Document:

Exhibit
4.3

SECOND AMENDMENT TO
RIGHTS AGREEMENT

SECOND AMENDMENT (this “Amendment”)
dated as of June 23, 2006 to the Rights Agreement, dated as of July 26,
2001, and amended as of July 30, 2001, (the “Rights Agreement”), by
and between Kerr-McGee Corporation (formerly known as Kerr-McGee Holdco, Inc.),
a Delaware corporation (the “Company”), and UMB Bank, N.A., as Rights
Agent (the “Rights Agent”).

RECITALS

WHEREAS, the Company and the Rights Agent have
heretofore executed and entered into the Rights Agreement (capitalized terms
used herein but not defined herein shall have the meanings given to such terms
in the Rights Agreement);

WHEREAS, pursuant to Section 27 of the Rights
Agreement, the Company may, and the Rights Agent shall, if the Company so
directs, from time to time supplement or amend the Rights Agreement in
accordance with the provisions thereof without approval of any holders of the
Rights;

WHEREAS, the Company desires to extend the Final
Expiration Date;

WHEREAS, the Company desires to amend the Rights
Agreement to render the Rights inapplicable to the Merger (as defined in the
Merger Agreement) and the other transactions contemplated by the Merger
Agreement (as defined below); and

WHEREAS, the Board of Directors has determined that it
is in the best interest of the Company and its stockholders to amend the Rights
Agreement as set forth below.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual
covenants and agreements herein contained and other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby amend
the Rights Agreement as follows:

(a)           Amendment
to Section 1. The following text is added at the end of the definition
of “Acquiring Person” in Section 1(a) of the Rights Agreement:

“Notwithstanding anything in this Agreement to the
contrary, none of Anadarko Petroleum Corporation or APC Acquisition Sub, Inc.
or any of their Affiliates or Associates shall be deemed to be an Acquiring Person,
either individually or collectively, by virtue of (i) the approval,
execution or delivery of the Merger Agreement, (ii) the announcement of
the Merger, (iii) the consummation of the Merger or the other transactions

 

contemplated by the Merger Agreement or (iv) the
acquisition of Common Stock pursuant to the Merger or the Merger Agreement.”

(b)           The
following definitions are added to Section 1 of the Rights Agreement in
the appropriate alphabetical order:

“Effective Time” shall have the meaning assigned to such term in the
Merger Agreement.

“Merger Agreement” shall mean the Agreement and Plan of Merger dated as
of June 22, 2006, among Anadarko Petroleum Corporation, APC Acquisition
Sub, Inc. and the Company, as the same may be amended from time to time.

“Merger” shall have the meaning assigned to such term in the Merger
Agreement.

“Merger Sub” shall mean APC Acquisition Sub, Inc., a Delaware
corporation, and a wholly owned subsidiary of Anadarko Petroleum Corporation.”

“Parent” shall mean Anadarko Petroleum Corporation, a Delaware
corporation.

(c)           Amendment
to Section 3(a). The following text is added at the end of Section 3(a) of
the Rights Agreement:

“Notwithstanding anything in this Agreement to the
contrary, no Stock Acquisition Date nor Distribution Date shall occur by virtue
of (i) the approval, execution or delivery of the Merger Agreement, (ii) the
announcement of the Merger, (iii) the consummation of the Merger or the
other transactions contemplated by the Merger Agreement or (iv) the
acquisition of Common Stock pursuant to the Merger or the Merger Agreement.”

(d)           Amendment
to Section 7. Section 7(a) of the Rights Agreement is hereby
amended and restated in its entirety as follows:

“(a) Except as
otherwise provided herein, the Rights shall become exercisable on the
Distribution Date, and thereafter the registered holder of any Right
Certificate may, subject to Section 11(a)(ii) hereof and except as
otherwise provided herein, exercise the Rights evidenced thereby in whole or in
part upon surrender of the Right Certificate, with the form of election to
purchase on the reverse side thereof duly executed with signature guarantee and
such individual information as may be reasonably requested by the Rights Agent,
to the Rights Agent at the office or agency of the Rights Agent designated for
such purpose, together with payment of the Purchase Price for each one
one-hundredth of a share of Preferred

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Stock as to which the Rights are exercised, at any
time which is both after the Distribution Date and prior to the earliest of (i) the
Close of Business on July 22, 2016 (the “Final Expiration Date”), (ii) the
time at which the Rights are redeemed as provided in Section 23 hereof
(the “Redemption Date”), (iii) the time at which such Rights are exchanged
as provided in Section 24 hereof or (iv) immediately prior to the
Effective Time of the Merger.”

(e)           Section 11(a)(ii) of the
Rights Agreement is amended by adding the following sentence at the end
thereof:

“Notwithstanding the foregoing or anything in this
Agreement to the contrary, this Section 11(a)(ii) shall not apply to
and a Section 11(a)(ii) Trigger Date shall not be deemed to have
occurred by virtue of (i) the approval, execution or delivery of the
Merger Agreement, (ii) the announcement of the Merger, (iii) the
consummation of the Merger or the other transactions contemplated by the Merger
Agreement or (iv) the acquisition of Common Stock pursuant to the Merger
or the Merger Agreement.”

(f)            Section 13 of the Rights
Agreement is amended by adding the following provision at the end thereof:

“(e)         Notwithstanding
the foregoing, this Section 13 shall not apply to (i) the approval,
execution or delivery of the Merger Agreement, (ii) the announcement of
the Merger, (iii) the consummation of the Merger or the other transactions
contemplated by the Merger Agreement or (iv) the acquisition of Common
Stock pursuant to the Merger or the Merger Agreement.”

(g)           The
form of Right Certificate attached to the Rights Agreement as Exhibit B
shall be replaced in its entirety by the form of the Right Certificate attached
hereto as Annex A.

Section 2. Full Force and Effect. This
Amendment shall become effective as of, and immediately prior to, the approval,
execution and delivery of the Merger Agreement. Except as expressly amended hereby,
the Rights Agreement shall continue in full force and effect in accordance with
the provisions thereof on the date hereof.

Section 3. Governing Law. This Amendment
for all purposes shall be governed by and construed in accordance with the laws
of the State of Delaware applicable to contracts to be made and performed
entirely within such State.

Section 4. Counterparts. This Amendment
may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts
shall together constitute but one and the same instrument.

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Section 5. Authority.
Each party represents that such party has full power and authority to enter
into this Amendment and that this Amendment constitutes a legal, valid and
binding obligation of such party, enforceable against such party in accordance
with its terms.

Section 6. Severability.
If any term, provision, covenant or restriction of this Amendment or applicable
to this Amendment is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Amendment shall remain in full
force and effect and shall in no way be affected, impaired or invalidated.

[SIGNATURE
PAGE FOLLOWS]

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IN WITNESS,WHEREOF, the Company has caused this
Amendment be duly executed as of the day and year first above written.

KERR-MCGEE CORPORATION

	
  By:

  	
   

  	
  /s/ Gregory F. Pilcher

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Gregory F. Pilcher

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President, General Counsel and Secretary

  	
   

  
							

 

Acknowledged and Approved
by:

UMB BANK, N.A.,

as Rights Agent

	
  By:

  	
   

  	
  /s/ Mark Flannagan

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Mark Flannagan

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  	
   

  
								

 

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ANNEX A

FORM OF RIGHT CERTIFICATE

Exhibit B

Form of Right
Certificate

Certificate No. R-
____

___ Rights

NOT EXERCISABLE AFTER July 22, 2016 OR EARLIER IF
REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER
RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER
CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR
TRANSFERRED TO ANY PERSON WHO BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE
RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND
WILL NO LONGER BE TRANSFERABLE.

