Document:

Employee Matters Agreement, dated as of December 30, 2011

 Exhibit 10.2 

 
  

 
 EMPLOYEE MATTERS AGREEMENT

 by and between 
 THE WILLIAMS COMPANIES, INC. 
 and 

WPX ENERGY, INC. 
 Dated as of December 30, 2011 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 Section 1.1
	 	Table of Definitions	  	 	1	  
	 Section 1.2
	 	Certain Defined Terms	  	 	2	  
	 Section 1.3
	 	Other Capitalized Terms	  	 	5	  
		
	 ARTICLE II GENERAL PRINCIPLES; EMPLOYEE TRANSFERS
	  	 	5	  
			
	 Section 2.1
	 	Assumption of WPX Employee Liabilities	  	 	5	  
	 Section 2.2
	 	Allocation of Liabilities With Respect to Benefit Plans, Employment Agreements and Equity Compensation Awards	  	 	5	  
	 Section 2.3
	 	WPX Benefit Plans and WPX Employment Agreements	  	 	6	  
	 Section 2.4
	 	Plan-Related Litigation	  	 	7	  
	 Section 2.5
	 	Paid Time Off	  	 	7	  
	 Section 2.6
	 	FMLA	  	 	7	  
	 Section 2.7
	 	Employee Transfers	  	 	7	  
	 Section 2.8
	 	Annual Bonuses	  	 	8	  
		
	 ARTICLE III SERVICE CREDIT
	  	 	8	  
			
	 Section 3.1
	 	Service Credit for Employee Transfers	  	 	8	  
	 Section 3.2
	 	WMB Benefit Plans	  	 	8	  
	 Section 3.3
	 	WPX Benefit Plans	  	 	8	  
		
	 ARTICLE IV CERTAIN WELFARE BENEFIT PLAN MATTERS
	  	 	9	  
			
	 Section 4.1
	 	WPX Welfare Plans	  	 	9	  
	 Section 4.2
	 	Continuation of Elections	  	 	9	  
	 Section 4.3
	 	Pre-Existing Conditions	  	 	9	  
	 Section 4.4
	 	Long-Term Disability	  	 	9	  
	 Section 4.5
	 	Short-Term Disability	  	 	10	  
	 Section 4.6
	 	Workers’ Compensation	  	 	10	  
	 Section 4.7
	 	Other Welfare Benefits	  	 	10	  
		
	 ARTICLE V DEFINED BENEFIT PLANS
	  	 	10	  
			
	 Section 5.1
	 	WMB DB Plans	  	 	10	  
	 Section 5.2
	 	Vesting of Benefits	  	 	11	  
	 Section 5.3
	 	Section 409A	  	 	11	  

  
 i 

 TABLE OF CONTENTS 

(Continued) 
  

							
	 	 	 	  	Page	 
	ARTICLE VI TAX-QUALIFIED DEFINED CONTRIBUTION PLANS	  	 	11	  
			
	 Section 6.1
	 	WMB DC Plan	  	 	11	  
	 Section 6.2
	 	Vesting of Benefits	  	 	11	  
	 Section 6.3
	 	WPX DC Plan	  	 	12	  
	 Section 6.4
	 	Contributions Due	  	 	12	  
		
	ARTICLE VII EQUITY COMPENSATION	  	 	12	  
			
	 Section 7.1
	 	General Treatment of Outstanding WMB Equity Compensation Awards	  	 	12	  
	 Section 7.2
	 	Tax Withholding and Reporting	  	 	14	  
	 Section 7.3
	 	Employee Stock Purchase Plan	  	 	14	  
		
	ARTICLE VIII BENEFIT PLAN REIMBURSEMENTS, BENEFIT PLAN THIRD-PARTY CLAIMS	  	 	14	  
			
	 Section 8.1
	 	General Principles	  	 	14	  
	 Section 8.2
	 	Benefit Plan Third-Party Claims	  	 	14	  
		
