Document:

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                                                                    EXHIBIT 10.7

Attached is the Form Employment Agreement signed by all executive officers of
Argosy Gaming Company, including Messrs. Gulbrandsen, Black, Malloy and Burgess
and Ms. McDowell. The Agreements are identical except for provisions relating to
compensation.

                                    AGREEMENT

     This Agreement is made and entered into this ___ day of_______, 2002 (this
"Agreement") by and between ARGOSY GAMING COMPANY, a Delaware corporation (the
"Company") and [Employee], an individual residing in the State of [State], (the
"Employee");

                                    RECITALS:

     The Compensation Committee of the Company's Board of Directors believes it
is in the best interest of the Company to enter into this Agreement with the
Employee.

     NOW THEREFORE, in consideration of the premises and of the covenants and
agreements herein contained, the parties hereto agree as follows:

     1.  EMPLOYMENT. The Company agrees that the Employee shall be employed by
the Company during the term of this Agreement initially in the capacity of
[Title] or in such other capacity as determined by the Company's Chief Executive
Officer or Board of Directors. The Employee shall have such duties and
responsibilities as are assigned to the Employee by the Chief Executive Officer
or Board of Directors of the Company. The Employee acknowledges and agrees that
the Employee's duties and responsibilities hereunder may include serving as an
officer of the Company's subsidiaries and affiliates without any additional
compensation therefore. The Employee hereby accepts employment from the Company
upon the terms and conditions herein set forth and agrees to devote his/her best
efforts and energies to the business of the Company.

     2.  TERM. The term of this agreement shall begin on [Date] and continue
unless terminated as hereinafter provided in Sections 5 and 6 hereof.

     3.  COMPENSATION.

         (a) BASE SALARY. During the term of this Agreement the Company shall
pay to Employee a Base Salary equal to [Salary] per annum. The Company shall pay
the Base Salary to Employee in accordance with the usual and customary payroll

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procedures of the Company. This Base Salary may be adjusted upward at any time
without altering the terms of this Agreement.

         (b) EXECUTIVE AND MANAGEMENT OPTIONS. You shall be eligible to
participate in any and all stock option programs created by the Compensation
Committee of the Board of Directors; provided, however, the Compensation
Committee has sole and absolute discretion in granting stock options. The terms
and conditions of the stock option program and the stock option grant will be
more fully set forth in any Stock Option Agreements and stock grant certificates
adopted and delivered respectively.

         (c) FRINGE BENEFITS. The Employee shall be entitled to participate in
all insurance and other fringe benefit programs of the Company as are accorded
other employees of the Company holding similar positions as the Employee. The
employee shall be (i) entitled to participate in the company's health plan
effective the first day of employment if a new employee, and (ii) entitled to
coverage or reimbursement for any family medical and dental costs not covered by
the Company's plans, subject to the Company's Supplemental Medical and Dental
Reimbursement Plan for Executives and regulatory guidelines.

         (d) SPECIAL ALLOWANCES. The Company agrees to pay a special allowance
of $500 per month.

         (e) COMPLIMENTARY PRIVILEGES. The Employee shall be entitled to an
employee discount of not less than 25% at Company retail establishments. The
Employee and his/her immediate family shall be entitled to complimentary
privileges in the Company restaurants and eating establishments.

         (f) REIMBURSEMENT OF EXPENSES. The Employee shall be reimbursed for all
items of travel and entertainment and miscellaneous expenses reasonably incurred
by him/her on behalf of the Company. Reimbursement for such expenses will be
pursuant to, and limited by, the Company's policies with respect to reimbursing
business expenses of employees of the Company holding similar positions as the
Employee and will require proper documentation.

         (g) ENTIRE COMPENSATION. The compensation and benefits provided for in
this Agreement are in full payment of the services to be rendered by the
Employee to the Company.

     4.  CHANGE OF CONTROL. In the event that there occurs a Change of Control
(as hereinafter defined) of the Company, the Employee shall, notwithstanding any
actions taken by the Company or its successor after the Change of Control, be
entitled to an amount equivalent to three (3) years of Base Salary and one (1)
year of Benefits.

     Such amount shall be paid on the Change of Control Date (i) if the Employee
is offered a position with lesser responsibility, or lesser salary as a result
of the Change of

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Control, or is offered a position with lesser responsibility, or lesser salary
within one (1) year after the Change of Control; or (ii) the Employee elects to
terminate his/her employment on the Change of Control Date.

     In the event the Employee's employment is terminated after the public
announcement of a Change of Control but prior to the consummation of a Change of
Control for any reason other than those set forth in Sections 5, 6(a), (b), (d)
or (e), then the Employee shall be entitled to an amount equivalent to three (3)
years Base Salary and one (1) year Benefits.

     For purposes hereof, Change of Control shall mean (i) any merger or
consolidation of the company with or into any person or any sale, transfer or
other conveyance, whether direct or indirect, of all or substantially all of
the assets of the company, on a consolidated basis, in one transaction or a
series of related transactions, if, immediately after giving effect to such
transaction, any "person" or "group" (as such terms are used for purposes of
Sections 13 (d) and 14 (d) of the Exchange Act, whether or not applicable)
(other than an Excluded Person) is or becomes the "beneficial owner," directly
or indirectly, or more than 50% of the total voting power in the aggregate
normally entitled to vote in the election of directors, managers, or trustees,
as applicable, of the transferee or surviving entity, (ii) any "person" or
"group" (as such terms are used for purposes of Sections 13 (d) and 14 (d) of
the Exchange Act, whether or not applicable) (other than an Excluded Person) is
or becomes the "beneficial owner," directly or indirectly, of more than 50% of
the total voting power in the aggregate normally entitled to vote in elections
of directors of the company, or (iii) during any period of 12 consecutive months
after the Issue Date, individuals who at the beginning of any such 12-month
period constituted the Board of Directors of the Company (together with any new
directors whose elections by such Board or whose nomination for election by the
shareholders of the Company was approved by a vote of a majority of the
directors then still in office who were either directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of
Directors of the Company then in office.

     5.  DEATH OR TOTAL DISABILITY OF EMPLOYEE.

         (a) DEATH. In the event of the death of the Employee during the term of
this Agreement, this Agreement shall terminate effective as of the date of the
Employee's death and the Company shall have no further obligations or liability
hereunder, except the Company shall pay to the Employee's estate the portion, if
any, of the (i) Employee's Base Salary for the period up to the Employee's date
of death which remains unpaid; and (ii) amounts payable pursuant to any employee
benefits plans in which the Employee was a participant prior to his/her death.

         (b) DISABILITY. In the event the Employee suffers a Disability (as
hereinafter defined) during the term of this Agreement, the Company shall have
the right to terminate the Employee's employment hereunder by giving the
Employee ten

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(10) days written notice thereof, and upon expiration of such ten (10) day
period, the Company shall not have any further obligations or liability under
this Agreement, except the Company shall pay to Employee the portion, if any,
of: (i) the Employee's Base Salary for the period to the date of termination
which remains unpaid; and (ii) any amounts payable pursuant to any employee
benefit plans in which the Employee was a participant prior to the date of his
termination.

     The term "Disability", when used herein, shall mean when the Employee
qualifies for a benefit under the Company's long term disability plan or if the
Company does not have a long term disability plan, it shall mean a mental or
physical condition which, in the reasonable opinion of the Company's designated
medical doctor, renders the Employee unable or incompetent to carry out the job
responsibilities he/she held or tasks to which he/she was assigned at the time
the disability was incurred for a period of 60 consecutive days or 60 days in
any 12 consecutive month period.

     6.  TERMINATION. Notwithstanding anything contained in this Agreement to
the contrary, the Employee's employment under this Agreement may be terminated
by the Company upon written notice to Employee for any of the following reasons:

         (a) If the Employee is denied a gaming license by any state gaming
board or any other gaming authority having jurisdiction over the operations of
the Company or its subsidiaries or affiliates ("Gaming Body"), or if the
Employee's license issued by any Gaming Body is suspended, revoked, sanctioned
or reprimanded for any period of time or for any conduct;

         (b) If the Employee commits an offense involving moral turpitude under
Federal, State or local laws or ordinances or conducts himself/herself publicly
or privately in any manner which causes him/her to be held in public ridicule or
scorn, or causes public scandal or uses liquors, narcotics or drugs to such an
extent as will have visible detrimental effect on the Company;

         (c) If the Employee fails to perform his/her job responsibilities in a
manner satisfactory to the Chief Executive Officer or the Board of Directors;

         (d) If the Employee knowingly violates any of the internal control
procedures and/or company policies of the Company; or, knowingly violates any
statute, rule or regulation of any Gaming Body, the United States Coast Guard,
or any other governmental body having jurisdiction over the business activities
of the Company; and;

         (e) If the Employee breaches any term or condition of this agreement.

