Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

FIRST AMENDMENT, WAIVER AND INCREMENTAL COMMITMENT AGREEMENT 

This FIRST AMENDMENT, WAIVER AND INCREMENTAL COMMITMENT AGREEMENT, dated as of February 23, 2015 (this “Agreement”), is
entered into by and among TARGA RESOURCES PARTNERS LP, a Delaware limited partnership (the “Borrower”), each other Loan Party party hereto, BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the
“Administrative Agent”), Collateral Agent (in such capacity, the “Collateral Agent”), Swing Line Lender and L/C Issuer, the several banks and other financial institutions signatories hereto (collectively, the
“Signing Lenders”) and each Hedging Party party hereto. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement (as defined below). 

RECITALS 
 WHEREAS, the Borrower,
the Administrative Agent and the Lenders entered into that certain Second Amended and Restated Credit Agreement, dated as of October 3, 2012 (as amended, restated, supplemented or modified prior to the date hereof, the “Original Credit
Agreement” and the Original Credit Agreement as amended hereby, the “Credit Agreement”); 
 WHEREAS, the Borrower,
the Collateral Agent and certain Secured Hedging Parties entered into that certain Amended and Restated Intercreditor Agreement, dated as of July 19, 2010 (as reaffirmed in connection with the Original Credit Agreement and as otherwise amended,
restated, supplemented or modified prior to the date hereof, the “Intercreditor Agreement”); 
 WHEREAS, the Original
Credit Agreement provides in Section 2.14 thereof that the Borrower may increase the Revolving Credit Commitments, subject to the prior written consent of the Administrative Agent, the L/C Issuer and the Swing Line Lender (each such
consent not to be unreasonably withheld), by adding to the Original Credit Agreement one or more additional Lenders to the Original Credit Agreement (each such Lender, a “New Lender”) or by allowing one or more existing Lenders
under the Original Credit Agreement with outstanding Revolving Credit Commitments immediately prior to the Effective Date (the “Existing Lenders”) to increase their respective Revolving Credit Commitments (each such New Lender or
increasing Existing Lender, an “Incremental Commitment Lender”), in each case, by delivering to the Administrative Agent an Incremental Supplement executed by the Borrower, the Administrative Agent, the New Lenders and any Existing
Lenders agreeing to increase their Revolving Credit Commitments; 
 WHEREAS, the Borrower has requested that, subject to the terms and
conditions of this Agreement, (a) the Incremental Commitment Lenders increase the Revolving Credit Commitments to $1,600,000,000 (the Revolving Credit Facility as so increased, the “Upsized Revolving Facility”) and retain the
option to increase the Revolving Credit Commitments by up to an additional $300,000,000 in accordance with the terms set forth in this Agreement, (b) for purposes of establishing the Upsized Revolving Facility, the Signing Lenders waive the cap
on the amount by which the Revolving Credit Commitments may be increased and any notices associated with establishing the Upsized Revolving Facility otherwise required to be provided prior to the date hereof, in each case, as set forth in
Section 2.14 of the Original Credit Agreement and (c) the Signing Lenders agree to make certain amendments and modifications more specifically set forth in this Agreement to the Original Credit Agreement; 

 WHEREAS, (a) each of the undersigned New Lenders now desires to become a party to the Credit
Agreement as a Lender thereunder, (b) each of the undersigned Existing Lenders desires to increase its Revolving Credit Commitment under the Original Credit Agreement and/or approve the amendments to the Original Credit Agreement, in each case,
as set forth herein and (c) each of the Signing Lenders and the Administrative Agent have entered into this Agreement with the Borrower in order to effectuate the amendments and modifications to the Original Credit Agreement as set forth
herein; 
 WHEREAS, pursuant to the terms of the Intercreditor Agreement, the Required Secured Parties (as defined in the Intercreditor
Agreement) are required to consent to any amendment, modification or waiver of the Original Credit Agreement that would permit the aggregate principal amount of credit facilities thereunder to exceed the Maximum Credit Agreement Obligations (as
defined in the Intercreditor Agreement); and 
 WHEREAS, the Borrower has requested that the Required Secured Parties consent to the Upsized
Revolving Facility, and the Required Secured Parties are willing to consent to the Upsized Revolving Facility on the terms and subject to the conditions of this Agreement. 

Accordingly, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto agree as follows: 
 SECTION 1. Revolving Credit Commitments. 

(a) Subject to the terms and conditions set forth herein, each New Lender hereby agrees (i) to become a Lender under the Credit Agreement
as of the Effective Date with a Revolving Credit Commitment as specified under the heading “Revolving Credit Commitment” opposite its name on Schedule I hereto, (ii) that it has received a copy of the Credit Agreement and such
other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into the Credit Agreement on the basis of which it has made such analysis and decision, (iii) that it will, independently and
without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at that time, continue to make its own credit decisions in taking or not taking action under the Loan
Documents, (iv) if it is a Foreign Lender, that it has provided to the Administrative Agent documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by such New Lender,
(v) that it shall be deemed to be, and hereby becomes as of the Effective Date, a party in all respect to the Credit Agreement and the other Loan Documents to which the Lenders are party and bound thereby as if an original signatory thereto and
shall have the rights and, to the extent of its Revolving Credit Commitment under the Credit Agreement, obligations of a Lender under the Credit Agreement and the other Loan Documents, and (vi) on and after the Effective Date, it will perform
in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 

  
 2 

 (b) Each New Lender represents and warrants to the Administrative Agent, the L/C Issuer, the
Swing Line Lender and each other Lender that (i) it has the full power and authority and the legal right to make, deliver and perform, and has taken all necessary action, to authorize the execution, delivery and performance of this Agreement
and to fulfill its obligations under, and to consummate the transactions contemplated by, this Agreement, and no consent or authorization of, filing with, or other act by or in respect of any Governmental Authority, is required in connection
herewith or therewith, and (ii) this Agreement constitutes the legal, valid and binding obligation of such New Lender. 
 (c) Subject
to the terms and conditions set forth herein, each Existing Lender that is increasing its Revolving Credit Commitment agrees that, after giving effect to this Agreement, its Revolving Credit Commitment shall be increased by the amount set forth
under the heading “Amount of Commitment Increase” opposite such Existing Lender’s name on Schedule I hereto and be deemed to be the amount set forth under the heading “Revolving Credit Commitment” opposite such Existing
Lender’s name on Schedule I hereto. 
 (d) The aggregate principal amount of the Revolving Credit Commitments as of the
Effective Date shall be $1,600,000,000. 
 SECTION 2. Reallocation. Following the Effective Date, the outstanding Revolving Credit
Loans, Swing Line Loans and L/C Obligations shall be ratably reallocated amongst the Lenders in accordance with the revised Revolving Credit Commitments, as modified by this Agreement, without regard to the conditions set forth in
Section 4.02 of the Credit Agreement. Such reallocation shall occur automatically without any action by the Borrower, and the Administrative Agent and the Lenders shall determine what amounts, if any, shall be transferred amongst the
Lenders to effectuate such reallocation. If any such reallocations result in the payment of Eurodollar Rate Loans other than on the last day of the applicable Interest Period, the Borrower shall pay any required amounts pursuant to
Section 3.05. Each Lender hereby waives the applicability of Section 2.13 of the Credit Agreement in connection with such reallocation. 

SECTION 3. Limited Waiver. With respect to establishing the Upsized Revolving Facility as contemplated by this Agreement, each Signing
Lender hereby (a) waives the cap on the amount by which the Revolving Credit Commitments may be increased up to the amount of the Upsized Revolving Facility and any notices associated with establishing the Upsized Revolving Facility otherwise
required to be provided prior to the date hereof, in each case, as set forth in Section 2.14 of the Original Credit Agreement and (b) agrees that it will not otherwise assert that an Event of Default, Default or other violation of
any terms or conditions of any Loan Documents has occurred with respect to the final allocated size of the Upsized Revolving Facility or the provision of notices in connection with establishing the Upsized Revolving Facility. For the avoidance of
doubt, the parties hereto agree that the Lenders do not waive any of their rights under any of the Loan Documents except for their right to assert that an Event of Default, Default or other violation of any terms or conditions of any Loan Documents
has occurred with respect to the final allocated size of the Upsized Revolving Facility or the provision of notices in connection with establishing the Upsized Revolving Facility. 

SECTION 4. Consent of Required Secured Parties under the Intercreditor Agreement. Subject to the terms and conditions set forth herein,
each Lender party hereto and each Hedging Party party hereto consents to the Upsized Revolving Facility exceeding the Maximum Credit Agreement Obligations as required pursuant to Section 4.02(c) of the Intercreditor Agreement. 

  
 3 

 SECTION 5. Amendments to Original Credit Agreement. On the Effective Date, the Original
Credit Agreement shall be amended as follows: 
 (a) The following definitions are hereby added to Section 1.01 of the Original
Credit Agreement where alphabetically appropriate: 
 “Atlas Merger” means the transactions contemplated by
the Atlas Merger Agreement. 
 “Atlas Merger Agreement” means that certain Agreement and Plan of Merger
dated as of October 13, 2014 by and between the Borrower, Targa, General Partner, Trident MLP Merger Sub LLC, a Delaware limited liability company, Atlas Energy, L.P., a Delaware limited partnership, Atlas Pipeline and Atlas Pipeline Partners
GP, LLC, a Delaware limited liability company. 
 “Atlas Pipeline” means Atlas Pipeline Partners, L.P., a
Delaware limited partnership. 
 “First Amendment” means the First Amendment, Waiver and Incremental
Commitment Agreement dated as of February 23, 2015, by and among the Borrower, the Administrative Agent, the Collateral Agent and the Lenders and other parties party thereto. 

“First Amendment Effective Date” means the “Effective Date” as defined in the First Amendment. 

