Document:

Exhibit

Exhibit 10.15

ONE GAS, INC. 
PERFORMANCE UNIT AWARD AGREEMENT

This Performance Unit Award Agreement (this “Agreement”) is made and entered into as of February 19, 2018 (the “Grant Date”) by and between ONE Gas, Inc., an Oklahoma corporation (the “Company”) and [EMPLOYEE NAME] (the “Participant”).

WHEREAS, the Company has adopted the ONE Gas, Inc. Equity Compensation Plan (the “Plan”) pursuant to which Performance Unit Awards may be granted; and

WHEREAS, the Executive Compensation Committee of the Board of Directors (the “Committee”) has determined that it is in the best interests of the Company and its shareholders to grant the Performance Unit Award provided for herein.

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

1.Grant of Performance Units.

1.1The Company hereby grants to the Participant an award consisting of [NUMBER] Performance Units (“Performance Units” or the “Award”) on the terms and conditions set forth in this Agreement, the Notice of Performance Unit Award and Agreement dated February 19, 2018, a copy of which is attached hereto and incorporated herein by reference, and the Plan.   The Performance Units are contingently awarded and will be earned if and only to the extent that the performance goal described on Exhibit A (the “Performance Goal”) is met and vested and distributable only if other conditions in this Agreement are met.  Each Performance Unit represents the right to receive one share of the Company’s common stock (“Share”) or, at the Company’s option, an amount of cash as set forth in Section 6.2, in either case, at the times and subject to the conditions set forth herein.  The number of Performance Units set forth above is equal to a target number of Shares that the Participant will earn for 100% achievement of the Performance Goal (the “Target Award”).  Capitalized terms that are used but not defined herein have the meanings set forth in the Plan.

1.2The Performance Units shall be credited to a separate account maintained for the Participant on the books and records of the Company (the “Account”).  All amounts credited to the Account shall continue for all purposes to be part of the general assets of the Company.

2.Consideration. The Award is granted in consideration of the Participant’s continued employment with the Company. 

3.Vesting.

3.1General.  Except as provided in this Section 3, subject to Participant’s continuous employment with the Company during the period beginning on the Grant Date and ending on February 13, 2021 (the “Performance Period”) and subject to the terms of this Agreement, the Participant shall vest at the end of the Performance Period in the number of Performance Units, if any, earned upon, and certified following, the attainment of the Performance Goal as of the end of the Performance Period.  Any Performance Units that do not vest as of the end of the Performance Period shall be forfeited.  Performance Units that vest pursuant to the terms of this Agreement, including Sections 3.2 and 3.3 below, are hereinafter referred to as “Vested Units” and the date upon which the Performance Units vest is hereinafter referred to as a “Vesting Date.”  Unless and until the Performance Units have vested, Participant will have no right to receive any Shares subject thereto.  Prior to the actual delivery of any Shares, the Award will represent an unsecured obligation of the Company, payable only from the Company’s general assets.    

3.2Termination of Employment.  If prior to the end of the Performance Period, the Participant ceases to be employed by the Company on account of the Participant’s Retirement, Total Disability or death, the Participant will vest in a pro-rata portion of the Performance Units as of the last day of the Performance Period if the Performance Goal and requirements of this Agreement are met as of such date.  The pro-rata portion of the Performance Units that vest will be determined by multiplying (x) the maximum number of Performance Units in which the Participant could vest, based on the actual level at which the Performance Goal is attained and certified for the Performance Period, as if the Participant remained in the employ of the Company through the end of the Performance Period, by (y) a fraction, which fraction shall be equal to the number of full months which have elapsed under the Performance Period at the time of such termination of employment by the number of full months in the Performance Period.  If the Participant’s employment with the Company terminates prior to the end of the Performance Period for any other reason, Participant shall immediately forfeit any and all Performance Units that have not vested or do not vest on or prior to the Participant’s termination date and neither the Company nor any Subsidiary shall have any further obligations to the Participant under this Agreement.   For purposes of this Agreement, employment with any Subsidiary of the Company shall be treated as employment with the Company.  Likewise, a termination of employment shall not be deemed to occur by reason of a transfer of employment between the Company and any Subsidiary.  For purposes of this Agreement:

		
	(a)
	“Retirement” means a voluntary termination of employment of the Participant with the Company by the Participant if at the time of such termination of employment the Participant has both completed five (5) years of service with the Company and attained age fifty (50).

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	(b)
	“Total Disability” means that the Participant is permanently and totally disabled and unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months, and has established such disability to the extent and in the manner and form as may be required by the Committee.  

3.3Change in Control.  If a Change in Control occurs prior to the end of the Performance Period and  the Participant is employed by the Company at the time of the Change in Control, but subsequently terminates prior to the end of the Performance Period based on an involuntary termination (without cause) or a voluntary termination with “good reason” within 24 months of the Change in Control date, then the Performance Period will end on the date of the termination due to the Change in Control and the Performance Units will be deemed vested at the Target Award level as of the date of the termination due to Change in Control (the “Change in Control Date”).  Good reason includes:
		
	•
	Demotion or material reduction of authority or responsibility;

		
	•
	Material reduction in base salary;

		
	•
	Material reduction in annual incentive or LTI targets;

		
	•
	Relocation of greater than 35 miles; or

		
	•
	Failure of the successor company to assume the change-in-control plan.

Notwithstanding the foregoing, the provisions set forth in the Plan applicable to a Change in Control shall apply to the Award, and in the event of a Change in Control, the Committee, in its sole discretion and to the extent permitted by Section 409A, may take such actions as it deems appropriate pursuant to the Plan.  For purposes of this Agreement, the term “Change in Control” shall have the same meaning as provided in the Plan.

3.4Certification.  Except in the event of a Change in Control, the Committee shall, within a reasonably practicable time following the end of the Performance Period, certify to the extent, if any, to which the Performance Goal has been achieved with respect to the Performance Period and the number of Performance Units, if any, earned upon attainment of the Performance Goal.  Such certification shall be final, conclusive and binding on the Participant, and on all other persons, to the maximum extent permitted by law.  

4.Transfer Restrictions.  

4.1Except as provided in Section 4.2, during the Performance Period and until such time as the Shares underlying the Vested Units have been issued, the Performance Units, related Shares or the rights relating thereto may not be sold, pledged, assigned, transferred or otherwise disposed of by the Participant in any manner other than by will or by laws of descent and 

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distribution.   Except as provided in Section 4.2, any attempt to sell, pledge, assign, transfer or otherwise dispose of the Performance Units, related Shares or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Performance Units, related Shares or the rights relating thereto will be forfeited by the Participant and all of the Participant's rights to such units or related Shares shall immediately terminate without any payment or consideration by the Company.

4.2Notwithstanding the foregoing, the Participant may transfer any part or all of the Participant’s rights in the Performance Units to members of the Participant’s immediate family, 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 the Participant does not receive any consideration for the transfer.  In the event of any such transfer, Performance Units shall continue to be subject to the same terms and conditions otherwise applicable hereunder and under the Plan immediately prior to transfer, except that such rights shall not be further transferable by the transferee inter vivos, except for transfer back to the Participant.  For any such transfer to be effective, the Participant must provide prior written notice thereof to the Committee and the Participant shall furnish to the Committee such information as it may request with respect to the transferee and the terms and conditions of any such transfer.  For purposes of this Agreement, “immediate family” shall mean the Participant’s spouse, children and grandchildren.

5.Dividend Equivalents.  During the Performance Period, the Participant's Account shall be credited with an amount equal to all ordinary cash dividends (“Dividend Equivalents”) that would have been paid to the Participant if one Share had been issued on the Grant Date for each Performance Unit granted to the Participant as set forth in this Agreement.   The Dividend Equivalents credited to the Participant’s Account will be deemed to be reinvested in additional Performance Units (or fractional units) and will be subject to the same terms and conditions as the Performance Units to which they are attributable and shall vest or be forfeited (if applicable) and settled at the same time as the Performance Units to which they are attributable. Such additional Performance Units shall also be credited with additional Dividend Equivalents as any further dividends are declared.  

6.Time and Form of Payment with Respect to Vested Units.

6.1Unless an election is made pursuant to Section 7 below and subject to Section 10 and Section 23.2 and subject to certification by the Committee that the Performance Goal has been achieved and other vesting conditions have been satisfied, the Participant will receive a distribution with respect to the Vested Units within 75 days following the earlier of (i) the last day of the Performance Period (the “Distribution Date”) or (ii) the date of termination due to a Change in Control as described in 3.3.  The Vested Units will be settled and distributed in Shares (either in book-entry form or otherwise) or, at the Company’s option, paid in an amount of cash 

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as set forth in Section 6.2.   All distributions in Shares shall be in the form of whole Shares, and any fractional Share shall be distributed in cash in an amount equal to the value of such fractional Share determined based on the Fair Market Value of a Share on the Vesting Date.  

6.2If the Company elects to settle the Participant’s Vested Units in cash, the amount of cash payable with respect to each Vested Unit shall be equal to the Fair Market Value of a Share on the Vesting Date.   

6.3To the extent that the Participant does not vest in any Performance Units on or before the end of the Performance Period, all interest in such Performance Units and any additional Performance Units attributable to Dividend Equivalents shall be forfeited.  The Participant has no right or interest in any Performance Units that are forfeited.

7.Deferral Election for Officers.  

7.1If the Participant is an officer of the Company, the Participant may irrevocably elect to defer the Distribution Date of Performance Units, Shares and cash that the Participant becomes entitled to receive under this Agreement (the “Deferred Amounts”) to a later date, by filing with the Committee, on or before the deferral election date (the “Election Deadline”) described in Section 7.2 below, a signed written irrevocable election (the “Election”) which shall be in the form substantially the same as attached hereto as Exhibit D, or as otherwise approved by the Committee. 

7.2Any such Election shall be filed with the Committee on or before the Election Deadline, which shall be August 13, 2020, the date that is six (6) months before the end of the Performance Period, and shall become effective and irrevocable on such date provided that the Participant performs services for the Company continuously from the later of the beginning of the Performance Period or the date the Performance Goal was established through the Election Deadline.  Notwithstanding the foregoing, in no event shall the Participant’s Election become effective if any portion of the Deferred Amounts has become readily ascertainable (within the meaning of Section 409A) and is substantially certain to be paid the Participant as of the Election Deadline.  To defer the Distribution Date, the Participant must elect to defer one-hundred percent (100%) of the Deferred Amounts.  Subject to Section 23.2, the Deferred Amounts shall be distributed to Participant at the time and in the form set forth in the Election (the “Deferred Date”).  Notwithstanding a Participant’s Election pursuant to this Section 7, if a Change in Ownership or Control (within the meaning of Section 409A) occurs prior to the Deferred Date, the Deferred Amounts will be distributed to the Participant on the date of the Change in Ownership or Control.  

7.3This Section 7 shall be applicable solely to the Award and shall not apply to any other compensation payable to the Participant under the Plan or otherwise.  The right to make a deferral election under this Section 7 is expressly limited to officers of the Company or any 

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subset thereof as determined by the Committee from time to time.  This Agreement shall not permit a subsequent election to delay or modify the form of payment unless authorized and agreed upon in writing by the Company and Participant and such subsequent election complies with Section 409A.

8.Conditions to Issuance or Transfer of Shares.  The issuance and transfer of Shares shall be subject to compliance by the Company and the Participant with all applicable laws, rules and regulations (“Applicable Laws”) and also to such approvals by governmental agencies as may be deemed appropriate to comply with relevant securities laws and regulations.  No Shares shall be issued or transferred unless and until any then applicable requirements of Applicable Laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.   

9.Tax Withholding.  Participant shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Participant pursuant to the Plan, the amount of any required federal, state and local taxes, domestic or foreign, including payroll taxes, in respect of the Award and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes.  The Participant may request any tax withholding allowed by Applicable Laws.  The Company shall have no obligation to issue any Shares to any Participant unless and until the Participant has made arrangements, satisfactory to the Company in its sole discretion, to satisfy the Participant’s tax liability resulting from the vesting or settlement of the Vested Units.  The amount of such withholding shall be determined by the Company, unless the Participant requests otherwise.  The Committee, in its sole discretion, may permit or require the Participant to satisfy any such tax withholding obligation by any of, or a combination of, the following means: 

9.1tendering a cash payment or check payable to the Company.

9.2authorizing the Company to withhold an amount from any cash amounts otherwise due or to become due from the Company to the Participant.

9.3authorizing the Company to withhold Shares from the Shares otherwise issuable to the Participant as a result of the vesting of the Performance Units.

9.4delivering to the Company previously owned and unencumbered Shares having a then current Fair Market Value to satisfy the withholding.  