	ARTICLE IX COOPERATION	  	 	15	  
			
	 Section 9.1
	 	Cooperation	  	 	15	  
		
	ARTICLE X MISCELLANEOUS	  	 	15	  
			
	 Section 10.1
	 	Further Assurances	  	 	15	  
	 Section 10.2
	 	Employment Tax Reporting Responsibility	  	 	15	  
	 Section 10.3
	 	Data Privacy	  	 	15	  
	 Section 10.4
	 	Third Party Beneficiaries	  	 	16	  
	 Section 10.5
	 	Effect if Distribution Does Not Occur	  	 	16	  
	 Section 10.6
	 	Incorporation of Separation Agreement Provisions	  	 	16	  
	 Section 10.7
	 	No Representation or Warranty	  	 	16	  

  
 ii 

 EMPLOYEE MATTERS AGREEMENT 

EMPLOYEE MATTERS AGREEMENT, dated as of December 30, 2011 (the “Employee Matters Agreement”), by and between The
Williams Companies, Inc., a Delaware corporation (“WMB”), and WPX Energy, Inc., a Delaware corporation (“WPX”), which Employee Matters Agreement shall become effective at the same time as the Separation Agreement
(as defined below). 
 RECITALS 
 A. The parties to this Employee Matters Agreement have entered into the Separation and Distribution Agreement (the “Separation Agreement”), dated as of the date hereof, pursuant to which
WMB intends to separate into two publicly traded companies: (i) WMB, which will continue to own and conduct, directly and indirectly, the WMB Business, and (ii) WPX, which will own and conduct, directly and indirectly, the WPX Business.

 B. The parties wish to set forth their agreements as to certain matters regarding employment, compensation and employee
benefits. 
 AGREEMENT 
 In consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the parties agree as follows: 

ARTICLE I 

DEFINITIONS 
 Section 1.1 Table of Definitions. The following terms have the meanings set forth on the pages referenced below: 

 

					
	 Definition
	  	Page	 
	 Applicable Transfer Date
	  	 	8	  
	 Benefit Plan
	  	 	2	  
	 Benefits Commencement Date
	  	 	2	  
	 Converted WPX Equity Compensation Award
	  	 	12	  
	 Delayed Transfer Employee
	  	 	7	  
	 Employee Matters Agreement
	  	 	1	  
	 Employment Agreement
	  	 	2	  
	 Equity Compensation Awards
	  	 	2	  
	 ERISA
	  	 	2	  
	 Fiscal 2011 Employee Bonuses
	  	 	8	  
	 Former Employee
	  	 	2	  
	 Plan Payee
	  	 	2	  
	 Pre-2006 Options
	  	 	13	  
	 Separation Agreement
	  	 	1	  

					
	 Definition
	  	Page	 
	 Welfare Plan
	  	 	2	  
	 WMB
	  	 	1	  
	 WMB Benefit Plan
	  	 	3	  
	 WMB DB Plans
	  	 	3	  
	 WMB DC Plan
	  	 	3	  
	 WMB Employee
	  	 	3	  
	 WMB Employee Liabilities
	  	 	3	  
	 WMB Employment Agreement
	  	 	3	  
	 WMB Equity Compensation Award
	  	 	12	  
	 WMB Group
	  	 	4	  
	 WMB Option
	  	 	12	  
	 WMB RSUs
	  	 	12	  
	 WMB Welfare Plan
	  	 	4	  
	 Workers’ Compensation Event
	  	 	4	  
	 WPX
	  	 	1	  

 
 

 Table of Definitions (cont.) 

 

					
	 Definition
	  	Page	 
	 WPX Benefit Plans
	  	 	4	  
	 WPX DC Plan
	  	 	12	  
	 WPX Employee
	  	 	4	  
	 WPX Employee Liabilities
	  	 	4	  

					
	 Definition
	  	Page	 
	 WPX Employment Agreement
	  	 	4	  
	 WPX Exchange Ratio
	  	 	3, 5	  
	 WPX Group
	  	 	5	  
	 WPX Welfare Plan
	  	 	5	  

 
 

  
 Section 1.2
Certain Defined Terms. For the purposes of this Employee Matters Agreement: 
 “Benefit
Plan” means, with respect to an entity, each plan, program, policy, agreement, arrangement or understanding that is a deferred compensation, executive compensation, incentive bonus or other bonus, pension, profit sharing, savings,
retirement, severance pay, salary continuation, life, death benefit, health, hospitalization, paid time off, disability or accident insurance or other employee benefit plan, program, agreement or arrangement, including any “employee benefit
plan” (as defined in Section 3(3) of ERISA) sponsored, maintained or contributed to by such entity or to which such entity is a party or under which such entity has any obligation; provided that no WMB Equity Compensation Award, nor any
plan under which any such WMB Equity Compensation Award is granted, shall constitute a “Benefit Plan” under this Employee Matters Agreement. In addition, no Employment Agreement shall constitute a Benefit Plan for purposes hereof.

