Document:

Termination Agreements

Exhibit 10.3 
 
TERMINATION AGREEMENT 
 
THIS AGREEMENT, dated this 1st day of January, 2003, between ONEOK, Inc., an Oklahoma
corporation, or any division or subsidiary thereof, having its principal office in Tulsa, Oklahoma (the “Corporation”), and              (the “Executive”).

 
W I T N E S S E T H: 
 
WHEREAS, the Executive, as an employee of the Corporation, has
rendered valuable service to the Corporation, and the Corporation wishes to retain the Executive’s services, assuring both itself and the Executive of the continuity of management in the event of any actual or threatened Change in Control of
the Corporation; and 
 
NOW, THEREFORE, it is
hereby agreed by and between the parties as follows: 
 
1.    Term of Agreement.    This Agreement shall commence as of January 1, 2003 and shall continue in effect until January 1, 2004 (the “Term”); provided,
however, that on January 1, 2004 and on each January 1 thereafter, the Term shall automatically be extended and renewed for one (1) year unless either the Executive or the Corporation shall have given written notice to the other of its
election not to renew this Agreement at least ninety (90) days prior thereto that the Term shall not be so extended; provided, further, however, that following the occurrence of a Change in Control, the Term shall not expire before the
expiration of three (3) years after such occurrence. 
 
2.    Termination Payments.    In the event of a Termination (as hereinafter defined) during the Term and within three (3) years after a Change in Control, the Executive shall:

 
a.    Be paid a lump sum
termination payment by the Corporation in an amount equivalent to Number (X) times the Executive’s Annual Compensation, and 
 
b.    Be paid a lump sum payment by the Corporation equal to the Executive’s short-term incentive compensation
“target percentage” under the Corporation’s incentive compensation plan times the midpoint of the Executive’s Pay Grade, prorated for the length of employment during the current performance period, and 
 
c.    Be paid by, or receive from the
Corporation the employee benefits (including, but not limited to, car allowances and coverage under any medical or insurance arrangements or programs) to which the Executive would have been entitled under all employee welfare plans, programs, or
arrangements maintained by the Corporation if the Executive had remained in the employ of the Corporation for the three (3)-year period following Termination. Such employee benefits shall be provided under plans sponsored by the Corporation
on the Occurrence Date or the Termination Date, whichever produces the higher benefits, but if such benefits are not available under Corporation sponsored plans in effect during each of the three (3) years, the 
 

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Corporation shall provide such
benefits to the Executive under plans covering the Executive individually, or otherwise provide or pay such benefits to the Executive. 
 
d.    The lump sum payments described above shall be calculated and paid not later than thirty (30) calendar days
after the Termination Date. Any payment not made within the thirty (30) days shall thereafter bear interest at two percent (2%) over the “prime rate” as published in The Wall Street Journal from time to time, which is the base rate
on corporate loans posted by at least seventy-five percent (75%) of the nation’s thirty (30) largest banks. 
 
3.    Non-Disclosure.    The Executive agrees that the Executive shall not, during the
three (3) years after the date of any such Termination, directly or indirectly, divulge, disclose, or communicate to any other person any trade secrets that the Corporation may use in its business operations. 
 
4.    Definitions.    As used in this Agreement, 
 
a.    A “Change in Control” shall mean the occurrence of any of the following during the term of this
Agreement: 
 
(1)  An acquisition (other
than directly from the Corporation) of any voting securities of the Corporation (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after
which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the then outstanding Shares or the combined voting power of the Corporation’s then
outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred pursuant to this Section, 4(a), Shares or Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter
defined) shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Corporation
or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned or controlled, directly or indirectly, by the Corporation (for purposes of this definition, a “Related
Entity”), (ii) the Corporation or any Related Entity, or (iii) any Person in connection with a “Non-Control Transaction” (as hereinafter defined); 
 
(2)  The individuals who, as of January 1, 2003, are members of the Board of Directors (the
“Incumbent Board”), cease for any reason to constitute at least a majority of the members of the Board of Directors; or, following a Merger which results in a Parent Corporation, the board of directors of the ultimate Parent Corporation;
provided, however, that if the election, or nomination for election by the Corporation’s common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes
of this Agreement, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual
or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors (a
“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 
 

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(3)  The consummation of: 
 
(i)  A merger, consolidation or reorganization with or into the Corporation or in which securities of the Corporation are issued (a “Merger”), unless such Merger is a “Non-Control Transaction.” A
“Non-Control Transaction” shall mean a Merger where: 
 