10.Rights as Shareholder. Except as otherwise provided in the Agreement, the Participant shall not have any of the rights or privileges of a shareholder with respect to the Shares underlying the Performance Units unless and until the Performance Units vest and certificates representing such Shares (which may be in book-entry form) have been issued and recorded on the Company’s records, and delivered to the Participant or to an escrow account for the 

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Participant’s benefit.  After such issuance, recordation and delivery, Participant will have the rights of a shareholder of the Company with respect to such Shares, including without limitation, voting rights and the right to receipt of dividends and distributions on such Shares.    

11.No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Participant to serve as an employee or other service provider of the Company.  Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the services of the Participant at any time, with or without Cause. 

12.Adjustments.  In the event of a change in capitalization described in Section 15 of the Plan prior to the end of the Performance Period, other than a dividend described in Section 5 above, the Performance Units shall be equitably adjusted or terminated in any manner contemplated by the Plan to reflect the effect of such event or change in the Company’s capital structure in such a way as to preserve the value of the Award.  

13.Required Participant Repayment/Reduction Provision.  Notwithstanding anything in the Plan or this Agreement to the contrary, all or a portion of the Award made to the Participant under this Agreement is subject to being called for repayment to the Company or reduced in any situation required by law or as specified by Company policy in effect at the time of the request for repayment or reduction is made.  In any event, even if not required by law or Company policy, in any situation where the Board or a committee thereof determines that fraud, negligence, or intentional misconduct by the Participant was a contributing factor to the Company having to restate all or a portion of its financial statement(s). The Committee may determine whether the Company shall effect any such repayment or reduction: (i) by seeking repayment from the Participant, (ii) by reducing (subject to Applicable Law and the Plan’s terms and conditions or any other applicable plan, program, or arrangement) the amount that would otherwise be awarded or payable to the Participant under the Award, the Plan or any other compensatory plan, program, or arrangement maintained by the Company, (iii) by withholding payment of future increases in compensation (including the payment of any discretionary bonus amount) or grants of compensatory awards that would otherwise have been made in accordance with the Company’s otherwise applicable compensation practices, or (iv) by any combination of the foregoing. The determination regarding the Participant’s conduct, and repayment or reduction under this provision shall be within the Committee’s sole discretion and shall be final and binding on the Participant and the Company. The Participant, in consideration of the grant of the Award, and by the Participant's execution of this Agreement, acknowledges the Participant's understanding and agreement to this provision, and hereby agrees to make and allow an immediate and complete repayment or reduction in accordance with this provision in the event of a call for repayment or other action by the Company or Committee to effect its terms with respect to the Participant, the Award and/or any other compensation described herein.

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14.Company Policies.  The Participant agrees that the Award will be subject to any applicable insider trading policies, retention policies and other policies that may be implemented by the Board, from time to time.

15.Participant Undertaking.  The Participant agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Participant pursuant to the terms of this Agreement.  It is intended by the Company that the Plan and Shares covered by the Award are to be registered under the Securities Act of 1933, as amended, prior to the grant date; provided that in the event such registration is for any reason not effective for such Shares, the Participant agrees that all Shares acquired pursuant to the grant will be acquired for investment and will not be available for sale or tender to any third party.

16.Beneficiary.  The Participant may designate a Beneficiary to receive any rights of the Participant which may become vested in the event of the Participant’s death under procedures and in the form established by the Committee; and in the absence of such designation of a Beneficiary, any such rights shall be deemed to be transferred to the Participant’s estate.  

17.Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Senior Vice President-Administration and Chief Information Officer or his successor who is in charge of Human Resources of the Company at the Company's principal corporate offices. Any notice required to be delivered to the Participant under this Agreement shall be in writing and addressed to the Participant at the Participant's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.  Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

18.Incorporation of the Plan; Conflicts. The Performance Units and the Shares issued to Participant hereunder are subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between (1) the Plan and this Agreement, the Plan will control, or (2) the resolutions and records of the Board or Committee and this Agreement, the resolutions and records of the Board or Committee will control.  

19.Successors and Assigns. The Company may assign any of its rights under this Agreement, and this Agreement will be binding upon and inure to the benefit of the Company’s successors and assigns. Subject to the restrictions on transfer set forth herein and the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.  

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20.No Impact on Other Benefits. The Company does not intend for the value of the Award or any Vested Units to be included in the Participant’s normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit; provided, however, that if there is any inconsistency between this Agreement and the terms of another benefit plan, the benefit plan document will control.  

21.Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Board at any time, in its discretion. The grant of the Performance Units in this Agreement does not create any contractual right or other right to receive any Performance Units or other awards in the future. Future awards, if any, will be at the Committee’s sole discretion. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant's employment with the Company.

22.Amendment. In accordance with the Plan, the Committee may amend or otherwise modify, suspend, discontinue or terminate this Agreement at any time, prospectively or retroactively.
  
23.Section 409A. 

23.1This Award and Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A.  Notwithstanding any other provision of the Agreement, any distributions or payments due hereunder may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any distributions or payments due hereunder upon a termination of employment shall only be made upon a "separation from service" as defined in Section 409A.  The right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.  Except as provided in Section 7, in no event may the Participant, directly or indirectly, designate the calendar year of settlement, distribution or payment.   

23.2If an Award is subject to Section 409A and Participant becomes entitled to settlement of the Award on account of a separation from service and is a “specified employee” within the meaning of Section 409A on the date of the separation from service, then to the extent necessary to prevent any accelerated or additional tax under Section 409A, such settlement will be delayed until the earlier of: (a) the date that is six months following the Participant's separation from service and (b) the Participant’s death (the “Delayed Payment Date”) and the accumulated amounts shall be distributed or paid in a lump sum payment on the Delayed Payment Date. 

23.3The Company does not represent that the Award or this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, 

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penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A. 

23.4To the extent that any provision of the Agreement would cause a conflict with the requirements of Section 409A, or would cause the administration of the Agreement to fail to satisfy Section 409A, such provision shall be deemed null and void to the extent permitted by Applicable Law.

24.Entire Agreement.  The Plan and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof. 

25.Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

26.Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Oklahoma without regard to the conflict of laws provisions thereof.    

27.Counterparts. This Agreement may be executed in one or more counterparts, including by way of electronic signature, subject to Applicable Law, each of which shall be deemed an original and all of which together will constitute one instrument.

28.Administration of Award; Acceptance. As a condition of receiving this Award, the Participant agrees that the Committee shall have full and final authority to construe and interpret the Plan and this Agreement, and to make all other decisions and determinations as may be required under the Plan or this Agreement as they may deem necessary or advisable for administration of the Plan or this Agreement, and that all such interpretations, decisions and determinations shall be final and binding on the Participant, the Company and all other interested persons.  Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for review.  The resolution of such dispute by the Committee shall be final and binding on the Participant and the Company.  Day-to-day authority and responsibility has been delegated to the Company’s ONE Gas, Inc. Benefits Committee and its authorized representatives, and all actions taken thereby shall be entitled to the same deference as if taken by the Committee itself.

The Participant hereby acknowledges receipt of this Agreement, the Notice of Performance Unit Award and Agreement dated February 19, 2018, and a copy of the Plan.  Participant agrees to be bound by all of the provisions set forth in this Agreement and the Plan and acknowledges that there may be adverse tax consequences upon the vesting or 

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settlement of the Performance Units or disposition of the underlying Shares and that Participant has been advised to consult a tax advisor prior to such vesting, settlement or disposition.  Participant and accepts the Award under the terms and conditions stated in this Agreement, subject to all terms and provisions of the Plan, by electronic acceptance of the grant. 

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Exhibit A
Performance Unit Performance Goal
2018-2021 Performance Period

Subject to the terms of the Agreement, Participant shall vest in a percentage of the Target Award (including any Dividend Equivalents) at the end of the Performance Period based on the Company’s ranking for Total Stockholder Return against the ONE Gas Peer Group listed in Exhibit C, all as determined by the Committee in its sole discretion.  Exhibit B is an illustration of Hypothetical Performance.

The number of PSUs awarded at the time of vesting is based on our TSR positioning as a percentage basis at the end of the three-year performance period as set forth in the following chart.  If the actual TSR percentile rank falls between the stated percentile ranks set forth in the chart, the payout percentage is interpolated between the percentile rank above and below the actual percentile rank, except that no Performance Units are earned if ONE Gas’s TSR ranking at the end of the Performance Period is below the 25th percentile.

	
		
	Percentile Rank
	Payout (as a % of Target)

	 
	 

	90th percentile and above
	200%

	75th percentile
	150%

	50th percentile
	100%

	25th percentile
	50%

	Below the 25th percentile
	0%

        

Exhibit B
Illustration of Hypothetical 2018-2021 Performance Period
Performance Unit Award Calculation

Illustration assumes 500 Performance Units Granted in February 2018

	
	
	Total Stockholder Return (TSR) vs. ONE Gas Peer Group

	

Hypothetical 2018-2021 ONE Gas TSR Ranking = 40th percentile

A 40th percentile TSR ranking earns 80% of Performance Units granted (i.e., 500 units) 
as interpolated between 50% and 100% from Table A (see chart below)

400 Performance Units earned*

	
	
	Total Performance Units Earned

	

400 Performance Units

400* Performance Units earned out of 500 units granted = 80% “earn-out” 
[80% of 500 shares paid and distributed in the form of Shares]

*In addition, applicable Dividend Equivalents will be added with an 80% “earn-out”.

Exhibit C

2018-2021 ONE GAS TSR Peer Group

	
						
	Company Name
	Sym
	 
	 
	 
	 

	Alliant Energy Corporation
	LNT
	 
	 
	 
	 

	Atmos Energy Corporation
	ATO
	 
	 
	 
	 

	Avista Corporation
	AVA
	 
	 
	 
	 

	CMS Energy Corporation
	CMS
	 
	 
	 
	 

	Spire, Inc. (formerly Laclede Group, Inc.)
	SR
	 
	 
	 
	 

	New Jersey Resources Corporation
	NJR
	 
	 
	 
	 

	NiSource
	NI
	 
	 
	 
	 

	Northwest Natural Gas Company
	NWN
	 
	 
	 
	 

	NorthWestern Corporation
	NWE
	 
	 
	 
	 

	South Jersey Industries, Inc.
	SJI
	 
	 
	 
	 

	Southwest Gas Corporation
	SWX
	 
	 
	 
	 

	Vectren Corp.
	VVC
	 
	 
	 
	 

	WGL Holdings, Inc.
	WGL
	 
	 
	 
	 

In the event that any of the Peer Group companies are not available for performance comparison either by going out of business, being sold, being merged into another company or any other reason, then that company will be dropped from the list and the performance comparison will be made with the remaining Peer Group companies.

Exhibit D

ONE GAS, Inc. Equity Compensation Plan
Performance Unit Deferral Election

INSTRUCTIONS:  This Deferral Election must be completed and returned to the plan administrator at ONE Gas, Inc. no later than August 14, 2019 (the “Election Deadline”).  This election becomes irrevocable as of the Election Deadline; provided, however, this election shall only become effective to the extent permitted by Section 409A.    

This Election is made by the undersigned Participant pursuant to the terms of the ONE GAS, Inc. Equity Compensation Plan (the “Plan”) and that certain Performance Unit Award Agreement issued to me under the Plan on the 19th day of February, 2018 (the “Agreement”).  Capitalized terms that are used but not defined herein have the meanings set forth in the Agreement.

1.    Irrevocable Elections as to the Time and Form of Payment

I hereby irrevocably elect to defer the payment and my receipt of all Performance Units, Shares and cash that I may become entitled to receive pursuant to the Agreement (the “Deferred Amounts”) from the regularly scheduled time of payment set forth in Section 6 of the Agreement until a later date as follows:

A.     Specified Time of Payment Election (Put initials by your choice)

___    I elect to have the Deferred Amounts deferred and paid to me on the later of (i) the date of my separation from service as an employee of the Company, or (ii) [________, 20__] in the form specified below.

___    I elect to have the Deferred Amounts deferred and paid to me on the date of my separation from service as an employee of the Company in the form specified below. 

B.     Form of Payment Election (Put initials by your choice) 

___      I elect to receive the Deferred Amounts in a single lump sum payment.

___    I elect to receive the Deferred Amounts in ______(specify 2, 3, 4 or 5) equal annual installments commencing on the Specified Time of Payment that I have elected in Part A above, until fully paid. The number of Shares or cash received in each installment will equal the number and amount, respectively, that have not been paid as of the date immediately preceding the installment payment date, divided by the number of installments remaining to be paid as of the date immediately preceding the installment payment date.  The resulting number shall 

be rounded down to the next whole number, except that the final installment shall be rounded up to the next whole number.

C.     Election in the Event of Death (Put initials by your choice)

___    In the event of my death prior to, or after, the Specified Time of Payment that I have elected above, I elect to have my named beneficiaries (or my estate, if I do not have any designated beneficiaries) receive payment and transfer of the Deferred Amounts in a single lump sum within 60 days following my death.

