Document:

Form of Certificate of Designations

 Exhibit 4.1 
  
 CERTIFICATE OF THE DESIGNATIONS, POWERS, 
 PREFERENCES AND RELATIVE, PARTICIPATING, 
 OPTIONAL OR OTHER RIGHTS, AND THE QUALIFICATIONS, 
 LIMITATIONS OR RESTRICTIONS THEREOF, OF $0.925 SERIES D 
 NON-CUMULATIVE CONVERTIBLE PREFERRED STOCK 
  
 OF

  
 ONEOK, INC. 
  
 PURSUANT TO SECTION 1032 OF THE 
 GENERAL CORPORATION ACT OF THE STATE OF OKLAHOMA 
  

ONEOK, INC., an Oklahoma corporation (the “Corporation”), does hereby certify that the Board of Directors of the Corporation duly adopted the
following resolution, at a meeting duly convened and held on [________ __,] 2003, in respect of a series of Preferred Stock, par value $0.01 per share, of the Corporation, pursuant to authority conferred upon the Board by Article Fourth of the
Certificate of Incorporation of the Corporation and in accordance with Section 1032 of the General Corporation Act of the State of Oklahoma: 
  
 BE IT RESOLVED, that the issuance of a series of Preferred Stock of the Corporation is hereby authorized, and the designation, amount, powers, preferences and relative, participating, optional and
other special rights and qualifications, limitations and restrictions thereof, of the shares of such series of Preferred Stock of the Corporation, are hereby fixed as follows: 
  
 1.    Designation; Class and Amount; Certain Definitions.  The Preferred Stock, the issuance of which is hereby authorized, shall
comprise [        ]1 shares the distinctive serial designation of
which shall be “$0.925 Series D Non-Cumulative Convertible Preferred Stock” which is sometimes herein referred to as “Series D Preferred Stock.” The number of shares of Series D Preferred Stock which are purchased or
otherwise acquired by the Corporation or converted into Common Stock shall be canceled and shall revert to authorized but unissued shares of Series D Preferred Stock. Certain capitalized terms used herein have the meanings specified therefor in
Section 11 below. 
  
 2.    Dividends; Priority. 
  
 (a)    Payments of Dividend; Series D Preferred Stock.  Each Holder of shares of Series D Preferred
Stock shall be entitled to receive, when and if declared by the Board, in respect of each share of Series D Preferred Stock, out of the funds of the Corporation legally available therefor, for each Dividend Period or portion thereof, quarterly cash
dividends in an amount per share equal to $0.23125 from and after the date of issuance of the shares of Series D Preferred Stock (the “Issue Date”), as long as the shares of Series D Preferred Stock remain outstanding. No interest,
or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on shares of Series D Preferred Stock, which are not paid. 
  
 

	1
	 
	Will be 39,892,869 less two times the number of shares of Series A Preferred Stock repurchased by the Corporation. 
 

 (b)    Payment and Record Dates.  Dividends accrued on the Series D Preferred Stock
in respect of each Dividend Period shall be payable, when and if declared by the Board in arrears concurrently with each date of payment (each such date, a “Dividend Payment Date”) by the Corporation of quarterly cash
dividends on the Common Stock in respect of such Dividend Period; provided, however, that if any such day is not a Business Day the applicable Dividend Payment Date shall be the next succeeding day that is a Business Day; and
provided, further that if no quarterly cash dividends are paid on the Common Stock in respect of any such Dividend Period, the Dividend Payment Date shall mean such date as may be determined by the Board within three months following the end
of such Dividend Period; provided, however, dividends payable with respect to the Dividend Period immediately following the Issue Date shall accrue from the Issue Date. Dividends on the Series D Preferred Stock shall accrue on a daily
basis from the commencement of each Dividend Period. Dividends will cease to accrue in respect of any shares of Series D Preferred Stock on the Surrender Date in respect of a conversion pursuant to Section 8(a) or on the Redemption Date in respect
of a redemption. Dividends payable on the Series D Preferred Stock for any Dividend Period constituting less than a full fiscal quarter shall be computed ratably on the basis of a 360-day year of twelve (12) 30-day months. Dividends for any Dividend
Period shall not be cumulative to the extent not paid in full on each Dividend Payment Date. Dividends on the Series D Preferred Stock in respect of any Dividend Period unpaid as of the Dividend Payment Date for such Dividend Period shall
permanently remain unpaid. The foregoing notwithstanding, dividends on account of arrears for any past Dividend Periods may be declared and paid at any time, without reference to any regular Dividend Payment Date. Dividends shall be payable to the
Holders as they appear on the Stock Books not exceeding forty (40) days preceding the relevant Dividend Payment Date. Dividends shall be paid in cash, by wire transfer in immediately available funds to the accounts designated by the respective
Holders in written notices given to the Corporation at least five (5) Business Days prior to the payment date or by such other means as may be agreed to by the Corporation and the respective Holders, such wire transfer to be effected for good value
on or before the Dividend Payment Date. 
  
 (c)    Special Dividends;
Notice.  Notwithstanding anything in this Certificate of Designations to the contrary, the holders of the Series D Preferred Stock shall participate in all Special Dividends on a share-for-share basis with the holders of Common Stock,
as if shares of the Series D Preferred Stock were converted into Common Stock immediately prior to the record date with respect to each such Special Dividend. 
  
 (d)    Priority as to Dividends; Restriction on Dividends, Redemption, etc.  The Corporation shall not, for so long as the Series D Preferred Stock shall remain
outstanding, directly or indirectly, declare or pay or set apart for payment any dividends (including cumulative dividends) or make (or permit any Subsidiary to make) any other distributions on, or payment on account of the purchase, redemption or
other retirement or acquisition for value of the Common Stock, any other capital stock of the Corporation ranking equal to or junior to the Series D Preferred Stock as to dividends or as to distribution of assets upon any liquidation, dissolution or
winding-up of the affairs of the Corporation or any options, warrants or rights to purchase or acquire Common Stock or any such capital stock or any securities convertible into or exchangeable for shares of Common Stock or any such capital stock,
except that such payment of dividends and such other distributions and payments may be made so long as full dividends payable on the Series D Preferred Stock for the Dividend Period commencing immediately prior 

	

	

 
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 to the date of such dividend, distribution or other payment have been or are concurrently paid (or a sum
sufficient for the payment thereof set apart for such payment subject to declaration thereof); provided, however, that the foregoing restrictions shall not apply to: (i) any dividend payable solely in shares of any stock of the
Corporation ranking, as to dividends and as to distribution of assets upon any liquidation, dissolution or winding-up of the affairs of the Corporation, junior to the Series D Preferred Stock (or payable solely in options, warrants or rights to
purchase or acquire any such stock) or (ii) any distribution pursuant to any employee or director incentive or benefit plan or arrangement (including any employment, severance or consulting agreement) of the Corporation or any Subsidiary heretofore
or hereafter adopted or (iii) any distribution pursuant to a redemption, at the stated redemption price, of any rights granted to Holders of Common Stock pursuant to a stockholder rights plan or (iv) any dividend approved in writing by the holders
of at least 66 2/3 percent of all shares of Series D Preferred Stock then outstanding. Holders of shares of Series D Preferred Stock shall be entitled to receive dividends in accordance with the foregoing clause (a) of this Section 2 in preference
to and in priority over any dividend upon any securities junior to the Series D Preferred Stock. 
  
 3.    Voting Rights.  (a) Holders of shares of Series D Preferred Stock, voting together as a single class with holders of shares of Common Stock (and with holders of any other class or series of
stock which may similarly be entitled to vote with the holders of Common Stock) shall be entitled at any meeting of stockholders called for the purpose of voting on (or acting by written consent without need of any advance notice) (i) any proposed
amendment to the Certificate of Incorporation or By-laws which would reasonably have the effect of modifying in any way Section 1, Article Twelfth of the Amended Certificate of Incorporation of the Corporation dated January 15, 1998, electing that
Sections 1145 through 1155 of Title 18 of the Oklahoma General Corporation Law (the “Control Share Acquisition Statute”) shall not apply to the Corporation, or would reasonably cause the Corporation to become subject to (a) the
Control Share Acquisition Statute or (b) any other provisions which are substantially similar to the Control Share Acquisition Statute, to abstain or vote for or against such amendment and (ii) any transaction or series of transactions submitted to
a vote of the stockholders of the Corporation which, if consummated, would constitute a Change in Control, to vote with respect to such transaction(s). When voting together with the holders of shares of Common Stock on any such transaction(s), each
share of Series D Preferred Stock shall carry, as of the record date applicable to such vote, a number of votes equal to the number of votes carried in the aggregate by the number of shares of Common Stock issuable upon conversion of one share of
Series D Preferred Stock into Common Stock in accordance with Section 8 below. 
  