(b) The last sentence of the definition of “Consolidated EBITDA,” in Section 1.01 of the Original Credit Agreement is
hereby amended to read as follows: 
 Notwithstanding the foregoing, the contribution to Consolidated EBITDA of the Borrower and its
Consolidated Restricted Subsidiaries by Unrestricted Subsidiaries (other than Included Unrestricted Subsidiaries and, to the extent constituting Unrestricted Subsidiaries, Atlas Pipeline and its Subsidiaries) or Persons that are not Subsidiaries (in
respect of actual cash distributions paid by such Subsidiaries or Persons) during any period shall be limited in the aggregate to 15% of the total actual Consolidated EBITDA for such period (which total actual Consolidated EBITDA shall be determined
without including any such distributions). 
 (c) The definition of “Unrestricted Subsidiary” in Section 1.01 of the
Original Credit Agreement is hereby amended by adding the following sentence to the end thereof: 
 Upon the consummation of the Atlas
Merger, Atlas Pipeline and its Subsidiaries shall be Unrestricted Subsidiaries under this Agreement until the Borrower designates any such entity as a Restricted Subsidiary in accordance with Section 6.18. 

  
 4 

 (d) Section 2.03(a)(i)(z) of the Original Credit Agreement is hereby amended by
deleting the reference to “25,000,000” and replacing it with a reference to “50,000,000”. 
 (e)
Section 2.14(a) of the Original Credit Agreement is amended by replacing the words “(i) the Aggregate Credit Facility Amount on the Closing Date” with the words “(i) the Aggregate Credit Facility Amount on the First
Amendment Effective Date”. 
 (f) The last sentence of Section 6.13 of the Original Credit Agreement is hereby amended to
read as follows: 
 Notwithstanding the foregoing, (a) Equity Interests of a Person that is not a Subsidiary shall not be required to be
Collateral to the extent prohibited by a provision that is permitted by clause (II) of the proviso in Section 7.10 and (b) Equity Interests of an Unrestricted Subsidiary shall not be required to be Collateral except to the extent
necessary in order for such Unrestricted Subsidiary to be designated as an Included Unrestricted Subsidiary pursuant to the definition thereof and except for the Equity Interests of Atlas Pipeline. 

(g) Section 6.18(a) of the Original Credit Agreement is hereby amended by adding the following sentence to the end thereof: 

Notwithstanding the previous sentence, upon the consummation of the Atlas Merger, Atlas Pipeline and its Subsidiaries shall be Unrestricted
Subsidiaries under this Agreement until the Borrower designates any such entity as a Restricted Subsidiary in accordance with this Section 6.18. 

(h) Section 6.18 of the Original Credit Agreement is hereby amended by adding a new subsection (f) thereto as follows: 

(f) Notwithstanding anything herein to the contrary, during all times that any of Atlas Pipeline or its Subsidiaries is treated
as a “restricted subsidiary” (or other equivalent term) for purposes of any indenture or agreement governing unsecured indebtedness of the Borrower, such Person shall automatically be designated as, and shall be deemed to be, a Restricted
Subsidiary hereunder. At the time of any such automatic designation, the Borrower shall be deemed to represent and warrant that the conditions to designation set forth in Section 6.18(c) have been satisfied. 

(i) Section 7.01(p) of the Original Credit Agreement is hereby amended by replacing the word “Property” therein with the
word “property”. 

  
 5 

 (j) Section 7.06 of the Original Credit Agreement is hereby amended by inserting a
new paragraph at the end thereof as follows: 
 Notwithstanding anything herein to the contrary, the Borrower shall not, nor shall it permit
any Restricted Subsidiary to, make any Disposition of assets that are owned by the Borrower or any Restricted Subsidiary as of the First Amendment Effective Date to Atlas Pipeline or any of its Subsidiaries if Atlas Pipeline or such Subsidiary is
not a Restricted Subsidiary, except Dispositions of property with a book value not to exceed 2.5% of Consolidated Net Tangible Assets in the aggregate. 

(k) Schedule 2.01 to the Original Credit Agreement is hereby restated in its entirety in the form of Schedule I attached hereto. 

SECTION 6. Conditions to Effectiveness of Agreement. The effectiveness of this Agreement and the obligations of each Incremental
Commitment Lender to make available the additional Revolving Credit Commitments contemplated hereby are subject to the satisfaction of the following conditions (the date on which such conditions are satisfied, the “Effective Date”):

 (a) The Administrative Agent shall have received each of the following, each in form and substance reasonably satisfactory to the
Administrative Agent: 
 (i) a counterpart of this Agreement, executed and delivered by (A) the Borrower, (B) each
other Loan Party, (C) the Required Lenders, (D) each Existing Lender that is increasing its Revolving Credit Commitment, (E) each New Lender, (F) the L/C Issuer, (G) the Swing Line Lender and (H) the Required Secured
Parties; 
 (ii) a Note (or replacement Note, as applicable) executed by the Borrower in favor of each Incremental Commitment
Lender requesting the same reasonably in advance of the Effective Date; 
 (iii) such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to
act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party; 

(iv) such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is
duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in its jurisdiction of incorporation or formation; 

(v) a favorable opinion of Bracewell & Giuliani LLP, counsel to the Loan Parties, addressed to the Administrative
Agent and each Lender, as to the Loan Parties’ due organization, valid existence, good standing, and authority to enter into this Agreement, the enforceability of this Agreement and each other Loan Document as amended or reaffirmed by this
Agreement, in each case, in substance substantially similar to the substance of the opinion provided under the Original Credit Agreement; 

  
 6 

 (vi) a certificate signed by a Responsible Officer of General Partner
(A) certifying that, before and after giving effect to the increase of Revolving Credit Commitments contemplated by this Agreement, (y) the representations and warranties of the Borrower and each other Loan Party contained in Article
V or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, are true and correct in all material respects (unless such representation and warranty is already qualified
as to materiality or Material Adverse Effect in which case such representation and warranty shall be true and correct in all respects) on and as of the Effective Date, except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they shall be true and correct as of such earlier date and except that the representations and warranties contained in subsection (a) of Section 5.05 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b) of Section 6.01; and (z) no Default or Event of Default exists as of the Effective Date and (B) demonstrating pro forma compliance with the
provisions of Section 7.14(b) and Section 7.15(b) and containing calculations in such detail as may be reasonably required by the Administrative Agent; 

(vii) all documentation and other information required by each Lender with respect to the Borrower under applicable “know
your customer” and anti-money laundering rules and regulations, including without limitation the U.S. PATRIOT Act, that has been reasonably requested by any Lender or the Administrative Agent in advance of the Effective Date; 

(viii) (A) an updated Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each
property subject to a Mortgage, which flood hazard certification shall (1) be addressed to the Collateral Agent, (2) be completed by a company which has guaranteed the accuracy of the information contained therein, (3) otherwise
comply with the National Flood Insurance Program, and (4) describe whether the community in which such property is located participates in the National Flood Insurance Program; and (B) if any flood hazard certification states that such
property is located in a flood zone, the applicable Loan Party’s written acknowledgement of receipt of written notification from the Administrative Agent (1) as to the existence of such property, and (2) as to whether the community in
which such property is located is participating in the National Flood Insurance Program; 
 (ix) evidence that the Collateral
Agent, for the benefit of the Secured Parties, shall have a valid and perfected first priority Lien on all Collateral contemplated by the Collateral Documents subject only to Liens permitted under Section 7.01 of the Credit Agreement
including, in respect of the Domestic Subsidiaries that are Loan Parties, copies of financing statements, filed or duly prepared for filing under the UCC in all jurisdictions reasonably requested by the Collateral Agent; and 

(x) such other assurances, certificates, documents, or consents as the Administrative Agent, the L/C Issuer, the Swing Line
Lender or the Required Lenders reasonably may require. 

  
 7 

 (b) The Administrative Agent, the Arranger and the Lenders shall have received all fees and other
amounts due and payable on or prior to the Effective Date, including (i) to the extent invoiced, reimbursement or payment of all out of pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement and
(ii) for the account of each Incremental Commitment Lender that has agreed to provide additional Revolving Credit Commitments and delivered a signature page approving this Agreement, a fee in an amount equal to 25 basis points on the final
allocated Revolving Credit Commitment (or, in the case of an Existing Lender whose Revolving Credit Commitment is being increased pursuant to this Agreement, on the amount of such increase in its final allocated Revolving Credit Commitment) of such
Lender in respect of the Upsized Revolving Facility. 
 SECTION 7. Post-Effectiveness Covenants. The Borrower hereby covenants that
within 45 days after the Effective Date (or such longer period as may be agreed to by the Administrative Agent in its reasonable discretion), the Administrative Agent shall have received each of the following, each in form and substance reasonably
satisfactory to the Administrative Agent: 
 (a) to the extent necessary in connection with the Upsized Revolving Facility, fully executed
and notarized mortgage modifications (each, a “Mortgage Modification”), in proper form for recording in all appropriate places in all applicable jurisdictions; and 

(b) with respect to the lender’s title insurance policy insuring each mortgaged property for which a Mortgage Modification is required, a
mortgage modification endorsement with respect to such mortgaged property, executed by a title company reasonably satisfactory to the Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent, insuring that the
validity, enforceability and priority of the applicable Mortgage, and the effectiveness of such title policy, shall remain unchanged following recordation of the related Mortgage Modification. 

SECTION 8. Effect of Agreement. 