___    In the event of my death prior to, or after, the Specified Time of Payment that I have elected above, I elect to have my named beneficiaries (or my estate, if I do not have any designated beneficiaries) receive payment and transfer of the Deferred Amounts in ______ (specify 2, 3, 4 or 5) equal annual installments commencing within 60 days following my death, until fully paid. The number of Shares or cash received in each installment will equal the number and amount, respectively, that have not been paid as of the date immediately preceding the installment payment date, divided by the number of installments remaining to be paid as of the same date.  The resulting number shall be rounded down to the next whole number, except that the final installment shall be rounded up to the next whole number.

D.    Change in Ownership or Control (Mandatory Distribution)

Notwithstanding the above elections, if a Change in Ownership or Control (within the meaning of Section 409A) occurs prior to the full distribution of the Deferred Amounts, all Deferred Amounts that have not been paid and transferred will be paid and transferred on the date of the Change in Ownership or Control.  In the event Shares no longer exist at the time of payment and transfer, each of the deferred Performance Units shall be converted in a manner that is consistent with the manner in which Shares held by shareholders of the Company were treated with respect to the Change in Ownership or Control.

2.    Additional Terms

		
	A.
	Unforeseeable Emergency.  You may request an accelerated payment of all or a portion of the Deferred Amounts if you experience an Unforeseeable Emergency (as defined in the Plan), subject to the requirements set forth in Plan Section 13.5.   If approved, payment shall be made in a single lump sum within 90 days after the approval date.  

		
	B.
	Specified Employee.  If you become entitled to a distribution on account of a separation from service and you are “specified employee” (within the meaning of Section 409A) on the date of your separation from service, payment of all or a portion of your Deferred Amounts may be delayed in accordance with Plan Section 13.4.

		
	C.
	Re-deferrals and Changing the Form of Payment. You may, at the Committee’s discretion, be permitted to make a re-deferral election with respect to the amounts deferred hereunder in accordance with Plan Section 13.3.

		
	D.
	Withholding.  You will be required to satisfy any tax withholding obligations relating to the Deferred Amounts, and delivery of the Shares or cash will be conditional upon your satisfaction of such obligations. 

 
3.    Acknowledgment

By executing this Election, I acknowledge that:

		
	A.
	I have read the terms of the Plan, the Agreement and this Election and agree to all the terms and conditions.  

		
	B.
	I understand that any amounts that I defer hereunder are unfunded and unsecured and subject to the claims of the Company’s creditors in the event of the Company’s insolvency.

		
	C.
	I understand that the Plan, the Agreement and this Election are intended to comply with Section 409A and that they will be interpreted accordingly.  However, I understand that the Company will have no liability with respect to any failure to comply with Section 409A. 

		
	D.
	I understand that this Election will become irrevocable as of the Election Deadline.  

		
	E.
	I have consulted with my own tax advisor regarding the tax consequences of participating in the Plan and making this election.

I hereby make this election as of this ___ day of ____, 20__.  

_____________________________________
Participant Signature

_____________________________________
Print Participant’s Name

_____________________________________
Employee ID Number

Copy received this ____ day of ________, 20__,

______________________________________
For the CommitteeExhibit

10.28

ONE GAS, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN
Effective January 1, 2018
ARTICLE I.
INTRODUCTION

1.1Amendment and Restatement
The Plan, established effective January 1, 2014, is amended and restated effective January 1, 2018.  This restated plan shall apply only to amounts deferred on or after January 1, 2018.  All amounts deferred or credited prior to January 1, 2018 shall be governed by the terms of the Plan adopted effective January 1, 2014.
1.2Purpose
This Plan and related agreements between the Employer and certain management or highly compensated employees is an unfunded, nonqualified deferred compensation plan and arrangement.
The purpose of the Plan is to provide a select group of management and highly compensated employees of the Employer with the option to defer the receipt of portions of their compensation payable for services rendered to the Employer, and provide nonqualified deferred compensation benefits which are not available to such employees by reason of limitations on employer and employee contributions to qualified pension or profit-sharing plans under the federal tax laws.
It is intended that the Plan will assist in attracting and retaining qualified individuals to serve as officers and managers of the Employer; and the Plan is intended to constitute a plan which is unfunded and maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees within the meaning of, and as described in Section 201(2) and related provisions of ERISA.
The Plan is intended to meet all requirements of Code section 409A for compensation deferred under the Plan to not be includible in gross income of the Participant until actually paid or distributed pursuant to the Plan.  Nothing herein shall be construed as a guarantee of any particular tax treatment to a Participant.
All provisions of the Plan shall be interpreted and administered to the extent possible in a manner consistent with the stated intentions.
1.3Effective Date
The Plan is amended and restated effective on January 1, 2018.
1.4Grandfathered Plan
This Plan is separate from the ONE Gas Pre-2005 NQDC Plan, which ONE Gas established to receive liabilities transferred from the ONEOK Pre-2005 DCP in connection with the Separation.
ARTICLE II. 
DEFINITIONS
2.1Definitions

When used in this Plan and initially capitalized, the following words and phrases shall have the meanings indicated:
401(k) Plan
“401(k) Plan” means the ONE Gas, Inc. 401(k) Plan.
Account
“Account” means an account established and maintained for a Participant pursuant to this Plan, to which there shall be credited with and include all amounts of Deferred Compensation that is deferred by and for the Participant under the Plan, which may be accounted for as one or more separate items, amounts or subaccounts for the compensation that is deferred and credited pursuant to the Plan, and investment return thereon, to as determined and prescribed by the Committee.
Base Salary
“Base Salary” means a Participant’s basic wage or salary paid by the Employer to the Participant without regard to any increases or decreases in such basic wage or salary as a result of (i) an Election to defer basic wage or salary under this Plan or (ii) an Election between benefits or cash provided under a plan of the Employer maintained pursuant to Sections 125 or 401(k) of the Code, and as limited in Exhibit B attached hereto.  The Base Salary does not include any Lump Sum Merit Award paid to a Participant, nor any Bonus, as defined below.
Beneficiary
“Beneficiary” means the person or persons designated or deemed to be designated by the Participant pursuant to Article VIII to receive benefits payable under the Plan in the event of the Participant’s death.
Board
“Board” means the Board of Directors of the Corporation.
Bonus
“Bonus” means the cash bonus paid or payable by the Employer to a Participant under an Incentive Plan without regard to any decreases as a result of (i) an Election to defer all or any portion of such Bonus under this Plan or (ii) an Election between benefits or cash provided under the 401(k) Plan.
Change in Ownership or Control
“Change in Ownership or Control” means a change in the ownership or effective control of ONE Gas or in the ownership of a substantial portion of ONE Gas’s assets within the meaning of Code Section 409A.
Code
“Code” means the Internal Revenue Code of 1986, and Treasury regulations thereunder, as amended from time to time.
Committee
“Committee” means the Executive Compensation Committee of the Board of Directors of the Corporation.

2

Compensation
“Compensation” means the Base Salary and Bonus payable with respect to an Eligible Employee for each calendar year.
Corporation
“Corporation” means ONE Gas, Inc., its successors and assigns, or any division or Subsidiary thereof.
Deferred Compensation
“Deferred Compensation” means the Base Salary and Bonus deferred by a Participant under the Plan, and the Matching Contributions, Profit Sharing Plan Excess Amounts, Retirement Plan Covered Compensation Excess Amounts and Supplemental Credit Amounts that are accrued, deferred and credited by the Corporation for a Participant under the Plan, that are made payable to a Participant in a later taxable year of the Participant pursuant to this Plan.
Determination Date
“Determination Date” means a date on which the amount of a Participant’s Account is determined and updated as provided in Article VI.  Each December 31 of a calendar year shall be the Determination Date.
Disabled
“Disabled” or “Disability” means that a Participant is unable to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident or health plan covering Employees of the Corporation.  A Participant will be deemed to be Disabled if such Participant is determined to be totally disabled by the Social Security Administration.
Early Separation from Service
“Early Separation from Service” means a Participant’s Separation from Service prior to attaining age fifty (50) and completing five (5) Years of Service with the Corporation that is not by reason of death or Disability.
Early Separation from Service Form of Payment
“Early Separation from Service Form of Payment” shall mean the form of payment and distribution of a Participant’s Plan Benefit in the event of his/her Early Separation from Service which shall be a single lump sum payment at his/her Early Separation from Service Specified Time of Distribution.
Early Separation from Service Specified Time of Distribution
“Early Separation from Service Specified Time of Distribution” means a time of distribution and payment of the Participant’s Plan Benefit which is the date of his/her Early Separation from Service.
Election

3

“Election” means, as the context requires, (i) the Participant’s election to defer Base Salary and Bonus earned with respect to services performed during a Plan Year, and/or (ii) the Participant’s distribution elections.
Eligible Employee
“Eligible Employee” means a highly compensated or management employee of the Corporation and any member of the ONE Gas Group who is designated by the Committee, by individual name, or group or description, in accordance with Section 3.1, as eligible to participate in the Plan.
Employee
“Employee” means an employee of the Corporation or a Subsidiary.
Employer
“Employer” means, with respect to a Participant, the Corporation or the Subsidiary which pays such Participant’s Compensation.
ERISA
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
Exchange Act
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
Fiscal Year
“Fiscal Year” means the fiscal year of the Corporation commencing January 1 and ending the following December 31.
Fixed Schedule
 “Fixed Schedule” means the distribution or payment of Deferred Compensation deferred under the Plan in a fixed schedule of distributions or payments that are determined and fixed at the time the deferral of such compensation is first elected by the Participant or Corporation under the Plan.
Incentive Plan
“Incentive Plan” means the Annual Officer Incentive Plan or Annual Employee Incentive Plan of the Corporation, as applicable to a Participant under the terms and provisions thereof.
Investment Return
“Investment Return” means the rate of investment return to be credited to a Participant’s Account pursuant to Section 6.2, which rate shall be determined in accordance with Section 6.3 and Exhibit “C” attached hereto; provided, that no Investment Return shall be credited with respect to the Retirement Plan Excess Amount.
Long-Term Deferral
“Long-Term Deferral” means a deferral Election that is not a Short-Term Deferral and under which distribution and payment of the Deferred Compensation and the Plan Benefit shall be distributed and paid at a Specified 

4

Time that shall be the Normal Specified Time of Distribution of the Participant.  If a Subsequent Election is made, the Plan Benefit deferred by a Long-Term Deferral in the Election shall then be distributed and paid at the Subsequent Election Specified Time of Distribution elected in the Subsequent Election.
Lump Sum Merit Award
“Lump Sum Merit Award” means a Lump Sum Merit Award granted and paid to a Participant pursuant to the merit compensation program of the Corporation and its Subsidiaries.
Matching Contribution
“Matching Contribution” means an amount equal to (a) minus (b) below:
(a)the Matching Contribution Percentage multiplied by the Participant’s Compensation; and
(b)the amount of the 401(k) Plan matching contributions made by the Corporation that are allocated to the Participant’s 401(k) Plan account for that Plan Year.
The Matching Contribution cannot exceed the Participant’s deferrals of Compensation under this Plan for the applicable Plan Year.
Matching Contribution Percentage
“Matching Contribution Percentage” means the matching contribution percentage in effect for a specific Plan Year under the 401(k) Plan.
Normal Specified Time of Distribution
“Normal Specified Time of Distribution” means a specified time that must be expressly designated as the Specified Time of Distribution of the compensation deferred by a Participant in and for each Long-Term Deferral Election, which Normal Specified Time of Distribution shall be the first date on which the Participant has (i) attained the age of fifty (50) years, (ii) completed five (5) Years of Service with the Corporation, and (iii) had a Separation from Service.
ONE Gas
“ONE Gas” shall mean ONE Gas, Inc., an Oklahoma corporation, or any division or subsidiary thereof.
ONE Gas Employee
“ONE Gas Employee” means an active employee or an employee on vacation or on approved leave of absence (including sick leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended, and leave under the Family Medical Leave Act, as amended), in either case, of any member of the ONE Gas Group on or after January 1, 2018, and shall include any beneficiary, dependent, or alternate payee of such employee, as the context requires.
ONE Gas Group
“ONE Gas Group” means ONE Gas and each subsidiary of ONE Gas as of January 1, 2018 and any ONE Gas subsidiary that is established or acquired after January 1, 2018.

