination of employment by the optionee for one of the reasons set forth in clause (i),
(ii), (iii), (iv) or (v) of this Section 14(f), will not constitute Good Reason unless, within the 30-day period immediately following the optionee’s knowledge of the occurrence of such Good Reason event, the optionee has given
written notice to the Corporation of the event relied upon for such termination and the Corporation has not remedied such event within 30 days (the “Cure Period”) of the receipt of such notice. For the avoidance of doubt, the
optionee’s employment shall not be deemed to terminate for Good Reason unless and until the Cure Period has expired and, if curable, the Corporation has not remedied the applicable Good Reason event. The Corporation and the optionee may
mutually waive in writing any of the foregoing provisions with respect to an event that otherwise would constitute Good Reason. 
 15. RECOUPMENT
POLICY. Each stock option granted under this Plan to an optionee that, as of the date the option is granted, participates in the Corporation’s Medium-Term Incentive Plan shall be subject to the terms and conditions of the Corporation’s
Policy on Recoupment of Unearned Compensation (as previously adopted and, from time to time, amended by the Board) attached to such optionee’s Stock Option Award Agreement (as defined below). 

	16.	FORFEITURE AND REPAYMENT. 

 (a) Notwithstanding anything to
the contrary in this Plan or any other stock option plan of the Corporation that was established prior to the date of this Plan (each, a “Prior Plan”), in the event the Committee determines that the optionee has engaged in a Detrimental
Activity (a “Forfeiture Event”) during the optionee’s employment or within one year following the optionee’s termination of employment for any reason (the “Restricted Period”), the Committee may, but is not obligated
to, cancel any outstanding unexercised stock options of such optionee (whether vested or unvested), whether granted under this Plan or a Prior Plan, by written notice to the optionee. 
 (b) If a Forfeiture Event occurs during the Restricted Period, the Committee may, but is not obligated to, require the optionee to pay to the Corporation an amount in cash up to (but not in excess of) the
difference between the option price and market price of each stock option on the date of exercise with respect to any Common Shares for which a stock option has been exercised within the period of one year prior to the date of the Forfeiture Event
(the “Forfeited Spread Amount”). Any Forfeited Spread Amount shall be paid by the optionee within sixty (60) days of receipt from the Corporation of written notice requiring payment of such Forfeited Spread Amount. To the extent that
such amounts are not paid to the Corporation, in addition to any other legal remedy that the Corporation may have, the Corporation may set off the amounts so payable to it against any amounts that may be owing from time to time by the Corporation or
a subsidiary to the optionee, whether as wages, deferred compensation, severance entitlement or vacation pay or in the form of any other benefit or for any other reason, in a manner consistent with Section 409A of the U.S. Internal Revenue Code
of 1986, if applicable. 
 (c) This Section 16 shall apply notwithstanding any provision to the contrary in this Plan or any Prior Plan and is meant
to provide the Corporation with rights in addition to any other remedy which may exist in law or in equity. This Section 16 shall not apply to the optionee following the effective time of a change in control. 

	(d)	For purposes of this Section 16, the term “Detrimental Activity” shall include: 

 (i) Engaging in any activity, including without limitation, as an officer, director, employee, principal, manager, agent, or consultant for another entity that directly competes or is seeking to compete with the
Corporation, any subsidiary or Canpotex Limited in any actual product, service, or business activity (or in any product, service, or business activity which was under active development while the optionee was employed by the Corporation or a
subsidiary if such development is being actively pursued by the Corporation or a subsidiary during the one-year period first referred to in Section 16(b)) in any territory in which the Corporation, a subsidiary or Canpotex Limited operates,
engages in any business activity or sells its products. 
 (ii) Soliciting or hiring, including without limitation, as an officer, director, employee,
principal, manager, agent, or consultant for another entity, any individual who was employed by, or provided services as a consultant or contractor to, the Corporation, any subsidiary or Canpotex Limited at any time within the six months immediately
preceding such solicitation or hire. 
 (iii) The disclosure to anyone outside the Corporation or a subsidiary, or the use in other than the Corporation or
a subsidiary’s business, without prior written authorization from the Corporation, of any confidential, proprietary or trade secret information or material relating to the business of the Corporation or its subsidiaries, acquired by the
optionee during his or her employment with the Corporation or its subsidiaries or while acting as a consultant for the Corporation or its subsidiaries thereafter. For greater certainty, nothing contained herein shall limit an optionee’s ongoing
obligations regarding confidentiality that may exist pursuant to any other agreement, Corporation policy or legal obligation imposed on such optionee. 