 (b)    Except
as provided by this Section 3 and Sections 4 and 9 below, or as otherwise may be required by applicable law, the Holders of Series D Preferred Stock shall not be entitled, by virtue of their being Holders thereof, to vote in any election of
directors to the Board of the Corporation, or with respect to any other matter submitted to the stockholders of the Corporation. Where a vote of the Holders, voting as a separate class, may be required by applicable law or by this Section 3 or
Section 4 or 9, each share of Series D Preferred Stock shall carry one vote. 
  
 4.    Covenants.  So long as any shares of Series D Preferred Stock are outstanding, the Corporation covenants and agrees with and for the benefit of the Holders of such shares that without the
affirmative vote or consent of Holders of 66 2/3 percent of all shares of the Series D Preferred Stock then outstanding, voting as a separate class in person or by proxy or by written 

	

	

 
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 consent delivered to the Secretary of the Corporation, the Corporation shall not amend, alter or repeal any provision of the Certificate of
Incorporation of the Corporation, this Certificate of Designations, or any amendment or supplement to any of the foregoing, so as to affect adversely the rights, powers, preferences, qualifications, limitations or restrictions of any Holder of
Series D Preferred Stock. 
  
 5.    Optional Redemption.  Subject to the rights
of Holders of shares of Series D Preferred Stock set forth in Section 8 hereof, the Corporation may, at its option, redeem, in the manner provided for in Section 6 hereof, on or after August 1, 2006, all or a portion of the shares of Series D
Preferred Stock at the Redemption Price per share if the Closing Price of the Common Stock exceeds $25.00 for 30 consecutive Trading Days prior to the date notice is given by Corporation pursuant to Section 6 hereof of its intention to redeem all or
a portion of the shares of Series D Preferred Stock pursuant to this Section 5. The “Redemption Price” shall equal the product of (x) $20.00 and (y) the number of shares of Common Stock then issuable upon the conversion of one share
of Series D Preferred Stock. 
  
 6.    Procedure for Redemption.  (a) In the
event that the Corporation shall redeem shares of Series D Preferred Stock pursuant to Section 5 hereof, notice of such redemption (a “Redemption Notice”) shall be mailed by first-class mail, postage prepaid, not less than 30 days
nor more than 90 days, except as provided below, prior to the redemption date (the “Redemption Date”) described in such notice, to the Holders of record of shares to be redeemed at their respective addresses as they shall
appear in the records of the Corporation; provided, however, that failure to give such notice or any defect therein or the mailing thereof shall not affect the validity of the proceeding for the redemption of any shares so to be
redeemed except as to the Holder to whom the Corporation has failed to give such notice or except as to the Holder to whom notice was defective. Each such notice shall state: (i) the Redemption Date; (ii) the number of shares of Series D Preferred
Stock to be redeemed; (iii) the Redemption Price; (iv) the place or places where certificate for such shares are to be surrendered for payment of the redemption price; (v) that dividends on the shares to be redeemed ceased to accrue as of the date
of such notice; and (vi) that the Holder’s right to convert such shares into shares of Common Stock shall terminate on the close of business on the second Business Day preceding such Redemption Date. In the event that the Corporation has
delivered a Redemption Notice to the Shareholder and the Shareholder is then precluded under Section 4.2(a) (b) or (c) of the Registration Rights Agreement from effecting an underwritten offering of Common Stock or Series D Preferred Stock, then the
Redemption Date shall automatically be extended until the ninety-first (91st) day following the date that
the restrictions set forth in Section 4.2(a) (b) or (c) of the Registration Rights Agreement have expired. 
  
 (a)    In the event that fewer than all shares of Series D Preferred Stock represented by a surrendered certificate are to be redeemed hereunder, a new certificate shall be issued at the Corporation’s expense
representing the shares of Series D Preferred Stock not so redeemed. 
  
 (b)    Effective on the
Redemption Date, any shares of Series D Preferred Stock redeemed shall no longer be deemed outstanding, all rights of the Holders thereof as preferred stockholders of the Corporation shall cease and thereupon the certificate(s) theretofore
representing shares of Series D Preferred Stock shall represent only the right to receive the Redemption Price in respect thereof. 

	

 
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 (c)    On or prior to the Redemption Date, the Redemption Price with respect to all the shares of
Series D Preferred Stock to be redeemed shall be deposited with the Corporation’s transfer agent. 
  
 7.    Liquidation Preference.  In the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, the Holders of shares of Series D Preferred
Stock then outstanding shall be entitled to be paid out of the assets of the Corporation available for distribution to its stockholders an amount per share in cash equal to the amount that would be payable on one share of Common Stock (such amount
payable being adjusted appropriately to reflect any stock split, stock dividend, reverse stock split, or any transaction with comparable effect upon the Common Stock and assuming conversion of all shares of Series D Preferred Stock then outstanding
into shares of Common Stock immediately prior to such liquidation, dissolution or winding-up), plus all dividends then due on the Series D Preferred Stock (the “Liquidation Preference”). This entitlement of the Holders of shares of
Series D Preferred Stock shall be satisfied before any similar payment shall be made or any assets distributed to the holders of the Common Stock or any other security junior in rank to the Series D Preferred Stock as to distribution of assets upon
such dissolution, liquidation or winding-up. If the assets of the Corporation are not sufficient to pay in full the liquidation payments payable to all of the Holders of the outstanding shares of Series D Preferred Stock, then the Holders of all
such shares shall share ratably in such distribution of assets in accordance with the respective liquidation preferences to which they are entitled. For the purposes of this section, neither the voluntary sale, conveyance, exchange or transfer (for
cash, shares of stock, securities or other consideration) of all or substantially all of the property or assets of the Corporation nor the consolidation or merger of the Corporation with one or more other corporations shall be deemed to be a
liquidation, dissolution or winding-up, voluntary or involuntary, unless such voluntary sale, conveyance, exchange or transfer shall be in connection with a dissolution or winding up of the business of the Corporation. 
  
 8.    Conversion. 
  
 (a)    Conversion Right.  The Holder of any share or shares of Series D Preferred Stock shall have the right, at any time, at such Holder’s option, to convert,
without the payment of additional consideration, each share of Series D Preferred Stock held by that Holder into one fully paid and nonassessable share of Common Stock (as adjusted pursuant to Section 8(c) hereof); provided, however,
that shares of the Series D Preferred Stock Beneficially Owned by any member of the Shareholder Group shall not be convertible unless the aggregate of the regular cash dividends for the fiscal year immediately prior to such conversion that would
have been payable with respect to all the shares of Common Stock issuable upon the conversion of one share of Series D Preferred Stock is greater than $0.925 (the “Conversion Threshold”); provided, further, that the Shares of Series
D Preferred Stock Beneficially Owned by any member of the Shareholder Group shall not be convertible if such conversion would have a material adverse effect on the exemptions from the Public Utility Holding Act of 1935, as amended, of the
Corporation or any of its Subsidiaries or Parent, the Shareholder or any affiliate of the Shareholder. Special or extraordinary dividends shall not be taken into account in determining whether the Conversion Threshold has been met; provided,
further, that the shares of Series D Preferred Stock Beneficially Owned by any member of the Shareholder Group shall not be convertible if such conversion would have an adverse effect on the exemptions from the Public Utility Holding Company
Act of 1935, as amended, of the Corporation or any of its Subsidiaries or Parent, the Shareholder or any affiliate of the Shareholder. Notwithstanding anything in this Section 8(a) to the contrary, any member of the Shareholder Group may convert
shares of Series D Preferred Stock into shares of Common Stock at any time in connection with, and immediately prior to, a 

	

	

 
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 Transfer pursuant to subsections (a)-(c) and (e) of Section 4.3 of the Shareholder Agreement.

  
 (b)    Conversion Procedures.  (i) Any Holder of shares of Series D
Preferred Stock desiring to convert such shares into Common Stock shall surrender the certificate(s) evidencing such shares of Series D Preferred Stock of the Holder at the office of the Corporation’s transfer agent. Such surrendered
certificate(s), if the Corporation shall so require, shall be duly endorsed to the Corporation or in blank, or accompanied by proper instruments of transfer to the Corporation or in blank, and shall be accompanied by written notice to the
Corporation that the Holder elects so to convert such shares of Series D Preferred Stock, which notice shall specify the name or names (with address or addresses) in which the Holder wishes the certificate(s) evidencing shares of Common Stock to be
issued, in exchange for that certificate or those certificates so surrendered. 
  