(A)  the stockholders of the Corporation, immediately before such Merger own directly or indirectly immediately following such Merger at least fifty percent (50%) of the combined voting power of the outstanding voting
securities of (x) the corporation resulting from such Merger (the “Surviving Corporation”) if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not
Beneficially Owned, directly or indirectly by another Person (a “Parent Corporation”), or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; 
 
(B)  the individuals who were members of the Incumbent Board immediately prior to the execution of
the agreement providing for such Merger constitute at least a majority of the members of the board of directors of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate
Parent Corporation; and 
 
(C)  no
Person other than (1) the Corporation, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Corporation or any Related Entity, or (4) any Person who,
immediately prior to such Merger had Beneficial Ownership of thirty percent (30%) or more of the then outstanding Voting Securities or Shares, has Beneficial Ownership of thirty percent (30%) or more of the combined voting power of the outstanding
voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation. 
 
(ii)  A complete liquidation or dissolution of the Corporation; or 
 
(iii)  The sale or other disposition of all or
substantially all of the assets of the Corporation to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this
purpose or the distribution to the Corporation’s stockholders of the stock of a Related Entity or any other assets). 
 
b.    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 
c.    The “Occurrence Date”
shall be the date on which a Change in Control of the Corporation occurs. 
 

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d.    “Shares” means the common stock, par value $.01 per share, of the Corporation and any other securities into which such shares are changed or for which such shares are exchanged. 
 
e.    “Termination” shall mean
termination of the Executive’s employment with the Corporation, within three (3) years after the Occurrence Date and prior to such Executive’s Normal Retirement Date, 
 
(i)  By the Corporation for any reason other than death or Permanent and Total
Disability of the Executive, or for “Just Cause”. The following circumstances shall constitute “Just Cause”: 
 
The Executive’s conviction in a court of law of a felony, or any crime or offense in a court of law of a felony, or any crime or
offense involving misuse or misappropriation of money or property, the Executive’s violation of any covenant, agreement or obligation not to disclose confidential information regarding the business of the Corporation (or a division or
subsidiary); any violation by the Executive of any covenant not to compete with the Corporation (or a division or subsidiary); any act of dishonesty by the Executive which adversely affects the business of the Corporation (or a division or
subsidiary); any willful or intentional act of the Executive which adversely affects the business of, or reflects unfavorably on the reputation of the Corporation (or a division or subsidiary); the Executive’s use of alcohol or drugs which
interferes with the Optionee’s performance of duties as an employee of the Corporation (or a division or subsidiary); or the Executive’s failure or refusal to perform the specific directives of the Corporation’s Board of Directors, or
its officers which directives are consistent with the scope and nature of the Optionee’s duties and responsibilities with the existence and occurrence of all of such causes to be determined by the Corporation, in its sole discretion; provided,
that nothing contained in the foregoing provisions of this paragraph shall be deemed to interfere in any way with the right of the Corporation (or a division or subsidiary), which is hereby acknowledged, to terminate the Optionee’s employment
at any time without cause. 
 
(ii)  By the Executive with the consent of the Board of Directors, or for “Good Reason.” The following circumstances shall constitute “Good Reason”: 
 
A demotion, loss of title or significant authority or
responsibility of the Executive with respect to the Executive’s employment with the Corporation from those in effect on the Occurrence Date, a reduction in salary of the Executive from that received from the Corporation immediately prior to the
Occurrence Date, a reduction in short-term and/or long-term incentive targets from those applicable to the Executive immediately prior to the Occurrence Date, the relocation of the Corporation’s principal executive offices to a location outside
the metropolitan area of Tulsa, Oklahoma, or the Corporation’s requiring a Relocation of principal place of employment of the Executive, or the failure of a successor corporation to 
 

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explicitly
assume this Agreement; provided, however, the Executive may consent in writing to any such demotion, loss, reduction, relocation or successor’s failure to assume. The effect of any written consent of the Executive under this Section 4(e)(ii)
shall be strictly limited to the terms specified in such written consent. The Executive shall give notice of any Termination of the Executive’s employment for Good Reason due to any of the events described above by delivery of written notice
thereof to the Corporation within one hundred twenty (120) days after the first occurrence of the event giving rise to such Good Reason. 
 
f.    “Termination Date” shall mean the date of the Executive’s Termination. 
 