17. AMENDMENT OR DISCONTINUANCE OF THIS PLAN. The Board may amend or discontinue the Plan at any time, without obtaining the approval of shareholders of the
Corporation unless required by the relevant rules of the Toronto Stock Exchange, provided that, subject to Sections 12, 13, and 14, no such amendment may increase the aggregate maximum number of Common Shares that may be subject to stock
options under this Plan, change the manner of determining the minimum option price, extend the Term under any option beyond 10 years (plus any Additional Exercise Period) or the date on which the option would otherwise expire under the Plan,
expand the assignment provisions of the Plan, permit non-employee directors to participate in the Plan or, without the consent of the holder of the option, alter or impair any option previously granted to an optionee under this Plan; and, provided
further, for greater certainty, that, without the prior approval of the Corporation’s shareholders, stock options issued under this Plan shall not be repriced, replaced, or regranted through cancellation, or by lowering the option price of a
previously granted stock option. Pre-clearance of the Toronto Stock Exchange of amendments to the Plan will be required to the extent provided under the relevant rules of the Toronto Stock Exchange. 

18. EVIDENCE OF STOCK OPTIONS. Each stock option granted under this Plan shall be evidenced by a written stock option agreement between the Corporation and
the optionee which shall give effect to the provisions of this Plan and include such other terms as the Committee shall determine (“Stock Option Award Agreement”). 
 19. WITHHOLDING. To the extent that the Corporation is required to withhold federal, provincial, state, local or foreign taxes in connection with any payment made or benefit realized by an optionee or other
person hereunder, and the amounts available to the Corporation for such withholding are insufficient, it shall be a condition to the receipt of such payment or the realization of such benefit that the optionee or such other person make arrangements
satisfactory to the Corporation for payment of the balance of such taxes required to be withheld, which arrangements (in the discretion of the Board) may include relinquishment of a portion of such benefit. Participants shall also make such
arrangements in connection with the disposition of Common Shares acquired upon the exercise of option rights with respect to this Plan. 

 APPENDIX I 
 This option may be assigned, in whole or in part, only if the following conditions are satisfied: 
  

	 	1.	No consideration may be paid in connection with the assignment. 

  

	 	2.	An assignment may be made only to one or more persons or entities included in the following: the original Optionee’s spouse, children and grandchildren and a
trust, partnership or limited liability company, the entire beneficial interest of which is held, directly or indirectly, by one or more of the Optionee or the Optionee’s spouse, children and grandchildren (each a “Permitted
Assignee”). If this option is assigned to one or more Permitted Assignees, nothing contained herein shall prohibit a subsequent assignment of this option to one or more Permitted Assignees or to the original Optionee. 

 

	 	3.	Prior to any such assignment, 

  

	 	(a)	 the assignor shall advise the Corporation, in a writing delivered to Potash Corporation of Saskatchewan Inc., 122 1st Avenue South, Saskatoon, Saskatchewan, Canada S7K 7G3, Attention:
General Counsel, of all pertinent information concerning the proposed assignment, including the date of the assignment, the number of shares involved, the relationship of the assignee to the original Optionee and the address and telephone number of
the assignee; and 

  

	 	(b)	the assignee shall agree in a writing so delivered to advise the Corporation in writing of any change in the name, address or telephone number of the assignee.

  

	 	4.	The assignee shall agree to be bound by all of the terms and conditions of the applicable option plan and any agreement evidencing the grant of the option(s).