 (ii)    The Corporation shall, within five (5) Business Days after such surrender of certificates evidencing shares of Series D Preferred Stock accompanied by written notice and in compliance with any other
conditions contained herein, issue and deliver, or cause to be issued and delivered, to the person(s) for whose account such certificate(s) evidencing shares of Series D Preferred Stock were so surrendered, or to the nominee(s) of such Person(s),
certificates representing the number of full shares of Common Stock to which such Person shall be entitled pursuant to the then-applicable conversion rate. Such conversion shall be deemed to have been made on the date of such surrender of the
certificate(s) evidencing shares of Series D Preferred Stock to be converted (the “Surrender Date”) and the Person(s) entitled to receive the Common Stock deliverable upon conversion of such Series D Preferred Stock shall be treated
for all purposes as the record holder(s) of such Common Stock on such date and thereafter. Conversion of Series D Preferred Stock may otherwise be achieved in accordance with such procedures as the Corporation and a majority of the Holders may
agree. 
  
 (iii)    In the event that fewer than all shares of Series D Preferred
Stock represented by a surrendered certificate are to be converted hereunder, a new certificate shall be issued at the Corporation’s expense representing the shares of Series D Preferred Stock not so converted. 
  
 (iv)    Effective on the day following the Surrender Date, dividends shall cease to accrue on any
shares of Series D Preferred Stock surrendered for conversion, such shares of Series D Preferred Stock shall no longer be deemed outstanding, all rights of the Holders thereof as preferred stockholders of the Corporation shall cease (other than the
right to receive dividends declared or otherwise payable to Holders of Series D Preferred Stock on a record date prior to the Surrender Date) and thereupon the certificate(s) theretofore representing shares of Series D Preferred Stock shall
represent only the right to receive the Common Stock deliverable upon conversion in respect thereof. 
  
 (v)     If any shares of Series D Preferred Stock are surrendered for conversion subsequent to the record date preceding a Dividend Payment Date but on or prior to such Dividend Payment Date (except shares called
for redemption on a redemption date between such record date and such Dividend Payment Date), the Holder of such shares at 

 
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 the close of business on such record date shall be entitled to receive the dividend payable on such shares on such
Dividend Payment Date notwithstanding the conversion thereof. 
  
 (c)    The conversion rate
shall be adjusted from time to time as follows: 
  
 (i)     In case the
Corporation shall, at any time or from time to time while any of the shares of Series D Preferred Stock are outstanding, (A) pay a dividend in shares of its Common Stock, (B) subdivide its outstanding shares of Common Stock into a larger number of
shares, or (C) combine its outstanding shares of Common Stock into a smaller number of shares, the conversion rate in effect immediately prior to such action shall be adjusted so that the Holder of any shares of Series D Preferred Stock thereafter
surrendered for conversion shall be entitled to receive the number of shares of Common Stock which such Holder would have owned or have been entitled to receive immediately following such action had such shares of Series D Preferred Stock been
converted immediately prior thereto. An adjustment made pursuant to this Section 8(c)(i) shall become effective retroactively to immediately after the opening of business on the Business Day following the record date in the case of a dividend and
shall become effective immediately after the opening of business on the Business Day following the effective date in the case of a subdivision or combination. If, as a result of an adjustment made pursuant to this Section 8(c)(i), the Holder of any
shares of Series D Preferred Stock thereafter surrendered for conversion shall become entitled to receive shares of two or more classes of capital stock of the Corporation, the Board of Directors (whose determination shall be conclusive) shall
determine the allocation of the adjusted conversion rate between or among shares of such classes of capital stock. 
  
 (ii)    In case the Corporation shall, at any time or from time to time while any of the shares of Series D Preferred Stock are outstanding, issue rights or warrants to all holders of shares of its Common
Stock entitling them to subscribe for or purchase shares of Common Stock (or securities convertible into or exchangeable for Common Stock) at a price per share less than the current Market Price per share of Common Stock, at such record date, the
conversion rate shall be adjusted so that it shall equal the rate determined by multiplying the conversion rate in effect immediately prior to the date of issuance of such rights or warrants by a fraction, the numerator of which shall be the number
of shares of Common Stock outstanding on the date of issuance of such rights or warrants plus the number of additional shares of Common Stock offered for subscription or purchase, and the denominator of which shall be the number of shares of Common
Stock outstanding on the date of issuance of such rights or warrants plus the number of shares which the aggregate offering price of the total number of shares so offered would purchase at such current market price. For the purposes of this Section
8(c)(ii), the issuance of rights or warrants to subscribe for or purchase securities convertible into Common Stock shall be deemed to be the issuance of rights or warrants to purchase the shares of Common Stock into which such securities are
convertible at an aggregate offering price equal to the aggregate offering price of such securities plus the minimum aggregate amount (if any) payable upon conversion of such securities into shares of Common Stock; provided, however,
that if all of the shares of Common Stock subject to such rights or warrants have not been issued when such rights or warrants expire, then the conversion rate shall promptly be readjusted to the conversion rate which would then be 

 
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 in effect had the adjustment upon the issuance of such rights or warrants been made on the basis of the actual number of
shares of Common Stock issued upon the exercise of such rights or warrants. The foregoing provision shall not apply to issuances of rights pursuant to a stockholder rights plan provided that such rights are issued together with the Common Stock upon
conversion of the Series D Preferred Stock. An adjustment made pursuant to this Section 8(c)(ii) shall become effective retroactively immediately after the record date for the determination of stockholders entitled to receive such rights or
warrants. 
  
 (iii)    In case the Corporation shall, at any time or from time to
time while any of the shares of Series D Preferred Stock are outstanding, distribute to all holders of shares of its Common Stock evidences of its indebtedness or securities or assets (excluding cash dividends payable out of consolidated earnings or
retained earnings or dividends payable in shares of Common Stock) or rights or warrants to subscribe for securities of the Corporation or any of its subsidiaries (excluding those referred to in Section 8(c)(ii)), then in each such case the
conversion rate shall be adjusted so that it shall equal the rate determined by multiplying the conversion rate in effect immediately prior to the date of such distribution by a fraction, the numerator of which shall be the current Market Price per
share of the Common Stock on the record date referred to below, and the denominator of which shall be such current market price per share of the Common Stock less the then fair market value of the portion of the assets or evidences of indebtedness
or securities or assets so distributed or of such subscription rights or warrants applicable to one share of Common Stock. Such adjustment shall become effective retroactively immediately after the record date for the determination of stockholders
entitled to receive such distribution. 
  
 (iv)    The Corporation shall be
entitled at its option to make such additional adjustments in the conversion rate, in addition to those required by subsections 8(c)(i), 8(c)(ii) and 8(c)(iii), as shall be necessary in order that any dividend or distribution in shares of stock,
subdivision or combination of shares of Common Stock, issuance of rights or warrants, evidences of indebtedness or assets (other than cash dividends payable out of consolidated earnings or retained earnings) referred to above, shall not be taxable
to the Holders of shares of Series D Preferred Stock. 
  
 (v)     In any case in
which this Section 8(c) shall require that an adjustment be made retroactively immediately following a record date, the Corporation may elect to defer (but only for five (5) Business Days following the filing of the statement referred to in Section
8(c)(vii)) issuing to the holder of any shares of this Series converted after such record date (A) the shares of Common Stock and other capital stock of the Corporation issuable upon such conversion over and above (B) the shares of Common Stock and
other capital stock of the Corporation issuable upon such conversion on the basis of the conversion rate prior to adjustment. 
  
 (vi)     Notwithstanding any other provisions of this Section 8(c), the Corporation shall not be required to make any adjustment of the conversion rate (A) in respect of any Special
Dividend in which the holders of Series D Preferred Stock participate as provided in Section 2(c) or (B) unless such adjustment would require an increase or decrease of at 

 
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 least 1% in such rate (any lesser adjustment shall be carried forward and shall be made at the time of and together with
the next subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to an increase or decrease of at least 1% in such rate). 
  
 (vii)    Whenever an adjustment in the conversion rate is required, the Corporation shall forthwith place on file with its Transfer
Agent a statement signed by its Chief Executive Officer, Chief Financial Officer or a Vice President and by its Secretary, Assistant Secretary, Treasurer or Assistant Treasurer, stating the adjusted conversion rate determined as provided herein.
Such statements shall set forth in reasonable detail such facts as shall be necessary to show the reason and the manner of computing such adjustment. Promptly after the adjustment of the conversion rate, the Corporation shall mail a notice thereof
to each holder of shares of Series D Preferred Stock. 
  
 (d)   Reservation of Shares;
etc.  (i) The Corporation shall at all times reserve and keep available, free from preemptive rights, out of its authorized and unissued stock, such number of shares of its Common Stock as shall from time to time be sufficient to
effect the conversion of all shares of the Series D Preferred Stock from time to time outstanding, solely for the purpose of effecting such conversion. The Corporation shall, from time to time, in accordance with the laws of the State of Oklahoma,
increase the authorized number of shares of Common Stock if at any time the number of shares of authorized and unissued Common Stock shall not be sufficient to permit the conversion of all the then-outstanding shares of Series D Preferred Stock.