(a) The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of any Lender or
the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of the Loan Documents. 
 (b) The parties
hereto acknowledge and agree that (i) this Agreement and any other Loan Documents executed and delivered in connection herewith do not constitute a novation, or termination of the Obligations under the Original Credit Agreement as in effect
prior to the Effective Date; (ii) such Obligations are in all respects continuing with the terms, conditions, covenants and agreements contained in the Original Credit Agreement being modified only to the extent provided in this Agreement; and
(iii) the Liens and security interests as granted under the Security Documents securing payment of the Obligations, the Cash Management Obligations and the Secured Swap Obligations are in all respects continuing in full force and effect. From
and after the Effective Date, the terms “Agreement”, “herein”, “hereinafter”, “hereto”, “hereof” and words of similar import as used in the Credit Agreement, and the term “Credit Agreement”
as used in the other Loan Documents, shall mean the Original Credit Agreement as modified by this Agreement, as may be further amended, supplemented or otherwise modified from time to time. 

  
 8 

 (c) Each New Lender, by delivering its signature page to this Agreement shall be deemed to have
acknowledged receipt of, and consented to and approved, this Agreement, the Original Credit Agreement, each other Loan Document and each other document required to be approved by any Agent, Required Lenders or Lenders, as applicable, on the
Effective Date. 
 (d) This Agreement shall constitute a Loan Document for all purposes of the Credit Agreement and shall be administered
and construed pursuant to the terms of the Credit Agreement. 
 SECTION 9. Reaffirmation of Guaranty and Security. The Borrower and
each other Loan Party, by its signature below, hereby (a) agrees that, notwithstanding the effectiveness of this Agreement, the Guaranty and the Security Documents continue to be in full force and effect and (b) affirms and confirms all of
its obligations and liabilities under the Credit Agreement and each other Loan Document, including its guarantee of the Obligations, the Cash Management Obligations and the Secured Swap Obligations and the pledge of and/or grant of a security
interest in its assets as Collateral pursuant to the Security Documents to secure the Obligations, the Cash Management Obligations and the Secured Swap Obligations, all as provided in the Guaranty and the Security Documents, and acknowledges and
agrees that such obligations, liabilities, guarantee, pledge and grant continue in full force and effect in respect of, and to secure, the “Obligations”, the “Cash Management Obligations” and the “Secured Swap
Obligations” under the Credit Agreement and the other Loan Documents. 
 SECTION 10. Amendments; Counterparts. This Agreement
may not be amended nor may any provision hereof be waived except pursuant to a writing signed by the Borrower, the Administrative Agent and other parties hereto. This Agreement may be executed by one or more of the parties hereto on any number of
separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile or other electronic submission (including .pdf
format) shall be effective as delivery of a manually executed counterpart hereof. 
 SECTION 11. Severability. Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 SECTION 12.
Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY AGREES AS SET FORTH FURTHER IN
SECTION 10.14 AND SECTION 10.15 OF THE ORIGINAL CREDIT AGREEMENT AS IF SUCH SECTIONS WERE SET FORTH IN FULL HEREIN. 

  
 9 

 SECTION 13. Headings. The headings of this Agreement are for purposes of reference only
and shall not limit or otherwise affect the meaning hereof. 
 THIS AGREEMENT, THE ORIGINAL CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. 

[Remainder of page left intentionally blank] 

  
 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective officers as of the day and year first above written. 
  

			
	TARGA RESOURCES PARTNERS LP, as Borrower
		
	By:		Targa Resources GP LLC, its sole general partner
		
	By:		 /s/ Matthew J. Meloy

			Matthew J. Meloy
			Senior Vice President, Chief Financial Officer, and Treasurer
	
	TARGA RESOURCES OPERATING LLC
	TARGA RESOURCES OPERATING GP LLC
	TARGA INTRASTATE PIPELINE LLC
	TARGA LIQUIDS MARKETING AND TRADE LLC
	TARGA LOUISIANA INTRASTATE LLC
	TARGA MIDSTREAM SERVICES LLC
	TARGA DOWNSTREAM LLC
	TARGA GAS MARKETING LLC
	TARGA GAS PIPELINE LLC
	TARGA MLP CAPITAL LLC
	TARGA CAPITAL LLC
	TARGA TERMINALS LLC
	TARGA NGL PIPELINE COMPANY LLC
	TARGA TRANSPORT LLC
	TARGA SOUND TERMINAL LLC
	TARGA GAS PROCESSING LLC
	TARGA COGEN LLC
	TARGA BADLANDS LLC
		
	By:		 /s/ Matthew J. Meloy

			Matthew J. Meloy
			Senior Vice President, Chief Financial Officer and Treasurer

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 
					
	BANK OF AMERICA, N.A., as Administrative Agent and Collateral Agent
		
	By:		 /s/ Paley Chen

			Name:		Paley Chen
			Title:		Vice President
	
	BANK OF AMERICA, N.A., as Swing Line Lender, L/C Issuer and Lender and Hedging Party
		
	By:		 /s/ Adam H. Fey

			Name:		Adam H. Fey
			Title:		Director

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 
					
	Wells Fargo Bank, N.A., as Lender and Hedging Party
		
	By:		 /s/ Brett Steele

			Name:		Brett Steele
			Title:		Vice President
	
	THE ROYAL BANK OF SCOTLAND plc, as Lender and Hedging Party
		
	By:		 /s/ James L. Moyes

			Name:		James L. Moyes
			Title:		Authorised Signatory
	
	BARCLAYS BANK PLC, as Lender
		
	By		 /s/ Ronnie Glenn

			Name:		Ronnie Glenn
			Title:		Vice President
	
	Deutsche Bank Trust Company Americas, as Lender
		
	By:		 /s/ Dusan Lazarov

			Name:		Dusan Lazarov
			Title:		Director
		
	By:		 /s/ Michael Winters

			Name:		Michael Winters
			Title:		Vice President
	
	Royal Bank of Canada, as Lender
		
	By:		 /s/ Jason S. York

			Name:		Jason S. York
			Title:		Authorized Signatory

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 
					
	Compass Bank, as Lender and Hedging Party
		
	By:		 /s/ Ian Payne

			Name:		Ian Payne
			Title:		Vice President
	
	Citibank, N.A., as Lender
		
	By:		 /s/ Saqeeb Ludhi

			Name:		Saqeeb Ludhi
			Title:		Vice President
	
	JPMorgan Chase Bank, N.A., as Lender
		
	By:		 /s/ Muhammad Hasan

			Name:		Muhammad Hasan
			Title:		Vice President
	
	ABN AMRO CAPITAL USA LLC, as Lender
		
	By:		 /s/ Darrell Holley

			Name:		Darrell Holley
			Title:		Managing Director
		
	By:		 /s/ Casey Lowary

			Name:		Casey Lowary
			Title:		Executive Director
	
	CAPITAL ONE, NATIONAL ASSOCIATION, as Lender
		
	By:		 /s/ Victor Ponce de León

			Name:		Victor Ponce de León
			Title:		Senior Vice President

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 
					
	Comerica Bank, as Lender
		
	By:		 /s/ William Robinson

			Name:		William Robinson
			Title:		Vice President
	
	MUFG UNION BANK, N.A., as Lender
		
	By:		 /s/ Mark Oberreuter

			Name:		Mark Oberreuter
			Title:		Vice President
	
	Natixis, New York Branch, as Lender and Hedging Party
		
	By:		 /s/ Stuart Murray

			Name:		Stuart Murray
			Title:		Managing Director
		
	By:		 /s/ Jarrett Price

			Name:		Jarrett Price
			Title:		Vice President
	
	PNC BANK, NATIONAL ASSOCIATION, as Lender
		
	By:		 /s/ Jonathan Luchansky

			Name:		Jonathan Luchansky
			Title:		Assistant Vice President
	
	Sumitomo Mitsui Banking Corporation, as Lender
		
	By:		 /s/ James D. Weinstein

			Name:		James D. Weinstein
			Title:		Managing Director

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 
					
	U.S. BANK NATIONAL ASSOCIATION, as Lender
		
	By:		 /s/ Ben J. Leonard

			Name:		Ben J. Leonard
			Title:		Vice President
	
	BRANCH BANKING AND TRUST COMPANY, as Lender
		
	By:		 /s/ Ryan K. Michael

			Name:		Ryan K. Michael
			Title:		Senior Vice President
	
	BNP PARIBAS, as Lender and Hedging Party
		
	By:		 /s/ Joseph Onischuk

			Name:		Joseph Onischuk
			Title:		Managing Director
		
	By:		 /s/ Mark Renaud

			Name:		Mark Renaud
			Title:		Managing Director
	
	Credit Agricole Corporate and Investment Bank, as Lender
		
	By:		 /s/ Dixon Schultz

			Name:		Dixon Schultz
			Title:		Managing Director
		
	By:		 /s/ Michael Willis

			Name:		Michael Willis
			Title:		Managing Director

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 
					
	ING Capital LLC, as Lender
		
	By:		 /s/ Subha Pasumarti

			Name:		Subha Pasumarti
			Title:		Managing Director
		
	By:		 /s/ Cheryl LaBelle

			Name:		Cheryl LaBelle
			Title:		Managing Director
	
	ING CAPITAL MARKETS LLC, as Hedging Party
		
	By:		 /s/ Moses Lin

			Name:		Moses Lin
			Title:		Vice President
	
	Mizuho Bank, Ltd., as Lender
		
	By:		 /s/ Leon Mo

			Name:		Leon Mo
			Title:		Authorized Signatory
	
	REGIONS BANK, as Lender
		
	By:		 /s/ David Valentine

			Name:		David Valentine
			Title:		Vice President
	
	SANTANDER BANK, N.A., as Lender
		
	By:		 /s/ Peter Lopoukhine

			Name:		Peter Lopoukhine
			Title:		Senior Banker

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 
					
	SUNTRUST BANK, as a Lender
		
	By:		 /s/ Shannon Juhan

			Name:		Shannon Juhan
			Title:		Vice President
	
	Amegy Bank National Association, as Lender
		
	By:		 /s/ H. Brock Hudson

			Name:		H. Brock Hudson
			Title:		Senior Vice President
	
	HSBC Bank USA, N.A., as Lender
		
	By:		 /s/ Wadie Christopher Habiby

			Name:		Wadie Christopher Habiby
			Title:		Vice President
	
	The Huntington National Bank, as Lender
		
	By:		 /s/ Jason A. Zilewicz

			Name:		Jason A. Zilewicz
			Title:		Vice President
	
	RAYMOND JAMES BANK, N.A., as Lender
		
	By:		 /s/ Scott G. Axelrod

			Name:		Scott G. Axelrod
			Title:		Senior Vice President

  
 [Targa Resources
First Amendment, Waiver and Incremental Commitment Agreement] 