Right Certificate

KERR-MCGEE
CORPORATION

This certifies
that ___________ or registered assigns, is the registered owner of the number
of Rights set forth above, each of which entitles the owner thereof, subject to
the terms, provisions and conditions of the Rights Agreement, dated as of July 26,
2001 as the same may be amended from time to time (the “Rights Agreement”),
between Kerr-McGee Corporation, a Delaware corporation (the “Company”), and UMB
Bank, N.A., (the “Rights Agent”), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to the earliest of (A) 5:00 P.M., New York City time, on July 22,
2016, (B) the time at which the Rights are redeemed as provided in the
Rights Agreement, (C) the time at which the Rights are exchanged as
provided in the Rights Agreement or (D) immediately prior to the Effective
Time (as defined in the Rights Agreement) of the Merger (as defined in the
Rights Agreement), at the office or agency of the Rights Agent designated for
such purpose, or of its successor as Rights Agent, one one-hundredth of a fully
paid non-assessable share of Series B Junior Participating Preferred
Stock, without par value (the “Preferred Stock”), of the Company, at a purchase
price of $215.00 per one one-hundredth of a share of Preferred Stock (the “Purchase
Price”), upon presentation and surrender of this Right Certificate with the Form of
Election to Purchase duly executed. The number of Rights evidenced by this
Rights Certificate (and the number of one one-hundredths of a share of
Preferred Stock which may be purchased upon exercise hereof) set forth above,
and the Purchase Price set forth above, are the number and Purchase Price as of
July 26, 2001 based on the Preferred Stock as constituted at such date. As
provided in the Rights Agreement, the Purchase Price, the number of one
one-hundredths of a share of Preferred Stock (or other securities or

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property) which may be
purchased upon the exercise of the Rights and the number of Rights evidenced by
this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

This Right
Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights
Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company and the above-mentioned office or agency of the Rights Agent. The
Company will mail to the holder of this Right Certificate a copy of the Rights
Agreement without charge after receipt of a written request therefor.

This Right
Certificate, with or without other Right Certificates, upon surrender at the
office or agency of the Rights Agent designated for such purpose, may be
exchanged for another Right Certificate or Right Certificates of like tenor and
date evidencing Rights entitling the holder to purchase a like aggregate number
of shares of Preferred Stock as the Rights evidenced by the Right Certificate
or Right Certificates surrendered shall have entitled such holder to purchase.
If this Right Certificate shall be exercised in part, the holder shall be
entitled to receive upon surrender hereof another Right Certificate or Right
Certificates for the number of whole Rights not exercised.

Subject to the
provisions of the Rights Agreement, the Rights evidenced by this Certificate (i) may
be redeemed by the Company at a redemption price of $.01 per Right or (ii) may
be exchanged in whole or in part for shares of Preferred Stock or shares of the
Company’s Common Stock, no par value ($1 per share stated value).

No fractional
shares of Preferred Stock or Common Stock will be issued upon the exercise or
exchange of any Right or Rights evidenced hereby (other than fractions of
Preferred Stock which are integral multiples of one one-hundredth of a share of
Preferred Stock, which may, at the election of the Company, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as
provided in the Rights Agreement.

No holder of this
Right Certificate, as such, shall be entitled to vote or receive dividends or
be deemed for any purpose the holder of the Preferred Stock or of any other
securities of the Company which may at anytime be issuable on the exercise or
exchange hereof, nor shall anything contained in the Rights Agreement or herein
be construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting stockholders (except as provided in the Rights
Agreement) or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by this Right certificate shall have been
exercised as provided in the Rights Agreement.

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This Right
Certificate shall not be valid or obligatory for any purpose until it shall
have been countersigned by the Rights Agent.

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WITNESS the
facsimile signature of the proper officers of the Company and its corporate
seal. Dated as of _____________.

	
  Attest:

  	
   

  	
  KERR-MCGEE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
							

 

Countersigned:

	
   

  	
   

  
	
  as Rights Agent

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  

 

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[Form of
Reverse Side of Right Certificate]

FORM OF
ASSIGNMENT

(To be executed by
the registered holder if such holder desires to transfer the Right Certificate)

FOR VALUE RECEIVED
_________________________ hereby sells, assigns and transfer
unto________________________________________________________________________________________________________________________________________________________

	
   

  
	
  (Please print name and
  address of transferee)

  

 

Rights represented by
this Right Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint___________________ Attorney,
to transfer said Rights on the books of the within-named Company, with full
power of substitution.

Dated: _________________

	
  

  	
   

  
	
   

  	
  Signature

  

 

Signature Guaranteed:

                  Signatures must be guaranteed
by a bank, trust company, broker, dealer or other eligible institution
participating in a recognized signature guarantee medallion program

	
   

  
	
  

  
	
  (To be completed)

  

 

The undersigned
hereby certifies that the Rights evidenced by this Right Certificate are not
beneficially owned by, were not acquired by the undersigned from, and are not
being assigned to, an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement).

	
  

  	
   

  
	
   

  	
  Signature

  

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[Form of
Reverse Side of Right Certificate — continued]

FORM OF
ELECTION TO PURCHASE

(To be executed if
holder desires to exercise Rights represented by the Rights Certificate)

To Kerr-McGee
Corporation:

                  The undersigned hereby
irrevocably elects to exercise__________________ Rights represented by this
Right Certificate to purchase the shares of Preferred Stock (or other
securities or property) issuable upon the exercise of such Rights and requests
that certificates for such shares of Preferred Stock (or such other securities)
be issued in the name of:

	
   

  
	
  

  
	
  (Please print name and address)

  
	
   

  
	
   

  
	
   

  

 

If such number of Rights
shall not be all the Rights evidenced by this Right Certificate, a new Right
Certificate for the balance remaining of such Rights shall be registered in the
name of and delivery to:

Please insert social
security or other identifying number

	
   

  
	
  (Please print name and
  address)

  
	
   

  
	
   

  
	
   

  

Dated:  ____________________

	
  

  	
   

  
	
   

  	
  Signature

  

 

(Signature must conform
to holder specified on Right Certificate)

Signature Guaranteed:

                  Signature must be guaranteed
by bank, trust company, broker, dealer or other eligible institution
participating in a recognized signature guarantee medallion program.

	
   

  
	
  

  
	
  (To be completed)

  

 

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[Form of
Reverse Side of Right Certificate — continued]

                  The undersigned certifies
that the Rights evidenced by this Right Certificate are not beneficially owned
by, and were not acquired by the undersigned from, an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement)

	
  

  	
   

  
	
   

  	
  Signature

  

 

NOTICE

                  The signature in the Form of
Assignment or Form of Election to Purchase, as the case may be, must
conform to the name as written upon the face of this Right Certificate in every
particular, without alteration or enlargement or any change whatsoever.

                  In the event the certification
set forth above in the Form of Assignment or the Form of Election to
Purchase, as the case may be, is not completed, such Assignment or Election to
Purchase will not be honored.

 12Exhibit
10.1

AMENDED AND RESTATED CONTINUITY AGREEMENT

This Amended and Restated Agreement (the “Agreement”)
is dated as of June 22, 2006 by and between Kerr-McGee Corporation, a
Delaware corporation (the “Company”), and Luke R. Corbett  (the “Executive”), and amends, restates and
supersedes that certain Amended Continuity Agreement dated May 22, 2006,
which by its terms amended and superseded that certain  Continuity Agreement dated January 11,
2000.