 The decision to assign all or part of this option involves complex tax and financial considerations. An Optionee should consult
the Optionee’s own tax and financial advisors before such assignment.EX 10.1

 Exhibit 10.1 
 CONTRIBUTION, CONVEYANCE AND ASSUMPTION 
 AGREEMENT 

By and Among 
 TALLGRASS ENERGY PARTNERS, LP, 
 TALLGRASS MLP GP, LLC, 

TALLGRASS DEVELOPMENT, LP, 
 TALLGRASS DEVELOPMENT GP, LLC, 
 TALLGRASS GP HOLDINGS, LLC,

 TALLGRASS OPERATIONS, LLC, 
 TALLGRASS INTERSTATE GAS TRANSMISSION, LLC, 
 TALLGRASS MIDSTREAM, LLC,

 And 
 TALLGRASS MLP OPERATIONS, LLC 
 Dated as of May 17, 2013

 CONTRIBUTION, CONVEYANCE AND ASSUMPTION 

AGREEMENT 

This Contribution, Conveyance and Assumption Agreement, dated as of May 17, 2013 (this “Agreement”), is by and
among Tallgrass Energy Partners, LP, a Delaware limited partnership (the “Partnership”), Tallgrass MLP GP, LLC, a Delaware limited liability company (the “General Partner”), Tallgrass Development, LP, a Delaware
limited partnership (“Tallgrass Development”), Tallgrass Development GP, LLC, a Delaware limited liability company (the “Development GP”), Tallgrass GP Holdings, LLC, a Delaware limited liability company
(“GP Holdings”), Tallgrass Operations, LLC, a Delaware limited liability company (“TO”), Tallgrass Interstate Gas Transmission, LLC, a Colorado limited liability company, (“TIGT”), Tallgrass
Midstream, LLC, a Delaware limited liability company (“TMID”), and Tallgrass MLP Operations, LLC, a Delaware limited liability company (“OLLC”). The above-named entities are sometimes referred to in this Agreement
each as a “Party” and collectively as the “Parties.” Capitalized terms used herein shall have the meanings assigned to such terms in Article I. 

RECITALS 
 WHEREAS, the General Partner and TO have formed the Partnership, pursuant to the Delaware Revised Uniform Limited Partnership Act (the “Delaware LP Act”), for the purpose of
engaging in any business activity that is approved by the General Partner and that lawfully may be conducted by a limited partnership organized pursuant to the Delaware LP Act. 

WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, each of the following actions has been taken
prior to the date hereof: 
  

	 	1.	The members of Development GP formed GP Holdings under the terms of the Delaware Limited Liability Company Act (the “Delaware LLC Act”) and contributed
their interest in Development GP to GP Holdings in exchange for identical membership interests in GP Holdings. 

  

	 	2.	TO formed the General Partner under the terms of the Delaware LLC Act and contributed $1,000 for all of the membership interests in the General Partner.

  

	 	3.	The General Partner and TO formed the Partnership under the terms of the Delaware LP Act and contributed $20 and $980, respectively, in exchange for a 2.0% general
partner interest (the “Initial General Partner Interest”) and a 98.0% limited partner interest (the “Initial Limited Partner Interest”), respectively, in the Partnership. 

 

	 	4.	TO formed OLLC under the terms of the Delaware LLC Act. 

 WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of the following transactions will occur at the times specified hereunder: 

 

	 	1.	TO will contribute its 100% membership interest in each of TIGT and TMID to OLLC in exchange for the continuation of its 100% membership interest in OLLC and
OLLC’s assumption of $400 million of debt (the “Assumed Debt”) of TO under the Credit Agreement, dated as of November 13, 2012, among TO, Tallgrass Development, the Lenders Party thereto and Barclays Bank PLC, as
administrative agent and collateral agent (the “Credit Agreement”). 

  
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	 	2.	TO will contribute a 2.0% interest in OLLC to the General Partner as a capital contribution (the “OLLC 2.0% Interest”). 

 

	 	3A.	The General Partner will contribute the OLLC 2.0% Interest to the Partnership as a capital contribution in exchange for (i) 826,531 general partner units in the
Partnership representing a continuation of its 2.0% general partner interest in the Partnership and (ii) the Incentive Distribution Rights in the Partnership. 

 

	 	3B.	TO will contribute the remaining 98% membership interest in OLLC to the Partnership as a capital contribution in exchange for (i) 9,292,500 Common Units
representing limited partner interests in the Partnership, (ii) 16,200,000 Subordinated Units representing limited partner interests in the Partnership and (iii) the right to receive the Deferred Issuance and Distribution.

