Document:

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EXHIBIT 4.8

FORM OF STOCK OPTION AGREEMENT

	 	 	 	 	 
	TO:
	 	 	 	 
	 

	 	 

	 	 
	FROM:

	 	Steven J. Malcolm	 	 
	 
	 	 	 	 
	SUBJECT:

	 	Stock Option Award	 	 

You have been selected to receive a stock option grant certain terms of which are set forth in the
attached Nonqualified Stock Option Agreement. Your stock option award is subject to three-year
graded vesting. You may view the vesting schedule for this award on-line.

This stock option award is granted to you in recognition of your role as a key employee whose
responsibilities and performance are critical to the attainment of long-term goals. This award and
similar awards are made on a selective basis and are, therefore, to be kept confidential. It is
granted and subject to the terms and conditions of The Williams Companies, Inc. 2007 Incentive
Plan, as amended from time to time, and the Nonqualified Stock Option Agreement.

If you have any questions about this award, you may contact a dedicated Fidelity Stock Plan
Representative at 1-800-544-9354.

 

 

Name:
                                        

SSN:
                                        

THE WILLIAMS COMPANIES, INC.

2007 INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

This Nonqualified Stock Option Agreement (“Option Agreement”) contains the terms of the Option (as
defined below) granted to you in this Option Agreement. Certain other terms of the Option are
defined in the Plan (as defined below).

     1. Stock Options. Subject to the terms of The Williams Companies, Inc. 2007
Incentive Plan or any successor plan, including any supplements or amendments to it (the “Plan”),
you have been granted the right (“Option”) to purchase from the Company                      shares of the
Company’s Common Stock, par value $1 per share (the “Shares”) effective                     . (the
“Effective Date”). Your Option is exercisable in whole or in part at the exercise price of
                     (the “Option Price”), the closing stock price on
                    , and has an
expiration date of                     . The Option will vest in one-third increments each year for
three years on the anniversary date of the Effective Date beginning the year following the
Effective Date and is exercisable at such times and during such periods as are set forth in this
Option Agreement and the Plan.

     2. Incorporation of Plan. The Plan applies as though it were included in this Option
Agreement. Any capitalized word has a special meaning, which can be found either in the Plan or in
this Option Agreement. You agree to accept as binding, conclusive and final all decisions and
interpretations of the Committee upon any questions arising under the Plan or this Option
Agreement.

     3. Exercise. Except as otherwise provided in this Option Agreement, you may exercise
vested Options, in whole or in part, by delivering a notice of exercise to the Plan’s designated
broker, showing the number of Shares for which the Option is being exercised, and providing payment
in full for the Option Price. To give notice of exercise of an Option and receive instructions on
payment of the Option Price, contact Fidelity at http://netbenefits.fidelity.com or by telephone at
800-544-9354. If you have not signed and delivered this Option Agreement prior to submitting a
notification of such election, submission of your notification of election shall constitute your
agreement with the terms and conditions of this Option Agreement. Notwithstanding the preceding
sentence, the Company reserves the right to require your signature to this Option Agreement prior
to accepting a notification of election to exercise this Option in whole or in part.

     4. Payment. You must pay the Option Price in full by any one or more of the following
methods, subject to approval of the Committee in its sole discretion, (i) subject to applicable
law, in cash through the sale of the Shares acquired on exercise of the Option through a
broker-dealer to whom you have submitted an irrevocable notice of exercise and irrevocable
instructions to deliver promptly to the Company the amount of sale or loan proceeds sufficient to
pay the Option Price; (ii) in cash, by personal check or wire transfer; (iii) in Shares valued at
their Fair Market Value on the date of exercise; (iv) withholding of Shares otherwise deliverable
upon exercise valued at their Fair Market Value on the date of exercise; or (v) in any

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combination
of the above methods. Certificates for any Shares used to pay the Option Price
must be attested to in writing to the Company or delivered to the Company in negotiable form,
duly endorsed in blank or with separate stock powers attached, and must be free and clear of all
liens, encumbrances, claims and any other charges thereon of any kind.