WHEREAS,
the Company’s Board of Directors considers the continued services of key
executives of the Company to be in the best interests of the Company and its
stockholders; and

WHEREAS,
the Company’s Board of Directors desires to assure, and has determined that it
is appropriate and in the best interests of the Company and its stockholders to
reinforce and encourage the continued attention and dedication of key
executives of the Company to their duties of employment without personal
distraction or conflict of interest in circumstances which could arise from the
occurrence of a change in control of the Company; and

WHEREAS,
the Company’s Board of Directors has authorized the Company to enter into
amended continuity agreements with those key executives of the Company and any
of its respective subsidiaries (all of such entities, together with the
Company, are hereinafter referred to as an “Employer”), such agreements to set
forth the severance compensation which the Company agrees under certain
circumstances to pay such executives; and

WHEREAS,
the Executive is a key executive of an Employer and has been designated as an
executive to be offered such a continuity compensation agreement with the
Company, and the Company’s Board of Directors has authorized the Company to
enter into this Amended and Restated Continuity Agreement with the Executive.

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and the
Executive agree as follows:

1.    Term.
This Agreement shall become effective on the date hereof (the  “Effective Date”) and remain in effect until
the third anniversary thereof; provided, however, that this
Agreement shall automatically renew for an additional year on each successive
anniversary of the Effective Date, unless an Employer informs the Executive, in
writing, at least 180 days prior to the renewal date, that this Agreement shall
not be renewed. The foregoing shall constitute the “Term” of this Agreement for
purposes hereof.

2.    Change
in Control. No compensation or other benefit pursuant to Section 4
hereof shall be payable under this Agreement unless and until either (i) a
Change in Control of the Company (as hereinafter defined) shall have occurred
while the Executive is employed by an Employer and the Executive’s employment
by an Employer thereafter shall have terminated in accordance with Section 3
hereof or (ii) the Executive’s employment by an Employer shall have
terminated in accordance with Section 3(a)(ii) hereof prior to the
occurrence of the Change in

 

Control. For purposes of this Agreement, a “Change in Control”
shall be deemed to have occurred when, during the Term of this Agreement:

(a)                  any
person (“Person”) as defined in Section 3(a)(9) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and as used in Section 13(d) and
14(d) thereof, including a “group” as defined in Section 13(d) of
the Exchange Act but excluding the Company and any subsidiary and any employee
benefit plan sponsored or maintained by the Company or any subsidiary
(including any trustee of such plan acting as trustee), directly or indirectly,
becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), of securities of the Company representing 25% or more of the
combined voting power of the Company’s then outstanding securities (other than
indirectly as a result of the Company’s redemption of its securities); or

(b)                  the
consummation of any merger or other business combination of the Company, sale
of 50% or more of the Company’s assets, liquidation or dissolution of the
Company or combination of the foregoing transactions (the “Transactions”) other
than a Transaction immediately following which the shareholders of the Company
and any trustee or fiduciary of any Company employee benefit plan immediately
prior to the Transaction own at least 60% of the voting power, directly or
indirectly, of (A) the surviving corporation in any such merger or other
business combination; (B) the purchaser of or successor to the Company’s
assets; (C) both the surviving corporation and the purchaser in the event
of any combination of Transactions; or (D) the parent company owning 100%
of such surviving corporation, purchaser or both the surviving corporation and
the purchaser, as the case may be; or

(c)                  within
any twenty-four month period, the persons who were directors immediately before
the beginning of such period (the “Incumbent Directors”) shall cease (for any
reason other than death) to constitute at least a majority of the Board or the
board of directors of a successor to the Company. For this purpose, any
director who was not a director at the beginning of such period shall be deemed
to be an Incumbent Director if such director was elected to the Board by, or on
the recommendation of or with the approval of, at least two-thirds of the
directors who then qualified as Incumbent Directors (so long as such director
was not nominated by a person who commenced or threatened to commence an
election contest or proxy solicitation by or on behalf of a Person (other than
the Board) or who has entered into an agreement to effect a Change in Control
or expressed an intention to cause such a Change in Control); or

(d)                  a
majority of the members of the Board of Directors in office immediately prior
to a proposed transaction determine by a written resolution that such proposed
transaction, if taken, will be deemed a Change in Control and such proposed
transaction is consummated.

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3.    Termination of Employment; Definitions.

(a)                    Termination without Cause
by the Company or for Good Reason by the Executive.

(i)  The
Executive shall be entitled to the compensation provided for in Section 4
hereof, if within two years after a Change in Control, the Executive’s
employment by an Employer shall be terminated (A) by an Employer for any
reason other than (I) the Executive’s Disability or Retirement, (II) the
Executive’s death or (III) for Cause, or (B) by the Executive with
Good Reason (all terms are as hereinafter defined), unless such termination
occurs with the Executive’s prior written consent expressly waiving the rights
provided hereunder.

(ii)  In
addition, the Executive shall be entitled to the compensation provided for in Section 4
hereof if, (A) in the event that an agreement is signed which, if
consummated, would result in a Change of Control and, within 12 months
thereafter, the Executive is terminated without Cause by the Company or an
Employer (other than on account of the Executive’s Death or Disability) or
terminates employment with Good Reason prior to the Change in Control, (B) such
termination is at the request or instigation of the acquiror or merger partner
or otherwise in connection with the anticipated Change in Control, and (C) within
said 12 month period, such Change in Control actually occurs.

(b)                  Disability.
For purposes of this Agreement, “Disability” shall mean the Executive’s absence
from the full-time performance of the Executive’s duties (as such duties
existed immediately prior to such absence) for 180 consecutive business days,
when the Executive is disabled as a result of incapacity due to physical or
mental illness.

(c)                  Retirement.
For purposes of this Agreement, “Retirement” shall mean the Executive’s
voluntary termination of employment pursuant to late, normal or early
retirement under a pension plan sponsored by an Employer, as defined in such
plan, but only if such retirement occurs prior to a termination by an Employer
without Cause or by the Executive for Good Reason.

(d)                  Cause.
For purposes of this Agreement, “Cause” shall mean:

(i)           the
willful and continued failure of the Executive to perform substantially all of
his or her duties with an Employer (other than any such failure resulting from
incapacity due to physical or mental illness), after a written demand for
substantial performance is delivered to such Executive by the Board of
Directors (the “Board”) of the Company which specifically identifies the manner
in which the Board believes that the Executive has not substantially performed
his or her duties;

(ii)          the
willful engaging by the Executive in gross misconduct which is materially and
demonstrably injurious to the Company or any Employer; or

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(iii)         the conviction of, or plea of guilty or nolo
contendere to, a felony.

Termination of the Executive for Cause shall be made
by delivery to the Executive of a copy of a resolution duly adopted by the
affirmative vote of not less than a three-fourths majority of the non-employee
Directors of the Company or of the ultimate parent of the entity which caused
the Change in Control (if the Company has become a subsidiary) at a meeting of
such Directors called and held for such purpose, after 30 days prior written
notice to the Executive specifying the basis for such termination and the
particulars thereof and a reasonable opportunity for the Executive to cure or
otherwise resolve the behavior in question prior to such meeting, finding that
in the reasonable judgment of such Directors, the conduct or event set forth in
any of clauses (i) through (iii) above has occurred and that such
occurrence warrants the Executive’s termination.