5

ONE Gas Pre-2005 NQDC Plan
“One Gas Pre-2005 NQDC Plan” shall mean the separate ONE Gas, Inc. Pre-2005 Nonqualified Deferred Compensation Plan, which ONE Gas established to receive liabilities transferred from the ONEOK Pre-2005 NQDC Plan in connection with the Separation.
ONEOK

“ONEOK” means ONEOK, Inc., an Oklahoma corporation.  
ONEOK 2005 NQDC Plan

“ONEOK 2005 NQDC Plan” shall mean the ONEOK, Inc. 2005 Nonqualified Deferred Compensation Plan. 
ONEOK Pre-2005 NQDC Plan

“ONEOK Pre-2005 NQDC Plan” shall mean the ONEOK, Inc. Employee Nonqualified Deferred Compensation Plan, which was frozen to new deferrals effective December 31, 2004.   
Participant
“Participant” means any Eligible Employee who elects to participate by filing a Participation Agreement as provided in Section 3.2.
Participation Agreement
“Participation Agreement” means the agreement filed by a Participant, in the form prescribed by the Committee, pursuant to Section 3.2.
Person
“Person” means an individual, a trust, estate, partnership, limited liability company, association, corporation or other entity.
Performance-Based Compensation
“Performance-Based Compensation” means compensation, including Bonus (as hereinabove defined), that is conditioned upon or subject to meeting certain requirements similar to those under Code Section 162(m), as more particularly provided for in Treasury Regulations issued under Code Section 409A.
Plan
“Plan” means this ONE Gas, Inc. Nonqualified Deferred Compensation Plan, as amended from time to time.
Plan Benefit
“Plan Benefit” means the deferred benefit payable to a Participant or a Participant’s Beneficiary pursuant to Article VII and otherwise under the Plan.
Plan Year
“Plan Year” means a twelve-month period commencing January 1 and ending the following December 31.

6

Profit Sharing Plan
“Profit Sharing Plan” means the ONE Gas, Inc. Profit Sharing Plan.
Profit Sharing Plan Excess Amount
“Profit Sharing Plan Excess Amount” means an amount equal to the Participant’s Compensation for the Plan Year that is used for calculating Employer contributions to the Profit Sharing Plan multiplied by the applicable percentage for determining the Employer contributions under the Profit Sharing Plan for the Plan Year, minus the amount of Profit Sharing Plan Employer contributions that are allocated to the Participant’s Account for that Plan Year; it being intended that a Participant shall have credited with a Profit Sharing Plan Excess Amount that is equivalent to the amount of Employer contributions which could not be allocated to the Participant’s Profit Sharing Plan Account for the Plan Year by reason of all limitations on compensation and Employer contributions applicable to Profit Sharing Plan Employer contributions under the Code and Treasury regulations under the Code, including (i) the limitation on annual compensation of an Employee that may be taken into account under Code section 401(a)(17), (ii) the limitation on contributions and other additions under Code section 415(c), and (iii) the exclusion of the amount that a Participant has elected to defer out of his or her Base Salary or Bonus under this Plan from “compensation” as defined in the Profit Sharing Plan and/or used for calculation of Profit Sharing Plan contributions and allocations, which amount is to be credited to a Participant’s Account under Section 5.3 of the Plan.
Retirement Plan
“Retirement Plan” means the ONE Gas, Inc. Retirement Plan.
Retirement Plan Covered Compensation Excess Amount
“Retirement Plan Covered Compensation Excess Amount” means an amount for a Participant who is a participant in the Retirement Plan, and not a participant in the ONE Gas, Inc. Supplemental Executive Retirement Plan nor a participant in the Profit Sharing Plan, that is equal to the Participant’s Compensation for the Plan Year less the limitations on compensation and contributions by the Corporation under the Code and Treasury regulations under the Code, including the limitation on annual compensation of an Employee that may be taken into account under Code section 401(a)(17), multiplied by the applicable percentage for determining the Employer contributions under the Profit Sharing Plan for the Plan Year, which amount is to be credited to be allocated to, or recorded in and accounted for in the Account of a Participant under Section 5.4 of the Plan.
Retirement Plan Excess Amount
“Retirement Plan Excess Amount” means the additional amount payable to a Participant who is a participant in the Retirement Plan pursuant to Section 7.13.
Separation

“Separation” means the separation of ONEOK’s local natural gas distribution business into an independent, publicly traded entity to be known as ONE Gas.  

Separation from Service

7

“Separation from Service” means the termination of a Participant’s employment within the meaning of Treasury Regulations section 1.409A-1(h) with the Corporation and all members of the ONE Gas Group other than by reason of the Participant’s Disability or death.
Shares
“Shares” means the common stock, par value $0.01 per share, of the Corporation and any other securities into which such shares are changed or for which such shares are exchanged.
Short-Term Deferral
“Short-Term Deferral” means a deferral elected by a Participant under which payment of the Plan Benefit shall be deferred to commence at a Specified Time of Distribution irrespective of the Participant’s Separation from Service that is specified by the Participant in his or her Election, that shall be not less than five (5) years after the Participant’s Election thereof; provided, that the Committee, may, in its sole discretion, determine and direct that a shorter period, of not less than two (2) years, be applied to any Short-Term Deferral.  If a Subsequent Election is made, the Plan Benefit deferred by a Short-Term Deferral in the Election shall then be distributed and paid at the Subsequent Election Specified Time of Distribution elected in the Subsequent Election.
Specified Employee
“Specified Employee” means an Employee who, as of the date of the Employee’s Separation from Service, is a key employee of a Corporation if any stock of the Corporation is then publicly traded on an established securities market or otherwise; and for purposes of this definition, an Employee is a key employee if the Employee meets the requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the regulations thereunder and disregarding section 416(i)(5)) at any time during the 12-month period ending on a Specified Employee Identification Date.  If an Employee is a key employee as of a Specified Employee Identification Date, the Employee shall be treated as a key employee for purposes of the Plan for the entire 12-month period beginning on the Specified Employee Effective Date.  For purposes of identifying a Specified Employee by applying the requirements of section 416(i)(1)(A)(i), (ii), and (iii), the definition of compensation under §1.415(c)-2(a) shall be used, applied as if the Corporation were not using any safe harbor provided in §1.415(c)-2(d), were not using any of the elective special timing rules provided in §1.415(c)-2(e), and were not using any of the elective special rules provided in §1.415(c)-2(g).
Specified Employee Effective Date
“Specified Employee Effective Date” is the first day of the fourth month following the Specified Employee Identification Date.
Specified Employee Identification Date
“Specified Employee Identification Date” means December 31.
Specified Time
“Specified Time” means a date or dates that are not discretionary and objectively determinable at the time an amount of Compensation is deferred and at which objectively determinable deferred amounts are to be payable.
Specified Time of Distribution

8

“Specified Time of Distribution” means a Specified Time at which Compensation deferred by a Participant’s Election pursuant to the Plan is required to be distributed or paid and which is specified in writing by the Participant in and at the time the deferral of such Compensation is elected by the Election of a Participant.
Subsequent Election
“Subsequent Election” means an irrevocable election made by a Participant with respect to the time of distribution or payment of Deferred Compensation and Plan Benefit under the Plan that is made at any time after Election that is made by the Participant and/or Corporation with respect to such Deferred Compensation.
Subsequent Election Specified Date
“Subsequent Election Specified Date” shall mean a specified fixed date in a calendar year that must be specified in writing by the Participant in a Subsequent Election that is not less than five (5) years from the date payment would otherwise have been made to the Participant under the Plan if such Subsequent Election was not made by the Participant.  The written specification of the Subsequent Election Specified Date shall in all cases specify and fix a Specified Time that is not less than five (5) years from the date payment would otherwise have been made to the Participant.
Subsequent Election Specified Time of Distribution
“Subsequent Election Specified Time of Distribution” means:
(a)in the case of a Long-Term Deferral, a Specified Time of Distribution that shall be the first date on or after the Subsequent Election Specified Date for the Long-Term Deferral on which the Participant has (i) attained the age of fifty (50) years, (ii) completed five (5) Years of Service with the Corporation, and (iii) had a Separation from Service, and
(b)in the case of a Short-Term Deferral, a Specified Time of Distribution that shall be the Subsequent Election Specified Date for the Short-Term Deferral.
Subsidiary
“Subsidiary” means any corporation of which the Corporation owns, directly or indirectly, at least a majority of the shares of stock having voting power in the election of directors of such corporation.
Supplemental Credit Amount
“Supplemental Credit Amount” means a supplemental amount that may be credited to a Participant’s Account at the direction of the Committee under Section 5.5.
Taxable Year
“Taxable Year” shall mean the Plan Year commencing January 1 and ending the following December 31.
Trust
“Trust” means a trust created and established pursuant to Section 11.2 of the Plan, or otherwise by the Corporation with respect to the Plan.
Unforeseeable Emergency

9

“Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in Code Section 152) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary circumstances arising as a result of events beyond the control of the Participant, including such events and circumstances as are described and considered to be an unforeseeable emergency under Code section 409A and the Treasury regulations thereunder.  It is intended and directed with respect to any such unforeseeable emergency that any amounts distributed under the Plan by reason thereof shall not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).
Years of Service
“Years of Service” means each 12-month period of continuous service with the Corporation.  Participants shall receive Years of Service credit for all service credited for those purposes under the ONEOK 2005 NQDC Plan as if the service had been rendered to the Corporation.
ARTICLE III.
ELIGIBILITY AND PARTICIPATION

3.1Eligibility
Eligibility to participate in the Plan shall be granted to those Eligible Employees who are designated by the Committee.  Subject to Section 3.4, below (providing for exclusion of Employees not qualifying under certain definitional terms of federal law), the Committee shall adopt a complete written list and/or designation of the Eligible Employees, by individual name or by reference to an identifiable group of persons or by descriptions of the components of compensation of an individual which would qualify the individuals who are eligible to participate, and all of whom shall be a select group of management or highly compensated employees.  The written list and/or designation of Eligible Employees by the Committee, from time to time, shall be adopted and maintained in the records of the Committee and Corporation.
3.2Participation
Participation in the Plan shall be limited to Eligible Employees who make an Election to participate in the Plan by timely filing a Participation Agreement with the Committee or receive an Employer contribution to their Account pursuant to Article V of the Plan.  An Eligible Employee shall commence participation in the Plan upon the first day of the Plan Year or Fiscal Year as the case may be, designated in his or her Participation Agreement filed with the Committee prior to the beginning of such Plan Year.
The Committee may in its sole discretion, allow in the case of the first Plan Year in which an individual becomes an Eligible Employee to make an initial Election to participate in the Plan and elect a deferral with respect to Compensation or other amounts that become payable under the Plan for services to be performed after the Election; provided, that any Election by such an Eligible Employee shall be made within thirty (30) days after the date he/she becomes eligible to participate in the Plan.
3.3Elections to Participate Irrevocable
A Participant may not change a previously elected percentage of Compensation deferred by an Election, or terminate his or her Election to participate in the Plan and defer Compensation for a Plan Year.  Except as 

10

may otherwise be determined and approved by the Committee pursuant to the Plan, a Participant’s Election to defer Compensation shall only be effective as of the beginning of the next Plan Year following receipt of the Participant’s Election by the Corporation.  Determinations on all Elections and of any effective dates other than as specified above, shall be made by the Committee in accordance with its prevailing administrative procedures.
3.4Exclusion from Eligibility
Notwithstanding any other provisions of this Plan to the contrary, if the Committee determines that any Participant may not qualify as a “management or highly compensated employee” within the meaning of ERISA, or regulations thereunder, the Committee may determine, in its sole discretion, that such Participant shall cease to be eligible to participate in this Plan.
ARTICLE IV.
DEFERRAL OF COMPENSATION

4.1Amount and Time of Election to Defer
		
	(a)
	Time of Election.  A Participant’s Election to defer compensation for services performed during a Plan Year shall be made not later than the close of the preceding Plan Year, or such other time as provided in Treasury Regulations published under Code section 409A; provided that in the case of the first Plan Year in which a Participant becomes eligible to participate in the Plan, such Election may be made with respect to services to be performed subsequent to the Election within thirty (30) days after the Participant becomes eligible to participate in the Plan.  A Participant’s Election to defer that part of Compensation which constitutes Bonus that constitutes Performance-Based Compensation based on services over a period of at least twelve (12) months in and for a Plan Year shall be made no later than six (6) months before the end of that Plan Year to the extent permitted by Code section 409A.

		
	(b)
	Participant Election Amounts.  With respect to each Plan Year, a Participant may voluntarily elect the deferral of compensation by making an Election for deferral of or within the percentages stated below, and subject to the terms described in Exhibit B attached hereto; provided, that each Participant who makes an Election for a Plan Year may elect a deferral that is within or consists of one (1) or more of the following allowable percentages (in one percent (1%) increments) and types of compensation and amounts for that Plan Year, as applicable:

		
	(1)
	deferral of at least two percent (2%) and not more than ninety percent (90%) of the Participant’s Base Salary for the Plan Year; and

		
	(2)
	deferral of at least ten percent (10%) and not more than ninety percent (90%) of the Participant’s Bonus for the Plan Year; and

		
	(c)
	Election Choices and Effect.  The deferral and crediting of Compensation to the Account of a Participant shall be made in respect of an Election of a Participant or the Corporation for a Plan Year as follows:

		
	(1)
	A Participant may elect to defer Base Salary or Bonus for services performed during a Plan Year.