g.    “Annual Compensation”
shall mean the greater of (A) the sum of (i) fifty-two (52) times the Executive’s Weekly Basic Salary for the week last preceding the Occurrence Date, plus (ii) the Executive’s bonus for the year last preceding the Occurrence Date, or
(B)(i) fifty-two (52) times the Executive’s Weekly Basic Salary for the week last preceding the Occurrence Date, plus (ii) the Executive’s target bonus for the current performance period. 
 
h.    “Code” shall mean the
Internal Revenue Code of 1986, as amended. 
 
i.    “Weekly Basic Salary” shall mean the base salary paid to the Executive by the Corporation in the last payroll period of the Corporation ending prior to the Executive’s Termination divided by
the number of weeks included within such payroll period. 
 
j.    “Normal Retirement Date” shall mean the Normal Retirement Date of the Executive under the Retirement Plan for Employees of ONEOK, Inc. and Subsidiaries. 
 
k.    “Permanent and Total
Disability” shall mean a condition of disability of the Executive that comes within the meaning of such term under Section 22(e) of the Code. 
 
l.    “Relocation” shall mean the Corporation requiring the Executive to move and relocate to a new
principal place of the Executive’s employment by the Corporation, which is more than thirty-five (35) miles further from the Executive’s principal place of residence than the Executive’s principal place of employment was prior to such
change. 
 
5.    Section
280G Limitation on Payments. 
 
a.    The Corporation shall make the payment and provide the payments and benefits under Section 2 of this Agreement; provided, however, that if all or any portion of the payments and benefits provided under
Section 2 of this Agreement, either alone or together with other payments and benefits which the Executive receives or is then entitled to receive from the Corporation, would constitute a “parachute payment” within the meaning of Section
280G of the Code, the Corporation shall reduce such payments and benefits provided to the Executive under Section 2 of this Agreement to the extent necessary so that no portion thereof shall be subject to the excise tax imposed by Section 4999 of
the Code; but only if, by reason of such reduction, the net after-tax benefit to the Executive shall exceed the net after-tax benefit if such reduction were not made. “Net after-tax benefit” for these purposes shall mean the sum of (i) the
total amount 
 

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payable to the Executive under
Section 2 of this Agreement, plus (ii) all other payments and benefits which the Executive receives or is then entitled to receive from the Corporation that would constitute a “parachute payment” within the meaning of Section 280G of the
Code, less (iii) the amount of federal income taxes payable with respect to the foregoing calculated at the maximum marginal income tax rate for each year in which the foregoing shall be paid to the Executive (based upon the rate in effect for such
year as set forth in the Code at the time of the payment under Section 2), less (iv) the amount of excise taxes imposed with respect to the payments and benefits described in (i) and (ii) above by Section 4999 of the Code. The amount of any
reduction made under this Section 5(a) in the payment to which the Executive is entitled under Section 2 of this Agreement is hereinafter referred to as the “Relinquished Amount.” 
 
b.    If the Executive’s payment
under Section 2 of this Agreement is reduced under Section 5(a) and, notwithstanding such reduction, the Executive subsequently pays or becomes obligated to pay any excise tax under Section 4999 of the Code on any portion of any payment or benefit
the Executive receives (whether pursuant to this Agreement or otherwise) in connection with the event giving rise to the Executive’s right to receive payments and benefits under Section 2 of this Agreement, the Corporation shall pay to the
Executive an amount equal to the Relinquished Amount, together with interest thereon at the rate set forth in Section 2(g) of this Agreement from the date of the payment to the Executive pursuant to Section 2 of this Agreement to and including the
date of payment of the Relinquished Amount, and an amount (“Special Reimbursement”) which, after payment by the Executive of any federal, state and local taxes, including any further excise tax under Section 4999 of the Code resulting from
all payments and benefits received (whether pursuant to this Agreement or otherwise, and including the Relinquished Amount and this Special Reimbursement), equals the total excise tax paid or payable. 
 
c.    The determination of whether the
payments shall be reduced as provided in this Section 5 and the amount of such reduction shall be made at the Corporation’s expense by an accounting firm retained by the Corporation at the time the calculation is to be performed, or one
selected by the Corporation from among the five largest accounting firms in the United States (the “Accounting Firm”). The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting
calculations and documentation to the Corporation and the Executive within ten (10) days of the Termination Date. If the Accounting Firm determines that no excise tax is payable by the Executive with respect to the payments, it shall furnish the
Executive with an opinion reasonably acceptable to the Executive that no excise tax will be imposed with respect to any such payments and, absent manifest error, such Determination shall be binding, final and conclusive upon the Corporation and the
Executive. If the Accounting Firm determines that an excise tax would be payable, the Executive shall have the right to accept the Determination of the Accounting Firm as to the extent of the reduction, if any, pursuant to this Section 5, or to have
such Determination reviewed by an accounting firm selected by the Executive, at the expense of the Corporation, in which case the determination of such second accounting firm shall be binding, final and conclusive upon the Corporation and Executive.