(e)                  Good
Reason. For purposes of this Agreement, “Good Reason” shall mean the
occurrence, within the Term of this Agreement, of any of the following without
the Executive’s written consent expressly waiving the rights provided
hereunder:

(i)           any material and adverse diminution in
the Executive’s duties or responsibilities with the Company (or any affiliate
thereof) from those in effect immediately prior to the Change in Control; provided,
however, that no such diminution shall be deemed to exist solely because
of changes in Executive’s duties, responsibilities or titles as a consequence
of the Company ceasing to be a company with publicly-traded securities or
becoming a wholly-owned subsidiary of another company;

(ii)          any reduction in the Executive’s annual
base salary or any adverse change in bonus opportunity or participation in cash
bonus programs in effect immediately prior to the Change in Control;

(iii)         any
requirement that the Executive be based at a location more than 35 miles from
the location at which the Executive was based immediately prior to the Change
in Control (or a substantial increase in the amount of travel the Executive is
required to do because of a relocation of the executive offices);

(iv)        any
failure by the Company to obtain from any successor to the Company an agreement
reasonably satisfactory to the Executive to assume and perform this Agreement,
as contemplated by Section 10(a) hereof;

(v)         during
the thirty-day period immediately following the first anniversary of the Change
in Control, the voluntary termination of employment by the Executive for any
reason or no reason at all; or

(vi)        any
amendment, reduction or termination of any benefit plan, program or
arrangement, which has the effect of causing the Executive to have benefits
which are not substantially similar, in the aggregate, to those benefits
provided to the Executive immediately prior to the Change in Control.

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Notwithstanding the foregoing, in the event the
Executive provides the Company with a Notice of Termination (as defined below)
referencing this Section 3(e) (with the exception of Section 3(e)(v)),
the Company shall have 30 days thereafter in which to cure or resolve the
behavior otherwise constituting Good Reason. Any good faith determination by
the Executive that Good Reason exists shall be presumed correct and shall be
binding upon the Company.

(f)                   Notice
of Termination. Any purported termination of the Executive’s employment
(other than on account of the Executive’s death) with an Employer, if such
termination occurs after the occurrence of a Change in Control or under
circumstances specified under Section 3(a)(ii) above, shall be
communicated by a Notice of Termination to the Executive, if such termination
is by an Employer, or to an Employer, if such termination is by the Executive. For
purposes of this Agreement, “Notice of Termination” shall mean a written notice
which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s
employment under the provisions so indicated; provided, however,
that in connection with a termination for Good Reason under Section 3(e)(v),
no details shall be necessary other than reference to such Section. For
purposes of this Agreement, no purported termination of the Executive’s
employment with an Employer shall be effective without such a Notice of
Termination having been given.

4.    Compensation
Upon Termination After a Change in Control.

Subject to Section 9 hereof, if within two years
of a Change in Control, the Executive’s employment by an Employer shall be
terminated in accordance with Section 3(a) (the “Termination”), the
Executive shall be entitled to the following payments and benefits:

(a)                  Severance.
The Company shall pay or cause to be paid to the Executive a cash severance
amount equal to (i) three (3) times the sum of (A) the Executive’s
annual base salary on the date of the Change in Control (or, if higher, the
annual base salary in effect immediately prior to the giving of the Notice of
Termination) and (B) the higher of: 
(x) the average of the actual bonuses earned by the Executive in respect
of the three years prior to the year in which the Change in Control occurs
under an Employer’s incentive award program, or (y) the Executive’s target
bonus for the year of Termination, plus (ii) in lieu of continuation of
any of the Executive’s perquisites as provided to the Executive prior to the
Change in Control (or, if greater, at the time of Termination), a cash payment
equal to 7 percent of the Executive’s annual base salary as in effect on the
date of the Change in Control for each of the three (3) years following
the date of Termination. This cash severance amount shall be payable in a lump
sum.

(b)                  Additional
Payments and Benefits. The Executive shall also be entitled to:

(i)           a lump sum cash payment equal to the
sum of (A) the Executive’s accrued but unpaid annual base salary through
the date of Termination, (B) the unpaid portion, if any, of bonuses
previously earned by the Executive pursuant to the Company’s Executive
incentive award program, plus the pro rata portion of the target bonus to be
paid for the year in

 5
 

 

which the date of Termination occurs (calculated
through the date of Termination), (C) an amount, if any, equal to any
accrued vacation pay, in full satisfaction of Executive’s rights thereto, and (D) $3,313,178,
plus a full income tax gross-up on the amount described in clause (D) using
the highest marginal rate applicable to the Executive, which currently is
43.45%.

(ii)          a lump sum cash payment equal to the
aggregate sum of (A) additional pension contributions in an amount equal
to the Company’s contributions under the Company’s 401(k) plan, profit
sharing or other savings pension plans (or such other qualified and
nonqualified defined contribution pension plans as then in effect) for the
three (3) year period following the date of Termination (the “Separation
Period”) (based on assumed rates of Executive’s contributions at the level of
participation in effect as of the last date Executive was permitted to
participate); and (B) the difference between the discounted present value
(i.e., lump sum value) of the annuity benefit the Executive is entitled to
receive under the Company’s qualified and nonqualified defined benefit
retirement programs in which the Executive is a participant calculated through
the date of Termination and the discounted present value (i.e., lump sum value)
of the annuity benefit the Executive would be entitled to receive under such
retirement programs calculated after adding an additional five years of credit
to age and service up to a maximum of age 65 as if the executive had been paid
at the rate used to calculate the payments under Section 4(a), provided
that the additional credits added with respect to each retirement program shall
not exceed five years when added to any additional credits already provided by
the terms of such programs in respect of the Termination covered hereby.

(iii)         continued medical, dental, vision, and
life insurance coverage (excluding accident, death, and disability insurance)
for the Executive and the Executive’s eligible dependents or, to the extent
such coverage is not commercially available, such other arrangements reasonably
acceptable to the Executive, on the same basis as in effect prior to the Change
in Control or the Executive’s Termination, whichever is deemed to provide for
more substantial benefits, for a period ending on the earlier of (A) the
end of the Separation Period or (B) the commencement of comparable
coverage by the Executive with a subsequent employer;

(iv)        unless it would adversely affect the
Company’s ability to use pooling of interest accounting in a Change in Control
transaction in which such accounting is intended to be used, immediate 100%
vesting of all outstanding stock options, stock appreciation rights and
restricted stock granted or issued by any Employer to the extent not previously
vested on or following the Change of Control;

(v)         all other accrued or vested benefits in
accordance with the terms of the applicable plan (with an offset for any
amounts paid under Section 4(b)(i)(C), above); and

(vi)        for the one-year period immediately
following the Termination, (A) use of the Executive’s office in Oklahoma
City, Oklahoma, or, at the Company’s option, use of a different office in
Oklahoma City, Oklahoma, having similar square footage and in the same class of
building as the Executive’s current office, and (B) exclusive use of the
services of a secretary to be hired and compensated by the Executive, provided,
however, that the Company shall reimburse the Executive for all
reasonable compensation and benefits provided to the

 6
 

 

secretary up to a maximum of $60,000 for the one-year
period, plus a full income tax gross-up on the compensation and benefits paid
to the secretary using the highest marginal rate applicable to the Executive,
which currently is 43.45%.

All lump sum payments under this Section 4 shall be paid within 15
business days after Executive’s date of Termination. At the Company’s option,
it may within the 15-day period either (x) make the payment to the
Executive subject to the Executive’s obligation to promptly return the funds if
the release required under Section 13 is revoked by the Executive as
provided in the release or (y) deposit the funds with a third party escrow
agent pursuant to customary arrangements where the only condition to release of
the escrowed funds to the Executive is that the release has not been revoked by
the Executive as provided in the release. Discounted present value (i.e., lump
sum value) for purposes of subsection (ii) above shall be calculated using
a discount factor equal to one percentage point below the rate of interest, per
annum, publicly announced by The Chase Manhattan Bank, N.A. as its prime rate
in effect at its principal office in New York City, and using the actuarial
factors set forth in the defined benefit retirement program.