11

		
	(d)
	Except as otherwise expressly provided in the Plan in the case of mid-year Elections for new Participants, an Election to defer Base Salary or Bonus         shall not become effective until the next Plan Year following such Election.  Except as otherwise directed by the Committee, a Participant’s Base Salary and Bonus deferral Elections will remain in effect for all subsequent Plan Years unless such Participant revokes or modifies any such Election in a manner consistent with this Article IV and applicable law.

4.2Deferral Periods; Payment
		
	(a)
	Participant Elections of Specified Time of Distribution.  Every Election made by a Participant shall include a specific election of the Participant of deferral of Compensation (i) to be paid or distributed at a Specified Time or pursuant to a Fixed Schedule, and (ii) in a specific form of payment stated in the Election.

		
	(b)
	Deferral of Base Salary or Bonus.  Subject to the requirements of Section 4.2(c), below, a Participant shall be allowed to defer Base Salary or Bonus under the Plan by electing either a Long-Term Deferral or a Short-Term Deferral.  The Participant shall elect and designate his or her deferral period as either a Long-Term Deferral or a Short-Term Deferral in the Election and Participation Agreement filed by the Participant with the Committee for a Plan Year.

		
	(c)
	 Early Separation from Service.  Notwithstanding the foregoing or any Specified Time or form of payment elected by a Participant in his/her Election or otherwise elected and specified by the Corporation pursuant to Plan, or in any allowed Subsequent Election, in the event the Participant has an Early Separation from Service the Participant’s Plan Benefit shall be paid and distributed to the Participant in a single lump sum payment at the Participant’s Early Separation from Service Time of Distribution, except for Short-Term Deferral installment payments that have already commenced, as described and provided in Section 7.7 of the Plan.  The time and form of payment in event of an Early Separation from Service is determined and specified by the Corporation under the Plan, and a Participant may not change or modify such time and form of payment, and may not elect otherwise by his/her Election or any Subsequent Election.

		
	(d)
	The Investment Return and/or any other actual, notional or deemed earnings credited to a Participant’s Account pursuant to this Plan with respect to any Deferred Compensation by an Election of a Participant or the Corporation shall be paid at the same time and in the same form of payment as the Participant has elected in his/her Election for such Deferred Compensation, and no separate election or time or form of payment shall be allowed or occur with respect to the Investment Return or other earnings credited.

4.3General Requirements for All Elections
Notwithstanding anything to the contrary expressed or, implied herein, the following requirements stated in this Section 4.3 shall apply to the Plan and to all Elections by Participants under the Plan.
		
	(a)
	Time of Election.  The deferral of Compensation for services performed by a Participant may be deferred by Election only if the Election to defer compensation payable with respect to services performed by the Participant in the immediately 

12

following year is made and becomes irrevocable not later than the close of the Plan Year (December 31), or such other time as is provided for in Treasury Regulations issued under Code section 409A.  Each Election to defer Compensation shall be made not later than the close of the Participant’s taxable year preceding the service year.  Provided, that in the case of the first year in which a Participant is eligible to participate in the Plan, such Election may be made with respect to services to be performed subsequent to the Election within thirty (30) days after the date the Participant becomes eligible to the participate in the Plan.  Provided, further, in the case of any Performance-Based Compensation based on services performed over a period of at least twelve (12) months, such Election may be made on or before the date that is six (6) months before the end of the performance period, provided that the Participant performs services continuously from the later of the beginning of the performance period or the date the performance criteria are established through the date an Election is made, and in no event may such an Election to defer Performance-Based Compensation be made after such Performance-Based Compensation has become readily ascertainable.
		
	(b)
	Time and Form of Payment.  Every Election to defer compensation shall include an election as to the Specified Time and form of payment and distribution of the Compensation deferred.

4.4Subsequent Elections
		
	(a)
	General.  Any Subsequent Election that is made under the Plan to elect a delay in a payment or a change in the form of payment of compensation deferred by an Election under the Plan, shall not take effect until at least twelve (12) months after the date on which it is made.  In the case of a Subsequent Election related to a payment to be made upon Separation from Service of a Participant, at a Specified Time or pursuant to a Fixed Schedule, or upon a Change in Ownership or Control, the first payment with respect to which Subsequent Election is made shall be deferred for a period of not less than five (5) years from the date such payment would otherwise have been made, and any such Subsequent Election related to a payment at a Specified Time or pursuant to a Fixed Schedule may not be made less than twelve (12) months prior to the date of the first scheduled payment to which it relates.  No Subsequent Election that does not comply with the provisions of Code section 409A and Treasury Regulations shall be allowed to be made under the Plan.

		
	(b)
	A Participant by or for whom an Election to defer compensation has been made under the Plan may make a Subsequent Election to change the time of payment of such deferred compensation by written instrument filed with the Committee in such form as it may prescribe at least twelve months (12) prior to the date of the first scheduled payment to which it relates.

		
	(c)
	A Participant who has not made any prior Subsequent Election to change the Normal Specified Time of Distribution of deferred compensation under the Plan provided for in the Election shall be allowed to make a Subsequent Election applicable to such Normal Specified Time of Distribution in accordance with this Section 4.4 and the other provisions of the Plan.

		
	(d)
	A Participant who has made a prior Subsequent Election of a Subsequent Election Specified Time of Distribution of Deferred Compensation under the Plan shall be 

13

allowed to make another Subsequent Election applicable to such Subsequent Election Specified Time of Distribution in accordance with this Section 4.4 and other provisions of the Plan.
		
	(e)
	A Participant shall not be authorized to make changes between Long-Term and Short-Term Deferrals elected or provided for in an Election by making a Subsequent Election.

		
	(f)
	The Committee shall be authorized to administer, construe and interpret the foregoing provisions and the Plan with respect to all Subsequent Elections to assure compliance with the intent thereof and the requirements of the Plan and of Code section 409A and Treasury Regulations.

		
	(g)
	Notwithstanding the foregoing provisions, the Committee, in its sole discretion, shall be authorized to determine, from time to time and/or in the particular case of any one or more Participants, that a Subsequent Election not be allowed to be made to change the time of payment of deferred compensation under the Plan.

4.5Crediting Deferred Base Salary and Bonus
The amount of Base Salary that a Participant elects to defer pursuant to an Election of the Participant under the Plan shall be credited by the Employer to the Participant’s Account monthly. The amount of Bonus that a Participant elects to defer pursuant to an Election of the Participant under the Plan shall be credited by the Employer to the Participant’s Account at the time the Bonus would otherwise be paid or payable to the Participant under the Incentive Plan pursuant to which such Bonus is paid or payable.
4.6FICA and Other Taxes
For each Plan Year during which a Participant has deferrals, the Participant’s Employer shall, in a manner determined by the Employer, withhold the Participant’s share of FICA and other required employment or state, local, and foreign taxes on deferrals from that portion of the Participant’s Base Salary or Bonus, and in the event of any Matching Contributions, Profit Sharing Plan Excess Amounts, Retirement Plan Covered Compensation Excess Amounts and Supplemental Credit Amounts, the Participant’s compensation generally, that is not deferred.  To the extent permitted by Code section 409A, the Committee may reduce a Participant’s deferrals to the extent necessary to pay FICA and other employment, state, local and foreign taxes.
ARTICLE V.
EMPLOYER CONTRIBUTIONS

5.1General
		
	(a)
	Employer Contributions.  There shall be credited to the Account of a Participant the Employer contributions (except the Retirement Plan Excess Amount) that apply to such Participant for the Plan Year by reason or and based upon his/her participation during the Plan Year in one or more qualified defined contribution plans or defined benefit plans of the Corporation, as more particularly described and provided for in this Article V, including the 401(k) Plan, Profit Sharing Plan and Retirement Plan.

		
	(b)
	Supplemental Credit Amount.  There shall be credited to the Account of a Participant Supplemental Credit Amounts that apply to such Participant for the Plan Year by reason or and based upon his/her entitlement thereto during the Plan Year as specified in the written authorization and direction of the deferral and credit thereof by the Corporation.  

14

A Participant shall be entitled to have credited to his/her Account such Supplemental Credit Amounts to the extent provided for in such authorization.
5.2Matching Contribution
		
	(a)
	The Employer shall provide and credit a Matching Contribution under this Plan with respect to each Participant eligible to be allocated matching contributions under the 401(k) Plan and this Plan.; except that the Committee may, in its discretion, prior to any Plan Year, make a determination not to provide for the crediting of Matching Contributions for that Plan Year.

		
	(b)
	The Matching Contribution under the Plan for each Participant under this Section 5.2, above, shall be credited by the Employer no later than ninety (90) days after the end of the Plan Year that includes the time that the related matching contributions are made under the 401(k) Plan.  The Matching Contribution shall be payable at the same Specified Time and in the same form of payment as the Long-Term Deferrals of and for the Participant for that Plan Year.

5.3Profit Sharing Plan Excess Amount
		
	(a)
	The Employer shall provide and credit a Profit Sharing Plan Excess Amount under this Plan with respect to each Participant eligible to be allocated contributions under the Profit Sharing Plan; except that the Committee may, prior to any Plan Year, make a determination not to provide for the crediting of Profit Sharing Plan Excess Amounts for that Plan Year.

		
	(b)
	The Profit Sharing Plan Excess Amount under the Plan for each Participant under this Section 5.3, shall be credited by the Employer as soon as practicable after the time the related contributions and allocations are made under the Profit Sharing Plan, and no later than ninety (90) days after the end of the Plan Year that includes the time that the related contributions and allocations are made under the Profit Sharing Plan.  The Profit Sharing Plan Excess Amount shall be payable at the same Specified Time and in the same form of payment as the Long-Term Deferrals of and for the Participant for that Plan Year.

5.4Retirement Plan Covered Compensation Excess Amount
		
	(a)
	The Employer shall provide and credit a Retirement Plan Covered Compensation Excess Amount under this Plan for each Participant eligible to participate in the Retirement Plan, and not participating in the ONE Gas, Inc. Supplemental Executive Retirement Plan; except that the Committee may, in its discretion, prior to any Plan Year, make a determination not to provide for the election and crediting of Retirement Plan Covered Compensation Excess Amounts for that Plan Year.

		
	(b)
	The Retirement Plan Covered Compensation Excess Amount under the Plan for a Participant under this Section 5.4 shall be credited by the Employer as soon as practicable after the time the related accruals and contributions are made under the Profit Sharing Plan, and no later than ninety (90) days after the end of the Plan Year that includes the time that the related contributions and allocations are made under the Profit Sharing Plan.  The Retirement Plan Covered Compensation Excess Amount 

15

shall be payable at the same Specified Time and in the same form of payment as the Long‐Term Deferrals of and for the Participant for that Plan Year.
5.5Supplemental Credit Amount
		
	(a)
	The Committee may elect to have a Supplemental Credit Amount credited to the Account of a Participant with respect to a Plan Year.  A Supplemental Credit Amount shall be established and deferred by irrevocable designation of the time and form of payment by the Corporation, by the written action and election of the Committee or its designee, which shall be made no later than the later of the time the Participant becomes entitled to the amount thereof by such designation, or if later, the time the Participant would be required to make an election if the Participant were provided such election.  The Corporation by this Plan designates that each such Supplemental Credit Amount designated by it in a Plan Year shall be deferred for the same period, and be payable at the same Specified Time and in the same form of payment as the Long-Term Deferrals of and for a Participant for that Plan Year.  A Participant shall have no right or opportunity to make any election with respect to the amount, deferral and the time and form of payment of a Supplemental Credit Amount.

		
	(b)
	The Supplemental Credit Amount under the Plan for a Participant under this Section 5.5 shall be credited by the Employer as soon as practicable after the beginning of the Plan Year for which an election is made, and no later than ninety (90) days after the end of the Plan Year.

5.6Retirement Plan Excess Amount
Retirement Plan Excess Amounts deferred under this Plan are separately provided for and made payable under the Plan pursuant to and in accordance with Section 7.13 of the Plan.
ARTICLE VI.
BENEFIT ACOUNTS

6.1Determination of Account
As of each Determination Date, a Participant’s Account shall consist of the balance of the Participant’s Account as of the immediately preceding Determination Date, plus the Participant’s Deferred Compensation credited pursuant to Article IV and Article V since the immediately preceding Determination Date, plus investment return credited as of such Determination Date pursuant to Section 6.2, minus the aggregate amount of distributions, if any, made from such Account since the immediately preceding Determination Date.
6.2Crediting of Investment Return; Other Items to Participant Accounts
The Account of each Participant shall be periodically credited and increased, or debited and reduced, as the case may be, by the amount of investment return specified under Section 6.3.  The Account of each Participant shall also be debited and credited for any deemed purchases or sales of, or other deemed transactions involving securities provided for under the Plan.  The Account shall be so credited and debited not less frequently than monthly in the manner established and determined from time to time by the Committee, in its sole discretion.  The manner in which the Committee determines that a Participant’s Account shall be so debited or credited shall be described in written rules or procedures which shall be stated from time to time by a written description thereof which shall be attached to this Plan as Exhibit “D,” and furnished to the Participants in the Plan.