     In the event that the Company shall terminate the Employee's employment
pursuant to this Section 6, the Company shall not have any further obligations
or liabilities under this Agreement, except the Company shall (a) pay to the
Employee his/her Base Salary up to the 30th day following the date of the
Employee's termination

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hereunder or if the termination is pursuant to Section 6(c) hereof or pursuant
to a job elimination with results in a discontinuation of employment with the
Company, then the Company shall pay to Employee his/her Base Salary for 12
months and an amount equal to his/her banked, but not yet paid bonus following
the date of the Employee's termination; and (b) any amounts or benefits payable
pursuant to any employee benefit plan in which the Employee was a participant
prior to the date of his/her termination, subject, however, to the terms and
provisions of any such employee benefit plan.

     Without limiting the foregoing, the Employee shall surrender all vehicles,
credit cards, uniforms, cellular telephones, pagers and other Company property
to the Company prior to any payment to the Employee hereunder.

     Following any notice of termination of employment hereunder, Employee shall
fully cooperate with the Company in all matters relating to the winding up of
his/her pending work on behalf of the Company and the orderly transfer of such
work to the other professional employees of the Company. On or after the giving
of notice of termination hereunder and during any applicable notice period, the
Company shall be entitled to such full-time or part-time services of Employee as
the Company may reasonably require.

     7.  DISCOVERIES. The Employee will promptly disclose in writing to the
Company each improvement, discovery, idea, concept and invention relating to the
business of the Company, made or conceived by the Employee either alone or in
conjunction with others while employed by the Company hereunder or within six
(6) months after the termination of such employment. This provision shall not
apply to an invention for which no equipment, supplies, facility or trade secret
information of the Company was used and which was developed entirely on the
Employee's own time, and (a) which does not relate (i) to the business of the
Company or (ii) to the Company's actual or demonstrably anticipated research or
development, or (b) which does not result from any work performed by the
Employee for the Company. The Employee will not disclose any such improvement,
discovery, idea, concept or invention to any person except the Company. Each
such improvement, discovery, idea, concept or invention shall be the sole and
exclusive property of, and is hereby assigned to, the Company, and at the
request of the Company, the Employee will assist and cooperate with the Company
and any person or persons (at the Company's or such other person's expense) from
time to time designated by the Company to obtain for the Company the grant of
any letters patent in the United States and/or such other country or countries
as may be designated by the Company, covering any such improvement, discovery,
idea, concept or invention and will in connection therewith execute such
applications, statements, assignments or other documents, furnish such
information and data and take all such other action (including, without
limitation, the giving of testimony) as the Company may from time to time
reasonably request.

     8.  NON-DISCLOSURE AND NON-COMPETITION.

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         (a) The Employee recognizes and acknowledges that he/she will have
access to certain confidential information of the Company, including but not
limited to, trade secrets, customer lists, sales records, future casino
development plans and other proprietary commercial information, and that such
information constitutes valuable, special and unique property of the Company.
The Employee agrees that he/she will not, for any reason or purpose whatsoever,
during or after the term of his/her employment, disclose any of such
confidential information to any party without express authorization of the
Company, except as necessary in the ordinary course of performing his/her duties
hereunder.

         (b) The Employee agrees with the Company that during the term of
his/her employment with the Company (or any affiliate or subsidiary of the
Company) and for a period of one (1) year following the termination of his/her
employment with the Company (or any affiliate or subsidiary of the Company),
he/she will not, without prior written consent of the Company, engage directly
or indirectly in any business (either financially or as a shareholder, employee,
officer, partner, independent contractor or owner, or in any other capacity
calling for the rendition of personal service or acts of management, operation
or control) which owns, operates or manages casinos, bingo parlors or other
gaming facilities within the Territory (as hereinafter defined); provided,
however, that Employee may own up to three percent (3%) of any class of
securities of a corporation engaged in such a competitive business if such
securities are listed on a national securities exchange or registered under the
Securities Exchange Act of 1934.

         (c) The Employee further agrees that for a period of ninety (90) days
following the termination of his/her employment with the Company (or any
affiliate or subsidiary of the Company), he/she will not, without prior written
consent of the Company, recruit any other Company employees away from the
Company.

         (d) The term "Territory" as used herein shall mean a 150 mile radius of
each casino, bingo parlor or gaming facility being operated or managed by the
Company or for which the Company has either received a local community
endorsement or filed for a gaming license as of the date of termination.

         (e) The Employee acknowledges that his/her compliance with the
agreements in paragraphs 8(a) and 8(b) hereof is necessary to protect the good
will and other proprietary interests of the Company and that he/she is one of
the principal executives of the Company and conversant with its affairs, its
trade secrets, its customers and other proprietary information. The Employee
acknowledges that a breach of his/her agreements in paragraphs 8(a) and 8(b)
hereof will result in irreparable and continuing damage to the Company and the
business of the Company, for which there will be no adequate remedy at law; and
agrees that in the event of any breach of the aforesaid agreements in paragraphs
8(a) and 8(b), the Company and its successors and assigns shall be entitled to
injunctive relief of 50% of the Employee's annual salary and to such other and
further relief as may be proper. The Employee further agrees that in the event
of any breach of the agreement in paragraph 8(c), the

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Company and its successors and assigns shall be entitled to injunctive relief of
100% of the Employee's annual salary and to such other and further relief as may
be proper.

     9.  SUPERSEDES OTHER AGREEMENTS. This Agreement supersedes and is in lieu
of any and all other employee arrangements between the Employee and the Company
or any of their respective subsidiary and affiliated companies.

     10. AMENDMENTS. Any amendment to this Agreement, including any extensions
or renewal of the term of employment of Employee, shall be made in writing and
signed by the parties hereto.

     11. ENFORCEABILITY. If any provision of this Agreement shall be held
invalid or unenforceable, in whole or in part, then such provision shall be
deemed to be modified or restricted to the extent and in the manner necessary to
render the same valid and enforceable, or shall be deemed excised from the
Agreement as the case may require, and this Agreement shall be construed and
enforced to the maximum extent permitted by law, as if such provision had been
originally incorporated herein as so modified or restricted, or as if such
provision had not been originally incorporated herein, as the case may be.

     12. GOVERNING LAW. The validity and effect of this Agreement shall be
governed exclusively by the laws of the State of Illinois, excluding the
"conflicts of laws" rules of that state.

     13. ASSIGNMENT.

         (a) The rights and obligations of the Company under this Agreement
shall inure to the benefit of, and shall be binding upon, the successors and
assigns of the Company, subject to the provisions set forth in Section 4 hereof.

         (b) This Agreement and the obligations created hereunder may not be
assigned by the Employee.

     14. ATTORNEYS' FEES. In the event any legal action to enforce the terms and
conditions of this Agreement is commenced, reasonable attorneys' fees, court
costs and all reasonable costs of litigation shall be awarded to the prevailing
party.

     15. NOTICES. All notices required or permitted to be given hereunder shall
be in writing and shall be deemed to have been given when personally delivered
or mailed, by certified or registered mail, return receipt requested, addressed
to the intended recipient as follows:

     IF TO THE EMPLOYEE:

         [Address]

     IF TO THE COMPANY:

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         Argosy Gaming Company
         219 Piasa Street
         Alton, IL  62002
         ATTN:  Legal Department

     Any party may from time to time change its address for the purposes of
notices to that party by a similar notice specifying a new address, but no such
change shall be deemed to have been given until it is actually received by the
party sought to be charged with the contents.