 
6.    Fees and
Expenses.    The Corporation shall reimburse the Executive on a current basis, for all legal fees, arbitration fees and related expenses incurred by the Executive in 
 

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connection with this Agreement
following a Change in Control, including, without limitation, (a) all such fees and expenses, if any, incurred in contesting any termination of employment or incurred by the Executive in seeking advice with respect to the matters set forth in
Section 2 hereof, or (b) Executive seeking to enforce any benefit provided by this Agreement, in each case, regardless of whether or not the claim is upheld by a court of competent jurisdiction; provided, however, Executive shall be required to
repay any such amounts to the extent that the arbitrator under Section 14 issues a final and non-appealable order determining that the Executive’s position was frivolous. The Corporation shall reimburse the Executive for all reasonable
attorneys’ and accountants’ fees incurred in connection with determining whether a reduction under Section 5(a) is appropriate. 
 
7.    Consideration.    As consideration for the benefits to be provided by the Corporation
under this Agreement, prior to the occurrence of a Change in Control the Executive agrees to deliver to the Corporation thirty (30) calendar days’ prior written notice of any voluntary termination by the Executive of the Executive’s
employment with the Corporation. 
 
8.    Notices.    Any notices, requests, demands, and other communications provided for by this Agreement shall be sufficient if in writing and if sent by registered or certified mail to
the Executive at the last address the Executive has filed in writing with the Corporation or, in the case of the Corporation, at its principal executive offices. 
 
9.    Governing Law.    The provisions of this Agreement shall
be construed in accordance with the laws of the State of Oklahoma. 
 
10.    Amendment.    This Agreement may be amended or canceled only by mutual agreement of the parties in writing and so long as the Executive lives, no person, other than the
parties hereto, shall have any rights under or interest in this Agreement or the subject matter hereof. 
 
11.    Succession.    This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective heirs, legal representatives, successors and assigns. The Corporation shall have the right to assign this Agreement to a parent, affiliate or subsidiary corporation or to any corporation with which it may
merge or consolidate. 
 
12.    Severability.    In the event that all or any part of any provision of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions
of this Agreement or such provision shall be unaffected thereby and shall remain in full force and effect. If any provision of this Agreement or portion thereof is so broad as to be unenforceable it shall be interpreted to be only so broad as is
enforceable. Nothing in this Agreement is intended to or shall be construed to violate any Federal or State law or regulation. 
 
13.    Related Agreements.    This Agreement shall supersede and terminate all prior
individual agreements between the Corporation and the Executive relating to the matters contained herein. The Executive shall not be entitled to participate in ONEOK, Inc.’s Severance Pay Policy. 
 

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14.    Arbitration. 
 
a.    Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or validity thereof, shall be settled by binding arbitration in accordance with the CPR
Non-Administered Arbitration Rules in effect on the date of this Agreement, by a sole arbitrator. 
 
b.    The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. § 1-16, and judgment upon
the award rendered by the Arbitrator may be entered by any court having jurisdiction thereof. 
 
c.    The place of arbitration shall be Tulsa, Oklahoma. 
 
d.    The statute of limitations of the State of Oklahoma applicable to the commencement of a lawsuit shall apply to
the commencement of an arbitration hereunder. 
 
IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Corporation has caused this Agreement to be executed in its name on its behalf, all as of the day and year
first above written. 
 

	 
	
	

	 	 	 Name
 “Executive”

	
	  
 ONEOK, Inc.

	
	 By
	 	  

	 	 	 David Kyle, Chairman,
 Chief Executive Officer and
 President
 “Corporation”

 

8Indemnification Agreement

Exhibit 10.4 
 
INDEMNIFICATION AGREEMENT 
 
This Indemnification Agreement (the “Agreement”), effective as of January 1, 2003, between ONEOK,
Inc., an Oklahoma corporation (the “Corporation”), and              (the “Indemnitee”). 
 