  

	 	4.	The Partnership will redeem the Initial General Partner Interest and the Initial Limited Partner Interest and will refund the General Partner’s initial
contribution of $20, TO’s initial contribution of $980, as well as any interest or other profit that may have resulted from the investment or other use of such initial capital contributions to the General Partner and TO, respectively, in
proportion to such initial contribution. 

  

	 	5.	TO will convey 100% of the membership interest in the General Partner to Tallgrass Development. 

 

	 	6.	Tallgrass Development will convey 100% of the membership interest in the General Partner to Development GP. 

 

	 	7.	Development GP will convey 100% of the membership interest in the General Partner to GP Holdings. 

 

	 	8.	The agreements of limited partnership and the limited liability company agreements of the aforementioned entities will be amended and restated to the extent necessary
to reflect the applicable matters set forth above and contained in this Agreement. 

 WHEREAS, the members
or partners of the Parties have taken all partnership and limited liability company action, as the case may be, required to approve the transactions contemplated by this Agreement. 

WHEREAS, at the Effective Time, the public, through the Underwriters, will purchase from the Partnership for $295,850,020 in cash
(after taking into account the Underwriters’ discount of approximately $18,049,980), 14,600,000 Common Units (of which 13,050,000 will be Firm Units and 1,550,000 will be Option Units) owned by the Partnership on such date. 

WHEREAS, at the Effective Time, the Partnership will (i) pay the Structuring Fee to Barclays Capital Inc. and Citigroup
Global Markets Inc., (ii) pay the transaction expenses, estimated to be approximately $3,509,000 and (iii) contribute approximately $295.9 million to OLLC. 

  
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 WHEREAS, at the Effective Time, OLLC will use the approximately $295.9 million
received from the Partnership to repay approximately $295.9 million of Assumed Debt. 
 WHEREAS, at the Effective Time,
the Partnership will (i) enter into a new $500 million credit facility with Barclays Bank PLC, as administrative agent (the “New Credit Agreement”), and (ii) borrow approximately $231.0 million pursuant to the
New Credit Agreement and use the proceeds of the New Credit Agreement to (a) repay the remaining $104.2 million balance owing under the Assumed Debt, (b) pay approximately $6.4 million in origination fees under the New Credit Agreement,
(c) make an approximately $85.5 million cash payment to TO in order to reimburse Tallgrass Development for a portion of the capital expenditures made by Tallgrass Development to purchase TIGT and TMID, (d) pay Tallgrass Development a
cash distribution of approximately $31.2 million in connection with the Underwriter’s partial exercise of the Over-Allotment Option and (e) approximately $3.7 million for general corporate purposes. 

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements herein contained, the parties
hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 The terms set forth below in this Article I shall have the
meanings ascribed to them below or in the part of this Agreement referred to below: 
 “Agreement” has the
meaning assigned to such term in the preamble. 
 “Assumed Debt” has the meaning assigned to such term in the
recitals. 
 “Closing Date” means May 17, 2013. 

“Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time. Any reference herein to a
specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of any successor law. 
 “Common Units” has the meaning assigned to such term in the Partnership Agreement. 
 “Commission” means the U.S. Securities and Exchange Commission. 

“Credit Agreement” has the meaning assigned to such term in the recitals. 

“Deferred Issuance and Distribution” has the meaning assigned to such term in the Partnership Agreement. 

“Delaware LP Act” has the meaning assigned to such term in the recitals. 

“Delaware LLC Act” has the meaning assigned to such term in the recitals. 

  
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 “Development GP” has the meaning assigned to such term in the preamble.

 “Effective Time” means immediately prior to the closing of the initial public offering pursuant to the
Underwriting Agreement. 
 “Firm Units” shall have the meaning assigned to such term in the Underwriting
Agreement. 
 “General Partner” has the meaning assigned to such term in the preamble. 

“GP Holdings” has the meaning assigned to such term in the preamble. 

“Incentive Distribution Rights” has the meaning assigned to such term in the Partnership Agreement. 

“Initial General Partner Interest” has the meaning assigned to such term in the recitals. 

“Initial Limited Partner Interest” has the meaning assigned to such term in the recitals. 

“New Credit Agreement” has the meaning assigned to such term in the recitals. 

“OLLC” has the meaning assigned to such term in the preamble. 

“OLLC 2.0% Interest” has the meaning assigned to such term in the recitals. 

“Option Period” shall mean the period from the date hereof through June 12, 2013. 