 Schedule I to 

First Amendment, Waiver and Incremental Commitment Agreement 

Commitments and Applicable Percentages 
  

													
	 Lender
	  	Amount of
Commitment
Increase	 	  	Revolving Credit
Commitment	 	  	Applicable Percentage	 
	 Bank of America, N.A.
	  	$	4,500,000.00	  	  	$	81,500,000.00	  	  	 	5.093750000	% 
	 Wells Fargo Bank, N.A.
	  	$	4,500,000.00	  	  	$	81,500,000.00	  	  	 	5.093750000	% 
	 The Royal Bank of Scotland plc
	  	 	—  	  	  	$	77,000,000.00	  	  	 	4.812500000	% 
	 Barclays Bank PLC
	  	$	5,000,000.00	  	  	$	75,000,000.00	  	  	 	4.687500000	% 
	 Deutsche Bank Trust Company Americas
	  	 	—  	  	  	$	70,000,000.00	  	  	 	4.375000000	% 
	 Royal Bank of Canada
	  	$	10,000,000.00	  	  	$	70,000,000.00	  	  	 	4.375000000	% 
	 Compass Bank
	  	 	—  	  	  	$	60,000,000.00	  	  	 	3.750000000	% 
	 Citibank, N.A.
	  	 	—  	  	  	$	60,000,000.00	  	  	 	3.750000000	% 
	 JPMorgan Chase Bank, N.A.
	  	 	—  	  	  	$	60,000,000.00	  	  	 	3.750000000	% 
	 Morgan Stanley Bank, N.A.
	  	 	—  	  	  	$	60,000,000.00	  	  	 	3.750000000	% 
	 UBS Loan Finance LLC
	  	 	—  	  	  	$	60,000,000.00	  	  	 	3.750000000	% 
	 ABN AMRO Capital USA LLC
	  	$	8,000,000.00	  	  	$	50,000,000.00	  	  	 	3.125000000	% 
	 Goldman Sachs Bank USA
	  	 	—  	  	  	$	49,655,172.00	  	  	 	3.103448250	% 
	 Capital One, National Association
	  	$	5,000,000.00	  	  	$	47,000,000.00	  	  	 	2.937500000	% 
	 Comerica Bank
	  	$	3,000,000.00	  	  	$	45,000,000.00	  	  	 	2.812500000	% 
	 MUFG Union Bank, N.A.
	  	$	45,000,000.00	  	  	$	45,000,000.00	  	  	 	2.812500000	% 
	 Natixis, New York Branch
	  	$	10,000,000.00	  	  	$	45,000,000.00	  	  	 	2.812500000	% 
	 PNC Bank, National Association
	  	 	—  	  	  	$	42,000,000.00	  	  	 	2.625000000	% 
	 Sumitomo Mitsui Banking Corporation
	  	 	—  	  	  	$	42,000,000.00	  	  	 	2.625000000	% 
	 U.S. Bank National Association
	  	 	—  	  	  	$	42,000,000.00	  	  	 	2.625000000	% 
	 Branch Banking and Trust Company
	  	$	40,000,000.00	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 BNP Paribas
	  	$	40,000,000.00	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 Credit Agricole Corporate and Investment Bank
	  	$	40,000,000.00	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 ING Capital LLC
	  	 	—  	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 Mizuho Bank, Ltd.
	  	$	40,000,000.00	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 Regions Bank
	  	$	40,000,000.00	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 Santander Bank, N.A.
	  	$	40,000,000.00	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 SunTrust Bank
	  	$	40,000,000.00	  	  	$	40,000,000.00	  	  	 	2.500000000	% 
	 Amegy Bank National Association
	  	 	—  	  	  	$	35,344,828.00	  	  	 	2.209051750	% 
	 HSBC Bank USA, N.A.
	  	 	—  	  	  	$	35,000,000.00	  	  	 	2.187500000	% 
	 The Huntington National Bank
	  	$	25,000,000.00	  	  	$	25,000,000.00	  	  	 	1.562500000	% 
	 Raymond James Bank, N.A.
	  	 	—  	  	  	$	22,000,000.00	  	  	 	1.375000000	% 
	 Total
	  	$	400,000,000	  	  	$	1,600,000,000.00	  	  	 	100.000000000	%IPCC-12.31.14 Exhibit 10.24

EXHIBIT 10.24
INFINITY PROPERTY AND CASUALTY CORPORATION 
SECOND AMENDED AND RESTATED 2013 STOCK INCENTIVE PLAN 
1. Purposes 
The purposes of the Plan are to provide long-term incentives to those persons with significant responsibility for the success and growth of the Company, to align the interests of such persons with those of the Company’s shareholders, to assist the Company in recruiting, retaining and motivating employees, directors and consultants on a competitive basis and to link compensation to performance. 
2. Definitions 
For purposes of the Plan, the following capitalized terms shall have the meanings specified below: 
(a) “Affiliate” has the meaning set forth in Rule 12b-2 under the Exchange Act. 
(b) “Award” means a grant of Stock Options, Stock Appreciation Rights, Restricted Shares or Restricted Share Units, Performance Shares or Performance Units, or any or all of them, to a Participant. 
(c) “Award Agreement” means an agreement, either in written or electronic format, between the Company and a Participant setting forth the terms and conditions of an Award granted to the Participant. 
(d) “Award Value” means the number of Common Shares to be distributed to a Participant who has received an Award of Performance Shares or Performance Units following the Termination Date of such Award. 
(e) “Beneficial Owner” has the meaning given in Rule 13d-3 under the Exchange Act. 
(f) “Board” means the Board of Directors of the Company. 
(g) “Cause” means, unless otherwise provided in the Participant’s Award Agreement, (i) the Participant’s failure or refusal to materially perform his/her duties; (ii) the Participant’s failure or refusal to follow material lawful directions of the Board or any other act of material insubordination on the part of Participant; (iii) the engaging by the Participant in misconduct, including but not limited to any type of conduct which is materially and demonstrably injurious to the Company or any of its divisions, Subsidiaries or Affiliates, monetarily or otherwise; (iv) any conviction of, or plea of guilty or nolo contendere, by the Participant to a felony (other than a traffic violation); or (v) the commission (or attempted commission) of any act of fraud or dishonesty by the Participant which is materially detrimental to the business or reputation of the Company or any of its divisions, Subsidiaries or Affiliates. 
(h) “Change in Control” means the occurrence of one or more of the following events: 
(i) Any Person or group of Persons becomes both a Beneficial Owner (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) directly or indirectly of securities representing 30% or more of the total number of votes that may be cast for the election of directors of the Company, whether by open market purchases, by tender offer or exchange offer, through issuance of new shares by the Company or by merger or consolidation; 
(ii) Within two (2) years after a merger, consolidation, liquidation or sale of assets involving the Company, or a contested election of a Company director or directors, or any combination of the foregoing, the individuals who were directors of the Company immediately prior to the merger, consolidation, liquidation, sale of assets or contested election shall cease to constitute a majority of the Board; or 
(iii) Within two (2) years after a tender offer or exchange offer for voting securities of the Company, the individuals who were directors of the Company immediately prior to the commencement of the tender offer or exchange offer shall cease to constitute a majority of the Board. 

 
(i) “Code” means the Internal Revenue Code of 1986, as amended, and any rules, regulations or guidance promulgated thereunder. Any reference to the Code or a section thereof shall also refer to any successor Code or section. 
(j) “Committee” means a committee appointed by the Board consisting of at least three members of the Board, all meeting the definitions of “outside director” set forth in Code Section 162(m), “independent director” set forth in The Nasdaq Stock Market rules, and “non-employee director” set forth in Rule 16b-3 of the Exchange Act, or any successor definitions adopted for a similar purpose by the Internal Revenue Service, any national securities exchange on which the Common Shares are listed or the Securities and Exchange Commission. 
(k) “Common Share” or “Common Shares” means one or more of the common shares, without par value, of the Company. 
(l) “Company” means Infinity Property & Casualty Corporation, a corporation organized under the laws of the State of Ohio, its subsidiaries, divisions and affiliated businesses. 
(m) “Commencement Date” means January 1 of any year in which an Award of Performance Shares or Performance Units is made. 
(n) “Date of Grant” means the date on which the Committee authorizes the grant of an Award or such later date as may be specified by the Committee in such authorization. 
(o) “Disability” means the failure of the Participant to render services to the Company for a continuous period of six (6) months because of the Participant’s physical or mental disability or illness. The Committee may substitute a different definition for the term “Disability” in its discretion as it deems appropriate. 
(p) “Effective Date” has the meaning set forth in Section 13(a). 
(q) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any rules, regulations, schedules or guidance promulgated thereunder. Any reference to the Exchange Act or a section thereof shall also refer to any successor Exchange Act or section. 
(r) “Exercise Price” means the purchase price of a Common Share covered by a Stock Option or SAR, as applicable. 
(s) “Fair Market Value” on any date means the closing price of the Common Shares as reported on The Nasdaq Stock Market or, if applicable, any other national securities exchange on which the Common Shares are principally traded, or, if there were no sales of Common Shares on such date, then on the immediately preceding date on which there were any sales of Common Shares. If the Common Shares cease to be traded on a national securities exchange, the Fair Market Value shall be determined pursuant to a reasonable valuation method prescribed by the Committee. In the case of an ISO (or Tandem SAR), Fair Market Value shall be determined by the Committee in accordance with Code Section 422. For Awards intended to be exempt from Code Section 409A, Fair Market Value shall be determined by the Committee in accordance with Code Section 409A. 
(t) “Full-Value Award” means Restricted Shares, Restricted Share Units, Performance Shares, Performance Share Units or unrestricted Common Shares. 
(u) “ISO” means an Incentive Stock Option satisfying the requirements of Code Section 422 and designated as an ISO by the Committee. 
(v) “Non-Employee Director” means a “non-employee director” as defined in Rule 16b-3 promulgated under the Exchange Act. 