(c)                  Outplacement.
If so requested by the Executive, outplacement services shall be provided by a
professional outplacement provider selected by the Executive; provided, however,
that such outplacement services shall be provided to the Executive at an
aggregate total  cost to the Company of
not more than ten (10) percent of such Executive’s annual base salary.

(d)                  Withholding.
Payments and benefits provided pursuant to this Section 4 shall be subject
to any applicable payroll and other taxes required to be withheld.

5.    Compensation
Upon Termination for Death, Disability or Retirement.

If an Executive’s employment is terminated by reason
of Death, Disability or Retirement prior to any other termination, Executive
will receive:

(a)                  the
sum of (i) Executive’s accrued but unpaid salary through the date of
Termination, (ii) the pro rata portion of the Executive’s target bonus for
the year of Executive’s Death or Disability (calculated through the date of
Termination), and (iii) an amount equal to any accrued vacation pay; and

(b)                  other
accrued or vested benefits in accordance with the terms of the applicable plan
(with an offset for any amounts paid under item (a)(iii), above).

5A.  Application of Section 409A of the
Code. To the extent Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”), applies to any compensation or other benefit payable
under this Agreement (including, but not limited to, Sections 4 and 5), this Section 5A
applies, and to the extent that it conflicts with any other provision of the
Agreement, it supersedes such conflicting provisions. If Section 409A of
the Code does not apply to any compensation or other benefits payable under
this Agreement, this Section 5A shall have no effect.

 7
 

 

(a)          In
General. This Section 5A is intended to comply with the provisions of Section 409A
of the Code. In furtherance of this intent, to the extent this Agreement is
subject to Section 409A of the Code, it shall be interpreted, operated,
and administered in a manner consistent with these intentions, and the parties
agree to amend this Agreement further (if necessary) in order to avoid the
adverse tax consequences of Section 409A of the Code.

(b)         Definitions.
For purposes of, and as used in, this Section 5A only,

     Key
Employee shall mean an employee who is treated as a “specified
employee” under Section 409A(a)(2)(B)(i) of the Code, i.e., a key
employee (as defined in Section 416(i) of the Code, without regard to
paragraph (5) thereof, and determined as of each December 31 in accordance
with Section 409A of the Code) of the Company.

     Separation
from Service shall mean a “separation from service” within
the meaning of Section 409A of the Code.

(c)          Timing
of Benefit Payments. If the Executive is a Key Employee, all amounts
payable under the Agreement that are subject to Section 409A of the Code
shall be paid in a lump-sum on the date that is six months following the
Executive’s Separation from Service (or on the date of the Executive’s death,
if earlier). Otherwise, such amounts shall be payable in a lump sum on the date
of the Executive’s Separation from Service (or on the date of the Executive’s
death, if earlier), provided that the Company may within the 15-day
period specified in Section 4(b) either (i) make the payment to
the Executive subject to the Executive’s obligation to promptly return the
funds if the release required under Section 13 is revoked by the Executive
as provided in the release or (ii) deposit the funds with a third party
escrow agent pursuant to customary arrangements where the only condition to
release of the escrowed funds to the Executive is that the release has not been
revoked by the Executive as provided in the release. For purposes of this Section 5A,
a payment that is required to be made on a certain date may be made as soon as
practicable following such date, provided that the payment must be made during
the same calendar year as the required payment date or, if later, by the 15th day of the third calendar month following the
required payment date, or otherwise in accordance with Section 409A of the
Code.

6.    Excess Parachute Payments.

(a) (i) If it is determined (as hereafter
provided) that any payment or distribution by the Company or any Employer to or
for the benefit of the Executive, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise pursuant to
or by reason of any other agreement, policy, plan, program or arrangement,
including without limitation any stock option, stock appreciation right or similar
right, or the lapse or termination of any restriction on or the vesting or
exercisability of any of the foregoing (a “Severance Payment”), would be
subject to the excise tax imposed by Section 4999 of the Code (or any
successor 

 8
 

 

provision thereto) by reason of being “contingent on a
change in ownership or control” of the Company, within the meaning of Section 280G
of the Code (or any successor provision thereto) or to any similar tax imposed
by state or local law, or any interest or penalties with respect to such excise
tax (such tax or taxes, together with any such interest and penalties, are
hereafter collectively referred to as the “Excise Tax”), then the Executive
shall be entitled to receive an additional payment or payments (a “Gross-Up
Payment”) in an amount such that, after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the Severance Payments.

(ii)                          Subject
to the provisions of Section 6(a)(i) hereof, all determinations
required to be made under this Section 6, including whether an Excise Tax
is payable by the Executive and the amount of such Excise Tax and whether a
Gross-Up Payment is required and the amount of such Gross-Up Payment,
shall be made by the nationally recognized firm of certified public accountants
(the “Accounting Firm”) used by the Company prior to the Change in Control (or,
if such Accounting Firm declines to serve, the Accounting Firm shall be a
nationally recognized firm of certified public accountants selected by the
Executive). The Accounting Firm shall be directed by the Company or the
Executive to submit its preliminary determination and detailed supporting
calculations to both the Company and the Executive within 15 calendar days
after the Termination Date, if applicable, and any other such time or times as
may be requested by the Company or the Executive. If the Accounting Firm
determines that any Excise Tax is payable by the Executive, the Company shall
pay the required Gross-Up Payment to, or for the benefit of, the
Executive within five business days after receipt of such determination and
calculations. If the Accounting Firm determines that no Excise Tax is payable
by the Executive, it shall, at the same time as it makes such determination,
furnish the Executive with an opinion that he has substantial authority not to
report any Excise Tax on his/her federal, state, local income or other tax
return. Any determination by the Accounting Firm as to the amount of the Gross-Up
Payment shall be binding upon the Company and the Executive absent a contrary
determination by the Internal Revenue Services or a court of competent
jurisdiction; provided, however, that no such determination shall
eliminate or reduce the Company’s obligation to provide any Gross-Up Payment
that shall be due as a result of such contrary determination. As a result of
the uncertainty in the application of Section 4999 of the Code (or any
successor provision thereto) and the possibility of similar uncertainty
regarding  state or local tax law at the
time of any determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments that will not have been made by the Company should have
been made (an “Underpayment”), consistent with the calculations required to be
made hereunder. In the event that the Company exhausts or fails to pursue its
remedies pursuant to Section 6 hereof and the Executive thereafter is
required to make a payment of any Excise Tax, the Executive shall direct the
Accounting Firm to determine the amount of the Underpayment that has occurred
and to submit its determination and detailed supporting calculations to both
the Company and the Executive as promptly as possible. Any such Underpayment
shall be promptly paid by the Company to, or for the benefit of, the Executive
within five business days after receipt of such determination and calculations.

(iii)                The federal, state and local
income or other tax returns filed by the Executive (or any filing made by a
consolidated tax group which includes the Company) shall be

 9
 

 

prepared and filed on a consistent basis with the
determination of the Accounting Firm with respect to the Excise Tax payable by
the Executive. The Executive shall make proper payment of the amount of any
Excise Tax, and at the request of the Company, provide to the Company true and
correct copies (with any amendments) of his/her federal income tax return as
filed with the Internal Revenue Service and corresponding state and local tax
returns, if relevant, as filed with the applicable taxing authority, and such
other documents reasonably requested by the Company, evidencing such payment. If
prior to the filing of the Executive’s federal income tax return, or
corresponding state or local tax return, if relevant, the Accounting Firm
determines that the amount of the Gross-Up Payment should be reduced, the
Executive shall within five business days pay to the Company the amount of such
reduction.