“Option Units” shall have the meaning assigned to such term in the Underwriting Agreement. 

“Over-Allotment Option” means the option granted to the Underwriters by the Partnership pursuant to Section 2 of
the Underwriting Agreement to purchase up to 1,957,500 additional Common Units during the Option Period to cover over-allotments. 
 “Party” and “Parties” has the meaning assigned to such term in the preamble. 
 “Partnership” has the meaning assigned to such term in the preamble. 
 “Partnership Agreement” means the First Amended & Restated Agreement of Limited Partnership of Tallgrass Energy Partners, LP dated as of May 17, 2013. 

“Registration Statement” means the Registration Statement on Form S-1 filed with the Commission (Registration
No. 333-187595), as amended and effective at the Effective Time. 
 “Structuring Fee” means a fee equal to
0.50% of the gross proceeds of the sale of Common Units pursuant to the Underwriting Agreement, including pursuant to any exercise of the Over-Allotment Option. 

  
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 “Subordinated Units” has the meaning assigned to such term in the
Partnership Agreement. 
 “Tallgrass Development” has the meaning assigned to such term in the preamble.

 “TO” has the meaning assigned to such term in the preamble. 

“TIGT” has the meaning assigned to such term in the preamble. 

“TMID” has the meaning assigned to such term in the preamble. 

“Underwriters” means those underwriters listed in the Underwriting Agreement. 

“Underwriting Agreement” means that certain Underwriting Agreement between Barclays Capital Inc. and Citigroup Global
Markets Inc., as representatives of the Underwriters, the General Partner, the Partnership and Tallgrass Development dated as of May 13, 2013. 
 ARTICLE II 
 CONTRIBUTION, ACKNOWLEDGEMENTS AND DISTRIBUTIONS

 The following shall be completed immediately following the Effective Time in the order set forth herein: 

Section 2.1 Contribution by TO of its 100% membership interest in each of TIGT and TMID to OLLC. TO hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to OLLC, its successors and its assigns, for its and their own use forever, all right, title and interest in and to its 100% membership interest in each of TIGT and TMID as a capital
contribution, in exchange for the continuation of its 100% membership interest in OLLC and OLLC’s assumption of the Assumed Debt, and OLLC hereby accepts the 100% membership interest in each of TIGT and TMID and agrees to assume the Assumed
Debt. 
 Section 2.2 Contribution by TO of the OLLC 2.0% Interest to the General Partner. TO hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to the General Partner, its successors and its assigns, for its and their own use forever, all right, title and interest in and to the OLLC 2.0% Interest as a capital
contribution, in exchange for the continuation of its 100% ownership interest in the General Partner, and the General Partner hereby accepts the OLLC 2.0% Interest. 
 Section 2.3 Contribution by the General Partner of the OLLC 2.0% Interest to the Partnership. The General Partner hereby grants, contributes, bargains, conveys, assigns, transfers,
sets over and delivers to the Partnership, its successors and its assigns, for its and their own use forever, all right, title and interest in and to the OLLC 2.0% Interest as a capital contribution, in exchange for (i) 826,531 general partner
units in the Partnership representing a continuation of its 2.0% general partner interest in the Partnership and (ii) the Incentive Distribution Rights in the Partnership, and the Partnership hereby accepts the OLLC 2.0% Interest. 

  
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 Section 2.4 Contribution by TO of its 98% membership interest in OLLC to the
Partnership. TO hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors and its assigns, for its and their own use forever, all right, title and interest in and
to its 98% membership interest in OLLC as a capital contribution, in exchange for (i) 9,292,500 Common Units representing limited partner interests in the Partnership, (ii) 16,200,000 Subordinated Units representing limited partner
interests in the Partnership and (iii) the right to receive the Deferred Issuance and Distribution, and the Partnership hereby accepts the 98% membership interest in OLLC. 