     16. WAIVER. No claim or right arising out of a breach or default under this
Agreement can be discharged in whole or in part by a waiver of that claim or
right unless the waiver is supported by consideration and is in writing and
executed by the aggrieved party hereto or its or his/her duly authorized agent.
A waiver by any party hereto of a breach or default by the other party hereto of
any provision of this Agreement shall not be deemed a waiver of any prior or
subsequent compliance therewith, and such provision shall remain in full force
and effect.

     IN WITNESS WHEREOF, this Agreement has been executed by the Company, by a
duly authorized officer, and by the Employee on the date first above written.

                                           ARGOSY GAMING COMPANY

                                           By:
                                              ----------------------------------
                                           Title:
                                                 -------------------------------

                                          [Employee]

                                          --------------------------------------

                                        8<PAGE>

                                                               Exhibit (10)(a)

                                   ONEOK, Inc.
                            LONG-TERM INCENTIVE PLAN
                            ------------------------

1.    Purposes.

      The purposes of this Plan are (a) to provide competitive incentives that
      will enable the Company to attract, retain, motivate, and reward Key
      Employees and Non-Employee Directors of the Company, and (b) to give the
      Company's Key Employees and Non-Employee Directors an interest parallel
      to the interests of the Company's shareholders generally.

2.    Definitions.

      Unless otherwise required by the context, the following terms, when used
      in this Plan, shall have the meanings set forth in this Section 2.

      (a)     "Beneficiary" means a person or entity (including a trust or
              estate), designated in writing by a Participant on such forms and
              in accordance with such terms and conditions as the Committee may
              prescribe, to whom the Participant's rights under the Plan shall
              pass in the event of the death of the Participant.

      (b)     "Board" or a "Board of Directors" means the Board of Directors of
              the Company, as constituted from time to time.

      (c)     A "Change in Control" shall mean the occurrence of any of the
              following:

                           (1)      An acquisition (other than directly from
the Company) of any voting securities of the Company (the "Voting Securities")
by any "Person" (as the term person is used for purposes of Section 13(d) or
14(d) of the Exchange Act), immediately after which such Person has "Beneficial
Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of twenty percent (20%) or more of the then outstanding Shares or the
combined voting power of the Company's then outstanding Voting Securities;
provided, however, in determining whether a Change in Control has occurred
pursuant to this Section 2(c), Shares or Voting Securities which are acquired
in a "Non-Control Acquisition" (as hereinafter defined) shall not constitute an
acquisition which would cause a Change in Control. A "Non-Control Acquisition"
shall mean an acquisition by (i) an employee benefit plan (or a trust forming a
part thereof) maintained by (A) the Company or (B) any company or other Person
of which a majority of its voting power or its voting equity securities or
equity interest is owned or controlled, directly or indirectly, by the Company
(for purposes of this definition, a "Related Entity"), (ii) the Company or any
Related Entity, or (iii) any Person in connection with a "Non-Control
Transaction" (as hereinafter defined);

                           (2)      The individuals who, as of February 15,
2001, are members of the Board of Directors (the "Incumbent Board"), cease for
any reason to constitute at least a majority

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of the members of the Board of Directors; or, following a Merger which results
in a Parent Company, the board of directors of the ultimate Parent Company;
provided, however, that if the election, or nomination for election by the
Company's common stockholders, of any new director was approved by a vote of at
least two-thirds of the Incumbent Board, such new director shall, for purposes
of this Plan, be considered as a member of the Incumbent Board; provided
further, however, that no individual shall be considered a member of the
Incumbent Board if such individual initially assumed office as a result of
either an actual or threatened "Election Contest" (as described in Rule 14a-11
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board of
Directors (a "Proxy Contest"), including by reason of any agreement intended to
avoid or settle any Election Contest or Proxy Contest; or

                           (3)      The consummation of:

                                    (i)     A merger, consolidation or
reorganization with or into the Company or in which securities of the Company
are issued (a "Merger"), unless such Merger is a "Non-Control Transaction." A
"Non-Control Transaction" shall mean a Merger where:

                                            (A)      the stockholders of the
Company, immediately before such Merger, own directly or indirectly immediately
following such Merger at least fifty percent (50%) of the combined voting power
of the outstanding voting securities of (x) the company resulting from such
Merger (the "Surviving Company") if fifty percent (50%) or more of the combined
voting power of the then outstanding voting securities of the Surviving Company
is not Beneficially Owned, directly or indirectly by another Person (a "Parent
Company"), or (y) if there is one or more Parent Companies, the ultimate Parent
Company;

                                            (B)      the individuals who were
members of the Incumbent Board immediately prior to the execution of the
agreement providing for such Merger constitute at least a majority of the
members of the board of directors of (x) the Surviving Company, if there is no
Parent Company, or (y) if there is one or more Parent Companies, the ultimate
Parent Company; and

                                            (C)      no Person other than (1)
the Company, (2) any Related Entity, (3) any employee benefit plan (or any
trust forming a part thereof) that, immediately prior to such Merger was
maintained by the Company or any Related Entity, or (4) any Person who,
immediately prior to such Merger had Beneficial Ownership of thirty percent
(30%) or more of the then outstanding Voting Securities or Shares, has
Beneficial Ownership of thirty percent (30%) or more of the combined voting
power of the outstanding voting securities or common stock of (x) the Surviving
Company if there is no Parent Company, or (y) if there is one or more Parent
Companies, the ultimate Parent Company.

                                    (ii)    A complete liquidation or
dissolution of the Company; or

                                    (iii)   The sale or other, disposition of
all or substantially all of the assets of the Company to any Person (other than
a transfer to a Related Entity or under conditions that would constitute a Non-
Control Transaction with the disposition of assets being regarded as

                                       -2-

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a Merger for this purpose or the distribution to the Company's stockholders of
the stock of a Related Entity or any other assets).

           Notwithstanding the foregoing,

           (A)     A Change in Control shall not be deemed to occur solely
because any Person (the "Subject Person") acquired Beneficial Ownership of more
than the permitted amount of the then outstanding Shares or Voting Securities
if: (1) such acquisition occurs as a result of the acquisition of Shares or
Voting Securities by the Company which, by reducing the number of Shares or
Voting Securities then outstanding, increases the proportional number of shares
Beneficially Owned by the Subject Person, provided that if a Change in Control
would occur (but for the operation of this subparagraph) as a result of the
acquisition of Shares or Voting Securities by the Company, and after such share
acquisition by the Company, the Subject Person becomes the Beneficial Owner of
any additional Shares or Voting Securities which increases the percentage of
the then outstanding Shares or Voting Securities Beneficially Owned by the
Subject Person, then a Change in Control shall occur, or (2) (a) within five
business days after a Change in Control would have occurred (but for the
operation of this subparagraph), or if the Subject Person acquired Beneficial
Ownership of twenty percent (20%) or more of the then outstanding Shares or the
combined voting power of the Company's then outstanding Voting Securities
inadvertently, then after the Subject Person discovers or is notified by the
Company that such acquisition would have triggered a Change in Control (but for
the operation of this subparagraph), the Subject Person notifies the Board of
Directors that it did so inadvertently, and (b) within two business days after
such notification, the Subject Person divests itself of a sufficient number of
Shares or Voting Securities so that the Subject Person is the Beneficial Owner
of less than twenty percent (20%) of the then outstanding Shares or the
combined voting power of the Company's then outstanding Voting Securities.

           (B)     A Change in Control shall not be deemed to occur if (1) the
Shareholder Group (as defined in the Shareholder Agreement) acquires Beneficial
Ownership of fifteen percent (15%) or more of the Company's Voting Securities
pursuant to the terms of the Shareholder Agreement, by and between WAI, Inc.
(now known as ONEOK, Inc.) and Western Resources, Inc. dated as of November 26,
1997 (the "Shareholder Agreement"), until the earlier of (a) the termination of
the Shareholder Agreement or (b) the successful consummation of a Buyout Tender
Offer as defined in Section 3.6(b) of the Shareholder Agreement, but upon
either of such events, the acquisition or existence of such percentage of
Beneficial Ownership by Western Resources, Inc. or any of its affiliates shall
constitute a Change in Control or (2) the equity securities of the Company
owned by the Shareholder Group are in any manner restructured with the approval
of a majority of the members of the Incumbent Board (excluding Shareholder
Nominees, as defined in the Shareholder Agreement).