WHEREAS, it is essential to the Corporation to retain and attract as directors and officers the most
capable persons available; 
 
WHEREAS,
Indemnitee is a director or officer of the Corporation; 
 
WHEREAS, both the Corporation and Indemnitee recognize the increased risk of litigation and other claims being asserted against directors and officers of public companies in today’s environment; 
 
WHEREAS, basic protection against undue risk of
personal liability of directors and officers heretofore has been provided through insurance coverage providing reasonable protection at reasonable cost, and Indemnitee has relied on the availability of such coverage; but as a result of substantial
changes in the marketplace for such insurance it has become increasingly more difficult to obtain such insurance on terms providing reasonable protection at reasonable cost; 
 
WHEREAS, in recognition of Indemnitee’s need for substantial protection against personal
liability in order to enhance Indemnitee’s continued service to the Corporation in an effective manner, the Corporation wishes to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the full
extent (whether partial or complete) permitted by law and as set forth in this Agreement, and, to the extent insurance is maintained, for the continued coverage of Indemnitee under the Corporation’s directors’ and officers’ liability
insurance policies; 
 
NOW, THEREFORE, in
consideration of the premises and of Indemnitee continuing to serve the Corporation directly or, at its request, with another enterprise, and intending to be legally bound hereby, the parties hereto agree as follows: 
 
1.    Certain Definitions:

 
(a)  A “Change in
Control” shall mean the occurrence of any of the following during the term of this Agreement: 
 
(1)  An acquisition (other than directly from the Corporation) of any voting securities of the Corporation (the “Voting
Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of twenty percent (20%) or more of the then outstanding Shares or the combined voting power of the Corporation’s then outstanding Voting Securities; provided, however, in determining whether a Change
in Control has occurred pursuant to this Section (1)(a), Shares or 
 

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Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter defined)
shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Corporation or (B)
any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned or controlled, directly or indirectly, by the Corporation (for purposes of this definition, a “Related
Entity”), (ii) the Corporation or any Related Entity, or (iii) any Person in connection with a “Non-Control Transaction” (as hereinafter defined); 
 
(2)  The individuals who, as of February 15, 2001, are members of the Board of Directors (the
“Incumbent Board”), cease for any reason to constitute at least a majority of the members of the Board of Directors; or, following a Merger which results in a Parent Corporation, the board of directors of the ultimate Parent Corporation;
provided, however, that if the election, or nomination for election by the Corporation’s common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes
of this Agreement, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual
or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors (a
“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 
 
(3)  The consummation of: 
 
(i)  A merger, consolidation or reorganization with or into the Corporation or in which securities of the Corporation are
issued (a “Merger”), unless such Merger is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean a Merger where: 
 
(A)  the stockholders of the Corporation, immediately before such Merger, own directly or indirectly immediately following such
Merger, at least fifty percent (50%) of the combined voting power of the outstanding voting securities of (x) the corporation resulting from such Merger (the “Surviving Corporation”) if fifty percent (50%) or more of the combined voting
power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another Person (a “Parent Corporation”), or (y) if there is one or more Parent Corporations, the ultimate
Parent Corporation; 
 
(B)  the
individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at least a majority of the members of the board of directors of (x) the Surviving Corporation, if there is
no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; and 
 
(C)  no Person other than (1) the Corporation, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a
part thereof) that, immediately 
 

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prior to such Merger was maintained by the Corporation or any Related Entity, or (4) any Person who,
immediately prior to such Merger had Beneficial Ownership of thirty percent (30%) or more of the then outstanding Voting Securities or Shares, has Beneficial Ownership of thirty percent (30%) or more of the combined voting power of the outstanding
voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation. 
 
(ii)  A complete liquidation or dissolution of the Corporation; or 
 
(iii)  The sale or other disposition of all or
substantially all of the assets of the Corporation to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this
purpose or the distribution to the Corporation’s stockholders of the stock of a Related Entity or any other assets). 
 
Notwithstanding the foregoing, 
 
(A)  A Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired
Beneficial Ownership of more than the permitted amount of the then outstanding Shares or Voting Securities if: (1) such acquisition occurs as a result of the acquisition of Shares or Voting Securities by the Corporation which, by reducing the number
of Shares or Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Person, provided that if a Change in Control would occur (but for the operation of this subparagraph) as a result of the
acquisition of Shares or Voting Securities by the Corporation, and after such share acquisition by the Corporation, the Subject Person becomes the Beneficial Owner of any additional Shares or Voting Securities which increases the percentage of the
then outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur, or (2) (a) within five business days after a Change in Control would have occurred (but for the operation of this
subparagraph), or if the Subject Person acquired Beneficial Ownership of twenty percent (20%) or more of the then outstanding Shares or the combined voting power of the Corporation’s then outstanding Voting Securities inadvertently, then after
the Subject Person discovers or is notified by the Corporation that such acquisition would have triggered a Change in Control (but for the operation of this subparagraph), the Subject Person notifies the Board of Directors that it did so
inadvertently, and (b) within two business days after such notification, the Subject Person divests itself of a sufficient number of Shares or Voting Securities so that the Subject Person is the Beneficial Owner of less than twenty percent (20%) of
the then outstanding Shares or the combined voting power of the Corporation’s then outstanding Voting Securities. 
 