     5. Tax Withholding. Whenever any Options are exercised under the terms of this Option
Agreement, the Company will not deliver your Shares unless you remit or, in appropriate cases,
agree to remit when due the minimum amount necessary to satisfy all of the Company’s federal, state
and local withholding tax requirements relating to your Option or the Shares. The Committee may
require you to satisfy these minimum withholding tax obligations by any (or a combination) of the
following means as determined by the Committee in its sole discretion: (i) a cash payment; (ii)
withholding from compensation otherwise payable to you; (iii) authorizing the Company to withhold
from the Shares otherwise deliverable to you as a result of the exercise of an Option, a number of
Shares having a Fair Market Value, as of the date the withholding tax obligation arises, less than
or equal to the amount of the withholding obligation; or (iv) delivering to the Company
unencumbered Mature Shares having a Fair Market Value, as of the date the withholding tax
obligation arises, less than or equal to the amount of the withholding obligation.

     6. Rights in the Event of Termination of Service.

(a) Rights in the Event of Termination of Service. If your service with the Company and
its Affiliates is terminated for any reason other than death, retirement, Disability or for Cause
as defined below, the Option, to the extent vested on the date of your termination, will remain
exercisable for six months from the date of such termination (but may not be exercised later than
the last day of the original Option Term).

(b) Rights in the Event of Death. If you die while in the service of the Company and its
Affiliates, your Option will immediately vest and the Option shall remain exercisable for a period
of five years from the date of your death (but may not be exercised later than the last day of the
original Option Term) by the person who becomes entitled to exercise your Option after your death
(whether by will or by the laws of descent and distribution, or by means of a written beneficiary
designation you filed with the Stock Administration Department before your death).

(c) Rights in the Event of Retirement or Disability. If your service with the Company and
its Affiliates is terminated for retirement (as defined in the Company’s pension plan) or
Disability (as defined below), your Option will immediately vest and the Option shall remain
exercisable for five years from the date of your termination (but may not be exercised later than
the last day of the original Option Term). The term “Disability” is defined in the Company’s
long-term disability plan in which you participate or are eligible to participate, as determined by
the Committee.

(d) Rights in the Event of Termination for Cause. If your service for the Company or an
Affiliate terminates for Cause (as defined under the Plan and set forth below), any Option
exercisable on or before such termination shall remain exercisable for a period of 30 days from the
date of such termination (but may not be exercised later than the last day of the original Option
Term). As of the date of this Agreement, the Plan defines “Cause” as (i) your willful failure to
substantially perform your duties, other than any such failure resulting from a Disability; or (ii)
your gross negligence or willful misconduct which results in a significantly

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adverse effect upon
the Company or an Affiliate; or (iii) your willful violation or disregard of the Company’s or an
Affiliate’s code of business conduct or other published policy of the
Company or an Affiliate; or (iv) your conviction of a crime involving an act of fraud,
embezzlement, theft, or any other act constituting a felony involving moral turpitude or causing
material harm, financial or otherwise, to the Company or an Affiliate. The Company may change the
definition of Cause under the Plan at any time.

     7. Notices. All notices to the Company or to the Committee must be in writing and
delivered by hand or by mail, addressed to The Williams Companies, Inc., One Williams Center,
Tulsa, Oklahoma 74172, Attention: Stock Administration Department. Notices become effective upon
their receipt by the Company if delivered as described in this section.

     8. Securities Law Compliance. The Company may, without liability for its good faith
actions, place legend restrictions upon Shares obtained by exercising this Option and issue “stop
transfer” instructions requiring compliance with applicable securities laws and the terms of this
Option.

     9. No Right to Employment or Service. Nothing in the Option Agreement or the Plan
shall interfere with or limit in any way the right of the Company or an Affiliate to terminate your
employment or service at any time, nor confer upon you the right to continue in the employ of the
Company and/or Affiliate.

     10. Tax Consultation. You understand you will incur tax consequences as a result of
purchase or disposition of the Shares. You agree to consult with any tax consultants you think
advisable in connection with the purchase of the Shares and acknowledge that you are not relying,
and will not rely, on the Company for any tax advice.