16

6.3Investment Return; Designated Deemed Investment
The Investment Return shall be determined in the manner specified in Exhibit “C” attached hereto.
To the extent the Investment Return specified in Exhibit “C” attached hereto, applied to a Participant’s deferrals includes a rate that is to be determined from deemed investment of such Participant’s Account in investment options specified therein, the Committee shall prescribe the manner and form in which a Participant may designate the deemed investment of deferrals and other amounts in his or her Account.  A Participant will be allowed to change such designation of deemed investment monthly or with such other frequency as specified by the Committee, in its sole discretion.  Provided, that notwithstanding anything to the contrary stated or implied by the Plan, including all Exhibits thereto, the use, reference to or consideration of any such deemed investments made by the Committee or Plan, or designated by Participants, the Committee and the Corporation shall not be obligated to make or cause to be made any particular type or form of investment with respect to the funding or payment of the Plan Benefits or Accounts of Participants under the Plan, and no Participant shall have the right to direct or in any manner control any actual investments, if any, made by the Employer or any other person for purposes of providing funds for paying liabilities of the Employer for benefits or otherwise under the Plan.  No Participant shall have any ownership or beneficial interest in any such actual investments made by the Employer.
6.4Statement of Account
The Committee shall provide to each Participant a statement each calendar quarter setting forth the balance or balances of such Participant’s Account which have attributed an Investment Return as of the end of the calendar quarter showing all adjustments made thereto during such calendar quarter.
6.5Vesting of Participant Accounts
Except as provided in Sections 10.1 and 10.2, below, a Participant shall be one hundred percent (100%) vested in his or her Account, at all times; provided that the vesting of a Participant’s Retirement Plan Excess Amount shall be determined in like manner as the vesting of the Participant’s accrued benefit under the Retirement Plan.
ARTICLE VII.
PAYMENT OF BENEFITS

7.1Requirements for Distributions and Payments
Notwithstanding anything to the contrary expressed or implied herein, the following requirements stated in this Section 7.1 shall apply to the Plan, to all Elections or Subsequent Elections made by Participants under the Plan, and to all distributions and payments made pursuant to the Plan.
		
	(a)
	Any Compensation deferred under the Plan shall not be distributed earlier than (1) Separation from Service of the Participant, (2) the date the Participant becomes Disabled, (3) death of the Participant, (4) a Specified Time (or pursuant to a Fixed Schedule) specified under the Plan at the date of deferral of such Compensation, (5) a Change in Ownership or Control, or (6) the occurrence of an Unforeseeable Emergency.

		
	(b)
	Notwithstanding the foregoing, if a Participant becomes entitled to a distribution on account of the Participant’s Separation from Service and is a Specified Employee on the date of the Separation from Service, no distribution shall be made before the date 

17

which is six (6) months after the date of the Participant’s Separation from Service, or, if earlier, the date of death of such Participant.
		
	(c)
	No acceleration of the time or schedule of any distribution or payment under the Plan shall be permitted or allowed, except to the extent provided in Treasury Regulations issued under Code Section 409A.

		
	(d)
	A Participant may elect to change the time of commencement or change the form of payment of Compensation deferred under the Plan by filing a Subsequent Election in accordance with Section 4.4 and rules, procedures and forms as may be specified from time to time by the Committee.

		
	(e)
	In the event an amount becomes payable under the terms of this Plan and a Participant does not have a valid distribution election in place specifying the form of payment of any amount payable under this Plan, payment shall be made in the form of a lump sum.

7.2Payment of Plan Benefit; Long-Term Deferrals
Subject to the requirements stated in Section 7.1, above, and Section 7.7 below, a Long-Term Deferral of Deferred Compensation shall be paid and distributed to the Participant at the Normal Specified Time of Distribution elected by a Participant (the Participant’s Separation from Service after attaining fifty (50) years of age and the completion of five (5) Years of Service with the Corporation).  The Employer shall pay to the Participant the Plan Benefit in the form of payment specified and elected in the Participant’s Election and Participation Agreement pursuant to Section 7.5.
7.3Payment of Plan Benefit; Short-Term Deferrals
Subject to the requirements stated in Section 7.1, above, and Section 7.7 below, a Short-Term Deferral of Compensation elected by a Participant shall be paid and distributed to a Participant at the Specified Time or pursuant to the Fixed Schedule designated and elected by the Participant in his or her Election and Participation Agreement.  The Employer shall pay to the Participant the Plan Benefit in the form of benefit specified and elected in the Participant’s Election pursuant to Section 7.5; provided, that no part of a Short-Term Deferral may be paid prior to five (5) years following the Participant’s Election thereof.
7.4Specified Employee Six (6) Month Required Delay in Distribution and Payment
In the case of any Participant who is a Specified Employee as of the date of a Separation from Service, distribution and payments of any deferred compensation and Plan Benefit may not be made before the date that is six (6) months after the date of Separation from Service (or, if earlier than the end of the six-month period, the date of death of the Specified Employee).  For this purpose, a Participant who is not a Specified Employee as of the date of a Separation from Service will not be treated as subject to this requirement even if the Participant would have become a Specified Employee if the Participant had continued to provide services through the next Specified Employee Effective Date; and a Participant who is treated as a Specified Employee as of the date of a Separation from Service will be subject to this requirement even if the Participant would not have been treated as a Specified Employee after the next Specified Employee Effective Date had the Specified Employee continued in employment with the Corporation through the next Specified Employee Effective Date.  The required delay in payment is met if payments to which a Specified Employee would otherwise be entitled during the first six (6) months following the date of Separation from Service are accumulated and paid on the first day of the seventh month following the date of Separation from Service, 

18

or if each payment to which a Specified Employee is otherwise entitled upon a Separation from Service is delayed by six (6) months.  The Committee shall have and retain discretion to choose which method will be implemented, provided that no direct or indirect election as to the method may be provided to the Participant.  For an affected Specified Employee, a date upon which the Committee or the Corporation designates that the payment will be made after the six-month delay is treated as a fixed payment date for purposes of the other requirements of the Plan once the Separation from Service has occurred.
7.5Form of Distribution and Payment
The Plan Benefit payable to a Participant for Deferred Compensation shall be distributed and paid in one of the following forms, as elected by the Participant in and at the time of his or her Election.
		
	(a)
	For Participants who elect a Long-Term Deferral, the Plan Benefit shall be distributed and paid in one of the following elected forms elected by the Participant in such Election:

		
	(1)
	In annual payments of the vested Account balance, on and after the payment commencement date over a period of either five (5) or fifteen (15) years (together, in the case of each annual payment, with Investment Return thereon credited after the payment commencement date pursuant to Section 6.2), with the amount of each such annual payment to be determined by multiplying the remaining principal amount and undistributed income in the Participant’s Account by a fraction, the numerator of which is one (1) and the denominator of which shall be the number of remaining annual payments, including the payment then being calculated; or

		
	(2)
	A lump sum.

		
	(b)
	For Participants who elect a Short-Term Deferral, the Plan Benefit shall be distributed and paid in one of the following forms elected by the Participant in such Election:

		
	(1)
	Annual payments of a fixed amount which shall amortize the vested Account balance, on and after the payment commencement date over a period of two (2) to four (4) years (together, in the case of each annual payments with Investment Return thereon credited after the payment commencement date pursuant to Section 6.2), with the amount of each such annual payment to be determined by multiplying the remaining principal amount and undistributed income in the Participant’s Account by a fraction, the numerator of which is one (1) and the denominator of which shall be the number of remaining annual payments, including the payment then being calculated; or

		
	(2)
	A lump sum.

		
	(c)
	For any Participant who has an Early Separation from Service, the Plan Benefit shall be distributed in a single lump sum payment, except for Short-Term Deferral installment payments that have already commenced, as provided for in Section 7.7 below.

7.6Distribution and Payment for Subsequent Elections

19

If a Subsequent Election is made pursuant to the Plan, the payment and distribution shall be made at the Subsequent Election Specified Time of Distribution that is elected and determined in and by such Subsequent Election.
7.7Distribution and Payment for Early Separation from Service
Subject to the requirements stated in Section 7.1, above, and notwithstanding the foregoing provisions in Sections 7.2 and 7.3, a Long-Term Deferral and/or Short-Term Deferral shall be paid and distributed to a Participant upon his/her Early Separation from Service.  The Employer shall pay to the Participant his/her Plan Benefit in a single lump sum payment equal to the balance of the Participant’s Account determined pursuant to Article VI.  This lump sum payment shall be made notwithstanding any other period or time of payment that has been elected by the Participant.  Provided, that any installment payments of a Short-Term Deferral to the Participant that have commenced and not been completed at such time shall continue to be paid in accordance with the existing schedule of payments.
7.8Distribution and Payment of Plan Benefit Upon Disability
		
	(a)
	Subject to the requirements stated in Section 7.1, above, if a Participant becomes Disabled, the Participant’s Account shall be paid to the Participant, or the Participant’s personal representative, upon the date the Participant is determined by the Committee to be Disabled.  The Participant’s Account shall be distributed in accordance with the Participant’s Long-Term Deferral and Short-Term Deferral Elections if the Participant has attained the age of fifty (50) years and completed five (5) Years of Service with the Corporation upon the date the Participant is determined Disabled.  If the Participant has not attained the age of fifty (50) years and completed five (5) Years of Service with the Corporation as of the date the Participant is determined to be Disabled, the Participant’s Account shall be paid in a lump sum.  Notwithstanding the foregoing, any installment payments of a Short- Term Deferral to the Participant that have commenced and not been completed at such time shall continue to be paid in accordance with the existing schedule of payments.

		
	(b)
	Notwithstanding any other provisions of the Plan, if a Participant becomes disabled, the Committee may, in its sole discretion, cancel the Participant’s deferral Election with respect to amounts to be deferred on or after the cancellation, by the end of the year during which the Participant becomes disabled, or if later, the 15th day of the third month following the date the Participant becomes disabled.  For purposes of this Section 7.8(b), a Participant shall be disabled if the Participant is suffering from any medically determinable physical or mental impairment resulting in the Participant’s inability to perform the duties of his or her position or any substantially similar position, if such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months.  The Participant may elect to defer amounts for the Plan Year following his return to employment and for every Plan Year thereafter while an Eligible Employee, provided the Participant’s deferral election complies with all the requirements of the Plan.

7.9Distribution and Payment of Plan Benefit Upon Death
Subject to the requirements stated in Section 7.1, above, upon the death of a Participant the Participant’s Account shall be paid to the Participant’s Beneficiary.  If the Participant has elected Long-Term Deferral, the Plan Benefit shall be paid to the Beneficiary over the time period elected by the Participant commencing 

20

as soon as practicable after the time of death of the Participant.  If the Participant has elected a Short-Term Deferral, the Plan Benefit shall be paid to the Beneficiary in a single lump sum payment.  However, the Retirement Plan Excess Amount will be paid to the same beneficiary as the Retirement Plan benefit.
7.10Payment of Deferrals for Unforeseeable Emergency
Subject to the requirements stated in Section 7.1, above, a Participant may submit a written request for a distribution on account of an Unforeseeable Emergency.  Upon approval by the Committee of a Participant’s request, the Participant’s Account, or that portion of the Participant’s Account deemed necessary by the Committee to satisfy the Unforeseeable Emergency (determined in a manner consistent with Code section 409A) plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, will be distributed in a single lump sum payment.  In addition, the Participant must continue to defer Compensation subsequent to such distribution in accordance with the Participant’s Election and will not be permitted to elect to defer Compensation attributable to the calendar year subsequent to the calendar year of the distribution.  The Committee shall have the sole discretion as to whether such distribution shall be made, and its determination shall be final and conclusive.  In making its determinations, the Committee shall follow a uniform and nondiscriminatory practice.
7.11Commencement of Distributions and Payments
		
	(a)
	Subject to the requirements stated in Section 7.1, above, and except as otherwise provided in Section 7.2, the commencement of payments under Sections 7.2 through 7.4 shall begin at the time specified by the Participant in his or her Election and Participation Agreement consistent with the terms and provisions of the Plan or Subsequent Election, and distributions required upon distribution events described in Sections 7.7 through 7.10 shall commence at the time provided in the Plan or Subsequent Election (if applicable).