(iv)        The Company and the Executive shall each
provide the Accounting Firm access to and copies of any books, records and
documents in the possession of the Company or the Executive, as the case may
be, reasonably requested by the Accounting Firm, and otherwise cooperate with
the Accounting Firm in connection with the preparation and issuance of the
determination contemplated by Section 6(a) hereof.

(v)         The fees and expenses of the Accounting
Firm for its services in connection with the determinations and calculations
contemplated by Sections 6(a)(ii) and (iv) hereof shall be borne by
the Company. If such fees and expenses are initially advanced by the Executive,
the Company shall reimburse the Executive the full amount of such fees and
expenses within five business days after receipt from the Executive of a
statement therefor and reasonable evidence of his/her payment thereof.

(b)                  In
the event that the Internal Revenue Service claims that any payment or benefit
received under this Agreement constitutes an “excess parachute payment,” within
the meaning of Section 280G(b)(1) of the Code, the Executive shall
notify the Company in writing of such claim. Such notification shall be given
as soon as practicable but no later than 10 business days after the Executive
is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the 30 day period
following the date on which the Executive gives such notice to the Company (or
such shorter period ending on the date that any payment of taxes with respect
to such claim is due). If the Company notifies the Executive in writing prior
to the expiration of such period that it desires to contest such claim, the
Executive shall (i) give the Company any information reasonably requested
by the Company relating to such claim; (ii) take such action in connection
with contesting such claim as the Company shall reasonably request in writing
from time to time, including without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company
and reasonably satisfactory to the Executive; (iii) cooperate with the
Company in good faith in order to effectively contest such claim; and (iv) permit
the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and expenses
(including, but not limited to, additional interest and penalties and related
legal, consulting or other similar fees) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for and against any

 10
 

 

Excise Tax or other tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.

(c)                  The
Company shall control all proceedings taken in connection with such contest
and, at its sole option, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, pay the tax claimed and
direct the Executive to sue for a refund or direct the Executive to contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company pays such claim
and directs the Executive to sue for a refund, the Company shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
other tax (including interest and penalties with respect thereto) imposed with
respect to such payment or with respect to any imputed income with respect to
such payment; and provided, further, that if the Executive is
required to extend the statute of limitations to enable the Company to contest
such claim, the Executive may limit this extension solely to such contested
amount. The Company’s control of the contest shall be limited to issues with
respect to which a corporate deduction would be disallowed pursuant to Section 280G
of the Code and the Executive shall be entitled to settle or contest, as the
case may be, any other issue raised by the Internal Revenue Service or any
other taxing authority. In addition, no position may be taken nor any final
resolution be agreed to by the Company without the Executive’s consent if such
position or resolution could reasonably be expected to adversely affect the
Executive (including any other tax position of the Executive unrelated to
matters covered hereby).

(d)                  If,
after payment by the Company in connection with the contest of the Excise Tax
claim, the Executive becomes entitled to receive any refund with respect to
such claim, the Executive shall promptly pay to the Company the amount of such
refund (together with any interest paid or credited thereon after taxes
applicable thereto); provided, however, if the amount of that
refund exceeds the amount paid by the Company or it is otherwise determined for
any reason that additional amounts could be paid to the Executive without
incurring any Excise Tax, any such amount will be promptly paid by the Company
to the Executive (or shall be applied to reduce any amount that Executive would
otherwise be required to pay the Company). If, after payment by the Company in
connection with an Excise Tax claim, a determination is made that the Executive
shall not be entitled to any refund with respect to such claim and the Company
does not notify the Executive in writing of its intent to contest the denial of
such refund prior to the expiration of 30 days after such determination, the
Company shall have no claim against the Executive for the amount paid and such
amount shall be deemed to be in consideration for services rendered after the
date of the Termination.

(e)                  Notwithstanding
the foregoing, if the payment described in Section 6(c) is determined
by the Company to be impermissible under applicable law, then no such payment
shall be made, nor shall the Company direct the Executive to pay the tax
claimed and sue for a refund.

 11

 

7.    Expenses.
In addition to all other amounts payable to the Executive under this Agreement,
the Company shall pay or reimburse the Executive for reasonable legal fees
(including without limitation, any and all court costs and reasonable attorneys’
fees and expenses) incurred by the Executive in connection with or as a result
of any claim, action or proceeding brought by the Company, any other Employer
or the Executive with respect to or arising out of this Agreement or any
provision hereof; provided, however, that the Company shall have
no obligation to pay any such legal fees, if (i) in the case of an action
brought by the Executive, the Company or any other Employer is successful in
establishing with the court that the Executive’s action was frivolous or otherwise
without any reasonable legal or factual basis; or (ii) in connection with
any such claim, action or proceeding arising out of Section 12 of this
Agreement.

8.    Obligations Absolute; Non-Exclusivity of Rights; Joint
and Several Liability.

(a)                  The obligations of the Company
to make the payments to the Executive, and to make the arrangements, provided
for herein shall be absolute and unconditional and shall not be reduced by any
circumstances, including without limitation any set-off, counterclaim, recoupment,
defense or other right which the Company or any other Employer may have against
the Executive or any third party at any time.

(b)                  Nothing
in this Agreement shall prevent or limit the Executive’s continuing or future
participation in any benefit, bonus, incentive or other plan or program
provided by the Company or any other Employer and for which the Executive may
qualify, nor shall anything herein limit or reduce such rights as the Executive
may have under any agreements with the Company or any other Employer; provided,
however, the terms and conditions of compensation or benefits specifically
addressed in this Agreement (e.g., the right to severance pay for a termination
of employment within two years following a Change in Control) shall be determined
solely in accordance with the terms of this Agreement. The terms and conditions
of compensation or benefits not specifically addressed in this Agreement shall
be determined in accordance with the applicable documents governing such
compensation and benefits (e.g., the amount and timing of payments with respect
to performance units upon a Change in Control is governed by the appropriate
long term incentive plan, and the amount and timing of benefits under the
Kerr-McGee Corporation Executive Deferred Compensation Plan (EDCP) is governed
by the EDCP), and the amount and timing of benefits under the Company’s
qualified and non-qualified defined benefit retirement programs are governed by
the applicable retirement plan.

(c)                  Each
entity included in the definition of “Employer” and any successors or assigns
shall be joint and severally liable with the Company under this Agreement.

9.    Not an
Employment Agreement; Effect On Other Rights.

(a)                  This
Agreement is not, and nothing herein shall be deemed to create, a contract of
employment between the Executive and the Company or any other Employer. The
Company or any other Employer may terminate the employment of the Executive by
the 

 12
 

 

Company at any time, subject to the terms of this
Agreement and/or any employment agreement or arrangement between the Company or
any other Employer and the Executive that may then be in effect.

(b)                  This
Agreement supersedes all prior agreements covering change in control or any
other subject matter covered by this Agreement and Executive hereby represents
that the Executive has no other oral or written representations, understandings
or agreements with the Company, any other Employer, or any of their officers,
directors or representatives covering any such subject matter and agrees that any
and all prior written agreements relating to such subject matter shall be
terminated effective as of the date of execution of this Agreement and shall be
of no further force or effect. It is understood that nothing in this Agreement
supersedes or otherwise affects that certain Retirement Benefits Preservation
Agreement dated July 18, 2005 between Executive and the Company. Amounts
which are vested benefits or which the Executive is otherwise entitled to
receive under any Company plan or program of the Company or any other Employer
shall be payable in accordance with such plan or program, except as explicitly
modified by this Agreement.