Notwithstanding anything in this Plan to the contrary, if an eligible Key
Employee's employment is terminated by the Company without Just Cause prior to
the date of a Change in Control but the eligible Key Employee reasonably
demonstrates that the termination (A) was at the request of a third party who
has indicated an intention or taken steps reasonably calculated to effect a
Change in Control or (B) otherwise arose in connection with, or in
anticipation of, a Change in Control

                                       -3-

<PAGE>

which has been threatened or proposed, such termination shall be deemed to have
occurred after a Change in Control for purposes of this Plan, provided a Change
in Control shall actually have occurred.

      (d)     "Code" means the Internal Revenue Code of 1986, as amended and in
              effect from time to time. References to a particular section of
              the Code shall include references to any related Treasury
              Regulations and to successor provisions.

      (e)     "Committee" means the Committee appointed by the Board of
              Directors to administer the Plan pursuant to the provisions of
              section 11(a) below.

      (f)     "Common Stock" means common stock, $0.01 par value, of the
              Company.

      (g)     "Company" means ONEOK, Inc., an Oklahoma corporation, its
              successors and assigns, or any division or Subsidiary thereof.

      (h)     "Director Fees" means all compensation and fees paid to a
              Non-Employee Director by the Company for his services as a member
              of the Board of Directors.

      (i)     "Director Stock Award" means an award of ONEOK, Inc. Common Stock
              granted to a Non-Employee Director.

      (j)     "Exchange Act" means the Securities Exchange Act of 1934, as
              amended from time to time.

      (k)     "Fair Market Value" on a particular date means the average of the
              high and low sale prices of a share of Common Stock in
              consolidated trading on the date in question as reported by
              The Wall Street Journal or another reputable source designated by
              -----------------------
              the Committee; provided that if there were no sales on such date
              reported as provided above, the respective prices on the most
              recent prior day for which a sale was so reported. In the case of
              an Incentive Stock Option, if the foregoing method of determining
              Fair Market Value should be inconsistent with section 422 of the
              Code, a "Fair Market Value" shall be determined by the Committee
              in a manner consistent with such section of the Code and shall
              mean the value as so determined.

      (l)     "General Counsel" means the General Counsel of the Company
              serving from time to time.

      (m)     "Incentive Stock Option" means an option, including an Option as
              the context may require, intended to qualify for the tax treatment
              applicable to incentive stock options under section 422 of the
              Code.

      (n)     "Just Cause" shall mean the Key Employee's conviction in a court
              of law of a felony, or any crime or offense in a court of law of
              a felony, or any crime or offense involving misuse or
              misappropriation of money or property, the Key Employee's
              violation of

                                       -4-

<PAGE>

              any covenant, agreement or obligation not to disclose
              confidential information regarding the business of the Company
              (or a division or Subsidiary); any violation by the Key Employee
              of any covenant not to compete with the Company (or a division or
              Subsidiary); any act of dishonesty by the Key Employee which
              adversely affects the business of the Company  (or a division
              or subsidiary);  any willful or intentional act of the Key
              Employee which adversely affects the business of, or
              reflects unfavorably on the reputation of the Company  (or a
              division or Subsidiary);  the Key Employee's use of alcohol or
              drugs which interferes with the Key Employee's performance of
              duties as an employee of the Company (or a division or
              Subsidiary);  or the Key Employee's failure or refusal to
              perform the specific directives of the Company's Board of
              Directors, or its officers which directives are consistence with
              the scope and nature of the Key Employee's duties and
              responsibilities with the existence and occurrence of all of
              such causes to be determined by the Company in its sole
              discretion;  provided, that nothing contained in the foregoing
              provisions of this paragraph shall be deemed to interfere in
              any way with the right of the Company  (or a division or
              Subsidiary), which is hereby acknowledged, to terminate the Key
              Employee's employment at any time without cause.

      (o)     "Key Employee" means an employee of the Company, including an
              officer or director who is such an employee, who the Committee
              determines is in a position to contribute significantly to the
              growth and profitability of, or to perform services of major
              importance to, the Company, its divisions and Subsidiaries.

      (p)     "Non-Employee Director" means a member of the Board of Directors
              of the Company who is not an employee of the Company, and who
              qualifies as a "Non-Employee Director" under the definition of
              that term in SEC Rule 16b-3.

      (q)     "Non-Statutory Stock Option" means an option, including an Option
              as the context may require, which is not intended to qualify for
              the tax treatment applicable to incentive stock options under
              section 422 of the Code.

      (r)     "Option"  means an option granted under this Plan to purchase
              shares of Common Stock.  Options may be Incentive Stock Options
              or Non-Statutory Stock Options.

      (s)     "Participant" means a Key Employee or Non-Employee Director who
              has been granted a Stock Incentive.

      (t)     "Performance Unit Award" means an amount of cash or shares of
              Common Stock or a combination of each, that will be distributed
              in the future if continued employment and/or other performance
              objectives or contingencies specified by the Committee are
              attained. Such other performance objectives may include, without
              limitation, corporate, divisional or business unit financial or
              operating performance measures and such other contingencies may
              include the Participant's depositing with the Company, acquiring
              or retaining for stipulation time periods specified amounts of
              Common Stock. The amount of the award may but need not be
              determined by reference to the

                                       -5-

<PAGE>

              market value of Common Stock.

      (u)     "Plan" means the ONEOK, Inc. Long-Term Incentive Plan set forth
              in these pages, as amended from time to time.

      (v)     "Plan Year" means the calendar year beginning on January 1 and
              ending the next December 31.

      (w)     "Restricted Stock Award" means shares of Common Stock which are
              issued or transferred to a Participant under Section 5 below and
              which will become free of restrictions specified by the Committee
              if continued employment and/or other performance objectives or
              contingencies specified by the Committee are attained. Such other
              performance objectives may include, without limitation, corporate,
              divisional or business unit financial or operating performance
              measures and such other contingencies may include the
              Participant's depositing with the Company, acquiring or retaining
              for stipulated time periods specified amounts of Common Stock.

      (x)     "SEC Rule 16b-3" means Rule 16b-3 of the Securities and Exchange
              Commission promulgated under the Exchange Act, as such rule or any
              successor rule may be in effect from time to time.

      (y)     "Section 16 Person" means a person subject to Section 16(b) of
              the Exchange Act with respect to transactions involving equity
              securities of the Company.

      (z)     "Shares" means the common stock, par value $.01 per share, of the
              Company and any other securities into which such shares are
              changed or for which such shares are exchanged.

      (aa)    "Stock Bonus Award" means an amount of cash or shares of Common
              Stock which is distributed to a Participant or which the Committee
              agrees to distribute in the future to a Participant in lieu of, or
              as a supplement to, any other compensation that may have been
              earned by services rendered prior to the date the distribution is
              made. The amount of the award may but need not be determined by
              reference to the market value of Common Stock. Performance Unit
              Awards and Restricted Stock Awards are specific types of Stock
              Bonus Awards.

      (bb)    "Stock Incentive" means an award granted under this Plan in one of
              the forms provided for in Section 3.

      (cc)    "Subsidiary" means a corporation or other form of business
              association of which shares (or other ownership interest) having
              more than 50 percent of the voting power are or in the future
              become owned or controlled, directly or indirectly, by the
              Company; provided, however, that in the case of an Incentive Stock
              Option, the term "Subsidiary" shall mean a Subsidiary (as defined
              by the preceding clause) which is

                                       -6-

<PAGE>

              also a "subsidiary corporation" as defined in Section 424(f) of
              the Code.

3.    Grants of Stock Incentives.

      (a)     Subject to the provisions of the Plan, the Committee may at any
              time, or from time to time, grant Key Employees Stock Bonus
              Awards, which may but need not be Performance Unit Awards or
              Restricted Stock Awards, and/or Options, which may be Incentive
              Stock Options or Non-Statutory Stock Options.

      (b)     Subject to the provisions of the Plan, the Committee shall grant
              Director Stock Awards to Non-Employee Directors in accordance with
              Section 7 of the Plan. Notwithstanding anything else otherwise
              expressed or implied in the Plan, no other form of Stock Incentive
              shall be granted to Non-Employee Directors under the Plan, and in
              no event shall any grant of an Incentive Stock Option be made to a
              Non-Employee Director.