	 	 	 	 	 
	 	THE WILLIAMS COMPANIES, INC.

 	 
	 	By /s/ Steven J. Malcolm
 	 
	 	Steven J. Malcolm 	 
	 	President and CEO 	 
	 

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EXHIBIT 4.9

FORM OF NON-MANAGEMENT DIRECTOR RESTRICTED STOCK UNIT

AGREEMENT

	 	 	 	 	 
	TO:
	 	 	 	 
	 

	 	 

	 	 
	FROM:

	 	Steven J. Malcolm	 	 
	 
	 	 	 	 
	SUBJECT:

	 	2007 Restricted Stock Unit Award	 	 

You have been granted a restricted stock unit award. This award, which is subject to adjustment
under the 2007 Restricted Stock Unit Agreement (the “Agreement”), is granted to you in recognition
of your role as a non-management director for The Williams Companies, Inc. It is granted and
subject to the terms and conditions of The Williams Companies, Inc. 2007 Incentive Plan, as amended
from time to time, and the Agreement.

Subject to all of the terms of the Agreement, you will become entitled to payment of this award
three years after the date on which this award is made.

If you have any questions about this award, you may contact a dedicated Fidelity Stock Plan
Representative at 1-800-544-9354.

 

 

2007 RESTRICTED STOCK UNIT AGREEMENT

     THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”), which contains the terms and
conditions for the Restricted Stock Units (“Restricted Stock Units” or “RSUs”) referred to in the
2007 Restricted Stock Unit Award Letter delivered in hard copy or electronically to Participant
(“2007 Award Letter”), is by and between THE WILLIAMS COMPANIES, INC., a Delaware corporation (the
“Company”) and the individual identified on the last page hereof (the “Participant”).

1. Grant of RSUs. Subject to the terms and conditions of The Williams Companies, Inc. 2007
Incentive Plan, as amended from time to time (the “Plan”), this Agreement and the 2007 Award
Letter, the Company hereby grants an award (the “Award”) to the Participant of                      RSUs
effective                      (the “Effective Date”). The Award gives the Participant the right to
receive the number of shares of the Common Stock of the Company equal to the number of RSUs shown
in the prior sentence, subject to adjustment under the terms of this Agreement. These shares are
referred to in this Agreement as the “Shares.” Until the Participant both becomes entitled to
payment of the Shares under the terms of Paragraph 4 and is paid such Shares under the terms of
Paragraph 5, the Participant shall have no rights as a stockholder of the Company with respect to
the Shares.

2. Incorporation of Plan. The Plan is hereby incorporated herein by reference and all
capitalized terms used herein which are not defined in this Agreement shall have the respective
meanings set forth in the Plan. The Participant acknowledges that he or she has received a copy of,
or has online access to, the Plan and hereby accepts the RSUs subject to all the terms and
provisions of the Plan and this Agreement.

3. Board Decisions and Interpretations. The Participant hereby agrees to accept as binding,
conclusive and final all actions, decisions and/or interpretations of the Board, its delegates, or
agents, upon any questions or other matters arising under the Plan or this Agreement.

4. Entitlement to Payment of Shares.

(a) Except as otherwise provided in Subparagraph 4(b) below, the Participant shall become
entitled to payment of all Shares on the date that is three years after the Effective Date
(not including the Effective Date) (the “Maturity Date”). For example, if the Effective
Date of the Participant’s award under this Agreement is May 17, 2007, the Maturity Date will
be May 17, 2010.

(b) If the Participant dies prior to the Maturity Date while serving as a Non-Management
Director of the Company or his or her service as a Non-Management Director of the Company
terminates for any other reason prior to the Maturity Date, the

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Participant shall become
entitled to payment of all Shares at the time of such death or
other termination of service.