Section 2.5 Redemption of the Initial General Partner Interest and the Initial Limited Partner Interest. For and in
consideration of the payment by the Partnership of $20 to the General Partner and $980 to TO as a refund of their respective initial contribution to the Partnership, along with 2.0% and 98.0%, respectively, of any interest or profit that resulted
from the investment or other use of such capital contributions, the Partnership hereby redeems the Initial General Partner Interest and the Initial Limited Partner Interest. 
 Section 2.6 Conveyance by TO of its 100% membership interest in the General Partner to Tallgrass Development. TO hereby grants, distributes, bargains, conveys, assigns, transfers, sets over
and delivers to Tallgrass Development, its successors and its assigns, for its and their own use forever, all right, title and interest in and to 100% of the membership interests in the General Partner, and Tallgrass Development hereby accepts the
100% membership interest in the General Partner. 
 Section 2.7 Conveyance by Tallgrass Development of its 100% membership
interest in the General Partner to Development GP. Tallgrass Development hereby grants, distributes, bargains, conveys, assigns, transfers, sets over and delivers to Development GP, its successors and its assigns, for its and their own
use forever, all right, title and interest in and to 100% of the membership interests in the General Partner, and Development GP hereby accepts the 100% membership interest in the General Partner. 

Section 2.8 Conveyance by Development GP of its 100% membership interest in the General Partner to GP Holdings. Development
GP hereby grants, distributes, bargains, conveys, assigns, transfers, sets over and delivers to GP Holdings, its successors and its assigns, for its and their own use forever, all right, title and interest in and to 100% of the membership interests
in the General Partner, and GP Holdings hereby accepts the 100% membership interest in the General Partner. 
 Section 2.9
Underwriters’ Cash Contribution. The Parties acknowledge that the Underwriters have, pursuant to the Underwriting Agreement, made a capital contribution to the Partnership of $295,850,020 in cash (after taking into account the
Underwriter’s discount of approximately $18,049,980) in exchange for the issuance by the Partnership to the Underwriters of 14,600,000 Common Units (of which 13,050,000 are Firm Units and 1,550,000 are Option Units). 

Section 2.10 Payment of the Structuring Fee. The Partnership agrees to pay Barclays Capital Inc. and Citigroup Global
Markets Inc. the applicable Structuring Fee. 

  
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 Section 2.11 Payment of Transaction Expenses. The Parties acknowledge the
payment by the Partnership of transaction expenses in the amount of approximately $3,509,000. 
 Section 2.12 Contribution by
the Partnership of Approximately $295.9 Million to OLLC. The Partnership agrees to pay OLLC approximately $295.9 million, and OLLC hereby agrees to use the approximately $295.9 million received from the Partnership to repay approximately
$295.9 million of the Assumed Debt. 
 Section 2.13 Partnership’s New Credit Agreement. The Partnership
agrees to (i) enter into the New Credit Agreement and (ii) borrow approximately $231.0 million pursuant to the New Credit Agreement and use the proceeds of the New Credit Agreement to (a) pay approximately $104.2 million to OLLC,
which OLLC hereby agrees to use to repay the remaining balance of the Assumed Debt, (b) pay approximately $6.4 million in origination fees under the New Credit Agreement, (c) pay approximately $85.5 million to TO, in order to reimburse
Tallgrass Development for a portion of the capital expenditures made by Tallgrass Development to purchase TIGT and TMID, (d) pay Tallgrass Development a cash distribution of approximately $31.2 million in connection with the Underwriter’s
partial exercise of the Over-Allotment Option and (e) approximately $3.7 million for general corporate purposes. 

ARTICLE III 

ADDITIONAL TRANSACTIONS 
 Section 3.1 Purchase of Additional Common Units. If the remaining portion of the Over-Allotment Option is exercised in whole or in part, (i) the Underwriters will contribute additional
cash to the Partnership in exchange for up to an additional 407,500 Option Units on the basis of the initial public offering price per Common Unit set forth in the Registration Statement less the amount of underwriting discounts and applicable
Structuring Fee and (ii) the Partnership will pay TO the additional cash received from the Underwriters pursuant to the exercise of the remaining portion of the Over-Allotment Option in order to reimburse Tallgrass Development for a portion of
the capital expenditures made by Tallgrass Development to purchase TIGT and TMID. 
 Section 3.2 Issuance of Additional
Common Units. Upon the expiration of the Option Period, the Partnership will issue to TO a number of additional Common Units that is equal to the excess, if any, of (x) 407,500 over (y) the aggregate number of additional Option
Units, if any, actually purchased by and issued to the Underwriters pursuant to each additional exercise of the Over-Allotment Option after the Closing Date. 
 ARTICLE IV 
 FURTHER ASSURANCES 