  
 (ii)     If any shares of Common Stock required to be reserved hereunder for
purposes of conversion require registration with or approval of any governmental authority under any Federal or state law before such shares may be issued upon conversion, the Corporation shall, in good faith and as expeditiously as possible, cause
such shares to be duly registered or approved as the case may be. If the Common Stock is listed on the New York Stock Exchange or any other national or foreign securities exchange, the Corporation shall, if permitted by the rules of such exchange,
list and keep listed on such exchange, upon official notice of issuance, all shares of Common Stock issuable upon conversion of Series D Preferred Stock. 
  
 (iii)    The Corporation will pay any and all taxes that may be payable in respect of the issuance or delivery of shares of Common Stock
upon conversion of shares of Series D Preferred Stock pursuant hereto. The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Common Stock in
a name other than that in which the shares of Series D Preferred Stock so converted were registered and no such issuance or delivery shall be made unless and until the person requesting such issuance has paid to the Corporation the amount of any
such tax or has established to the satisfaction of the Corporation that such tax has been paid. 
  
 (e)  
Reclassifications, Consolidations, Mergers or Sales of Assets.  In case of (i) any reclassification or change of outstanding shares of Common Stock (other than a change in par value or from par value to no par value or from no par
value to par value, or as a result of a subdivision or combination), (ii) any consolidation or merger of the Corporation with one or 

 
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 more other corporations (other than a consolidation or merger in which the Corporation is the continuing corporation and which does not result
in any reclassification or change of outstanding shares of Common Stock issuable upon conversion of Series D Preferred Stock), (iii) any sale or conveyance to another corporation or other entity of all or substantially all of the property of the
Corporation, or (iv) any other transaction which would constitute a Change in Control of the Corporation, then the Corporation, or such successor corporation or other entity, as the case may be, shall make appropriate provision so that the holder of
each share of Series D Preferred Stock then outstanding shall have the right to convert such share into the kind and amount of shares of stock or other securities and property receivable upon such consolidation, merger, sale, reclassification,
change or conveyance by a holder of the number of shares of Common Stock into which such shares of Series D Preferred Stock might have been converted immediately prior to such consolidation, merger, sale, reclassification, change or conveyance,
subject to adjustment which shall be as nearly equivalent as may be practicable to the adjustments provided for in Section 8(c). The provisions of this paragraph shall apply similarly to successive consolidations, mergers, sales or conveyances.

  
 9.     Priority.  The Series D Preferred Stock shall be senior in rank, both
as to dividends and as to distribution of assets upon any liquidation, dissolution or winding-up of the affairs of the Corporation, to the Common Stock, or any class of equity securities of the Corporation which by its terms are junior to the Series
D Preferred Stock, and shall not be junior in rank with respect to any class or series of Preferred Stock that may be issued by the Corporation, unless the Holders of 66 2/3 percent of the outstanding shares of the Series D Preferred Stock shall
consent to the creation, reclassification or authorization of any class or series of the Corporation’s capital stock ranking prior to the Series D Preferred Stock as to dividends or as to distributions of assets upon liquidation, dissolution or
winding-up of the Corporation, whether voluntary or involuntary, or any security convertible into shares of such class or series. 
  
 10.    Notices.  The Corporation shall provide notice to each Holder of any action taken or proposed to be taken or any determination made by the Corporation and/or the Shareholder under the terms
of this Certificate of Designations. Notice of any such action or determination by the Corporation and/or the Shareholder and all other notices and other communications provided for in this Certificate of Designations shall be delivered by facsimile
and by reputable overnight courier, 
  
 (a)    if to the Corporation, to: 

 
 ONEOK, Inc. 
 100 West Fifth Street 
 Tulsa, Oklahoma 74103 
 Facsimile: (918) 588-7971 
 Attn: Chief Executive Officer 
  
 with a copy to: 
  
 ONEOK, Inc. 

 
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 100 West Fifth Street 
 Tulsa, Oklahoma 74103 
 Facsimile: (918) 588-7971 
 Attn: General Counsel 
  
 or such other address as the Corporation shall have furnished to the Holders in writing,

  
 (b)    if to a Holder and/or the Shareholder, to the address and facsimile number of such
Holder listed on the Stock Books of the Corporation. 
  
 11.    Definitions.  Certain capitalized terms are used herein as defined below: 
  
 “Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls or is controlled by or is under common control with such Person.
For the purposes of this definition, “control,” when used with respect to any particular Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Beneficial Owner” (and, with correlative meanings, “Beneficially Own” and “Beneficial Ownership”) of any interest means a Person who, together with his, her or its
Affiliates, is or may be deemed a beneficial owner of such interest for purposes of Rule 13d-3 or 13d-5 under the Securities Exchange Act of 1934, as amended, or who, together with his, her, or its Affiliates, has the right to become such a
beneficial owner of such interest (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise, conversion or exchange of any warrant, right or other
instrument, or otherwise. 
  
 “Board” shall mean the Board of Directors of the Corporation in office
at the applicable time, as elected in accordance with the By-Laws of the Corporation and with the Shareholder Agreement. 
  
 “Business Day” means any day other than a Saturday, a Sunday, a day on which the New York Stock Exchange is closed or a day on which state or federally chartered banking institutions in New York, New York are not
required to be open. 
  
 “By-Laws” shall mean the By-Laws of the Corporation, as they may be amended
from time to time. 
  
 “Certificate of Designations” means this Certificate of Designations, Powers,
Preferences and Relative, Participating, Optional or other Rights, and the Qualifications, Limitations or Restrictions Thereof, creating the Series D Preferred Stock. 
  
 “Certificate of Incorporation” shall mean the Certificate of Incorporation of the Corporation, as it may be amended from time to time. 

 
 “Change in Control” shall mean the occurrence of any one of the following events: 

 
 11 

	 	(1)
	 
	any Person (other than the Shareholder and/or its Affiliates) becoming the Beneficial Owner, directly or indirectly, 35% or more of the Securities entitled to
vote generally in the election of directors, pursuant to the consummation of a merger, consolidation, sale of all or substantially all of the Corporation’s assets, share exchange or similar form of corporate transaction involving the
Corporation or any of its subsidiaries that requires the approval of the Corporation’s shareholders, whether for such transaction or the issuance of securities in such transaction; provided, however, that the event described in
this paragraph (1) shall not be deemed to be a Change in Control if it occurs as the result of any of the following acquisitions: (A) by any employee benefit plan sponsored or maintained by the Corporation or any Affiliate, or (B) by any underwriter
temporarily holding Securities pursuant to an offering of such Securities; 
 

  

	 	(2)
	 
	the consummation of a merger, consolidation, sale of all or substantially all of the Corporation’s assets, share exchange or similar form of corporate
transaction involving the Corporation or any of its subsidiaries that requires the approval of the Corporation’s shareholders, whether for such transaction or the issuance of securities in such transaction, unless immediately following such
transaction more than 50 percent of the total voting power of (x) the corporation resulting from such transaction, or (y) if applicable, the ultimate parent corporation that directly or indirectly has Beneficial Ownership of 100 percent of the
securities eligible to elect directors of such resulting corporation, is represented by Securities entitled to vote generally in the election of directors that were outstanding immediately prior to such transaction (or, if applicable, shares into
which such Securities were converted pursuant to such transaction), and such voting power among the holders of such Securities that were outstanding immediately prior to such transaction is in substantially the same proportion as the voting power of
such Securities among the holders thereof immediately prior to such transaction; or 
 

  

	 	(3)
	 
	the consummation of a plan of complete liquidation or dissolution of the Corporation. 
 

  

“Closing Price” for each Trading Day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the
closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system of the New York Stock Exchange or, if the Common Stock is no longer listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system with respect to the principal national securities exchange on which the Common Stock is then listed or admitted to trading or if the Common Stock is no longer listed or
admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the National Association of Securities Dealers, Inc.
Automated Quotations System or such other system then in use, or, if on any such date the Common Stock is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a
market in such security selected by a majority of the Board or, if on any such date no market maker is making a market in such security, the fair value as determined in good faith by a 

 
 12 

 majority of the Board based upon the opinion of an independent investment banking firm of recognized standing. 
  
 “Common Stock” means the Common Stock of Oneok, Inc. 
  
 “Control Share Acquisition Statute” has the meaning specified in Section 3(a) above. 
  
 “Corporation” has the meaning specified in the preamble. 
  
 “Dividend Payment Date” has the meaning specified in Section 2(b) above. 
  