      (c)     After a Stock Incentive has been granted,

              (i)   the Committee may waive any term or condition thereof that
                    could have been excluded from such Stock Incentive when it
                    was granted, and

              (ii)  with the written consent of the affected Participant, may
                    amend any Stock Incentive after it has been granted to
                    include (or exclude) any provision which could have been
                    included in (or excluded from) such Stock Incentive when it
                    was granted, and no additional consideration need be
                    received by the Company in exchange for such waiver or
                    amendment.

4.    Stock Subject to the Plan.

      (a)     The maximum number of shares of Common Stock which was authorized
              to be issued or transferred pursuant to Stock Incentives to be
              granted under the Plan upon the Plan's initial adoption on August
              17, 1995, was 1,000,000 shares of Common Stock ("Initially
              Authorized Shares"), of which 554,800 shares remain available for
              grant as of August 20, 1998; and the Board has authorized that the
              amount of those shares remaining eligible to be granted on the
              effective date ofthe Plan, as amended and restated, be carried
              over and continued to be reserved, together with reservation of an
              additional number of shares necessary to have a total of 2,000,000
              shares of Common Stock which may be issued or transferred pursuant
              to Stock Incentives granted under the Plan on and after the date
              of such amendment and restatement of the Plan, subject to the
              provisions below of paragraph 4(c) and of Section 9; provided,
              that the maximum number of shares of Common Stock with respect to
              which Options or other Stock Incentives may be granted or issued
              to any employee under the Plan during any year is 150,000.

      (b)     Such shares may be authorized but unissued shares of Common Stock,
              shares of

                                       -7-

<PAGE>

              Common Stock held in treasury, whether acquired by the Company
              specifically for use under this Plan or otherwise, or shares
              issued or transferred to, or otherwise acquired by, a trust
              pursuant to paragraph 12(d) below, as the Committee may from time
              to time determine, provided, however, that any shares acquired or
              held by the Company for the purposes of this Plan shall, unless
              and until issued or transferred to a trust pursuant to paragraph
              12(d) below or to a Participant in accordance with the terms and
              conditions of a Stock Incentive, be and at all times remain
              authorized but unissued shares or treasury shares (as the case may
              be), irrespective of whether such shares are entered in a special
              account for purposes of this Plan, and shall be available for any
              corporate purpose.

      (c)     If any shares of Common Stock subject to a Stock Incentive shall
              not be issued or transferred to a Participant and shall cease to
              be issuable or transferable to a Participant because of the
              termination, expiration or cancellation, in whole or in part, of
              such Stock Incentive or for any other reason, or if any such
              shares shall, after issuance or transfer, be reacquired by the
              Company because of the Participant's failure to comply with the
              terms and conditions of a Stock Incentive or for any other reason,
              the shares not so issued or transferred, or the shares so
              reacquired by the Company, as the case may be, shall no longer be
              charged against the limitations provided for in paragraph (a)
              above of this Section 4 and may again be made subject to Stock
              Incentives; provided that the number of shares not so issued or
              transferred and any such reacquired shares may again be made
              subject to Stock Incentives for Section 16 Persons only if the
              General Counsel determines that doing so would not jeopardize any
              exemption from Section 16 of the Exchange Act (including without
              limitation SEC Rule 16b-3) for which the Company intends Section
              16 Persons to qualify. If a Participant pays the purchase price of
              shares subject to an Option by surrendering shares of Common Stock
              in accordance with the provisions of paragraph 6(b)(iv) below, the
              number of shares surrendered shall be added back to the number of
              shares available for issuance or transfer under the Plan so that
              the maximum number of shares that may be issued or transferred
              under the Plan pursuant to paragraph 4(a) above shall have been
              charged only for the net number of shares issued or transferred
              pursuant to the Option exercise.

5.    Stock Bonus Awards, Performance Unit Awards and Restricted Stock Awards.

      Stock Bonus Awards, Performance Unit Awards and Restricted Stock Awards
      shall be subject to the following provisions:

      (a)     A Key Employee may be granted a Stock Bonus Award, Performance
              Unit Award or Restricted Stock Award, and a Non-Employee Director
              may be granted a Director Stock Award, whether or not he or she is
              eligible to receive similar or dissimilar incentive compensation
              under any other plan or arrangement of the Company.

      (b)     Shares of Common Stock subject to a Stock Bonus Award may be
              issued or transferred  to a Participant at the time such Award
              is granted, or at any time

                                       -8-

<PAGE>

              subsequent thereto, or in installments from time to time, and
              subject to such terms and conditions, as the Committee shall
              determine. In the event that any such issuance or transfer shall
              not be made to the Participant at the time such Award is granted,
              the Committee may but need not provide for payment to such
              Participant, either in cash or shares of Common Stock, from time
              to time or at the time or times such shares shall be issued or
              transferred to such Participant, of amounts not exceeding the
              dividends which would have been payable to such Participant in
              respect of such shares (as adjusted under Section 9) if such
              shares had been issued or transferred to such Participant at the
              time such Award was granted.

      (c)     Any Stock Bonus Award, Performance Unit Award or Restricted Stock
              Award may, in the discretion of the Committee, be settled in cash,
              on each date on which shares would otherwise have been delivered
              or become unrestricted, in an amount equal to the Fair Market
              Value on such date of the shares which would otherwise have been
              delivered or become unrestricted; and the number of shares for
              which such cash payment is made shall be added back to the maximum
              number of shares available for use under the Plan, provided that
              the number of shares for which such cash payment is made may be
              made subject to Stock Incentives for Section 16 Persons only if
              the General Counsel determines that doing so would not jeopardize
              any exemption from Section 16 of the Exchange Act (including
              without limitation SEC Rule 16b-3) for which the Company intends
              Section 16 Persons to qualify.

      (d)     Stock Bonus Awards, Performance Unit Awards and Restricted Stock
              Awards shall be subject to such terms and conditions, including,
              without limitation, restrictions on the sale or other disposition
              of the shares issued or transferred pursuant to such Award, and
              conditions calling for forfeiture of the Award or the shares
              issued or transferred pursuant thereto in designated
              circumstances, as the Committee shall determine; provided,
              however, that upon the issuance or transfer of shares to a
              Participant pursuant to any such Award, the recipient shall, with
              respect to such shares, be and become a shareholder of the Company
              fully entitled to receive dividends, to vote and to exercise all
              other rights of a shareholder except to the extent otherwise
              provided in the Award. All or any portion of a Stock Bonus Award
              may but need not be made in the form of a Performance Unit Award
              or a Restricted Stock Award.

      (e)     Each Stock Bonus Award, Performance Unit Award and Restricted
              Stock Award shall be evidenced by a written instrument in such
              form as the Committee shall determine, signed by an officer of the
              Company duly authorized to do so, provided that such instrument is
              consistent with this Plan and incorporates it by reference.

      (f)     Director Stock Awards shall be granted as determined by the
              Committee in accordance with the provisions of Section 7, and as
              otherwise provided by this Plan.

6.    Options.

                                      -9-

<PAGE>

      Options shall be subject to the following provisions:

      (a)     Subject to the provisions of Section 9, the purchase price per
              share shall be, in the case of an Incentive Stock Option, not less
              than 100 percent of the Fair Market Value of a share of Common
              Stock on the date the Incentive Stock Option is granted (or in the
              case of any optionee who, at the time such Incentive Stock Option
              is granted, owns stock possessing more than 10 percent of the
              total combined voting power of all classes of stock of his or her
              employer corporation or of its parent or subsidiary corporation,
              not less than 110 percent of the Fair Market Value of a share of
              Common Stock on the date the Incentive Stock Option is granted)
              and, in the case of a Non-Statutory Stock Option, not less than
              the par value (if any) of a share of Common Stock on the date the
              Non-Statutory Stock Option is granted. A Non-Statutory Stock
              Option may (but need not) entitle the Participant to purchase
              shares of Common Stock at any fixed discount specified by the
              Committee from Fair Market Value on the date of purchase. Subject
              to the foregoing limitations, the purchase price per share may, if
              the Committee so provides at the time of grant of an Option, be
              indexed to the increase or decrease in an index specified by the
              Committee.