(B)  A Change in Control shall not be deemed to occur if (1) the Shareholder Group (as defined in the Shareholder Agreement)
acquires Beneficial Ownership of fifteen percent (15%) or more of the Corporation’s Voting Securities pursuant to the terms of the Shareholder Agreement, by and between WAI, Inc. (now known as ONEOK, Inc.) and Western Resources, Inc. dated as
of November 26, 1997 (the “Shareholder Agreement”), until the earlier of (a) the termination of the Shareholder Agreement or (b) the successful consummation of a Buyout Tender Offer as defined in Section 3.6(b) of the Shareholder
Agreement, but upon either of such events, the acquisition or 
 

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existence of such percentage of Beneficial Ownership by Western Resources, Inc. or any of its affiliates
shall constitute a Change in Control or (2) the equity securities of the Corporation owned by the Shareholder Group are in any manner restructured with the approval of a majority of the members of the Incumbent Board (excluding Shareholder Nominees,
as defined in the Shareholder Agreement). 
 
(b)  Claim:  Any threatened, pending or completed action, suit or proceeding, or any inquiry or investigation, whether conducted by the Corporation or any other party, that Indemnitee in good faith believes
might lead to the institution of any such action, suit or proceeding, whether civil, criminal, administrative, investigative or other. 
 
(c)  Exchange Act:  The Securities Exchange Act of 1934, as amended. 
 
(d)  Expenses:  Include
attorney’s fees and all other costs, expenses and obligations paid or incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in
any Claim relating to any Indemnifiable Event. 
 
(e)  Indemnifiable Event:  Any event or occurrence related to the fact that Indemnitee is or was a director, officer, employee, agent or fiduciary of the Corporation, or is or was serving at the request of
the Corporation as a director, officer, employee, trustee, agent or fiduciary of another corporation, partnership joint venture, employee benefit plan, trust or other enterprise, or by reason of anything done or not done by Indemnitee in any such
capacity. 
 
(f) Potential Change in
Control:  Shall be deemed to have occurred if (i) the Corporation enters into an agreement, the consummation of which would result in the occurrence of a Change in Control; (ii) any person (including the Corporation) publicly announces
an intention to take or to consider taking actions which if consummated would constitute a Change in Control; (iii) any person, other than a trustee or other fiduciary holding securities under an employee benefit plan of the corporation or a
corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their ownership of stock in the Corporation, who is or becomes the beneficial owner, directly or indirectly, of securities of
the Corporation representing 9.5 percent (9.5%) or more of the combined voting power of the Corporation’s then outstanding Voting Securities, increases his beneficial ownership of such securities by 5 percent (5%) or more over the percentage so
owned by such person on the date hereof; or (iv) the Board of Directors adopts a resolution to the effect that, for the purposes of this Agreement, a Potential Change in Control has occurred. 
 
(g)  Reviewing Party:  Any
appropriate person or body consisting of a member or members of the Corporation’s Board of Directors or any other person or body appointed by the Board of Directors (including the special, independent counsel referred to in Section 3) who is
not a party to the particular Claim for which Indemnitee is seeking indemnification. 
 
(h)  Shares:  The common stock, par value $.01 per share, of the Corporation and any other securities into which such shares are charged for or for which such shares are
exchanged. 
 

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(i)  Voting Securities:  Any securities of the Corporation which vote generally in the election of directors. 
 
2.    Basic Indemnification Arrangement. 
 
(a)  In the event Indemnitee was, is or becomes a party to or witness or other participant in, a
Claim by reason of (or arising in part out of) an Indemnifiable Event, the Corporation shall indemnify Indemnitee to the fullest extent permitted by law as soon as practicable but in any event no later than thirty (30) days after written demand is
presented to the Corporation, against any and all expenses, judgments, fines, penalties, and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection or in respect of such expenses, judgments,
fines, penalties or amounts paid in settlement) of such claim. If so requested by Indemnitee, the Corporation shall advance (within two (2) business days of such request) any and all Expenses to Indemnitee (an “Expense Advance”).