 “Dividend Period” means the applicable period from (and including) the Issue Date to the end of the first fiscal quarter after the Issue Date, and each fiscal quarter thereafter. 
  
 “Holder” means a holder of record of a share or shares of Series D Preferred Stock. 
  
 “Issue Date” has the meaning specified in Section 2(a) above. 
  
 “Liquidation Preference” has the meaning specified in Section 7 above. 
  
 The “Market Price” for the Common Stock shall mean the average of the Closing Prices for such Common Stock for the twenty (20) Trading Days immediately
prior to the date on which the Market Price is being determined; provided, however, that in the event that the current per share market price of the Common Stock is determined during a period following the announcement by the
Corporation of (a) a dividend or distribution on the Common Stock payable in shares of Common Stock or securities convertible into Common Stock or (b) any subdivision, combination or reclassification of the Common Stock and prior to the expiration
of 20 Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately
adjusted to take into account ex-dividend trading or the effects of such subdivision, combination or reclassification. 
  
 “Parent” means Westar Energy, Inc., a Kansas corporation. 
  
 “Person” means any individual, corporation, partnership, joint venture, trust, unincorporated organization, government or any agency or political subdivision thereof, or any other entity. 
  
 “Redemption Date” has the meaning specified in Section 6. 
  
 “Redemption Price” has the meaning specified in Section 5. 
  
 “Securities” shall mean any securities of the Corporation. 
  
 “Series D Preferred Stock” has the meaning specified in Section 1 above. 
  
 “Shareholder” means Westar Industries, Inc, a Delaware corporation. 

 
 13 

  
 “Shareholder Agreement” means the Shareholder Agreement, dated
as of January __, 2003 among ONEOK, Parent and the Shareholder. 
  
 “Shareholder Group” shall mean
Parent, the Shareholder, any Affiliate of the Shareholder and any Person with whom any Shareholder or any Affiliate of any Shareholder is part of a 13D Group. 
  
 “Special Dividend” means a dividend declared or paid on the Common Stock in respect of a recapitalization, spin-off, reorganization or other extraordinary transaction of the
Corporation. 
  
 “Stock Books” means the stock transfer books of the Corporation relating to its
Common Stock and Preferred Stock. 
  
 “Subsidiary” shall mean, with respect to any corporation (the
“ultimate parent”) any other corporation, association, or other business entity of which more than 50% of the shares of the voting stock are owned or controlled, directly or indirectly, by the ultimate parent or one or more
Subsidiaries of the ultimate parent, or by the ultimate parent and one or more of its Subsidiaries. 
  
 “Surrender Date” has the meaning specified in Section 8(b)(ii) above. 
  
 “Trading Day” shall mean a day on which the principal national securities exchange on which the Common Stock is listed or admitted to trading is open for the transaction of business. 
  
 “Transfer” shall mean any sale, transfer, pledge, encumbrance or other disposition to any Person. 

 
 14 

  
 IN WITNESS WHEREOF, ONEOK, INC. has caused this Certificate of Designations to be
made under the seal of the Corporation and signed and attested by the undersigned officers of the Corporation this [___] day of [        ], 2003. 
  

 
 
	 ONEOK, INC.
 
	 
	 By____________________________
 
	 Name:
 
	 Title:
 

 
  
 
	 
	 (Corporate Seal)
 
	 
	 Attest:
 
	 
	 By________________________
 
	 Name:
 
	 Title:
 

 

 
 15Transaction Agreement

  
 Exhibit 10.1 
  
 
 
 TRANSACTION AGREEMENT 
  
 among 
  
 ONEOK, INC., 
 an Oklahoma corporation, 
  
 WESTAR ENERGY, INC.,

 a Kansas corporation, 
  
 and

  
 WESTAR INDUSTRIES, INC., 
 a
Delaware corporation 
  
 Dated as of January 9, 2003 
  
 

 

 TABLE OF CONTENTS 
  
 
	  	  	  	  	 Page
 
	 
	 ARTICLE I
 DEFINITIONS
 	  	  
	 
	 Section 1.1.
 	  	 Certain Definitions
 	  	 2
 
	 Section 1.2.
 	  	 Other Defined Terms
 	  	 3
 
	 
	 ARTICLE II
 THE OFFERING; THE
REPURCHASE
 	  	  
	 
	 Section 2.1.
 	  	 The Offering
 	  	 5
 
	 Section 2.2.
 	  	 The Repurchase
 	  	 5
 
	 Section 2.3.
 	  	 Lock-Up
 	  	 5
 
	 Section 2.4.
 	  	 Waiver; Consent
 	  	 5
 
	 
	 ARTICLE III
 SHAREHOLDER
AGREEMENT; REGISTRATION RIGHTS AGREEMENT; THE
 EXCHANGE
 	  	  
	 
	 Section 3.1.
 	  	 Effectiveness of Transaction Documents
 	  	 6
 
	 Section 3.2.
 	  	 The Exchange
 	  	 6
 
	 Section 3.3.
 	  	 The Closing
 	  	 6
 
	 Section 3.4.
 	  	 Shelf Registration
 	  	 7
 
	 
	 ARTICLE IV
 REPRESENTATIONS
AND WARRANTIES
 	  	  
	 
	 Section 4.1.
 	  	 Representations and Warranties of the Company
 	  	 7
 
	 Section 4.2.
 	  	 Representations and Warranties of the Parent and the Shareholder
 	  	 8
 
	 
	 ARTICLE V
 COVENANTS
 	  	  
	 
	 Section 5.1.
 	  	 Commercially Reasonable Efforts
 	  	 9
 
	 Section 5.2.
 	  	 KCC Approval
 	  	 9
 
	 
	 ARTICLE VI
 CONDITIONS TO THE
REPURCHASE AND THE EXCHANGE
 	  	  
	 
	 Section 6.1.
 	  	 Conditions to Obligations of Each Party
 	  	 9
 
	 Section 6.2.
 	  	 Conditions to the Obligations of Parent and the Shareholder
 	  	 10
 
	 Section 6.3.
 	  	 Conditions to the Obligations of the Company
 	  	 10
 

 

 
 i 

  
 
	 
	 ARTICLE VII
 TERMINATION
 	  	  
	 
	 Section 7.1.
 	  	 Termination
 	  	 10
 
	 
	 ARTICLE VIII
 MISCELLANEOUS
 	  	  
	 
	 Section 8.1.
 	  	 Injunctive Relief
 	  	 10
 
	 Section 8.2.
 	  	 Successors and Assigns
 	  	 11
 
	 Section 8.3.
 	  	 Amendments; Waiver
 	  	 11
 
	 Section 8.4.
 	  	 Notices
 	  	 11
 
	 Section 8.5.
 	  	 Applicable Law
 	  	 12
 
	 Section 8.6.
 	  	 Headings
 	  	 12
 
	 Section 8.7.
 	  	 Integration
 	  	 12
 
	 Section 8.8.
 	  	 Severability
 	  	 13
 
	 Section 8.9.
 	  	 Consent to Jurisdiction
 	  	 13
 
	 Section 8.10.
 	  	 Counterparts
 	  	 13
 

 
  
 Exhibit A     -     Form of Certificate of
Designations 
 Exhibit B     -     Form of Amended and Restated Rights Agreement 
  

TRANSACTION AGREEMENT 
  
 TRANSACTION AGREEMENT, dated as of January 9, 2003 (this “Agreement” among ONEOK, Inc., an Oklahoma corporation (the “Company”), WESTAR ENERGY, Inc., a Kansas corporation (“Parent”),
and WESTAR INDUSTRIES, Inc., a Delaware corporation and a wholly owned direct subsidiary of Parent (the “Shareholder”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company intends to make a public offering (the
“Offering”) of shares of the common stock, par value $0.01 per share, of the Company (the “Common Stock”) and such other securities as the Company may offer (the “Other Securities”); 

 
 WHEREAS, the Company desires to use a portion of the proceeds of the Offering to repurchase (the “Repurchase”)
from the Shareholder a portion of the shares of the Series A Convertible Preferred Stock, par value $0.01 per share, of the Company (the “Series A Preferred Stock”) and the Shareholder desires to sell such shares of the Series A
Preferred Stock to the Company; and 
  
 WHEREAS, the Company desires to modify the terms of the Series A Preferred
Stock by exchanging (the “Exchange”) shares of newly issued $0.925 Series D Non-Cumulative Convertible Preferred 

 
 1 

 Stock, par value $0.01 per share, of the Company (the “Series D Preferred Stock”) for the shares of the Series A Preferred
Stock held by the Shareholder. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.1.    Certain Definitions.  As used herein, the following terms shall have the following
meaning: 
  
 “Business Day” shall mean any day, other than a Saturday, Sunday or a day on which
banking institutions in Tulsa, Oklahoma and New York, New York are authorized or obligated by law or executive order to close. 
  