      (b)     The purchase  price of shares subject to an Option may be paid in
              whole or in part (i) in cash, (ii) by bank-certified, cashier's or
              personal check subject to collection, (iii) if so provided in the
              Option and subject to such terms and conditions as the Committee
              may impose, by delivering to the Company a properly executed
              exercise notice together with a copy of irrevocable instructions
              to a stockbroker to sell immediately some or all of the shares
              acquired by exercise of the Option and to deliver promptly to the
              Company an amount of sale proceeds (or, in lieu of or pending a
              sale, loan proceeds) sufficient to pay the purchase price, or (iv)
              if so provided in the Option and subject to such terms and
              conditions as are specified in the Option, in shares of Common
              Stock or other property surrendered to the Company. Property for
              purposes of this paragraph shall include an obligation of the
              Company unless prohibited by applicable law. Shares of Common
              Stock thus surrendered shall be valued at their Fair Market Value
              on the date of exercise. Any such other property thus surrendered
              shall be valued at its fair market value on any reasonable basis
              established or approved by the Committee. If so provided in the
              Option and subject to such terms and conditions as are specified
              in the Option, in lieu of the foregoing methods of payment, any
              portion of the purchase price of the shares to be issued or
              transferred may be paid by a promissory note secured by pledge of
              the purchased shares in such form and containing such provisions
              (which may but need not provide for interest and for payment of
              the note at the election of the Participant in cash or in shares
              of Common Stock or other property surrendered to the Company) as
              the Committee may approve; provided that (A) if the Committee
              permits any such note to be paid by surrender of shares of Common
              Stock, such shares shall be valued at their Fair Market Value on
              the date of such surrender, and (B) if the Committee permits any
              such note to be paid by surrender of other property, such other
              property shall be valued at its fair market value on any
              reasonable basis established or approved by the Committee, and (C)
              in the case of an Incentive Stock Option, any such note shall bear

                                      -10-

<PAGE>

              interest at the minimum rate required to avoid imputation of
              interest under federal income tax laws applicable at the time of
              exercise and (D) any such note shall mature in ten years or such
              lesser period as may be specified by the Committee.

      (c)     Options may be granted for such lawful consideration, including
              money or other property, tangible or intangible, or labor or
              services received or to be received by the Company, as the
              Committee may determine when the Option is granted. Property for
              purposes of the preceding sentence shall include an obligation of
              the Company unless prohibited by applicable law. Subject to the
              foregoing and the other provisions of this Section 6, each Option
              may be exercisable in full at the time of grant or may become
              exercisable in one or more installments, at such time or times and
              subject to satisfaction of such terms and conditions as the
              Committee may determine. The Committee may at any time accelerate
              the date on which an Option becomes exercisable, and no additional
              consideration need be received by the Company in exchange for such
              acceleration. Unless otherwise provided in the Option, an Option,
              to the extent it becomes exercisable, may be exercised at any time
              in whole or in part until the expiration or termination of the
              Option.

      (d)     Each Option shall be exercisable during the life of the optionee
              only by him or her or his or her guardian or legal representative,
              and after the death only by his or her Beneficiary or, absent a
              Beneficiary, by his or her estate or by a person who acquired the
              right to exercise the Option by will or the laws of decent and
              distribution. provided that an Option of a Section 16 Person and
              any Incentive Stock Option may be exercisable after death by a
              Beneficiary only if such exercise would be, in the opinion of the
              General Counsel, permissible under and consistent with SEC Rule
              16b-3 or Section 422 of the Code, as the case may be. Each Option
              shall expire at such time or times as the Committee may determine,
              provided that notwithstanding any other provision of this Plan,
              (i) no Option shall be exercisable after the tenth anniversary of
              the date the Option was granted, and (ii) no Incentive Stock
              Option which is granted to any optionee who, at the time such
              Option is granted, owns stock possessing more than 10 percent of
              the total combined voting power of all classes of stock of his or
              her employer corporation or of its parent or subsidiary
              corporation, shall be exercisable after the expiration of five (5)
              years from the date such Option is granted. If an Option is
              granted for a term of less than ten years, the Committee may, at
              any time prior to the expiration of the Option, extend its term
              for a period ending not later than on the tenth anniversary of the
              date the Option was granted, and no additional consideration need
              be received by the Company in exchange for such extension. The
              Committee may but need not provide for an Option to be exercisable
              after termination of employment until its fixed expiration date
              (or until an earlier date or specified event occurs).

      (e)     An Option may, but need not, be an Incentive Stock Option. All
              shares of Common Stock which may be made subject to Stock
              Incentives under this Plan may be made subject to Incentive Stock
              Options; provided that the aggregate Fair Market Value
              (determined as of the time the Option is granted) of the stock
              with respect to which

                                      -11-

<PAGE>

              Incentive Stock Options may be exercisable for the first time by
              any Key Employee during any calendar year (under all plans,
              including this Plan, of his or her employer corporation and its
              parent and subsidiary corporations) shall not exceed $100,000 or
              such other amount as may apply under the Code.

      (f)     Each Option shall be evidenced by a written instrument, signed by
              an officer of the Company duly authorized to do so, which shall
              contain such terms and conditions, and shall be in such form, as
              the Committee shall determine, provided the instrument is
              consistent with this Plan and incorporates it by reference. An
              Option, if so approved by the Committee, may include terms,
              conditions, restrictions and limitations in addition to those
              provided for in this Plan including, without limitation, terms
              and conditions providing for the transfer or issuance of shares,
              on exercise of an Option, which may be non-transferable and
              forfeitable to the Company in designated circumstances.

      (g)     The Committee may specify, at the time of grant of an Incentive
              Stock Option or, with respect to a Non-Statutory Stock Option, at
              or after the time of grant, that a Participant shall be granted a
              Non-Statutory Stock Option (a "Restored Option") if and when (i)
              such Participant exercise all or part of an Option, including a
              previously granted Restored Option, (an "Original Option") by
              surrendering shares of Common Stock already owned by him or her
              in full or partial payment of the Option price under such
              Original Option and/or (ii) shares of Common Stock are
              surrendered or withheld to satisfy tax obligations incident to
              the exercise of such Original Option. All Restored Options shall
              be subject to the availability of shares of Common Stock under
              the Plan at the time of such exercise. A Restored Option shall
              cover a number of shares of Common Stock not greater than the
              number of shares of Common Stock surrendered in payment of the
              option price under such Original Option and/or used to satisfy
              any tax obligation incident to the exercise of such Original
              Option. Each Restored Option shall have an option price equal to
              the Fair Market Value of the Common Stock on the date of grant of
              the Restored Option and shall expire on the stated expiration
              date of the Original Option. The date of grant of a Restored
              Option shall be the date on which the exercise of the Original
              Option or a previously granted Restored Option resulted in the
              grant of such Restored Option. A Restored Option shall be
              exercisable at any time and from time to time from or after the
              date of grant of the Restored Option (or as the Committee in its
              sole discretion shall otherwise specify in the written instrument
              evidencing the Restored Option). The written instrument
              evidencing a Restored Option shall contain such other terms and
              conditions, which may include a restriction on the
              transferability of the Common Stock received upon the exercise of
              the Original Option or Restored Option, as the Committee in its
              sole discretion may deem desirable.

      (h)     No Participant shall make any elective contribution or employee
              contribution to the Plan (within the meaning of Treasury
              Regulation Section 1.401(k)-1(d)(2)(iv)(B)(4) during the balance
              of the calendar year after the Participant's receipt of a
              hardship distribution from a plan of the Company or a related
              party within the provisions of

                                      -12-

<PAGE>

              Code Sections 414(b), (c), (m) or (o) containing a cash or
              deferred arrangement under Section 401(k) of the Code, or during
              the following calendar year. The preceding sentence shall not
              apply if and to the extend that the General Counsel determines it
              is not necessary to qualify any such plan as a cash or deferred
              arrangement under Section 401(k) of the Code.

      (i)     No Option shall be exercisable unless and until the Company (i)
              obtains the approval of all regulatory bodies whose approval the
              General Counsel may deem necessary or desirable, and (ii) complies
              with all legal requirements deemed applicable by the General
              Counsel.