From time to time after the Effective Time, and without any further consideration, the Parties agree to execute, acknowledge and deliver
all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and to do all such other acts and things, all in accordance with applicable law, as may be necessary or appropriate
(i) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are

  
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intended to be so granted, (ii) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests
contributed and assigned by this Agreement or intended to be so and (iii) more fully and effectively to carry out the purposes and intent of this Agreement. 
 ARTICLE V 
 EFFECTIVE TIME 

Notwithstanding anything contained in this Agreement to the contrary, none of the provisions of Article II of this Agreement shall be
operative or have any effect until the Effective Time, at which time all the provisions of Article II of this Agreement shall be effective and operative in accordance with Article VI, without further action by any Party hereto. 

ARTICLE VI 

MISCELLANEOUS 
 Section 6.1 Order of Completion of Transactions. The transactions provided for in Article II and Article III of this Agreement shall be completed immediately following the Effective Time in
the following order: first, the transactions provided for in Article II shall be completed in the order set forth therein; and second, following the completion of the transactions provided for in Article II, the transactions provided for in Article
III, if they occur, shall be completed. 
 Section 6.2 Headings; References; Interpretation. All Article and
Section headings in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and not to any particular provision of this Agreement. All references herein to Articles and Sections shall, unless the context requires a different
construction, be deemed to be references to the Articles and Sections of this Agreement. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall
include the plural and vice versa. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately
following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed
to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. 
 Section 6.3 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 

Section 6.4 No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and
are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement.

  
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 Section 6.5 Counterparts. This Agreement may be executed in any number of
counterparts with the same effect as if all signatory Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. 

Section 6.6 Choice of Law. This Agreement shall be subject to and governed by the laws of the State of Delaware. Each Party
hereby submits to the jurisdiction of the state and federal courts in the State of Kansas and to venue in the state courts in Johnson County, Kansas and in the federal courts of Wyandotte County, Kansas. 

Section 6.7 Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to
contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it
did not contain the particular provisions or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the Parties as expressed in this Agreement at the time of
execution of this Agreement. 
 Section 6.8 Amendment or Modification. This Agreement may be amended or modified
from time to time only by the written agreement of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this Agreement. 

Section 6.9 Integration. This Agreement and the instruments referenced herein supersede all previous understandings or
agreements among the Parties, whether oral or written, with respect to the subject matter of this Agreement and such instruments. This Agreement and such instruments contain the entire understanding of the Parties with respect to the subject matter
hereof and thereof. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it is contained in a written amendment hereto executed by the
parties hereto after the date of this Agreement. 
 Section 6.10 Deed; Bill of Sale; Assignment. To the extent
required and permitted by applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the assets and interests referenced herein. 

[Signature Pages Follow] 

  
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 IN WITNESS WHEREOF, the parties to this Agreement have caused it to be duly executed
as of the date first above written. 
  

			
	TALLGRASS ENERGY PARTNERS, LP
		
	By:	 	Tallgrass MLP GP, LLC,
		 	its general partner
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	President and Chief Executive Officer
	
	TALLGRASS MLP GP, LLC
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	President and Chief Executive Officer
	
	TALLGRASS DEVELOPMENT, LP
		
	By:	 	Tallgrass Development GP, LLC,
		 	its general partner
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	President and Chief Executive Officer
	
	TALLGRASS DEVELOPMENT GP, LLC
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	President and Chief Executive Officer

  
 Signature
Page to Contribution, Conveyance and Assumption Agreement 

			
	TALLGRASS GP HOLDINGS, LLC
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	President and Chief Executive Officer
	
	TALLGRASS OPERATIONS, LLC
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	President and Chief Executive Officer
	
	TALLGRASS INTERSTATE GAS TRANSMISSION, LLC
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	Chief Executive Officer
	
	TALLGRASS MIDSTREAM, LLC
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	Chief Executive Officer
	
	TALLGRASS MLP OPERATIONS, LLC
		
	By:	 	 /s/ David G. Dehaemers, Jr.

		 	David G. Dehaemers, Jr.
		 	President and Chief Executive Officer

  
 Signature
Page to Contribution, Conveyance and Assumption Agreement

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