		
	(b)
	Except as otherwise expressly specified in the Plan, a distribution or payment shall be treated as made upon the date specified under the Plan if the payment is made at such date or a later date within the same taxable year of the Participant or, if later, by the 15th day of the third calendar month following the date specified under the Plan and the Participant is not permitted, directly or indirectly, to designate the taxable year of the payment.  In addition, a distribution or payment shall be treated as made upon the date specified under the Plan and shall not treated as an accelerated payment if the payment is made no earlier than thirty (30) days before the designated payment date and the Participant is not permitted, directly or indirectly to designate the taxable year of the payment.  For purposes of this paragraph, if the date specified is only a designated taxable year of the Participant, or a period of time during such a taxable year, the date specified under the Plan is treated as the first day of such taxable year or the first day of the period of time during such taxable year, as applicable.  If calculation of the amount of the distribution or payment is not administratively practicable due to events beyond the control of the Participant (or Participant’s beneficiary), the distribution or payment will be treated as made upon the date specified under the Plan if the distribution or payment is made during the first taxable year of the Participant in which the calculation of the amount of the distribution or payment is administratively practicable.  For purposes of this section, the inability of a Corporation to calculate the amount or timing of a distribution or payment due to a failure of a Participant (or Participant’s beneficiary) to provide reasonably available information necessary to 

21

make such calculation does not constitute an event beyond the control of the Participant.
		
	(c)
	If a Participant elects to receive distributions in annual installments, the Participant’s Account or portion thereof will be paid in substantially equal annual installments in consecutive years over the period elected by the Participant.  During the Plan Year in which distributions commence, the Participant will receive the first installment commencing as described in Section 7.11(a) and each subsequent annual installments shall be paid in the year in which it is due after the first day of the month following the anniversary date of the commencement date.  Any installment distribution that complies with Section 7.11(b) shall be deemed for all purposes to comply with the Plan requirements regarding the time and form of distributions.

7.12No Acceleration of Distribution and Payment
		
	(a)
	No acceleration of the time or schedule of any payment or amount scheduled to be paid pursuant to the terms of the Plan shall be allowed, and no such accelerated payment may be made whether or not provided for under the expressed or implied terms of such Plan.  Provided, that there may be an acceleration of a payment in accordance with the express provisions allowing the same under the Treasury regulations issued under Code Section 409A or the Committee may have discretion to permit such acceleration to be made consistent with the regulations.  Provided, that a Participant shall have no discretion with respect to whether a payment will be accelerated, and the Corporation or Committee shall not provide a Participant a direct or indirect election as to whether the Corporation’s or Committee’s discretion to accelerate a payment will be exercised, even if such acceleration would be permitted under the regulations.

		
	(b)
	The Committee may liquidate the Participants’ interest under the plan in a single lump sum if the amount payable is not greater than the applicable dollar amount under Code Section 402(g)(1)(B), provided the payment represents the complete liquidation of the Participant’s interest in the plan, including all agreements, methods, programs, or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under the Treasury regulations issued under Code Section 409A.  For purposes of this paragraph, plan shall be defined in accordance with the plan aggregation rules under Treasury regulation 1.409-1(c)(2).  Consequently, multiple plans may exist with respect to a Participant’s Plan Benefit under this paragraph.  

7.13Retirement Plan Excess Amount
Subject to the requirements stated in Section 7.1, above, the Corporation shall pay to a Participant or his or her survivor Beneficiary, as the case may be, a Retirement Plan Excess Amount credited for the Participant by the Corporation that shall be equal to the amount by which such Participant’s retirement benefit under the Retirement Plan is reduced by reason of the deferred Compensation elected by the Participant under the Plan not being taken into account in the calculation of such Participant’s retirement benefit under the Retirement Plan, but only if such deferred Compensation is not taken into account in determining a retirement benefit or payment payable to such Participant under the ONE Gas, Inc., Supplemental Executive Retirement Plan (SERP), nor under any other plan, arrangement or agreement of the Corporation other than this Plan.

22

The Retirement Plan Excess Amount payable to a Participant, or his or her Beneficiary, under this Section 7.13 shall be paid commencing at the date of the Participant’s Normal Specified Time of Distribution under this Plan and the amount thereof shall be calculated pursuant to the Retirement Plan benefit formula in the manner it would be calculated if the Participant commenced payment of his/her Retirement Plan benefits at that time.  However, if Participant is a SERP participant, the time and form of payment of the Participant’s Retirement Plan Excess Amount under this Plan shall be the time and form of payment that the Participant has made or makes under the SERP as to the time and form of payment of his/her benefits under the SERP; provided that such election under the SERP shall be considered an election by the Participant under this Plan that is subject to application of all pertinent requirements, restrictions and limitations of this Plan with respect to the time of making and effect of an Election or Subsequent Election, and/or the prohibition of an acceleration of payment of the Retirement Plan Excess Amount; and provided further, that to the extent that such an election would not comply with any of such requirements, restrictions or limitations, the time of payment shall be the Normal Specified Time of Distribution.  The Retirement Plan Excess Amount shall be paid in the form of a 50% joint and survivor annuity, as defined in the Retirement Plan, if the Participant is married at the time of the Corporation’s Election to credit the Participant’s Account with a Retirement Plan Excess Amount, and shall be paid in the form of a single (straight) life annuity, as defined in the Retirement Plan, if the Participant is single at the time of the Corporation’s Election.  The form of payment can be changed by Participant prior to commencement to another actuarially equivalent form of monthly annuity.
ARTICLE VIII.
BENEFICIARY DESIGNATION

8.1Beneficiary Designation
Each Participant shall have the right, at any time, to designate any person or persons as his or her Beneficiary to whom payment under the Plan shall be made in the event of the Participant’s death prior to complete distribution to the Participant of his or her Account; provided, that the Retirement Plan Excess Amount shall be paid to the Participant’s beneficiary for Retirement Plan benefits.  Any Beneficiary designation shall be made in a written instrument provided by the Committee.  All Beneficiary designations must be filed with the Corporation and shall be effective only when received in writing by the Corporation.
8.2Amendments
Any Beneficiary designation may be changed by a Participant by the filing of a new Beneficiary designation, which will cancel all the Participant’s prior Beneficiary designations filed with the Committee.
8.3No Designation
If a Participant fails to designate a Beneficiary as provided above, or if all designated Beneficiaries predecease the Participant, then the Participant’s designated Beneficiary shall be deemed to be the Participant’s estate.
8.4Effect of Payment
Payment to a Participant’s Beneficiary (or, upon the death of a primary Beneficiary, to the contingent Beneficiary or, if none, to the Participant’s estate) shall completely discharge the Employer’s obligations under the Plan.

23

ARTICLE IX.
ADMINISTRATION

9.1Plan Committee; Authority and Duties
		
	(a)
	The Plan shall be administered by the Committee, which shall consist of not less than three (3) members, appointed from time to time by the Board to serve at the pleasure of the Board.

		
	(b)
	Notwithstanding anything to the contrary expressed or implied herein, no member of the Committee shall have any right or authority to act, vote or decide upon any matter relating solely to such member under the Plan, or to act, vote upon or decide any issue or case in which such member’s individual right to receive any Compensation under the Plan is particularly involved, or to take any action that would change or accelerate the deferral or payment of Compensation or benefits to such member in a manner or at a time not provided for under the Plan.  In any case in which a member of the Committee is so disqualified to act and the remaining members cannot agree, or in any case where a majority or all of the members of the Committee are so disqualified, the Board (or a separate subset thereof) shall appoint a substitute member or members of the Committee to exercise all powers of the disqualified member or members concerning the matter involved, or in the alternative the Board (or a separate subset thereof) may, in its discretion, assume authority to act upon and decide the issues and case involved, with any such action and decision by it to be final and binding with respect to the Plan, Participants or other persons involved.

The Committee and its members shall have no discretion to allow or cause distribution or payment of the Account or any deferred compensation to any Participant at a time or in a form or manner that is not in accordance with the terms and provisions of the Plan, including the requirements of Section 7.1, above, and the requirements of Code Section 409A.
		
	(c)
	The Committee shall supervise the administration and operation of the Plan, may from time to time adopt rules and procedures governing the Plan and shall have authority to give interpretive rulings with respect to the Plan.  The Committee shall have such other powers and duties as are specified in this Plan as the same may from time to time be constituted, and not in limitation but in amplification of the foregoing, the Committee shall have power, in its discretion to the exclusion of all other persons, to interpret the provisions of this instrument, to decide any disputes which may arise hereunder; to construe and determine the effect of Participant Agreements, Elections, beneficiary designations, and other actions and documents; to determine, in its discretion, all questions that shall arise under the Plan, including questions as to the rights of Employees to become Participants, as to the rights of Participants, any Beneficiary or other person with respect to the Plan, and including questions submitted by the trustee of a Trust created under Section 11.2 on all matters necessary for it properly to discharge its duties, powers, and obligations; to employ legal counsel, accountants, consultants and agents; to establish and modify such rules, procedures and regulations for carrying out the provisions of the Plan not inconsistent with the terms and provisions hereof, as the Committee, in its discretion, may determine; and in all things and respects whatsoever, without limitation, to direct the administration 

24

of the Plan and any such Trust with the trustee being subject to the direction of the Committee.
		
	(d)
	The Committee may supply any omission or reconcile any inconsistency in this instrument in such manner and to such extent as it shall deem expedient to carry the same into effect and it shall be the sole and final judge of such expediency.

		
	(e)
	The Committee may adopt such rules and regulations with respect to the signature by an Employee, Participant and/or Beneficiary as to any agreements, Elections or other papers to be signed by Employees or Participants or Beneficiaries and similar matters as the Committee shall determine in view of the laws of any state or states.

		
	(f)
	The Committee shall maintain or cause to be maintained complete and adequate records pertaining to the Plan, including but not limited to the Accounts of Participants, all matters involving any Trust of the Plan, and all other records which the Committee in its discretion determines are necessary or desirable in the administration of the Plan.

		
	(g)
	Any act which the Plan authorizes or requires the Committee to do may be done by a majority of the then members of the Committee.  The action of such majority of the members expressed either by a vote at a meeting or in writing without a meeting, shall constitute the action of the Committee and shall have the same effect for all purposes as if assented to by all of the members of the Committee at the time in office, provided, however, that the Committee may, in specific instances, authorize one (1) of its members to act for the Committee when and if it is found desirable and convenient to do so.

9.2Delegation; Agents
The Committee may, at its discretion, delegate discretionary authority for day-to-day administration of the Plan to the Corporation’s Benefits Committee or its authorized representatives pursuant to a duly adopted resolution or a memorandum of action signed by all members of the Committee or approved via electronic transmission.  All actions taken by the Corporation’s Benefits Committee or its authorized representative shall have the same legal effect and shall be entitled to the same deference as if taken by the Committee itself.  In addition, the Committee or its delegate may, from time to time, employ other agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with counsel who may be counsel to the Corporation.
9.3Binding Effect of Decisions
Any decision or action of the Committee with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan shall be final and binding upon all persons having any interest in the Plan.
9.4Indemnity of Committee
The Corporation shall indemnify and hold harmless the members of the Committee and their agents duly appointed under Section 9.2 against any and all claims, loss, damage, expense or liability arising from any action or failure to act with respect to the Plan, except in the case of gross negligence or willful misconduct by any such member or agent of the Committee.
ARTICLE X.

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AMENDMENT AND TERMINATION OF PLAN

10.1Amendment
		
	(a)
	The Corporation, on behalf of itself and of each Subsidiary may by action of the Board at any time amend, modify, suspend or reinstate any or all of the provisions of the Plan, except that no such amendment, modification, suspension or reinstatement may adversely affect any Participant’s Account, as it existed as of the day before the effective date of such amendment, modification, suspension or reinstatement, without such Participant’s prior written consent.

		
	(b)
	The Plan may also be so amended or modified by resolution of the Committee or by the Committee executing a written instrument containing such amendment or modification (pursuant to authority which has been duly delegated to the Committee by the Board and is hereby acknowledged and recognized); provided, that no amendment or modification of the Plan to increase any compensation of or benefits provided to Participants under the Plan, and no termination of the Plan shall be made unless such amendment or modification, or termination, is authorized pursuant to a resolution duly adopted by the Board.  Any action by resolution or a written instrument by the Committee shall be presumed to be effective without necessity of further action or approval of the Board.  In the event any issue should arise with respect to respective authority of the Committee, or of the Board, and amendments or modifications of the Plan made by them that are or appear to be inconsistent, final authority shall be reserved to and exercisable by the Board and its action to amend or modify the Plan shall take precedence.