      (j)     An Option shall be considered exercised if and when written
              notice, signed by the person exercising the Option and stating
              the number of shares with respect to which the Option is being
              exercised, is received by the Secretary on a properly completed
              form approved for this purpose by the Committee, accompanied by
              full payment of the Option exercise price in one or more of the
              forms authorized by the Committee and described in Section 6(b)
              above for the number of shares to be purchased. No Option may at
              any time be exercised with respect to a fractional share.

7.    Director Stock Awards.

      (a)     Each Non-Employee Director Participant shall receive such portion
              of his Director Fees in Common Stock as shall be established from
              time to time by the Board, with the remainder of such Director
              Fees to be payable in cash or in Common Stock as elected by the
              Non-Employee Director Participant in accordance with paragraph
              7(b), below.
      (b)     Each Non-Employee Director Participant shall have an opportunity
              to elect to have the remaining portion of his Director Fees paid
              in cash or shares of Common Stock or a combination thereof.
              Except for the initial election pursuant to the adoption of the
              Plan with this Section 7 therein, or the Director's election to
              the Board, any such election shall be made in writing and must be
              made at least thirty (30) days before the beginning of the Plan
              Year in which the services are to be rendered giving rise to such
              Director Fees and may not be changed thereafter except by timely
              written election as to Director Fees for services to be rendered
              in a subsequent Plan Year. In the absence of such an election,
              such remaining portion of the Director Fees of a Non-Employee
              Director shall be paid entirely in cash. Nothing contained in
              this paragraph 7(b) shall be interpreted in such a manner as
              would disqualify the Plan for treatment as a "formula plan" under
              Rule 16b-3  pursuant to which the terms and conditions of each
              transaction authorized by this Section 7 are fixed in advance by
              the relevant terms and provisions thereof.

      (c)     The number of shares of Common Stock to be paid and distributed
              to a Non-Employee Director under the provisions paragraphs 7(a)
              and (b), above, shall be determined by dividing the dollar amount
              of his Director Fees (which the Board has established, and/or
              such Non-Employee Director has elected) to be paid in Common

                                      -13-

<PAGE>

              Stock on any payment date by the Fair Market Value of a share of
              Common Stock on that date. Except as may otherwise be directed by
              the Committee, in its sole discretion, the payment and
              distribution of such shares to a Non-Employee Director shall be
              on or within five days after the date such Director Fees would
              otherwise have been paid to him in cash.

8.    Certain Change in Control, Termination of Employment and Disability
      Provisions.

      Notwithstanding any provision of the Plan to the contrary, any Stock
      Incentive which is outstanding but not yet exercisable, vested or payable
      at the time of a Change in Control shall become exercisable, vested and
      payable at that time; provided that if such Change in Control occurs less
      than six months after the date on which such Stock Incentive was granted
      and if the consideration for which such Stock Incentive was granted
      consisted in whole or in part of future services, then such Stock
      Incentive shall become exercisable, vested and payable at the time of
      such Change in Control only if the Participant agrees in writing (if
      requested to do so by the Committee in writing) to remain in the employ
      of the Company or a Subsidiary at least through the date which is six
      months after the date such Stock Incentive was granted with substantially
      the same title, duties, authority, reporting relationships and
      compensation as on the day immediately preceding the Change in Control.
      Any Option affected by the preceding sentence shall remain exercisable
      until it expires or terminates pursuant to its terms and conditions.
      Subject to the foregoing provisions of this Section 8, the Committee may
      at any time, and subject to such terms and conditions as it may impose:

      (a)     authorize the holder of an Option to exercise the Option
              following the termination of the Participant's employment with
              the Company and its Subsidiaries, or following the Participant
              disability, whether or not the Option would otherwise be
              exercisable following such event, provided that in no event may
              an Option be exercised after the expiration of its term;

      (b)     grant Options which become exercisable only in the event of a
              Change in Control;

      (c)     authorize a Stock Bonus Award, Performance Unit Award or
              Restricted Stock Award to become non-forfeitable, fully earned
              and payable upon or following (i) the termination of the
              Participant's employment with the Company and its Subsidiaries,
              or (ii) the Participant's disability, whether or not the Award
              would otherwise become non-forfeitable, fully earned and payable
              upon or following such event;

      (d)     grant Stock Bonus Awards, Performance Unit Awards and Restricted
              Stock Awards which become non-forfeitable, fully earned and
              payable only in the event of a Change in Control; and

      (e)     provide in advance or at the time of Change in Control for cash
              to be paid in settlement of any Option, Stock Bonus Award,
              Performance Unit Award or Restricted Stock Award in the event of
              a Change in Control, either at the election of the

                                      -14-

<PAGE>

              Participant or at the election of the Committee.

9.    Adjustment Provisions.

      In the event that any recapitalization, or reclassification, split-up or
      consolidation of shares of Common Stock shall be effected, or the
      outstanding shares of Common Stock shall be, in connection with a merger
      or consolidation of the Company or a sale by the Company of all or a part
      of its assets, exchanged for a different number or class of shares of
      stock or other securities or property of the Company or any other entity
      or person, or a record date for determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in Common
      Stock or other property (other than normal cash dividends) shall occur,
      (a) the number and class of shares or other securities or property that
      may be issued or transferred pursuant to Stock Incentives thereafter
      granted or that may be optioned or awarded under the Plan to any
      Participant, (b) the number and class of shares or other securities or
      property that may be issued or transferred under outstanding Stock
      Incentives, (c) the purchase price to be paid per share under outstanding
      and future Stock Incentives, and (d) the price to be paid per share by the
      Company or a Subsidiary for shares or other securities or property issued
      or transferred pursuant to Stock Incentives which are subject to a right
      of the Company or a Subsidiary to reacquire such shares or other
      securities or property, shall in each case be equitably adjusted; provided
      that with respect to Incentive Stock Options any such adjustments shall
      comply with Sections 422 and 424 of the Code.

10.   Effective Date and Duration of Plan.

      The Plan shall be effective when it is first approved by the Board of
      Directors, provided that the shareholders of the Company thereafter
      approve it within one year of that date. If the Plan is not so approved by
      shareholders, the Plan (and any Stock Incentive granted thereunder) shall
      be null, void and of no force or effect. If so approved, the Plan shall
      remain in effect, and Stock Incentives may be granted, until Stock
      Incentives have been granted with respect to all shares authorized to be
      issued or transferred hereunder or until the Plan is sooner terminated by
      the Board of Directors, and shall continue in effect thereafter with
      respect to any Stock Incentives outstanding at that time. In no event
      shall an Incentive Stock Option be granted under the Plan more than ten
      (10) years from the date the Plan is first adopted by the Board, or the
      date the Plan is approved by the shareholders of the Company, whichever is
      earlier.

11.   Administration.

      (a)     The Plan shall be administered by a committee of the Board
              consisting of two or more directors appointed from time to time
              by the Board. No person shall be appointed to or shall serve as a
              member of such committee unless at the time of such appointment
              and service he or she shall be a "Non-Employee Director," as
              defined in SEC Rule 16b-3. Unless the Board determines otherwise,
              the Committee shall be comprised solely of "outside directors"
              within the meaning of Section 162(m)(4)(C)(i) of the Code.

                                      -15-

<PAGE>

      (b)     The Committee may establish such rules and regulations, not
              inconsistent with the provisions of the Plan, as it may deem
              necessary for the proper administration of the Plan, and may
              amend or revoke any rule or regulation so established. The
              Committee shall, subject to the provisions of the Plan, have full
              power to interpret, administer and construe the Plan and any
              instruments issued under the Plan and full authority to make all
              determinations and decisions thereunder including without
              limitation the authority to (i) select the Participants in the
              Plan, (ii) determine when Stock Incentives shall be granted,
              (iii) determine the number of shares to be made subject to each
              Stock Incentive, (iv) determine the type of Stock Incentive to
              grant, and (v) determine the terms and conditions of each Stock
              Incentive, including the exercise price, in the case of an
              Option, and (vi) approve any transaction involving a Stock
              Incentive for a Section 16 Person (other than a "Discretionary
              Transaction" as defined in SEC Rule 16b-3) so as to exempt such
              transaction under SEC Rule 16b-3; provided, that any transaction
              under the Plan involving a Section 16 Person also may be approved
              by the Board of Directors, or may be approved or ratified by the
              stockholders of the Company, in the manner that exempts such
              transaction under SEC Rule 16b-3. The interpretation by the
              Committee of the terms and provisions of the Plan and any
              instrument issued thereunder, and its administration thereof, and
              all action taken by the Committee, shall be final, binding, and
              conclusive on the Company, its stockholders, Subsidiaries, all
              Participants and employees, and upon their respective
              Beneficiaries, successors and assigns, and upon all other persons
              claiming under or through any of them.