2

(w) “NQSO” means a non-qualified Stock Option that does not satisfy the requirements of Code Section 422 or that is not designated as an ISO by the Committee. 
(x) “Participant” means a person eligible to receive an Award under the Plan, as set forth in Section 4, and designated by the Committee to receive an Award subject to the conditions set forth in the Plan and any Award Agreement. 
(y) “Performance-Based Exception” means the performance-based exception to the deductibility limitations of Code Section 162(m), as set forth in Code Section 162(m)(4)(C). 
(z) “Performance Goals” means the goals established by the Committee, as described in Section 6(e)(ii). 
(aa) “Performance Measures” means the criteria set out in Section 6(e)(iii) that may be used by the Committee as the basis for a Performance Goal. 
(bb) “Performance Period” means the period established by the Committee during which the achievement of Performance Goals is assessed in order to determine whether and to what extent an Award that is conditioned on attaining Performance Goals has been earned. 
(cc) “Performance Share” means an Award granted to a Participant pursuant to Section 6(d). 
(dd) “Performance Unit” means an Award granted to a Participant pursuant to Section 6(d). 
(ee) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, except that such term shall not include (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of Company securities. 
(ff) “Plan” means the Infinity Property and Casualty Corporation Amended and Restated 2013 Stock Incentive Plan, as may be further amended and restated from time to time. 
(gg) “Prior Plans” mean each of the Company’s 2002 Restricted Stock Plan (as amended and restated effective July 31, 2007), Amended and Restated 2002 Stock Option Plan, Non-Employee Director’s Stock Ownership Plan and Second Amended and Restated 2008 Performance Share Plan. 
(hh) “Restricted Shares” means Common Shares that are subject to restrictions, as described in Section 6(c). 
(ii) “Restricted Share Units” means a right, as described in Section 6(c), denominated in Common Shares to receive an amount, payable in either cash, Common Shares, Restricted Shares, or a combination thereof, equal to the value of a specified number of Common Shares. 
(jj) “Restriction Period” means, with respect to any Full-Value Award (other than an Award to a Non-Employee Director), the period during which any risk of forfeiture or other restrictions set by the Committee, including performance restrictions, remain in effect until such time as they have lapsed under the terms and conditions of the Full-Value Award or as otherwise determined by the Committee, including the Performance Period for Full-Value Awards intended to qualify for the Performance-Based Exception. 
(kk) “Retirement” means retirement with the Company at or after age 65 or at or after the later of age 55 and ten years of service. 

3

(ll) “Securities Act” means the Securities Act of 1933, as amended, and any rules, regulations, schedules or guidance promulgated thereunder. Any reference to the Securities Act or a section thereof shall also refer to any successor Securities Act or section. 
(mm) “Stock Appreciation Right” or “SAR” means the right, as described in Section 6(b), to receive a payment equal to the excess of the Fair Market Value of a Common Share on the date the SAR is exercised over the Exercise Price established for that SAR at the time of grant, multiplied by the number of Common Shares with respect to which the SAR is exercised. 
(nn) “Stock Option” means the right, as described in Section 6(a), to purchase Common Shares at a specified price for a specified period of time. Stock Options include ISOs and NQSOs. 
(oo) “Subsidiary” has the meaning set forth in Section 424(f) of the Code. 
(pp) “Tandem SAR” means a SAR granted in tandem with a Stock Option. 
(qq) “Termination Date” means the date on which the term of an Award of Performance Shares or Performance Units expires. 
3. Administration of the Plan 
(a) Authority of Committee. The Plan shall be administered by the Committee. Unless otherwise determined by the Board, the Compensation Committee of the Board shall serve as the Committee, except that with respect to Awards to Non-Employee Directors, the Nominating and Corporate Governance Committee of the Board shall serve as the Committee. The Committee shall have all the powers vested in it by the terms of the Plan, such powers to include the sole and exclusive authority to (within the limitations described in the Plan): 
(i) select Participants to be granted Awards under the Plan and grant Awards pursuant to the terms of the Plan; 
(ii) determine the type, size and terms of the Awards to be granted to each Participant; 
(iii) determine the time when Awards are to be granted and any conditions that must be satisfied before an Award is granted; 
(iv) establish objectives and conditions for earning an Award; 
(v) determine all other terms and conditions, not inconsistent with the terms of the Plan and any operative employment or other agreement, of any Award granted under the Plan, and determine the appropriate Award Agreement evidencing the Award; 
(vi) determine whether the terms, conditions, and objectives for earning an Award have been met, including, without limitation, any such determination or certification, as the case may be, required for compliance with Code Section 162(m); 
(vii) modify or waive the terms and conditions of Awards granted under the Plan, in a manner not inconsistent with the terms of the Plan and any operative employment or other agreement, accelerate the vesting, exercise or payment of an Award or cancel or suspend an Award; 
(viii) determine whether the amount or payment of an Award should be reduced or eliminated, and determine if, when and under what conditions payment of all or any part of any Award may be deferred; 
(ix) determine the guidelines and/or procedures for the payment or exercise of Awards; 

4

 
(x) determine whether an Award may be intended to qualify, regardless of its amount, as deductible in its entirety for federal income tax purposes, including whether any Awards granted to an employee should qualify for the Performance-Based Exception; 
(xi) adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan; 
(xii) construe, interpret, administer and implement the Plan, any Award Agreements or related documents and correct any defect, supply an omission or reconcile any inconsistency in or between the Plan, any Award Agreement or related documents; and 
(xiii) make factual determinations with respect to the Plan and any Awards and otherwise supervise the administration of the Plan. 
(b) Binding Authority. The Committee’s interpretations of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it under the Plan, shall be conclusive and binding on all parties, including the Company, its shareholders and all Participants. 
(c) Delegation of Authority. To the extent not prohibited by law or the rules of the national securities exchange on which the Company’s Common Shares are listed, the Committee may allocate its authority hereunder to one or more of its members or delegate its authority hereunder to one or more Non-Employee Directors or one or more officers of the Company, except that no such allocation or delegation shall be permitted with respect to Awards intended to qualify for the Performance-Based Exception, and may grant authority to employees of the Company to execute documents on behalf of the Committee or to otherwise assist in the administration and operation of the Plan. When the Committee delegates its authority hereunder to one or more officers of the Company, it shall specify the total number of Awards that the officer or officers may award and the terms on which any Awards may be issued, offered or sold. In no event shall the Committee authorize any officer to designate such officer as a recipient of any Awards. 
4. Eligibility 
Subject to the terms and conditions of the Plan, the Committee may select, from all eligible persons, Participants to whom Awards shall be granted under the Plan and shall determine the nature and amount of each Award. Eligible persons include any of the following individuals: (i) any officer or key employee of the Company, (ii) any consultant (as defined in the General Instructions to the Form S-8 registration statement under the Securities Act) to the Company, and (iii) any Non-Employee Director. All Awards shall be evidenced by an Award Agreement, and Awards may be conditioned upon the Participant’s execution of an Award Agreement. 
5. Common Shares Subject to the Plan 
(a) Authorized Number of Common Shares. Unless otherwise authorized by the Company’s shareholders and subject to this Section 5 and Section 8, the maximum aggregate number of Common Shares available for issuance under the Plan is 750,000. Upon the Effective Date, the Prior Plans will terminate and no further Awards shall be granted thereunder; provided that all outstanding awards under the Prior Plans as of the Effective Date shall remain outstanding and shall be administered and settled in accordance with the provisions of the Prior Plans, as applicable. 
(i) The maximum number of Common Shares available for grant with respect to Full-Value Awards is 750,000. 
(ii) The maximum number of Common Shares available for issuance with respect to ISOs is 750,000. 
(b) Share Counting. The following rules shall apply in determining the number of Common Shares available for grant under the Plan: 
(i) Common Shares subject to any Award shall be counted against the maximum share limitation as one Common Share for every Common Share subject thereto. 