10.  Successors;
Binding Agreement, Assignment.

(a)                  The
Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
of the Company, by agreement to expressly, absolutely and unconditionally
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such agreement prior to the
effectiveness of any such succession shall be a material breach of this
Agreement and shall entitle the Executive to terminate the Executive’s
employment with the Company or such successor for Good Reason immediately prior
to or at any time after such succession. As used in this Agreement, “Company”
shall mean (i) the Company as hereinbefore defined, and (ii) any successor
to all the stock of the Company or to all or substantially all of the Company’s
business or assets which executes and delivers an agreement provided for in
this Section 10(a) or which otherwise becomes bound by all the terms
and provisions of this Agreement by operation of law, including any parent or
subsidiary of such a successor.

(b)                  This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. If the Executive should die while
any amount would be payable to the Executive hereunder if the Executive had
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to the Executive’s estate
or designated beneficiary. Neither this Agreement nor any right arising
hereunder may be assigned or pledged by the Executive.

11.  Notice.
For purpose of this Agreement, notices and all other communications provided
for in this Agreement or contemplated hereby shall be in writing and shall be
deemed to have been duly given when personally delivered, delivered by a
nationally recognized overnight 

 13
 

 

delivery
service or when mailed United States certified or registered mail, return
receipt requested, postage prepaid, and addressed, in the case of the Company,
to the Company at:

Kerr-McGee Corporation

123 Robert S. Kerr Avenue

P.O. Box 25861

Oklahoma City, Oklahoma
73125

Attention:  Chief Executive
Officer

(with a copy to General Counsel)

and in
the case of the Executive, to the Executive at the address set forth on the
execution page at the end hereof.

Either party may designate a different address by giving notice of
change of address in the manner provided above, except that notices of change
of address shall be effective only upon receipt.

12.  Covenants.

(a)                  Acknowledgments.
The Executive acknowledges that: (i) as a result of the Executive’s
employment by the Company, the Executive has obtained Confidential Information
(as defined below); (ii) the Confidential Information has been developed
and created by the Company and its affiliates at substantial expense and the
Confidential Information constitutes valuable proprietary assets of the Company
and its affiliates; (iii) the Company and its affiliates will suffer
substantial damage and irreparable harm which will be difficult to compute if,
during the Restricted Period, the Executive should enter a Competitive Business
(as defined below) in violation of the provisions of this Agreement; (iv) the
nature of the Company’s and its affiliates’ business is such that it could be
conducted anywhere in the world and that it is not limited to a geographic
scope or region; (v) the Company and its affiliates will suffer substantial
damage which will be difficult to compute if, during the Restricted Period, the
Executive should solicit or interfere with the Company’s and its affiliates’
employees, clients or customers or should at any time divulge Confidential
Information relating to the business of the Company and its affiliates; (vi) the
provisions of this Section 12 are reasonable and necessary for the
protection of the business of the Company and its affiliates; (vii) the
Company would not have provided the benefits contemplated under this Agreement
unless the Executive agreed to be bound by the terms hereof; and (viii) the
provisions of this Agreement will not preclude the Executive from other gainful
employment.

(b)                  Definitions.
For purposes of this Agreement, the following terms shall have the following
meanings:

“Competitive Business” shall mean
any business which competes, directly or indirectly, with any aspect of the
Company’s oil and gas exploration business.

 14
 

 

“Confidential Information” shall mean any and all confidential and/or
proprietary knowledge, data, or information of the Company or any affiliate,
including, without limitation, any: (i) trade secrets, drawings,
inventions, methodologies, mask works, ideas, processes, formulas, source and
object codes, data, programs, software source documents, works of authorship,
know-how, improvements, discoveries, developments, designs and techniques, and
all other work product of the Company or any affiliate, whether or not
patentable or registrable under trademark, copyright, patent or similar laws; (ii) information
regarding plans for research, development, new service offerings and/or
products, marketing, advertising and selling, distribution, business plans,
business forecasts, budgets and unpublished financial statements, licenses,
prices and costs, suppliers, customers or distribution arrangements; (iii) any
information regarding the skills and compensation of employees, suppliers,
agents, and/or independent contractors of the Company or any affiliate; (iv) concepts
and ideas relating to the development and distribution of content in any medium
or to the current, future and proposed products or services of the Company or
any affiliate; or (v) any other information, data or the like that is
labeled confidential or orally disclosed to Executive as confidential.

“Restricted Period” shall mean the period of twelve (12)
months immediately following the Executive’s Termination of employment.

(c)                  Confidentiality.
The Executive shall retain in confidence any and all Confidential Information
which is now known or hereafter becomes known to the Executive, except as
otherwise required by law and except information (i) ascertainable or
obtained from public information, (ii) received by the Executive at any
time after the Executive’s employment by the Company and all other Employers
shall have terminated, from a third party not employed by or otherwise
affiliated with the Company or any other Employer or (iii) which is or
becomes known to the public by any means other than a breach of this Section 12.
Upon the Termination of employment, the Executive will not take or keep any
proprietary or confidential information or documentation belonging to the
Company.

(d)                  Non-Compete. During the Restricted Period,
the Executive will not, for himself, or in conjunction with any other person,
firm, partnership, corporation or other form of business organization or
arrangement (whether as a shareholder, partner, member, principal, agent,
lender, director, officer, manager, trustee, representative, employee or
consultant), directly or indirectly, be employed by, provide services to, in
any way be connected, associated or have any interest in, or give advice or
consultation to any Competitive Business; provided, however, that
nothing in this Section 12(d) shall prohibit the Executive from (i) purchasing
or holding, for investment purposes, the securities of a publicly-traded
company so long as the Executive’s equity interest in any such company is less
than five percent or (ii) being employed by, or providing services to, a
consulting firm, provided that the Executive does not personally provide
consulting or advisory services to any person or entity engaged in a
Competitive Business, or
any company or person affiliated with such person or entity engaged in a Competitive
Business.

 15
 

 

(e)                  Non-Solicitation
of Employees. During the Restricted Period, the Executive shall not,
directly or indirectly solicit, employ or retain, or have or cause any other
person or entity to solicit, employ or retain, any person who is employed or is
providing services to the Company and its affiliates at the time of his
Termination of employment or was or is providing such services within the
twelve (12) month period before or after his Termination of employment, provided,
however, that, this Section 12(e) shall not apply to
administrative personnel of the Company.

(f)                   Non-Solicitation
of Clients and Customers. During the Restricted Period, the Executive shall
not, for himself, or in conjunction with any other person, firm, partnership,
corporation or other form of business organization or arrangement (whether as a
shareholder, partner, member, lender, principal, agent, director, officer,
manager, trustee, representative, employee or consultant), directly or
indirectly: (i) solicit or accept any business that is directly related to
the business of the Company or its affiliates, from any person or entity who,
at the time of, or at the time during the twelve months preceding the Executive’s
Termination, was an existing or prospective customer or client of the Company
or its affiliates; (ii) request or cause any of the Company’s or its
affiliates’ clients or customers to cancel or terminate any business
relationship with the Company or its affiliates involving services or
activities which were directly or indirectly the responsibility of Executive
during his employment; or (iii) request or cause any employee of the
Company or its affiliates to breach or threaten to breach any terms of said
employee’s agreements with the Company or its affiliates or to terminate his or
her employment with the Company or its affiliates.