5. Payment of Shares.

(a) All Shares that become payable pursuant to Paragraph 4, above shall be paid immediately
to the Participant following occurrence of the event giving rise to the right to payment or,
in the case of Participant’s death, to the beneficiary of the Participant under the Plan or,
if no beneficiary has been designated, to the Participant’s estate, provided that if the
Participant is a “key employee” within the meaning of Section 409A(a)(B)(i) of the Code, and
such Participant becomes entitled to payment of Shares under Subparagraph 4(b) above as a
result of a “separation from service” as defined in guidance issued under Section 409A of
the Code other than due to the Participant’s death, payment shall not be made sooner than
six (6) months following the date such Participant experienced a “separation from service”
as defined in Section 409A of the Code and guidance thereunder, and provided further, that
all Shares that become payable pursuant to Subparagraph 4(b) above shall be paid not more
than 90 days following the occurrence of the event giving rise to the right to payment
unless otherwise required under applicable law. Upon conversion of RSUs into Shares under
this Agreement, such RSUs shall be cancelled.

(b) Shares that become payable under this Agreement will be paid by the Company by the
delivery to the Participant, or the Participant’s beneficiary or legal representative, as
soon as practicable, after the Participant is entitled to the payment of Shares, of one or
more certificates (or other indicia of ownership) representing shares of Williams Common
Stock equal in number to the number of Shares otherwise payable under this Agreement.

6. Other Provisions.

(a) The Participant understands and agrees that payments under this Agreement shall not be
used for, or in the determination of, any other payment or benefit under any continuing
agreement, plan, policy, practice or arrangement providing for the making of any payment or
the provision of any benefits to or for the Participant or the Participant’s beneficiaries
or representatives, including, without limitation, any employment agreement, any change of
control severance protection plan or any employee benefit plan as defined in Section 3(3) of
ERISA, including, but not limited to qualified and non-qualified retirement plans.

(b) The Participant agrees and understands that, upon payment of Shares under this
Agreement, stock certificates (or other indicia of ownership) issued may be held as
collateral for monies he/she owes to Company or any of its parents, affiliated or subsidiary
companies or their vendor(s) contracted to provide business tools or services for use by
Participant in his or her service as a member of the Board of Directors, including but not
limited to personal loan(s) or Company credit card debt.

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(c) RSUs, Shares and the Participant’s interest in RSUs and Shares may not be sold,
assigned, transferred, pledged or otherwise disposed of or encumbered at any time prior to
the Participant’s becoming entitled to payment of Shares under this Agreement.

(d) With respect to the right to receive payment of the Shares under this Agreement, nothing
contained herein shall give the Participant any rights that are greater than those of a
general creditor of the Company.

(e) The obligations of the Company under this Agreement are unfunded and unsecured. Each
Participant shall have the status of a general creditor of the Company with respect to
amounts due, if any, under this Agreement.

(f) The parties to this Agreement intend that this Agreement meet the applicable
requirements of Section 409A of the Code and recognize that it may be necessary to modify
this Agreement and/or the Plan to reflect guidance under Section 409A of the Code issued by
the Internal Revenue Service. Participant agrees that the Board shall have sole discretion
in determining (i) whether any such modification is desirable or appropriate and (ii) the
terms of any such modification.

(g) The Participant shall become a party to this Agreement by accepting the Award either
electronically or in writing in accordance with procedures of the Board, its delegates or
agents.

(h) Nothing in this Agreement or the Plan shall confer upon the Participant the right to
continue to serve as a director of the Company.

7. Notices. All notices to the Company required hereunder shall be in writing and delivered
by hand or by mail, addressed to The Williams Companies, Inc., One Williams Center, Tulsa, Oklahoma
74172, Attention: Stock Administration Department. Notices shall become effective upon their
receipt by the Company if delivered in the foregoing manner.

8. Tax Consultation. You understand you will incur tax consequences as a result of
acquisition or disposition of the Shares. You agree to consult with any tax consultants you think
advisable in connection with the acquisition of the Shares and acknowledge that you are not
relying, and will not rely, on the Company for any tax advice.

	 	 	 	 	 
	 	THE WILLIAMS COMPANIES, INC.

 	 
	 	By:  	/s/ Steven J. Malcolm
 	 
	 	 	Steven J. Malcolm 	 
	 	 	President and CEO 	 
	 

Participant:
                                        

SSN:
                                        

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