 “Cash Equivalents” shall mean (i) marketable securities (A) issued or directly and unconditionally guaranteed as to interest and principal by the United States of America or (B) issued by any agency of the United
States of America the obligations of which are backed by the full faith and credit of the United States of America, in each case maturing within one year after such date; (ii) marketable direct obligations issued by any state of the United States of
America or the District of Columbia or any political subdivision or instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition thereof, a rating of at least A-1 from Standard &
Poor’s Ratings Group, a division of The McGraw Hill Corporation (“S&P”) or at least P-1 from Moody’s Investor Services, Inc. (“Moody’s”); (iii) commercial paper maturing no more than one year from
the date of creation thereof and having, at the time of acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iv) certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or
bankers’ acceptances maturing within one year after such date and issued or accepted by, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America
or any state thereof or the District of Columbia that has combined capital and surplus and undivided profits of not less than $500,000,000; (v) fully collateralized repurchase agreements with a terms of not more than 30 days for securities described
in clause (i) or (ii) above and entered into with any commercial bank satisfying the requirements of clause (iv) above; and (vi) shares of any money market mutual fund that (a) complies with the criteria set forth in Securities and Exchange
Commission Rule 2a-7 under the Investment Company Act of 1940, (b) had net assets of not less than $500,000,000, and (c) has the highest rating obtainable from either S&P or Moody’s. 
  

“Conversion Factor” shall be an amount equal to, at any time, the number of shares of Common Stock into which one share of Series A Preferred Stock is
then convertible. 
  
 “Gross Repurchase Amount” shall mean the sum of the Repurchase Amount and the
Shareholder Allocated Expenses. 
  
 “KCC” shall mean the Kansas Corporation Commission.

 
 2 

  
 “Law” shall mean any federal, state, local or foreign law,
statute, ordinance, rule, regulation, judgment, injunction, order or decree. 
  
 “Net Proceeds”
shall mean the proceeds of the Offering after deducting the Offering Expenses. 
  
 “NYSE” shall mean
the New York Stock Exchange. 
  
 “Offering Price” shall mean the per share offering price of the
Common Stock in the Offering before deducting the Offering Expenses. 
  
 “Offering Expenses” shall
mean all fees, expenses, underwriting commissions and discounts, incurred or paid by the Company in connection with the Offering, including, without limitation, attorneys’ and accountants’ fees, filing fees and printing costs.

  
 “OGCA” shall mean the Oklahoma General Corporation Act. 
  
 “Prior Registration Rights Agreement” shall mean the Registration Rights Agreement, dated as of November 26, 1997,
between WAI, Inc. and Western Resources, Inc. 
  
 “Prior Shareholder Agreement” shall mean the
Shareholder Agreement, dated as of November 26, 1997, between WAI, Inc. and Western Resources, Inc. 
  
 “Repurchase Amount” shall be an amount equal to 50% of the Net Proceeds (or such greater percentage of the Net Proceeds as the Company may, in its sole discretion, determine), not to exceed $250,000,000.

  
 “Securities Act” shall mean the Securities Act of 1933, as amended. 
  
 “SEC” shall mean the United States Securities and Exchange Commission. 
  
 “Shareholder Allocated Expenses” shall mean an amount equal to the Offering Expenses multiplied by a fraction, the
numerator of which is the Repurchase Amount and the denominator of which is the Net Proceeds. 
  
 “Shares” shall mean all the shares of Common Stock or Series D Preferred Stock held by the Shareholder upon consummation of the Exchange and all shares of Common Stock issued or issuable upon conversion of the Series
D Preferred Stock held upon consummation of the Exchange by the Shareholder and all shares of Common Stock issued or issuable, directly or indirectly, with respect to such shares of Common Stock by way of stock dividend, stock split or combination
of shares. 
  
 “Termination Date” shall mean February 28, 2003 or such later date as may be mutually
agreed upon by the parties hereto. 
  
 Section 1.2.    Other Defined Terms.  The
following terms shall have the meanings defined for such terms in the Sections set forth below 
  
 Term                                    
                                        
                                        
                                        
                Location 

 
 3 

  
 
	 Agreement
 	  	 Preamble
 
	 Business Day
 	  	 Section 1.1
 
	 Cash Equivalents
 	  	 Section 1.1
 
	 Closing
 	  	 Section 3.3
 
	 Closing Date
 	  	 Section 3.3
 
	 Common Stock
 	  	 Recitals
 
	 Company
 	  	 Preamble
 
	 Conversion Factor
 	  	 Section 1.1
 
	 Exchange
 	  	 Recitals
 
	 Gross Repurchase Amount
 	  	 Section 1.1
 
	 KCC
 	  	 Section 1.1
 
	 Law
 	  	 Section 1.1
 
	 Lock-Up Period
 	  	 Section 2.6
 
	 Moody’s
 	  	 Section 1.1
 
	 Net Proceeds
 	  	 Section 1.1
 
	 NYSE
 	  	 Section 1.1
 
	 Offering
 	  	 Recitals
 
	 Offering Expenses
 	  	 Section 1.1
 
	 Offering Price
 	  	 Section 1.1
 
	 Offering Registration Statement
 	  	 Section 2.1
 
	 OGCA
 	  	 Section 1.1
 
	 Other Securities
 	  	 Recitals
 
	 Parent
 	  	 Preamble
 
	 Prior Registration Rights Agreement
 	  	 Recitals
 
	 Prior Shareholder Agreement
 	  	 Recitals
 
	 Registration Rights Agreement
 	  	 Section 3.1
 
	 Repurchase
 	  	 Recitals
 
	 Repurchase Shares
 	  	 Section 2.2
 
	 Rights Plan
 	  	 Section 3.2(c)
 
	 S&P
 	  	 Section 1.1
 
	 SEC
 	  	 Section 1.1
 
	 Securities Act
 	  	 Section 1.1
 
	 Series A Preferred Stock
 	  	 Recitals
 
	 Series D Preferred Stock
 	  	 Recitals
 
	 Shareholder
 	  	 Preamble
 
	 Shareholder Agreement
 	  	 Section 3.1
 
	 Shareholder Allocated Expenses
 	  	 Section 1.1
 
	 Shares
 	  	 Section 1.1
 
	 Shelf Registration
 	  	 Section 3.3(a)
 
	 Shelf Registration Statement
 	  	 Section 3.3(a)
 
	 Termination Date
 	  	 Section 1.1
 
	 Transaction Documents
 	  	 Section 1.1
 

 

 
 4 

  
 ARTICLE II 
  
 THE OFFERING; THE REPURCHASE 
  
 Section
2.1.    The Offering.  (a) The Company has previously filed on December 20, 2002 with the SEC a registration statement (the “Offering Registration Statement”) providing for the registration under
the Securities Act of the sale of shares of Common Stock and Other Securities and shall use commercially reasonable efforts to have the Offering Registration Statement declared effective under the Securities Act as promptly as practicable after the
date hereof. 
  
 (b)    Following the SEC declaring the Offering Registration Statement
effective, the Company agrees use commercially reasonable efforts to effect the Offering prior to February 28, 2003 if permitted by capital market conditions, as may be determined by the Company in its sole discretion. The Company shall provide
Parent and the Shareholder with as much prior notice as practicable of the commencement of the Offering. 
  
 (c)    In the event that the Offering is consummated prior to the satisfaction of the condition set forth in Section 6.1(a), the Company shall hold separate a portion of the Net Proceeds equal to the Repurchase
Amount and invest those funds only in Cash Equivalents until the Closing or the termination of this Agreement. 
  
 Section 2.2.    The Repurchase.  Upon and pursuant to the terms and subject to the conditions of this Agreement, at the Closing, the Company shall repurchase from the Shareholder, and the
Shareholder shall sell to the Company, that number of shares of Series A Preferred Stock (the “Repurchase Shares”) equal to the Gross Repurchase Amount divided by the product of the Offering Price and the then current Conversion
Factor. 
  
 Section 2.3.    Lock-Up.  The Shareholder agrees that from the date
hereof until the later of (x) the Termination Date and (y) the expiration of the Lock-Up Period, it will not (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any
option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock or (ii) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences or ownership of the Common Stock or any security convertible into or exercisable or exchangeable for Common Stock, whether any such transaction
described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise, other than the sale of the Repurchase Shares as contemplated by this Agreement. The “Lock-Up Period”
shall be the period that ends (i) 90 days after the Closing Date, in the event that the Repurchase Amount is less than $200,000,000, or (ii) 180 days after the Closing Date, in the event that the Repurchase Amount is equal to or greater than
$200,000,000; provided, however, that there shall be no Lock-Up Period if the Offering is not consummated by the Termination Date. 
  