10.2Termination
The Corporation, on behalf of itself and of each Subsidiary, in its sole discretion, may by action pursuant to a resolution adopted by the Board terminate this Plan at any time and for any reason, with or without prior notice.  Upon termination of the Plan, the Committee shall take those actions necessary to administer any Participant Accounts existing prior to the effective date of such termination; provided, however, that a termination of the Plan shall not adversely affect the value of a Participant’s Account or the crediting of investment return under Section 6.2 without the Participant’s prior written consent.
ARTICLE XI.
PLAN EFFECT, LIMITATIONS, MISCELLANEOUS PROVISIONS

11.1Nature of Employer Obligation; Funding
Participants, their Beneficiaries, and their heirs, successors and assigns, shall have no secured interest or claim in any property or assets of the Employer.  The Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise of the Employer to pay money in the future.
11.2Trusts; Transfers of Assets, Property
		
	(a)
	Notwithstanding the foregoing, in the event of a Change in Ownership or Control, the Corporation shall create an irrevocable Trust, or before such time the Corporation may create an irrevocable or revocable Trust, to hold funds to be used in payment of the obligations of Employers under the Plan.

26

		
	(b)
	Notwithstanding anything otherwise expressed or implied herein, in the case of any assets set aside (directly or indirectly) in a such a Trust (or other arrangement determined by Treasury Regulations or otherwise pursuant to Code Section 409A) for purposes of paying deferred compensation under the Plan, no such assets (or such a Trust or other arrangement) shall ever be located or transferred outside the United States.

		
	(c)
	In the event of a Change in Ownership or Control or prior thereto, the Employers shall fund such Trust in an amount equal to not less than the total value of the Participants’ Accounts under the Plan as of the Determination Date immediately preceding the Change in Ownership or Control, provided that any funds contained therein shall remain liable for the claims of the general creditors of the respective Employers.

		
	(d)
	Pursuant to this Section 11.2, the Corporation may, without further reference to or action by any Employee, Participant, or any Beneficiary from time to time enter into such further agreements with a trustee or other parties, and make such amendments to said trust agreement or such further agreements, as the Corporation may deem necessary or desirable to carry out the Plan; from time to time designate successor trustees of such a Trust; and from time to time take such other steps and execute such other instruments as the Corporation may deem necessary or desirable to carry out the Plan.  The Committee shall advise the trustee of any such Trust in writing with respect to all Plan Benefits which become payable under the terms of the Plan and shall direct the trustee to pay such Plan Benefits from the respective Participants’ Accounts, and the Committee shall have authority to otherwise deal with and direct the trustee of such a Trust in matters pertinent to the Plan.

		
	(e)
	It is intended that any Trust created hereunder is to be treated as a “grantor” trust under the Code, and the establishment of such a Trust is not intended to cause a Participant to realize current income on amounts contributed thereto, such a Trust is not intended to cause the Plan to be “funded” under ERISA and the Code, and any such Trust shall be so interpreted, and such Trust shall be funded in a manner that assets set aside or transferred to such Trust shall not be treated under Code Section 409A as property transferred in connection with the performance of services by reason of such assets being located or transferred outside the United States.

		
	(f)
	Notwithstanding anything to the contrary expressed or implied herein, no transfer of assets shall be made under or in connection with the Plan or Compensation deferred under the Plan that would constitute a transfer of property within the meaning of Code Section 83 with respect to such Compensation by reason of such assets becoming restricted to the provision of benefits under the Plan in connection with a change in the Corporation’s financial health, as provided for under Code Section 409A, and Treasury Regulations issued thereunder.

11.3Nonassignability
No right or interest under the Plan of a Participant or his or her Beneficiary (or any person claiming through or under any of them), shall be assignable or transferable in any manner or be subject to alienation, anticipation, sale, pledge, encumbrance or other legal process or in any manner be liable for or subject to the debts or liabilities of any such Participant or Beneficiary.  If any Participant or Beneficiary shall attempt to or shall transfer, assign, alienate, anticipate, sell, pledge or otherwise encumber his or her benefits hereunder or any 

27

part thereof, or if by reason of his or her bankruptcy or other event happening at any time such benefits would devolve upon anyone else or would not be enjoyed by him or her, then the Committee, in its discretion, may terminate such Participant’s or Beneficiary’s interest in any such benefit (including the Account) to the extent the Committee considers necessary or advisable to prevent or limit the effects of such occurrence.  Termination shall be effected by filing a written instrument with the Secretary of the Corporation and making reasonable efforts to deliver a copy to the Participant or Beneficiary whose interest is adversely affected (the “Terminated Participant”).
As long as the Terminated Participant is alive, any benefits affected by the termination shall be retained by the Employer and, in the Committee’s sole and absolute judgment, may be paid to or expended for the benefit of the Terminated Participant, his or her spouse, his or her children or any other person or persons in fact dependent upon him or her in such a manner as the Committee shall deem proper.  Upon the death of the Terminated Participant, all benefits withheld from him or her and not paid to others in accordance with the preceding sentence shall be disposed of according to the provisions of the Plan that would apply if he or she died prior to the time that all benefits to which he or she was entitled were paid to him or her.
11.4Captions
The captions contained herein are for convenience only and shall not control or affect the meaning or construction hereof.
11.5Code Section 409A
 This Plan is intended to comply with Code Section 409A, the Treasury regulations and other guidance promulgated or issued thereunder.  The Corporation shall not have any liability to a Participant with respect to tax obligations that result under any tax law and makes no representation with respect to the tax treatment of the payments and/or benefits provided under this Plan.  Any provision required for compliance with Section 409A that is omitted from this Plan shall be incorporated herein by reference and shall apply retroactively, if necessary, and be deemed a part of this Plan to the same extent as though expressly set forth herein.
If, and to the extent required to comply with Section 409A, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” (excluding death) within the meaning of Section 409A and, for purposes of any such provision of this Plan, references to a “resignation,” “termination,” “termination of employment” or like terms shall mean “separation from service” (excluding death).
11.6Governing Law
The provisions of the Plan shall be construed and interpreted according to the laws of the State of Oklahoma except to the extent preempted by ERISA.
11.7Successors
The provisions of the Plan shall bind and inure to the benefit of the Corporation, its Subsidiaries, and their respective successors and assigns.  The term “successors” as used herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise, acquire all or substantially all of the business and assets of the Corporation or a Subsidiary and successors of any such corporation or other business entity.
11.8No Right to Continued Service

28

Nothing contained herein shall be construed to confer upon any Eligible Employee the right to continue to serve as an Eligible Employee of the Employer or in any other capacity.

29

Executed this ____ day of _____________, 2017, to be effective January 1, 2018.
ONE GAS, INC.
By:    
Name:        
Title:        

30

EXHIBIT A
ONE GAS, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN
Re:    Section 3.1 - Eligible Employees
Effective Date: January 1, 2018
Except as otherwise specifically determined by the Committee, the Committee has determined that the Chief Executive Officer of the Corporation is and shall in all cases be an Eligible Employee, and other Eligible Employees who may participate in the Plan shall be designated in writing by the Chief Executive Officer, or his designee, each Plan Year during the period after November 1 and prior to the next January 1 (“Designation Period”), with such designation to indicate the Eligible Employees for the Plan Year next following such Designation Period who shall be each Employee who (i) had Base Salary on November 1 of that Plan Year, which places such Employee in the group of Employees consisting of the top two percent (2%) of the Employees when ranked on the basis of Base Salary, (ii) is either an Officer of the Corporation or a highly compensated employee as defined in Code section 414(q), and (iii) is so designated by name in writing in an instrument signed by the Chief Executive Officer of the Corporation, or his designee.  The designation of Eligible Employees for a Plan Year shall be reported to the Committee and Board in accordance with their directions.
An Employee must be an Eligible Employee prior to the beginning of a Plan Year in order to participate in the Plan for such Plan Year, unless otherwise determined by the Committee.
A list of the Eligible Employees who are so designated and approved for a Plan Year shall be made by the Chief Executive Officer, or his designee, the Committee, or by a duly authorized representative of the Committee, and be maintained with the Plan in the records of the Corporation.

31

EXHIBIT B
ONE GAS, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN
Re:    Section 4.1 - Amount of Deferral
Effective Date: January 1, 2018
As of the date above, and effective until this Exhibit is modified by the Committee and Board, the table below indicates the types of compensation that are eligible for deferral by and in an Election of a Participant or the Corporation at the designated percentages stated:
	
			
	Type of Compensation
	Minimum Percentage That
Must Be Deferred
	Maximum Percentage That
May Be Deferred

	 
	 
	 

	Base Salary
	2%
	*90%

	 
	 
	 

	Bonus (or the portion above a
specified threshold)
	10%
	*90%

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

A Participant may defer Base Salary or Bonus only in 1% increments thereof.
* The Participant’s deferral election shall be applied to Base Salary and Bonus.

32

EXHIBIT C
ONE GAS, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN
Re:    Section 2.1 - Investment Return
Date: January 1, 2018
The Investment Return on a Participant’s Account shall be the rate determined pursuant to the following:
1.A Participant shall designate in writing to the Committee or its designee such deemed investments of the amount or amounts of his/her Account in the manner and form, and at such times as prescribed by the Committee.
2.Unless otherwise determined in written action of the Committee that is described in a written explanation furnished to Participants prior to it becoming effective, the Plan shall provide for an Investment Return based upon the notional or deemed investments directed from time to time by the Participant in one or more of the investment options then being provided for participant directed investments under the 401(k) Plan and Profit Sharing Plan, excluding ONE Gas common stock.  The Committee and its designees shall establish administrative procedures for allowing Participant direction of deemed investment and the determination of the Investment Return thereon.
3.A Participant shall be allowed to change such designation at least once each calendar quarter, or more frequently as determined by the Committee, in its sole discretion.  Such Investment Return shall be determined and calculated in the manner determined by the Committee, in its sole discretion, and added to or deducted from the amount or amounts of his/her Account periodically, not less frequently than annually.  Such Investment Return Rate shall be so credited to or deducted from the amount or amounts of a Participant’s Account until all payments with respect thereto have been made to the Participant, or to the Participant’s designated Beneficiary pursuant to the Plan.  The Employer shall not be liable or otherwise responsible for any decrease in a Participant’s Account because of the investment performance resulting from application of the foregoing provisions.
Notwithstanding the foregoing, the Employer shall not be required to actually invest amounts deferred by a Participant nor the Account of any Participant in any particular form, type or amount of investment, and no Participant shall have the right to direct or in any manner control the actual investments, if any, made by the Employer or any other person for purposes of providing funds for paying the liabilities of the Employer for benefits or otherwise under the Plan; and a Participant shall not have any ownership or beneficial interest in any such actual investments that may be made by the Employer.  In no event shall any Participant or Beneficiary have a right to receive an amount under the Plan other than that of a general unsecured creditor of the Employer notwithstanding the foregoing provisions with respect to the measurement and determination of a Participant’s Investment Return in his or her Account by reference to the performance of deemed investments in the 401(k) Plan or Profit Sharing Plan investment options designated by the Participant.
4.A Participant shall be entitled to elect to have the Investment Return credited to and deducted from his or her Accounts under the Plan.  A Participant shall make an Election of such Investment Return at the time and in the manner prescribed by the Committee.

33

EXHIBIT D
ONE GAS, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN
Re:    Section 6.2 - Crediting and Debiting of Investment Return,
Other Items To Participant Accounts
Date: January 1, 2018
		
	A.
	The Account of each Participant shall be periodically credited and increased, or debited and reduced, as the case may be, by the amount of Investment Return specified under Section 6.3 of the Plan.

		
	B.
	Except as otherwise provided herein, the Account shall be credited and debited with Investment Return and losses, if any, not less frequently than on a monthly basis after such Accounts have been adjusted for any deferrals, credits, debits, distributions and payments.

		
	C.
	A Participant’s Accounts will be charged with the cost of any deemed purchases of securities and credited with proceeds of any deemed sales of securities which may be considered as made in respect to the Investment Return specified in Exhibit “C” of the Plan by reason of changes in deemed investments designated by such Participant, in substantially the same manner as would occur if such securities were being purchased or sold by a Participant under the 401(k) Plan and/or Profit Sharing Plan.  The Committee may, in its sole discretion, allocate, charge and credit other items and amounts to such deemed purchases and sales in a manner comparable to the administration of such items under the 401(k) Plan and/or Profit Sharing Plan, as determined applicable.

		
	D.
	All of a Participant’s deferrals of Base Salary in a calendar month will be credited and debited with Investment Return from the date it otherwise would have been paid to the Participant.

		
	E.
	A Participant deferral of Bonus will be credited and debited with Investment Return from the date it otherwise would have been paid to the Participant.

		
	F.
	Matching Contributions, Profit Sharing Plan Excess Amounts, Retirement Plan Covered Compensation Excess Amounts and any Supplemental Credit Amounts will be credited and debited with Investment Return from the date such amounts are credited to Participant Accounts.

		
	G.
	Until a Participant or his or her Beneficiary receives his or her entire account, the unpaid balance thereof shall be credited and debited with Investment Return provided in Section 6.2 of the Plan.

		
	H.
	A Retirement Plan Excess Amount shall be determined, taken into account and made payable to a Participant as determined by the Committee in accordance with Section 7.13 of the Plan.

34

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