 
(b)  Notwithstanding the foregoing,
(i) the obligations of the Corporation under Section 2(a) shall be subject to the condition that the Reviewing Party shall not have determined (in a written opinion, in any case in which the special, independent counsel referred to in Section 3
hereof is involved) that Indemnitee would not be permitted to be indemnified under applicable law, and (ii) the obligation of the Corporation to make an Expense Advance pursuant to Section 2(a) shall be subject to the condition that, if, when and to
the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so indemnified under applicable law, the Corporation shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Corporation) for
all such amounts theretofore paid; provided, however, that if Indemnitee has commenced legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, any
determination made by the Reviewing party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse the Corporation for any Expense Advance until a final
judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). If there has not been a Change in Control, the Reviewing Party shall be selected by the Board of Directors, and if there
has been such a Change in Control, the Reviewing Party shall be the special, independent counsel referred to in Section 3 hereof. If there has been no determination by the Reviewing Party or if the Reviewing Party determines that Indemnitee
substantively would not be permitted to be indemnified in whole or in part under applicable law, Indemnitee shall have the right to commence litigation in any court in the state or domicile of Oklahoma having subject matter jurisdiction thereof and
in which venue is proper seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof, and the Corporation hereby consents to service of process and to appear in any such
proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Corporation and Indemnitee. 
 
3.    Change in Control.    The Corporation agrees that if there is a Change in Control of
the Corporation (other than a Change in Control which has been approved by a majority of the Corporation’s Board of Directors who were directors immediately prior to such Change in Control) 
 

5 

then with respect to all matters thereafter arising concerning the rights of Indemnitee to indemnity
payments and Expense Advances under this Agreement or any other agreement or Corporate By-law now or hereafter in effect relating to Claims for Indemnifiable Events, the Corporation shall seek legal advice only from special, independent counsel
selected by Indemnitee and approved by the Corporation (which approval shall not be unreasonably withheld), and who has not otherwise performed services for the Corporation or Indemnitee within the last five (5) years (other than in connection with
such matters). Such counsel, among other things, shall render its written opinion to the Corporation and Indemnitee as to whether and to what extent the Indemnitee would be permitted to be indemnified under applicable law. The Corporation agrees to
pay the reasonable fees of the special, independent counsel referred to above and fully indemnify such counsel against any and all expense (including attorneys’ fees), claims, liabilities, and damages arising out of or relating to this
Agreement or its engagement pursuant hereto. 
 
4.    Establishment of Trust.    In the event of a Potential Change in Control, the Corporation shall, upon written request by Indemnitee, create a Trust for the benefit of the
Indemnitee and from time to time upon written request of Indemnitee shall fund such Trust in an amount sufficient to satisfy any and all Expenses reasonably anticipated at the time of each such request to be incurred in connection with
investigating, preparing for and defending any Claim relating to an Indemnifiable Event, and any and all judgments, fines, penalties and settlement amounts of any and all Claims relating to an Indemnifiable Event from time to time actually paid or
claimed, reasonably anticipated or proposed to be paid. The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by the Reviewing Party, in any case in which the special, independent counsel
referred to above is involved. The terms of the Trust shall provide that upon a Change in Control (i) the Trust shall not be revoked or the principal thereof invaded, without the written consent of the Indemnitee, (ii) the Trustee shall advance,
within two (2) business days of a request by the Indemnitee, any and all Expenses to the Indemnitee (and the Indemnitee hereby agrees to reimburse the Trust under the circumstances under which the Indemnitee would be required to reimburse the
Corporation under Section 2(b) of this Agreement), (iii) the Trust shall continue to be funded by the Corporation in accordance with the funding obligation set forth above, (iv) the Trustee shall promptly pay to the Indemnitee all amounts for which
the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise, and (v) all unexpended funds in such Trust shall revert to the Corporation upon a final determination by the Reviewing Party or a court of competent
jurisdiction, as the case may be, that the Indemnitee has been fully indemnified under the terms of this Agreement, or that it is no longer anticipated that expenses will be incurred or amounts will be paid in connection with the Indemnifiable
Event. The Trustee shall be chosen by the Indemnitee. Nothing in this Section 4 shall relieve the Corporation of any of its obligations under this Agreement. 
 