 Section 2.4.    Waiver; Consent.  Parent and the Shareholder each waive any (x) rights to any Piggy-Back Registration (as defined in, and pursuant to, the Prior
Registration Rights Agreement), (y) Dilutive Issuance Rights (as defined in, and pursuant to, the Prior 

 
 5 

 Shareholder Agreement or (z) any similar rights they might have, in each case, with respect to the Offering Registration Statement and the
Offering, so long as the Offering and the Repurchase are consummated on or prior to the Termination Date. 
  
 ARTICLE III

  
 SHAREHOLDER AGREEMENT; REGISTRATION RIGHTS AGREEMENT; 
 THE EXCHANGE 
  
 Section
3.1.    Effectiveness of Transaction Documents.  Simultaneously herewith, the parties have each executed and delivered the Shareholder Agreement, dated as of the date hereof (the “Shareholder
Agreement”) and the Registration Rights Agreement, dated as of the date hereof (the “Registration Rights Agreement”) a copy of each of which is attached hereto. Each of the Shareholder Agreement and the Registration Rights
Agreement shall become effective in accordance with their terms immediately upon the consummation of the Repurchase and the Exchange. 
  
 Section 3.2.    The Exchange.  Upon the terms and subject to the conditions set forth herein, on the Closing Date, the Company shall modify the terms of the Series A Preferred Stock by
issuing to the Shareholder a number of shares of the Series D Preferred Stock equal to the then current Conversion Factor in exchange for each share of Series A Preferred Stock not repurchased in the Repurchase. The Series D Preferred Stock shall
have the terms provided for in the form of Certificate of Designations attached hereto as Exhibit A. 
  
 Section 3.3.    The Closing.  (a) The closing of the Repurchase and the Exchange (the “Closing”) shall be conditioned upon each other, shall occur simultaneously and shall take
place at the offices of Gable & Gotwals, 100 West Fifth Street, Suite 1000, Tulsa, Oklahoma, on the second Business Day following the satisfaction or waiver of all the conditions to the parties’ obligation set forth in Article VI or at such
place, time and date as the parties may agree (the “Closing Date”). 
  
 (b)    At the Closing, the Company shall pay the Shareholder an amount in cash equal to the Repurchase Amount against delivery of certificates representing the Repurchase Shares, duly endorsed in blank for
transfer or accompanied by duly executed stock powers assigning the Repurchase Shares in blank. Payment of the Repurchase Amount shall be in U.S. Dollars and shall be made on the Closing Date by wire transfer of immediately available funds to an
account with JPMorganChase designated by the Shareholder in writing at least two days prior to the Closing Date. 
  
 (c)    At the Closing, the Company shall deliver to the Shareholder certificates representing newly issued shares of Series D Preferred Stock against delivery of certificates representing the shares of Series A
Preferred Stock not repurchased in the Repurchase, duly endorsed in blank for transfer or accompanied by duly executed stock powers assigning such shares of Series A Preferred Stock in blank. 
  

(d)    On the Closing Date, the Company will execute and deliver to the Rights Agent (as defined in the Rights Plan) the Amended and Restated
Rights Plan in substantially the form attached 

 
 6 

 hereto as Exhibit B (the “Rights Plan”). Each of Parent and Shareholder consent to the execution and delivery by the
Company of the Rights Plan on the Closing Date. 
  
 Section 3.4.    Shelf
Registration.  (a) Within sixty (60) days following the Closing, the Company shall file a registration statement on Form S-3 (the “Shelf Registration Statement”) providing for the registration (the “Shelf
Registration”) of the sale of the Shares and shall use commercially reasonable efforts to have the Shelf Registration Statement declared effective under the Securities Act as promptly as practicable after filing and shall use commercially
reasonable efforts to maintain the effectiveness of the Shelf Registration Statement. The Shelf Registration shall be subject to the terms and conditions of the Registration Rights Agreement. 
  

(b)    In connection with the Shelf Registration Statement, the Company agrees to use commercially reasonable efforts to cause the shares of the
Series D Preferred Stock, if permitted by NYSE rules, and the shares of Common Stock issuable upon conversion the Series D Preferred Stock to be listed on the NYSE prior to any sale, transfer or conversion of the Series D Preferred Stock by the
Shareholder. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section
4.1.    Representations and Warranties of the Company.  The Company represents and warrants to the Shareholder as of the date hereof as follows: 
  
 (a)    The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the State of Oklahoma and has
all necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. 
  
 (b)    This Agreement has been duly and validly authorized by the Company and all necessary and appropriate action has been taken by the Company to execute and deliver this Agreement and to perform its obligations
hereunder. 
  
 (c)    This Agreement has been duly executed and delivered by the Company and
assuming due authorization and valid execution and delivery by Parent and the Shareholder, this Agreement is a valid and binding obligation of the Company, enforceable in accordance with its terms. 
  
 (d)    Other than any consents that have already been obtained, no consent, waiver, approval, authorization,
exemption, registration, license or declaration is required to be made or obtained by the Company in connection with the (i) execution, delivery or performance of this Agreement or (ii) the consummation of any of the transactions contemplated by
this Agreement or the Transaction Documents. 
  
 (e)    The execution and delivery by the Company
of this Agreement and the performance of its obligations hereunder does not and will not (i) conflict with, or result in the breach of any provision of the constitutive documents of the Company; (ii) result in any 

 
 7 

 violation, breach, conflict, default or event of default (or an event which with notice, lapse of time, or both, would constitute a default or
event of default), or give rise to any right of acceleration or termination or any additional payment obligation, under the terms of any material contract, agreement or permit to which the Company is a party or by which the Company’s assets or
operations are bound or affected; or (iii) violate, in any material respect, any Law applicable to the Company. 
  
 (f)    The shares of Series D Preferred Stock to be issued pursuant to this Agreement have been duly authorized for issuance, and such shares, when issued and delivered to the Shareholder, will be validly issued,
fully paid and non-assessable. 
  
 Section 4.2.    Representations and Warranties of the
Parent and the Shareholder.  Each of Parent and the Shareholder represents and warrants to the Company as of the date hereof as follows: 
  
 (a)    Each of Parent and the Shareholder has been duly incorporated and is validly existing as a corporation in good standing under the laws of its state of incorporation and has
all necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. 
  
 (b)    This Agreement has been duly and validly authorized by each of Parent and the Shareholder and all necessary and appropriate action has been taken by each of Parent and the Shareholder to execute and deliver
this Agreement and to perform its obligations hereunder. 
  
 (c)    This Agreement has been duly
executed and delivered by each of Parent and the Shareholder and assuming due authorization and valid execution and delivery by the Company, this Agreement is a valid and binding obligation of each of Parent and the Shareholder, enforceable in
accordance with its terms. 
  
 (d)    Other than the approval of the KCC with respect to the
Repurchase, the Exchange and the Shareholder Agreement and any consents that have already been obtained, no consent, waiver, approval, authorization, exception, registration, license or declaration is required to be made or obtained by either Parent
or the Shareholder in connection with (i) the execution, delivery or performance of this Agreement or (ii) the consummation of any of the transactions contemplated by this Agreement or the Transaction Documents. 
  
 (e)    The execution and delivery by Parent and the Shareholder of this Agreement and the performance of its
obligations hereunder does not and will not (i) conflict with, or result in the breach of any provision of the constitutive documents of either Parent or the Shareholder; (ii) result in any violation, breach, conflict, default or event of default
(or an event which with notice, lapse of time, or both, would constitute a default or event of default), or give rise to any right of acceleration or termination or any additional payment obligation, under the terms of any material contract,
agreement or permit to which either Parent or the Shareholder is a party or by which either Parent or the Shareholder’s assets or operations are bound or affected; or (iii) violate, in any material respect, any Law applicable to either Parent
or the Shareholder. 

 
 8 

 (f)    Upon consummation of the Repurchase, the Company will have valid and marketable title to the
Repurchase Shares, free and clear of all title defects, security interests, liens or encumbrances of any nature whatsoever. 
  
 ARTICLE V 
  
 COVENANTS 
  
 Section 5.1.    Commercially Reasonable Efforts.  Subject to the terms and conditions of this Agreement, the Company, Parent and the
Shareholder will use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable Law to consummate the transactions contemplated by this
Agreement and the Transaction Documents. 
  