(g)                  Remedies.
The Executive acknowledges and agrees that the Company’s and Employer’s
remedies at law for a breach or threatened breach of any of the provisions of
this Section 12 would be inadequate and, in recognition of this fact,
Executive agrees that, in the event of such a breach or threatened breach, in
addition to any remedies at law, the Company, or any other Employer, without
posting any bond, shall be entitled to cease making any payments or providing
any benefit otherwise required by this Agreement during the pendency of any
dispute involving such Section and to obtain equitable relief in the form
of specific performance, temporary restraining order, temporary or permanent injunction
or any other equitable remedy which may then be available. Upon the resolution
of such dispute, any payments or benefits required by this Agreement which were
suspended during the pendency of the dispute shall be paid or provided to the
Executive if it is determined that no breach of this Section 12 occurred.

This paragraph 12 shall survive this Agreement.

13.  Release.
The Executive shall enter into a release, in the form attached hereto as Exhibit A,
or such other form as the Company and the Executive shall agree, as a condition
to providing any payments or benefits under this Agreement.

14.  Miscellaneous.
No provision of this Agreement may be amended, altered, modified, waived or
discharged unless such amendment, alteration, modification, waiver or 

 16
 

 

discharge is agreed to in
writing signed by the Executive and such officer of the Company as shall be
specifically designated by the Committee or by the Board of Directors of the
Company. No waiver by either party, at any time, of any breach by the other
party of, or of compliance by the other party with, any condition or provision
of this Agreement to be performed or complied with by such other party shall be
deemed a waiver of any similar or dissimilar provision or condition of this
Agreement or any other breach of or failure to comply with the same condition
or provision at the same time or at any prior or subsequent time. No agreements
or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.

15.  Severability.
If any one or more of the provisions of this Agreement shall be held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions of this Agreement shall not be affected thereby. To
the extent permitted by applicable law, each party hereto waives any provision
of law which renders any provision of this Agreement invalid, illegal or
unenforceable in any respect.

16.  Governing
Law; Venue. The validity, interpretation, construction and performance of
this Agreement shall be governed exclusively by the laws of the State of Delaware without giving effect to its
conflict of laws rules. For purposes of jurisdiction and venue, the Company and
each Employer hereby consents to jurisdiction and venue in any suit, action or
proceeding with respect to this Agreement in any court of competent
jurisdiction in the state in which Executive resides at the commencement of
such suit, action or proceeding and waives any objection, challenge or dispute
as to such jurisdiction or venue being proper.

17.  Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
an original and all of which shall be deemed to constitute one and the same
instrument.

 17
 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

 

	
  

  	
  KERR-MCGEE CORPORATION 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Gregory F. Pilcher 

  
	
   

  	
   

  	
  Gregory F. Pilcher 

  
	
   

  	
   

  	
  Senior Vice President, General Counsel 

  
	
   

  	
   

  	
  and Corporate Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Luke R. Corbett 

  
	
   

  	
  Luke R. Corbett

  
				

 

 

 18

 

Exhibit A

RELEASE

[__________] (“Executive”), for and in consideration of the
payments and benefits that Executive shall receive under this Agreement, hereby
executes the following General Release (“Release”) and agrees as follows:

1.             Effective
on the date all payments have been made by the Company to the Executive under
the Continuity Agreement, dated [Insert Date],
between the Company and the Executive (the “Continuity Agreement”), Executive,
on behalf of Executive, Executive’s agents, assignees, attorneys, successors,
assigns, heirs and executors, agrees to, and Executive does hereby fully and
completely forever, release the Company and its affiliates, predecessors and
successors and all of their respective past and/or present officers, directors,
partners, members, managing members, managers, Executives, agents,
representatives, administrators, attorneys, insurers and fiduciaries in their
individual and/or representative capacities (hereinafter collectively referred
to as the “Releasees”), from any and all causes of action, suits, agreements,
promises, damages, disputes, controversies, contentions, differences,
judgments, claims, debts, dues, sums of money, accounts, reckonings, bonds,
bills, specialties, covenants, contracts, variances, trespasses, extents,
executions and demands of any kind whatsoever (each a “claim”), which Executive
or Executive’s heirs, executors, administrators, successors and assigns ever
had, now have or may have against the Releasees or any of them, in law,
admiralty or equity, whether known or unknown to Executive, for, upon, or by
reason of, any matter, action, omission, course or thing whatsoever occurring
up to the date this Release is signed by Executive, including, without
limitation, in connection with or in relationship to Executive’s employment or
other service relationship with the Company or its affiliates, the termination
of any such employment or service relationship and any applicable employment,
compensatory or equity arrangement with the Company or its respective affiliates
(such released claims, subject to the provisos in the next clause, are
collectively referred to herein as the “Released Claims”); provided
that such released claims shall not include (i) any claims to enforce
Executive’s rights under, or with respect to, the Continuity Agreement,
including with respect to accrued or vested benefits referenced in clauses
4(b)(v), 5(b), and/or 9(b) of the Continuity Agreement, (ii) any
claims to enforce Executive’s rights to any indemnification or contribution
under the Company’s charter or by-laws, by contract or by law, including
without limitation any rights to advancement of funds, or to any insurance
whether or not obtained by the Company or (iii) any claims used as
defenses to, or rights of set off relating to, any actions against the
Executive, Executive’s agents, assignees, attorneys, successors, assigns, heirs
and executors.

2.             Notwithstanding
the generality of clause (1) above, the Released Claims include, without
limitation, (a) any and all claims under Title VII of the Civil Rights Act
of 1964, the Age Discrimination in Employment Act of 1967, the Civil Rights Act
of 1971, the Civil Rights Act of 1991, the Fair Labor Standards Act, the
Executive Retirement Income Security Act of 1974, the Americans with Disabilities
Act, the Family and Medical Leave Act of 1993, and any and all other federal,
state or local laws, statutes, rules and regulations pertaining to
employment or otherwise, and (b) any claims for wrongful discharge, breach
of contract, fraud, misrepresentation or any compensation claims, or any other
claims under any statute, rule, 

 

regulation or under the common law, including compensatory
damages, punitive damages, attorney’s fees, costs, expenses and all claims for
any other type of damage or relief.

3.             This
means that, by signing this Release, the Executive shall have waived any right
to which the Executive may have had to bring a lawsuit or make any claim
against the releasees based on any acts or omissions of the releasees up to the
date of the signing of this Release.

4.             Executive
represents that he has read carefully and fully understands the terms of this
Release, and that Executive has been advised to consult with an attorney and
have had the opportunity to consult with an attorney prior to signing this
Release. Executive acknowledges that he is executing this Release voluntarily
and knowingly and that he has not relied on any representations, promises or
agreements of any kind made to Executive in connection with Executive’s
decision to accept the terms of this Release, other than those set forth in
this Release. Executive acknowledges that Executive has been given at least
twenty-one (21) days to consider whether Executive wants to sign this Release
and that the Age Discrimination in Employment Act gives Executive the right to
revoke this Release within seven (7) days after it is signed, and
Executive understands that (1) if the Company makes any payments to
Executive pursuant to the Continuity Agreement prior to the expiration of such
seven (7) day revocation period (the “Revocation Period”), Executive shall
promptly return the funds to the Company if Executive revokes this Release
prior to such expiration or (2) if the Company deposits the funds
necessary to make such payment to Executive into escrow as described in the
Continuity Agreement, such funds will be released to Executive upon the
expiration of the Revocation Period without Executive having revoked this
Release. To the extent Executive has executed this Release within less than
twenty-one (21) days after its delivery to Executive, Executive hereby
acknowledges that his decision to execute this Release prior to the expiration
of such twenty-one (21) day period was entirely voluntary.

	
   

  	
   

  	
  KERR-MCGEE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executive

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Name:

  

 

 A-2

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