5.    Indemnification for Additional Expenses.    The Corporation shall indemnify
Indemnitee against any and all expenses (including attorneys’ fees) and, if requested by Indemnitee, shall within two (2) business days of such request advance such expenses to Indemnitee which are incurred by Indemnitee in connection with any
claim asserted against or action brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Corporation under this Agreement or any other agreement or Corporate By-law now or hereafter in effect relating to Claims for
Indemnifiable Events and/or (ii) recovery under any directors’ and officers’ liability insurance 
 

6 

policies maintained by the Corporation, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advance expense payment or insurance recovery as the case may be. 
 
6.    Partial Indemnity, Etc.    If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Corporation for some or a portion of the Expenses, judgments, fines, penalties and amounts paid in settlement of a Claim but not, however, for all of the total amount thereof, the Corporation shall nevertheless
indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any or all
Claims relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith. In connection
with any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified hereunder the burden of proof shall be on the Corporation to establish that Indemnitee is not so entitled. 
 
7.    Notice by Indemnitee and Defense
of Claim.    Indemnitee shall promptly notify the Corporation in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any matter, whether civil,
criminal, administrative, or investigative, but the omission so to notify the Corporation will not relieve it from any liability which it may have to Indemnitee if such omission does not prejudice the Corporation’s rights. If such omission does
prejudice the Corporation’s rights, the Corporation will be relieved from any liability only to the extent of such prejudice; nor will such omission relieve the Corporation from any liability which it may have to Indemnitee otherwise than under
this Agreement. With respect to any Indemnifiable Event as to which Indemnitee notifies the Corporation of the commencement thereof: 
 
(a)  The Corporation will be entitled to participate therein at its own expense; and 
 
(b)  The Corporation jointly with any other
indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee; provided, however, that the Corporation shall not be entitled to assume the defense of any
Indemnifiable event if there has been a Change in Control or if Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Corporation and Indemnitee with respect to such Indemnifiable Event. After notice from
the Corporation to Indemnitee of its election to assume the defense thereof, the Corporation will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other
than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own counsel in such Indemnifiable Event but the fees and expenses of such counsel incurred after notice from the Corporation of its
assumption of the defense thereof shall be at the expense of Indemnitee unless: 
 
(i)  The employment of counsel by Indemnitee has been authorized by the Corporation; 
 

7 

 
(ii)  The Indemnitee shall have reasonably concluded that counsel employed by the Corporation may not adequately represent Indemnitee; 
 
(iii)  The Corporation shall not in fact have employed counsel to assume the defense in such
Indemnifiable Event or shall not in fact have assumed such defense and be acting in connection therewith with reasonable diligence; 
 
in each of which cases the fees and expenses of such counsel shall be at the expense of the Corporation. 
 
(c)  The Corporation shall not settle any
Indemnifiable Event in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent; provided, however, that Indemnitee will not unreasonably withhold his consent to any proposed
settlement. 
 
8.    No
Presumption.    For purposes of this Agreement, the termination of any claim, action, suit, or proceeding, by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo
contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law.

 
9.    Nonexclusivity,
Etc.    The rights of the Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the Corporation’s By-laws or the Oklahoma General Corporation Act or otherwise. To the extent that a
change in the Oklahoma General Corporation Act (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under the Corporation’s By-laws and this Agreement, it is the intent of the
parties hereto that Indemnitee shall enjoy this Agreement or the greater benefits so afforded by such change. 
 
10.    Liability Insurance.    To the extent the Corporation maintains an insurance policy
or policies providing directors’ and officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms to the maximum extent of the coverage under such policy or policies in effect
for any other Corporation director or officer. 
 
11.    Amendments, Etc.    No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 
 
12.    Subrogation.    In the event of payment under this
Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recover of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Corporation effectively to bring suit to enforce such rights. 
 

8 

 
13.    No Duplication of Payments.    The Corporation shall not be liable under this Agreement to make any payment in connection with any claim made against Indemnitee to the extent
Indemnitee has otherwise actually received payment (under any insurance policy, By-law or otherwise) of the amounts otherwise indemnifiable hereunder. 
 
14.    Binding Effect, Etc.    This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation, or otherwise to all or substantially all of the business and/or assets of
the Corporation, spouses, heirs, and personal and legal representatives. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as an officer or director of the Corporation or of any other enterprise at the
Corporation’s request. 
 
15.    Severability.    The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law. 
 
16.    Governing
Law.    This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Oklahoma applicable to contracts made and to be performed in such state without giving effect to the
principles of conflicts of laws. 
 

	 ONEOK,Inc.

	
	 By
	 	  

	 	 	 David Kyle, Chairman,
 Chief Executive Officer and President

 

	 
	
	  

	 Name
 (Indemnitee)

 
 

9

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