5

 
(ii) To the extent that any Award is forfeited, cancelled, settled in cash, returned to the Company for failure to satisfy vesting requirements or other conditions of the Award or otherwise terminates without an issuance of Common Shares being made, the maximum share limitation shall be credited with one Common Share for each Common Share subject to such Award, and such number of credited Common Shares may again be made subject to Awards under the Plan. 
(iii) Any Common Shares underlying Awards granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who become employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction shall not, unless required by law or regulation, count against the reserve of available Common Shares under the Plan. 
(c) Award Limitations. Subject to the adjustment provisions of Section 8, the following limits shall apply with respect to Awards intended to quality for the Performance-Based Exception: 
(i) The maximum aggregate number of Common Shares that may be subject to Stock Options or SARs granted in any calendar year to any one Participant shall be 300,000 Common Shares. 
(ii) The maximum aggregate number of Common Shares that may be subject to Full-Value Awards granted in any calendar year to any one Participant shall be 100,000 Common Shares. 
(d) Shares to be Delivered. Common Shares to be delivered by the Company under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 
6. Awards to Participants 
(a) Stock Options. 
(i) Grants. Subject to the terms and conditions of the Plan, Stock Options may be granted to Participants, in such number and upon such terms and conditions as the Committee determines, and may consist of ISOs or NQSOs. Stock options may be granted alone or with Tandem SARs. With respect to Stock Options granted with Tandem SARs, the exercise of either such Stock Options or Tandem SARs will result in the simultaneous cancellation of the same number of Stock Options or Tandem SARs, as the case may be. 
(ii) Exercise Price. The Exercise Price shall be equal to or, at the Committee’s discretion, greater than the Fair Market Value on the date the Stock Option is granted, unless the Stock Option was granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction, in which case the assumption or substitution shall be accomplished in a manner that permits the Stock Option to be exempt from Code Section 409A. 
(iii) Term. The term of Stock Options shall be determined by the Committee in its sole discretion, but in no event shall the term exceed ten years from the Date of Grant. 
(iv) ISO Limits. ISOs may be granted only to Participants who are employees of the Company (or of any parent or Subsidiary) on the Date of Grant, and may only be granted to an employee who, at the time the Stock Option is granted, does not own more than ten percent of the total combined voting power of all classes of stock of the Company (or of any parent or Subsidiary), unless (A) the Exercise Price is at least 110% percent of the Fair Market Value on the Date of Grant, and (B) the ISO is not exercisable after five years from the Date of Grant. The aggregate Fair Market Value of all Common Shares, determined at the time the ISOs are granted, with respect to which ISOs are exercisable by a Participant for the first time during any calendar year (under all plans of the Company) shall not exceed $100,000 or such other amount as may subsequently be specified by the Code. If such Fair Market Value exceeds the $100,000 limit, the ISOs exceeding the limit shall be treated as NQSOs, taking the Stock Options in the order each was granted. The terms of all ISOs shall be consistent with and contain or be deemed to contain all provisions required to qualify as an “incentive stock option” under Code Section 422. 

6

 
(v) No Repricing. Subject to the adjustment provisions of Section 8, without the approval of the Company’s shareholders, (A) the Exercise Price for any outstanding Stock Option may not be decreased after the Date of Grant, (B) no outstanding Stock Option may be surrendered to the Company as consideration for the grant of a new Stock Option with a lower Exercise Price, and (C) no other modifications to any outstanding Stock Option may be made that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by the national securities exchange on which the Common Shares are listed. 
(vi) Form of Payment. Vested Stock Options may be exercised in whole or in part, and the Exercise Price shall be paid to the Company at the time of exercise, subject to any applicable rules or regulations adopted by the Committee: 
		
	(A)
	to the extent permitted by applicable law, pursuant to cashless exercise procedures that are approved by the Committee; 

		
	(B)
	through the tender of unrestricted Common Shares owned by the Participant (or by delivering a certification or attestation of ownership of such Common Shares) valued at their Fair Market Value on the date of exercise; 

		
	(C)
	in cash or its equivalent; or 

		
	(D)
	by any combination of (A), (B), and (C) above. 

(vii) No Dividends or Shareholder Rights. No dividends or dividend equivalents may be paid on Stock Options. Except as otherwise provided herein, a Participant shall have no rights as a holder of Common Shares covered by a Stock Option unless and until such Common Shares have been registered to the Participant as the owner. 
(b) Stock Appreciation Rights. 
(i) Grants. Subject to the terms and provisions of the Plan, SARs may be granted to Participants, in such number and upon such terms and conditions as the Committee determines, and may be granted alone or as Tandem SARs. With respect to Tandem SARs, the exercise of either such Stock Options or SARs will result in the simultaneous cancellation of the same number of Tandem SARs or Stock Options, as the case may be. 
(ii) Exercise Price. The Exercise Price shall be equal to or, at the Committee’s discretion, greater than Fair Market Value on the date the SAR is granted, unless the SAR was granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction involving the Company, in which case the assumption or substitution shall be accomplished in a manner that permits the SAR to be exempt from Code Section 409A. 
(iii) Term. The term of a SAR shall be determined by the Committee in its sole discretion, but in no event shall the term exceed ten years from the Date of Grant; provided that, each SAR granted in tandem with a Stock Option shall terminate upon the termination or exercise of the related Stock Option. 
(iv) No Repricing. Subject to the adjustment provisions of Section 8, without the approval of the Company’s shareholders, (A) the Exercise Price for any outstanding SAR may not be decreased after the Date of Grant, (B) no outstanding SAR may be surrendered to the Company as consideration for the grant of a new SAR with a lower Exercise Price, and (C) no other modifications to any outstanding SAR may be made that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by the national securities exchange on which the Common Shares are listed. 
(v) Form of Payment. Vested SARs may be exercised in whole or in part, and the Committee may authorize payment of a SAR in the form of cash, Common Shares valued at its Fair Market Value on the date of the exercise or a combination thereof, or by any other method as the Committee may determine. 

7

 
(vi) Tandem SARs. Tandem SARs may be exercised for all or part of the Common Shares subject to the related Stock Option upon the surrender of the right to exercise the equivalent portion of the related Stock Option. A Tandem SAR may be exercised only with respect to the Common Shares for which its related Stock Option is then exercisable. Notwithstanding any other provision of the Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (A) the Tandem SAR will expire no later than the expiration of the underlying ISO; (B) the value of the payout with respect to the Tandem SAR may be for no more than 100% of the excess of the Fair Market Value of the Common Shares subject to the underlying ISO at the time the Tandem SAR is exercised over the Exercise Price of the underlying ISO; and (C) the Tandem SAR may be exercised only when the Fair Market Value of the Common Shares subject to the ISO exceeds the Exercise Price of the ISO. 
(vii) No Dividends or Shareholder Rights. No dividends or dividend equivalents may be paid on SARs. Except as otherwise provided herein, a Participant shall have no rights as a holder of Common Shares covered by a SAR unless and until such Common Shares have been registered to the Participant as the owner. 
(c) Restricted Shares and Restricted Share Units. 
(i) Grants. Subject to the terms and provisions of the Plan, Restricted Shares and Restricted Share Units may be granted to Participants in such number and upon such terms and conditions as the Committee determines. Restricted Shares will be registered in the name of the Participant and deposited with the Company or its agent in certificated or book-entry form. 
(ii) Restrictions. Restricted Shares or Restricted Share Units may be granted at no cost or at a purchase price determined by the Committee, which may be less than the Fair Market Value, but subject to such terms and conditions as the Committee determines, including, without limitation: forfeiture conditions, transfer restrictions, restrictions based upon the achievement of specific performance goals (Company-wide, divisional and/or individual), which may be based on one or more Performance Measures, time-based restrictions on vesting and/or restrictions under applicable federal or state securities laws. Subject to Sections 9 and 10, for Awards to employees, no Restricted Shares or Restricted Share Units conditioned upon the achievement of performance shall be based on a Restriction Period of less than one year, and, except as may be determined by the Committee, any Restriction Period based solely on continued employment or service (time-based) shall be for a minimum of three years, subject to (A) pro rata or graded vesting prior to the expiration of such time-based Restriction Period, and (B) acceleration due to the Participant’s death, Disability or Retirement, in each case as specified in the applicable Award Agreement; provided that the Restriction Period applicable to the first vesting date of an Award subject to pro rata or graded vesting (as referenced in (A) above) may be for less than one year, provided the first vesting date is no earlier than the fiscal year-end date of the fiscal year during which the Award was granted. To the extent the Restricted Shares or Restricted Share Units are intended to qualify for the Performance-Based Exception, except as may be determined by the Committee, the applicable restrictions shall be based on the achievement of Performance Goals over a Performance Period, as described in Section 6(e). 
(iii) Transfer Restrictions. During the Restriction Period, Restricted Shares and Restricted Share Units may not be sold, assigned, transferred or otherwise disposed of, or mortgaged, pledged or otherwise encumbered. In order to enforce the limitations imposed upon the Restricted Shares, the Committee may (A) cause a legend or legends to be placed on any certificates evidencing such Restricted Shares, and/or (B) cause “stop transfer” instructions to be issued, as it deems necessary or appropriate. 
(iv) Dividends and Voting Rights. Unless otherwise determined by the Committee, during the Restriction Period, Participants who hold Restricted Shares shall have the right to receive dividends in cash or other property or other distribution or rights in respect of the Restricted Shares but shall not have the right to vote the Restricted Shares as the record owners; provided that, unless otherwise determined by the Committee, any dividends or other property payable to a Participant during the Restriction Period shall be distributed to the Participant only if and when the restrictions imposed on the applicable Restricted Shares lapse. Unless otherwise 