      (c)     Members of the Board of Directors and members of the Committee
              acting under this 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.

12.   General Provisions.

      (a)     Any provision of the Plan to the contrary notwithstanding, any
              Stock Incentive issued under the Plan, including without
              limitation any Option, shall not be transferable by the
              Participant other than by will or the laws of descent and
              distribution or to a Beneficiary designated by the Participant,
              unless the instrument evidencing the Stock Incentive expressly so
              provides (or is amended to so provide) and is approved by the
              Committee; and any purported transfer of an Incentive Stock
              Option to a Beneficiary, shall be effective only if such transfer
              is, in the opinion of the General Counsel, permissible under and
              consistent with SEC Rule 16b-3 or Section 422 of the Code, as
              the case may be. Notwithstanding the foregoing, a Participant may
              transfer any Stock Incentive granted under this Plan, other than
              an Incentive Stock Option, to members of his or her immediate
              family (defined as his or her children, grandchildren and spouse)
              or to one or more trusts for the benefit of such immediate family
              members or partnerships in which such immediate family members
              are the only partners if (and only if) the instrument evidencing
              such Stock Incentive expressly so provides (or is

                                      -16-

<PAGE>

              amended to so provide) and is approved by the Committee, and the
              Participant does not receive any consideration for the transfer;
              provided that any such transferred Stock Incentive shall continue
              to be subject to the same terms and conditions that were
              applicable to such Stock Incentive immediately prior to its
              transfer (except that such transferred Stock Incentive shall not
              be further transferable by the transferee inter vivos, except for
              transfer back to the original Participant holder of the Stock
              Incentive) and provided, further, that the foregoing provisions of
              this sentence shall apply to Section 16 Persons only if the
              General Counsel determines that doing so would not jeopardize any
              exemption from Section 16 of the Exchange Act (including without
              limitation SEC Rule 16b-3) for which the Company intends Section
              16 Persons to qualify.

      (b)     Nothing in this Plan or in any instrument executed pursuant
              hereto shall confer upon any person any right to continue in the
              employment of the Company or a Subsidiary, or shall affect the
              right of the Company or a Subsidiary to terminate the employment
              of any person at any time with or without cause.

      (c)     No shares of Common Stock shall be issued or transferred pursuant
              to a Stock Incentive unless and until all legal requirements
              applicable to the issuance or transfer of such shares have, in
              the opinion of the General Counsel, been satisfied. Any such
              issuance or transfer shall be contingent upon the person
              acquiring the shares giving the Company any assurances the
              General Counsel may deem necessary or desirable to assure
              compliance with all applicable legal requirements.

      (d)     No person (individually or as a member of a group) and no
              Beneficiary or other person claiming under or through him, shall
              have any right, title or interest in or to any shares of Common
              Stock (i) issued or transferred to, or acquired by, a trust, (ii)
              allocated, or (iii) reserved for the purposes of this Plan, or
              subject to any Stock Incentive except as to such shares of Common
              Stock, if any, as shall have been issued or transferred to him.
              The Committee may (but need not) provide at any time or from time
              to time (including without limitation upon or in contemplation of
              a Change in Control) for a number of shares of Common Stock,
              equal to the number of such shares subject to Stock Incentives
              then outstanding, to be issued or transferred to, or acquired by,
              a trust (including but not limited to a grantor trust) for the
              purpose of satisfying the Company's obligations under such Stock
              Incentives, and, unless prohibited by applicable law, such shares
              held in trust shall be considered authorized and issued shares
              with full dividend and voting rights, notwithstanding that the
              Stock Incentives to which such shares relate shall not have been
              exercised or may not be exercisable or vested at that time.

      (e)     The Company and its Subsidiaries may make such provisions as they
              may deem appropriate for the withholding of any taxes which they
              determine they are required to withhold in connection with any
              Stock Incentive. Without limiting the foregoing, the Committee
              may, subject to such terms and conditions as it may impose,
              permit or require any withholding tax obligation arising in
              connection with the grant, exercise,

                                      -17-

<PAGE>

              vesting, distribution or payment of any Stock Incentive to be
              satisfied in whole or in part, with or without the consent of the
              Participant, by having the Company withhold all or any part of
              the shares of Common Stock that vest or would otherwise be
              distributed at such time. Any shares so withheld shall be valued
              at their Fair Market Value on the date of such withholding.

      (f)     Nothing in this Plan is intended to be a substitute for, or shall
              preclude or limit the establishment or continuation of, any other
              plan, practice or arrangement for the payment of compensation or
              fringe benefits to directors, officers or employees generally, or
              to any class or group of such persons, which the Company or any
              Subsidiary now has or may hereafter lawfully put into effect,
              including, without limitation, any incentive compensation,
              retirement, pension, group insurance, stock purchase, stock bonus
              or stock option plan.

      (g)     Any provision of the Plan to the contrary notwithstanding, except
              to the extent that the Committee determines otherwise, (i)
              transactions by and with respect to Section 16 Persons under the
              Plan are intended to qualify for any applicable exemptions
              provided by SEC Rule 16b-3, and (ii) transactions with respect to
              persons whose remuneration would not be deductible by the Company
              but for compliance with the provisions of Code Section
              162(m)(4)(C) are intended to comply with the provisions of Code
              Section 162(m)(4)(C). The Plan is also intended to give the
              Committee the authority to award Stock Incentives that qualify as
              performance-based compensation under Code Section 162(m)(4)(C)
              as well as Stock Incentives that do not so qualify. Every
              provision of the Plan shall be administered, interpreted and
              constructed to carry out the foregoing intentions and any
              provision that cannot be so administered, interpreted and
              construed shall to that extent be disregarded.

      (h)     By accepting any benefits under the Plan, each Participant, and
              each person claiming under or through him, shall be conclusively
              deemed to have indicated his or her acceptance and ratification
              of, and consent to, all provisions of the Plan and any action or
              decision under the Plan by the Company, its agents and employees,
              and the Board of Directors and the Committee.

      (i)     The validity, construction, interpretation and administration of
              the Plan and of any determinations or decisions made thereunder,
              and the rights of all persons having or claiming to have any
              interest therein or thereunder, shall be governed by, and
              determined exclusively in accordance with, the laws of the State
              of Delaware, but without giving effect to the principles of
              conflicts of laws thereof. Without limiting the generality of the
              foregoing, the period within which any action arising under or in
              connection with the Plan must be commenced, shall be governed by
              the laws of the State of Delaware, without giving effect to the
              principles of conflicts of laws thereof, irrespective of the
              place where the act or omission complained of took place and of
              the residence of any party to such action and irrespective of the
              place where the action may be brought.

                                      -18-

<PAGE>

      (j)     The use of the masculine gender shall also include within its
              meaning the feminine. The use of the singular shall include
              within its meaning the plural and vice versa.

13.   Amendment and Termination.

      The Plan may be amended by the Board of Directors, without shareholder
      approval, at any time and in any respect, unless shareholder approval of
      the amendment in question is required under Oklahoma law, the Code
      (including without limitation Code Section 422 and Proposed Treasury
      Regulation Section 1.422A9(b)(iv) thereunder), any applicable exemption
      from Section 16 of the Exchange Act (including without limitation SEC
      Rule 16b-3) for which the Company intends Section 16 Persons to qualify,
      any national securities exchange or system on which the Stock is then
      listed or reported, by any regulatory body having jurisdiction with
      respect to the Plan, or under any other applicable laws, rules or
      regulations. The Plan may also be terminated at any time by the Board of
      Directors. No amendment or termination of this Plan shall adversely
      affect any Stock Incentive granted prior to the date of such amendment or
      termination without written consent of the Participant.

                                      -19-

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