 Section 5.2.    KCC Approval.  As
promptly as practicable after the date hereof, Parent and the Shareholder shall prepare and submit to the KCC all necessary and appropriate filings and other submissions in connection with seeking KCC approval of the Repurchase, the Exchange and the
Shareholder Agreement and will (i) prosecute such filings or submissions with reasonable diligence and (ii) take all such further action as in the reasonable judgment of Parent and the Shareholder may facilitate a final order or orders of the KCC
approving such transactions. The Company shall cooperate with Parent and the Shareholder to achieve the foregoing to the extent reasonably requested by Parent and the Shareholder, including assisting in the preparation of all filings or submissions
that could in the reasonable opinion of the Company and Parent affect the likelihood of obtaining KCC approval of the Repurchase (including without limitation using commercially reasonable efforts to assist Parent in demonstrating that the
Repurchase Amount reflects the fair market value of the Repurchase Shares), the Exchange and the Shareholder Agreement. 
  
 ARTICLE VI 
  
 CONDITIONS TO THE REPURCHASE AND THE EXCHANGE 
  
 Section 6.1.    Conditions to Obligations of Each Party.  The obligations of the Company, Parent and
the Shareholder to consummate the Repurchase and the Exchange are subject to the satisfaction (or, to the extent permitted under Law, waiver by the relevant party in its sole discretion) of the following conditions: 
  
 (a)    the KCC shall have issued a decision (which decision has not been stayed or enjoined) that constitutes an
unappealable order approving, exempting or otherwise authorizing the Repurchase, the Exchange and the Shareholder Agreement; 
  
 (b)    the Offering shall have been consummated and the Company shall have received the Net Proceeds; and 
  
 (c)    no provision of any applicable Law and no judgment, injunction, order or decree shall prohibit the consummation of the Repurchase or the Exchange. 

 
 9 

 Section 6.2.    Conditions to the Obligations of Parent and the Shareholder.  The
obligations of Parent and Shareholder to consummate the Repurchase and the Exchange are subject to the satisfaction (or, to the extent permitted under Law, waiver by Parent in its sole discretion) of the following further conditions: 

 
 (a)    The representations and warranties of the Company set forth in Section 4.1 shall be true and correct
on the Closing Date; and 
  
 (b)    the Company shall have performed in all material respects all
of its obligations hereunder required to be performed by it at or prior to the Closing. 
  
 Section
6.3.    Conditions to the Obligations of the Company.  The obligation of the Company to consummate the Repurchase and the Exchange is subject to the satisfaction (or, to the extent permitted under Law, waiver by
the Company in its sole discretion) of the following further conditions: 
  
 (a)    the
representations and warranties of Parent and the Shareholder set forth in Section 4.2 shall be true and correct on the Closing Date; and 
  
 (b)    each of Parent and the Shareholder shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior to the Closing. 
  
 ARTICLE VII 
  
 TERMINATION 
  
 Section 7.1.    Termination.  This
Agreement may be terminated: 
  
 (a)    at any time by the mutual written agreement of the
Company, Parent and the Shareholder; or 
  
 (b)    by the Company, on the one hand, or Parent or
the Shareholder, on the other hand, if the Offering is not consummated by the Termination Date. 
  
 ARTICLE VIII

  
 MISCELLANEOUS 
  
 Section 8.1.    Injunctive Relief.  Each party hereto acknowledges that it would be impossible to determine the amount of damages that would result from any breach
of any of the provisions of this Agreement and that the remedy at law for any breach, or threatened breach, of any of such provisions would likely be inadequate and, accordingly, agrees that each other party shall, in addition to any other rights or
remedies which it may have, be entitled to seek such equitable and injunctive relief as may be available from any court of competent jurisdiction to compel specific performance of, or restrain any party from violating, any of such provisions. In
connection with any action or proceeding for injunctive relief, each party hereto hereby waives the claim or defense that a remedy at law alone is adequate and agrees, to the maximum extent permitted by law, to have each provision of this Agreement
specifically enforced against him or 

 
 10 

 it, without the necessity of posting bond or other security against him or it, and consents to the entry of injunctive relief against him or it
enjoining or restraining any breach or threatened breach of such provisions of this Agreement. 
  
 Section
8.2.    Successors and Assigns.  This Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the Company, on the one hand, and by Parent and the Shareholder, on the other hand,
and their respective successors and permitted assigns, and no such term or provision is for the benefit of, or intended to create any obligations to, any other Person. 
  
 Section 8.3.    Amendments; Waiver.  (a) This Agreement may be amended only by an agreement in writing executed by the parties hereto.

  
 (b)    Either party may waive in whole or in part any benefit or right provided to it under
this Agreement, such waiver being effective only if contained in a writing executed by the waiving party. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise
any right or remedy consequent upon breach thereof shall constitute a waiver of any such breach or of any other covenant, duty, agreement or condition, nor shall any delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right accruing to it thereafter. 
  
 Section
8.4.    Notices.  Except as otherwise provided in this Agreement, all notices, requests, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given
when delivered by hand, when delivered personally or by courier, three days after being deposited in the mail (registered or certified mail, postage prepaid, return receipt requested), or when received by facsimile transmission if promptly confirmed
by one of the foregoing means, as follows: 
  
 If to the Company: 
  
 ONEOK, Inc. 
 100 W. Fifth Street

 Tulsa, Oklahoma 
 Attention: Chief Executive Officer

 Fax: (918) 588-7961 
  
 with a copy to: 
  
 ONEOK, Inc. 
 100 W. Fifth Street 
 Tulsa, Oklahoma 
 Attention: General Counsel 
 Fax: (918) 588-7971 
  
 If to Parent: 
  
 Westar Energy, Inc.

 
 11 

 818 Kansas Avenue 
 Topeka,
Kansas 66612 
 Attention: President 
 Fax: (785) 575-8061

  
 with a copy to: 
  
 Westar Energy, Inc. 
 818 Kansas Avenue 
 Topeka, Kansas 66612 
 Attention: Corporate Secretary 
 Fax: (785) 575-1936 
  
 If to the Shareholder: 

 
 Westar Industries, Inc. 
 818
Kansas Avenue 
 Topeka, Kansas 66612 
 Attention: President

 Fax: (785) 575-8061 
  
 with a copy to: 
  
 Westar Industries, Inc. 
 818 Kansas Avenue 
 Topeka, Kansas 66612 
 Attention: Corporate Secretary 
 Fax: (785) 575-1936 
  

or to such other address or facsimile number as either party may, from time to time, designate in a written notice given in a like manner. 
  
 Section 8.5.    APPLICABLE LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF OKLAHOMA WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 
  
 Section
8.6.    Headings.  The descriptive headings of the several sections in this Agreement are for convenience only and do not constitute a part of this Agreement and shall not be deemed to limit or affect in any way
the meaning or interpretation of this Agreement. 
  
 Section
8.7.    Integration.  This Agreement and the other writings referred to herein or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject
matter. This Agreement supersedes all prior agreements and understandings between the parties with respect to its subject matter. There are no 

	

	

 
 12 

 restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to its subject matter other than those
expressly set forth or referred to herein. 
  
 Section 8.8.    Severability.  If
any term or provision of this Agreement or any application thereof shall be declared or held invalid, illegal or unenforceable, in whole or in part, whether generally or in any particular jurisdiction, such provision shall be deemed amended to the
extent, but only to the extent, necessary to cure such invalidity, illegality or unenforceability, and the validity, legality and enforceability of the remaining provisions, both generally and in every other jurisdiction, shall not in any way be
affected or impaired thereby. 
  
 Section 8.9.    Consent to Jurisdiction.  In
connection with any suit, claim, action or proceeding arising out of this Agreement, Parent, the Shareholder and the Company each hereby consent to the in personam jurisdiction of the United States federal courts and state courts located in Tulsa,
Oklahoma; the Shareholder and the Company each agree that service in the manner set forth in Section 8.9 hereof shall be valid and sufficient for all purposes; and the Shareholder and the Company each agree to, and irrevocably waive any objection
based on forum non conveniens or venue, appear in any United States federal court state court located in Tulsa, Oklahoma. 
  
 Section 8.10.    Counterparts.  This Agreement may be executed by the parties hereto in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the Company, Parent and the Shareholder have caused
this Agreement to be duly executed by their respective authorized officers as of the date set forth at the head of this Agreement. 
  
 
	 ONEOK, INC. 
 
	 
	 By:
 	 	 /s/    David L. Kyle
 

	  	 	 Name:  David L. Kyle
 Title:  Chairman, Chief Executive Officer
            and President
 

 
  
 
	 WESTAR ENERGY, INC. 
 
	 
	 By:
 	 	 /s/    James S. Haines, Jr.
 

	  	 	 Name:  James S. Haines, Jr.
 Title:  Chief Executive Officer and President
 

 
  
 
	 WESTAR INDUSTRIES, INC. 
 
	 
	 By:
 	 	 /s/    James S. Haines, Jr.
 

	  	 	 Name:  
 Title:  
 

 

 
 13

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