8

determined by the Committee, during the Restriction Period, Participants who hold Restricted Shares Units shall be credited with dividend equivalents in respect of such Restricted Share Units; provided that, unless otherwise determined by the Committee, such dividend equivalents shall be distributed (without interest) to the Participant only if and when the restrictions imposed on the applicable Restricted Share Units lapse. Participants shall have no other rights as a shareholder with respect to Restricted Share Units unless otherwise determined by the Committee. Notwithstanding the forgoing, no Restricted Shares or Restricted Share Units conditioned upon the achievement of performance shall provide the Participant with dividend or shareholder rights unless otherwise determined by the Committee; provided that an Award Agreement may provide for payment (in money or shares) equal to the dividends paid on the number of Common Shares payable upon vesting of such Restricted Shares or Restricted Share Units or at any time prior thereto. 
(v) Payment of Restricted Share Units. Restricted Share Units that become payable in accordance with their terms and conditions shall be settled in cash, Common Shares, Restricted Shares, or a combination thereof, as determined by the Committee. 
(vi) Ownership. Restricted Shares shall be registered in the name of the Participant on the books and records of the Company or its designee (or by one or more physical certificates if physical certificates are issued) subject to the applicable restrictions imposed by the Plan. At the end of the Restriction Period that applies to Restricted Shares, the number of shares to which the Participant is entitled shall be delivered to the Participant free and clear of the restrictions, either in certificated or book-entry form. No Common Shares shall be registered in the name of the Participant with respect to Restricted Share Units, and Participants shall have no ownership interest in the Common Shares to which the Restricted Share Units relate, unless and until payment is made in Common Shares. 
(vii) Forfeiture. If a Participant who holds Restricted Shares or Restricted Share Units fails to satisfy the restrictions, terms or conditions applicable to the Award, except as otherwise determined by the Committee, the Participant shall forfeit the Restricted Shares or Restricted Share Units. The Committee may at any time waive such restrictions or accelerate the date or dates on which the restrictions will lapse; however, to the extent the Restricted Shares or Restricted Share Units are intended to qualify for the Performance-Based Exception, the provisions of Section 6(e)(iv) will apply. 
(d) Performance Shares and Performance Units. 
(i) Grants. Subject to the terms and provisions of the Plan, Performance Shares and Performance Units may be granted to Participants in such number and upon such terms and conditions as the Committee determines. 
(ii) Award Value of Performance Shares/Units. The Award Value of each Performance Share and Performance Unit shall be calculated immediately following the Termination Date, unless the Committee designates a different day for such calculation at the time of grant. 
(iii) Term. Performance Shares and Performance Units shall terminate on a Termination Date to be determined by the Committee in its sole discretion. 
(iv) Vesting. Performance Shares and Performance Units shall vest as of the Termination Date, but only if the Participant is actively employed on a full-time basis with the Company through the Termination Date. 
(v) Forfeiture. All unvested Performance Shares and Performance Units shall be forfeited on Termination Date or such other date as may be set forth in the Award Agreement or determined by the Committee at the time of grant in its sole discretion. 
(e) Performance-Based Exception. 
(i) Grants. Subject to the provisions of the Plan, Full-Value Awards granted in a manner that is intended to qualify for the Performance-Based Exception shall be conditioned upon the achievement of Performance Goals as the Committee shall determine, in its sole discretion. 

9

 
(ii) Performance Goals. Performance Goals shall be based on one or more Performance Measures, over a Performance Period, as to be determined by the Committee. 
(iii) Performance Measures. The Performance Measure(s) may be described in terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a subsidiary, division, department, region, function or business unit of the Company, and shall consist of one or more or any combination of the following criteria: combined ratio, premium growth, including growth within certain specific geographical areas, cash flow, profit, revenue, stock price, market share, sales, net income, operating income, return ratios, earnings per share, earnings (which may include an add back for taxes, interest, and/or depreciation and amortization), operating earnings, profit margins, earnings per Common Share, favorable comparison to established budgets, return on equity or shareholders’ equity, return on assets, attainment of strategic and operational initiatives, comparisons with various stock market indices, reduction in costs or a combination of such factors, personal performance measures, working capital, total assets, net assets, return on sales, return on invested capital, gross margin, costs, shareholders’ equity, shareholder return and/or productivity or productivity improvement. The Performance Goals based on these Performance Measures may be expressed in absolute terms, before or after taxes, or relative to the performance of other entities. 
(iv) Treatment of Awards. With respect to any Full-Value Award that is intended to qualify for the Performance-Based Exception: (A) the Committee shall interpret the Plan and this Section 6(e) in light of Code Section 162(m), (B) the Committee shall not amend the Full-Value Award in any way that would adversely affect the treatment of the Full-Value Award under Code Section 162(m), and (C) such Full-Value Award shall not vest or be paid until the Committee shall first have certified that the Performance Goals have been achieved. 
(f) Unrestricted Share Awards. 
Subject to the terms and provisions of the Plan, the Committee may grant awards of unrestricted Common Shares to Participants in such number and upon such terms and conditions as the Committee determines in recognition of outstanding achievements or contributions by such Participants or otherwise. Unrestricted Common Shares issued on a bonus basis may be issued for no cash consideration. 
(g) Provisions Applicable to Non-Employee Directors. 
(i) Full-Value Awards. The Committee shall have authority to grant to Non-Employee Directors, on or about June 1 of each year during which a Non-Employee Director is a member of the Company’s Board and is serving on the Board as of June 1, a Full Value Award determined by dividing $55,000 (the “Equity Grant Value”) by the average of the per share Fair Market Value of Common Shares for the five (5) trading days ending on the last business day prior to June 1 of the applicable year; the resulting number shall then be rounded up to the nearest share. Effective as of May 20, 2014, the Equity Grant Value shall be increased from $55,000 to $65,000. The Committee may change the Equity Grant Value from time to time, or may determine that a fixed number of shares be granted in lieu of using the “Equity Grant Value” method described above, in each case without shareholder approval. Full-Value Awards granted to Non-Employee Directors pursuant to this Section 6(g)(i) shall not be transferrable by Non-Employee Directors for a period of six (6) months from the Date of Grant. Notwithstanding the foregoing, the Committee may grant to Non-Employee Directors Stock Options in lieu of or in addition to Restricted Shares. 
(ii) Additional Payment in Common Stock in Lieu of Cash. On or prior to January 1 of any calendar year, any Non-Employee Director may notify the Company that he or she is electing to receive unrestricted Common Shares in lieu of a specified percentage (not to exceed 50%) of cash compensation scheduled to be received in the upcoming calendar year; provided, however, that this amount shall exclude such cash compensation to be earned for attending Board and/or committee meetings. Such additionally issued Common Shares shall be governed by the terms and provisions of Section 6(g)(i) above and the additional terms and provisions of this Plan. 
(iii) Additional Transfer Restrictions. No Non-Employee Director may dispose of any shares received pursuant to an Award under Section 6(g)(i) of this Plan until such Non-Employee Director beneficially owns the 

10

target amount of Common Shares required by stock ownership guidelines adopted by the Company (the “Share Ownership Target”). Thereafter, no Non-Employee Director shall dispose of any shares received pursuant to an Award under Section 6(g)(i) of this Plan such that such Non-Employee Director’s direct or indirect ownership of Common Shares would be less than the Share Ownership Target. 
7. Deferred Payment 
Subject to the terms of the Plan, the Committee may determine that all or a portion of any Award to a Participant, whether it is to be paid in cash, Common Shares or a combination thereof, shall be deferred or may, in its sole discretion, approve deferral elections made by Participants. Deferrals shall be for such periods and upon such terms as the Committee may determine in its sole discretion, which terms shall comply with Code Section 409A. 
8. Dilution and Other Adjustments 
In the event of any merger, reorganization, consolidation, liquidation, recapitalization, reclassification, redesignation, stock dividend, other distribution (whether in the form of cash, shares or otherwise), stock split, reverse stock split, spin off, combination, repurchase or exchange of shares or issuance of warrants or rights to purchase shares or other securities, or other change in corporate structure affecting the Common Shares, the Committee shall make such adjustments in the aggregate number and type of Common Shares which may be delivered and the individual award maximums as set forth in Section 5, the number and type of Common Shares subject to outstanding Awards and the Exercise Price or other price of Common Shares subject to outstanding Awards (provided the number of Common Shares subject to any Award shall always be a whole number), as may be and to the extent determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. Such adjustment shall be conclusive and binding for all purposes of the Plan. Any such adjustment of an ISO or SAR shall be made in compliance with Code Sections 422 and 424, and no such adjustment shall be made that would cause any Award which is or becomes subject to Code Section 409A to fail to comply with the requirements of Code Section 409A or is exempt from Code Section 409A to become subject to Code Section 409A. 
9. Change in Control 
Notwithstanding any other provision of the Plan to the contrary, immediately upon the occurrence of a Change in Control, the following provisions of this Section 9 shall apply except to the extent an Award Agreement provides for a different treatment (in which case the Award Agreement shall govern): 
(a) all outstanding Stock Options and SARs vest and become fully exercisable; and 
(b) all Full-Value Awards (including Performance Shares and Performance Units) become fully vested. 
10. Termination 
(a) Termination by Death, Disability, or Retirement. Unless otherwise provided in the Participant’s Award Agreement, the vesting of an Award shall be immediately accelerated upon a Participant’s death, Disability, or Retirement; provided that the vesting of Performance Shares and Performance Units in connection with Retirement shall only be accelerated on a pro-rata basis based upon the amount of days that have passed since the Commencement Date and; provided further that for Full-Value Awards intended to qualify for the Performance-Based Exception, in the case of Retirement no vesting may occur or no distribution may be made prior to the attainment of the Performance Goals. Stock Options and SARs may thereafter be exercised for a period of one year following such termination, in the case of death or Disability, and 90 days in the case of Retirement (or such other period as the Committee may specify at or after the time of grant) or until the expiration of the stated term of such Stock Option, whichever period is shorter. 

11

 
(b) Termination for Cause. Unless otherwise provided in the Participant’s Award Agreement, if a Participant’s employment or service terminates for Cause, (i) all Stock Options and SARs (or portions thereof) which have not been exercised, whether vested or not, and (ii) all Full-Value Awards, shall immediately be forfeited upon termination, including such Awards that are subject to performance conditions (or unearned portions thereof). 
(c) Other Terminations. 
(i) By the Company. Unless otherwise provided in the Participant’s Award Agreement, if a Participant’s employment or service is terminated by the Company for any reason other than Cause, (x) any unvested portion of Stock Options or SARs held by the Participant at the time of termination shall become vested and such Stock Options and SARs may be exercised for a period of three months (or such other period as the Committee may specify at or after the time of grant) from the termination date, or until the expiration of the original term of the Stock Option or SAR, whichever period is shorter; provided that, for Stock Options and SARs intended to qualify for the Performance-Based Exception, no vesting may occur or no distribution may be made prior to the attainment of the Performance Goals and (y) all Full-Value Awards shall become fully-vested upon termination; provided that, the vesting of Performance Shares and Performance Units shall only be accelerated on a pro-rata basis based upon the amount of days that have passed since the Commencement Date and; provided further that, for Full-Value Awards intended to qualify for the Performance-Based Exception, no vesting may occur or no distribution may be made prior to the attainment of the Performance Goals. If a Participant dies during the three month period referred to in clause (x) above, any unexercised Stock Option or SAR held by the Participant or transferred pursuant to the provisions of this Plan, shall be exercisable, to the full extent that such Stock Option was exercisable at the time of death, for a period of one year after the date of death of the Participant or until the expiration of the stated term of such Stock Option, whichever period is shorter. 
(ii) By the Participant. Unless otherwise provided in the Participant’s Award Agreement, if a Participant’s employment or service is terminated by the Participant for any reason other than death, Disability or Retirement, (x) any vested portion of Stock Options or SARs held by the Participant at the time of termination may be exercised for a period of three months (or such other period as the Committee may specify at or after the time of grant) from the termination date, or until the expiration of the original term of the Stock Option or SAR, whichever period is shorter, (y) no unvested portion of any Stock Option or SAR shall become vested, including such Awards that are subject to performance conditions (or unearned portions thereof), and (z) all Full-Value Awards, including such Awards that are subject to performance conditions (or unearned portions thereof), shall immediately be forfeited upon termination. If a Participant dies during the three month period referred to in clause (x) above, any unexercised Stock Option or SAR held by the Participant or transferred pursuant to the provisions of this Plan, shall be exercisable, to the full extent that such Stock Option was exercisable at the time of death, for a period of one year after the date of death of the Participant or until the expiration of the stated term of such Stock Option, whichever period is shorter. 
(d) Limitation for ISOs. No ISO may be exercised more than three months following termination of employment for any reason (including Retirement) other than death or Disability, nor more than one year following termination of employment for the reason of death or Disability (as defined in Code Section 422), or such Award will no longer qualify as an ISO and shall thereafter be, and receive the tax treatment applicable to, a NQSO. For this purpose, a termination of employment is cessation of employment, under the rules applicable to ISOs, such that no employment relationship exists between the Participant and the Company. 
(e) Transfers and Leaves of Absence. The transfer of a Participant within the Company shall not be deemed a termination of employment except as required by Code Sections 422 and 409A, and other applicable laws. The following leaves of absences are not deemed to be a termination of employment: 
(i) if approved in writing by the Company, for military service, sickness or any other purpose approved by the Company, and the period of absence does not exceed 90 days; 

12

 
(ii) if in excess of 90 days, if approved in writing by the Company, but only if the Participant’s right to reemployment is guaranteed by statute or contract and provided that the Participant returns to work within 30 days after the end of such absence; and 
(iii) subject to the restrictions of Code Section 409A and to the extent that such discretion is permitted by law, if the Committee determines in its discretion that the absence is not a termination of employment. 
11. Recoupment or Recovery Policy 
Any Award shall be subject to forfeiture or repayment pursuant to the terms of any applicable compensation recoupment or recovery policy adopted by the Company, Committee or Board, as thereafter amended, including any policy adopted to comply with the rules of any stock exchange on which the Common Shares are traded or the Securities and Exchange Commission. 
12. Miscellaneous Provisions 
(a) Rights as a Shareholder. Except as otherwise provided herein, a Participant shall have no rights as a shareholder with respect to Awards hereunder, unless and until the Common Shares have been registered to the Participant as the owner. 
(b) No Loans. No loans from the Company to Participants shall be permitted in connection with the Plan. 
(c) Assignment or Transfer. Except as otherwise provided under the Plan, no Award or any rights or interests therein shall be transferable other than by will or the laws of descent and distribution. The Committee may, in its discretion, provide that an Award (other than an ISO) is transferable without the payment of any consideration to a Participant’s family member, subject to such terms and conditions as the Committee may impose. For this purpose, “family member” has the meaning given to such term in the General Instructions to the Form S-8 registration statement under the Securities Act. All Awards shall be exercisable, during the Participant’s lifetime, only by the Participant or a person who is a permitted transferee pursuant to this Section 12(c). Once awarded, the Common Shares (other than Restricted Shares) received by Participants may be freely transferred, assigned, pledged or otherwise subjected to lien, subject to the restrictions imposed by the Securities Act, Section 16 of the Exchange Act and the Company’s Insider Trading Policy, each as amended. 
(d) Withholding Taxes. The Company shall have the right to deduct from all Awards paid in cash to a Participant any taxes required by law to be withheld with respect to such Awards. All statutory applicable withholding taxes arising with respect to Awards paid in Common Shares to a Participant shall be satisfied by the Company retaining Common Shares having a Fair Market Value on the date the tax is to be determined that is equal to the amount of such statutory applicable withholding tax (rounded, if necessary, to the next lowest whole number of Common Shares); provided, however, that, subject to any restrictions or limitations that the Company deems appropriate, a Participant may elect to satisfy applicable withholding tax through cash or cash proceeds. 
(e) No Rights to Awards. Neither the Plan nor any action taken hereunder shall be construed as giving any person any right to be retained in the employ or service of the Company, and the Plan shall not interfere with or limit in any way the right of the Company to terminate any person’s employment or service at any time. Except as set forth herein, no employee or other person shall have any claim or right to be granted an Award under the Plan. By accepting an Award, the Participant acknowledges and agrees that (i) the Award will be exclusively governed by the Plan, including the right of the Company to amend or cancel the Plan at any time without the Company incurring liability to the Participant (except, to the extent the terms of the Award so provide, for Awards already granted under the Plan), (ii) the Participant is not entitled to future award grants under the Plan or any other plan, and (iii) the value of any Awards received shall be excluded from the calculation of termination or other severance payments or benefits. 

13

 
(f) Beneficiary Designation. To the extent allowed by the Committee, each Participant under the Plan may name any beneficiary or beneficiaries to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives all of such benefit. Unless the Committee determines otherwise, each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee and shall be effective only when received in writing by the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
(g) Fractional Shares. Fractional Common Shares shall not be issued or transferred under an Award, but the Committee may direct that cash be paid in lieu of fractional shares or may round off fractional shares, in its discretion. 
(h) Unfunded Plan. The Plan shall be unfunded and any benefits under the Plan shall represent an unsecured promise to pay by the Company. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are greater than those of a general unsecured creditor of the Company. 
(i) Severability. If any provision of the Plan is deemed illegal or invalid, the illegality or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
(j) Limitation of Liability. Members of the Board and the Committee and officers and employees of the Company who are their designees acting under the Plan shall be fully protected in relying in good faith upon the advice of counsel and shall incur no liability except for gross or willful misconduct in the performance of their duties hereunder. 
(k) Successors. All obligations of the Company with respect to Awards granted under the Plan shall be binding on any successor to the Company, whether as a result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
(l) Code Section 409A Compliance. Each Award granted under the Plan is intended to be either exempt from or in compliance with the requirements of Code Section 409A and any regulations or guidance that may be adopted thereunder, including any transition relief available under applicable guidance. The Plan may be amended or interpreted by the Committee as it determines appropriate in accordance with Code Section 409A and to avoid a plan failure under Code Section 409A(a)(1). If a Participant is a “specified employee” as defined in Code Section 409A at the time of the Participant’s separation from service with the Company, then solely to the extent necessary to avoid the imposition of any additional tax under Code Section 409A, the commencement of any payments or benefits under an Award shall be deferred until the date that is six months following the Participant’s separation from service (or such other period as required to comply with Code Section 409A). 
13. Effective Date, Amendments, Governing Law and Plan Termination 
(a) Effective Date. The Effective Date of the Plan is the date on which the Company’s shareholders approve the Plan at a duly held shareholder meeting. 
(b) Amendments. 
(i) Amendment of the Plan. The Committee or the Board may at any time terminate or amend the Plan in whole or in part, but no such action shall materially and adversely affect any rights or obligations with respect to any Awards granted prior to the date of such termination or amendment without the consent of the affected Participant, except to the extent that the Committee reasonably determines that such termination or amendment is necessary or appropriate to comply with applicable law or the rules and regulations of any stock exchange on 

14

which the Common Shares are traded or to preserve any intended favorable, or avoid any unintended unfavorable, tax effects for the Company, Plan or Participants. Notwithstanding the foregoing, unless the Company’s shareholders shall have first approved the amendment, no amendment of the Plan shall be effective if the amendment would: (A) increase the maximum number of Common Shares that may be delivered under the Plan or to any one individual (except to the extent made pursuant to Section 8 hereof), (B) extend the maximum period during which Awards may be granted under the Plan, (C) add to the types of awards that can be made under the Plan, (D) modify the requirements as to eligibility for participation in the Plan, (E) permit a repricing or decrease the Exercise Price to less than the Fair Market Value on the Date of Grant of any Stock Option or SAR, except for adjustments made pursuant to Section 8, (F) materially increase benefits to Participants, or (G) otherwise require shareholder approval pursuant to the Plan or applicable law or the rules of the principal securities exchange on which Common Shares are traded. 
(ii) Amendment of Awards. The Committee may amend, prospectively or retroactively, the terms of an Award, provided that no such amendment is inconsistent with the terms of the Plan or would materially and adversely affect the rights of any Participant without his or her written consent. 
(c) Governing Law. To the extent not preempted by Federal law, the Plan and all Award Agreements are construed in accordance with and governed by the laws of the State of Ohio. The Plan is not intended to be governed by the Employment Retirement Income Security Act of 1974, and shall be so construed and administered. 
(d) Plan Termination. No Awards shall be made under the Plan after the tenth anniversary of the Effective Date. 
 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]