 “Benefits Commencement Date” means January 1, 2012, or such later date prior to the
Distribution Date as the parties may agree on which WPX Employees shall commence participation in the WPX Benefit Plans. 
 “Employment Agreement” means any individual employment, retention, relocation, change in control, incentive bonus, signing bonus or other individual compensatory agreement between any
current or former employee of WMB or a member of the WMB Group or the WPX Group, but excluding any Equity Compensation Award. 
 “Equity Compensation Awards” means, collectively, the WMB Equity Compensation Award and the Converted WPX Equity Compensation Awards. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Former Employee” means each former employee of WMB, any of its Affiliates and the WMB Group, but does
not include any WMB Employees or WPX Employees. 
 “Plan Payee” means, as to an individual who
participates in a Benefit Plan, such individual’s dependents, beneficiaries, alternate payees and alternate recipients, as applicable under such Benefit Plan. 

“Welfare Plan” means each Benefit Plan that provides life insurance, health care, dental care, vision
care, employee assistance programs (EAP), accidental death and dismemberment insurance, disability, severance, or other group welfare or fringe benefits and is an “employee welfare benefit plan” as described in Section 3(1) of ERISA,
whether or not subject to ERISA. 

  
 2 

 “WMB Benefit Plan” means any Benefit Plan sponsored or
maintained by any member of the WMB Group or WMB. For the avoidance of doubt, no member of the WMB Group shall be deemed to sponsor or maintain any Benefit Plan if its relationship to such Benefit Plan is solely to administer such Benefit Plan or
provide to WPX any reimbursement in respect of such Benefit Plan. The WMB Benefit Plans shall be those Benefit Plans sponsored solely by one or more members of the WMB Group following the Benefits Commencement Date. 

“WMB DB Plans” means Williams Pension Plan, Williams Inactive Employees Pension Plan, and The Williams
Retirement Restoration Plan. The WMB DB Plans shall be the responsibility of one or more members of the WMB Group following the Benefits Commencement Date. 
 “WMB DC Plan” means The Williams Investment Plus Plan. The WMB DC Plan shall be the responsibility of one or more members of the WMB Group following the Benefits Commencement Date.

 “WMB Employee” means each individual who is employed by a member of the WMB Group (including,
for the avoidance of doubt, any individual who is on a leave of absence, whether paid or unpaid, from which such employee is entitled to return to active employment with a member of the WMB Group (in accordance with WMB’s applicable personnel
policies)), who is not a WPX Employee. 
 “WMB Employee Liabilities” means all potential or
actual employment and employee benefits-related or other Liabilities, whether arising before, on or after the Benefits Commencement Date, with respect to: (a) WMB Employees, any other persons employed by the WMB Group and Former Employees (and
their respective Plan Payees); (b) any other individuals asserting rights or obligations stemming from their services to or in connection with WMB’s business (excluding the WPX Business); (c) WMB Employment Agreements; and
(d) the WMB Benefit Plans (including providing COBRA continuation coverage and long-term disability benefits). WMB Employee Liabilities shall also include any deferred vested benefits of or other Liabilities with respect to WPX Employees (and
their Plan Payees) under the WMB DB Plans and the WMB DC Plan, and any obligations to issue WMB common stock under Equity Compensation Awards as provided in Article VII below, but shall exclude the WPX Employee Liabilities. 

“WMB Employment Agreement” means any Employment Agreement to which any member of the WMB Group or WMB is
a party. The WMB Employment Agreements shall be the responsibility of one or more members of the WMB Group following the Benefits Commencement Date. 
 “WMB Exchange Ratio” means a ratio equal to the volume weighted average price of a share of WMB on December 30, 2011 based on “regular way” trading divided by an amount
equal to the volume weighted average price of a share of WMB on January 3, 2012 based on “regular way” trading. 

  
 3 

 “WMB Group” means WMB and each direct or indirect
Subsidiary of WMB, other than Persons in the WPX Group. 
 “WMB Welfare Plan” means each WMB
Benefit Plan that is a Welfare Plan. 
 “Workers’ Compensation Event” means the event,
injury, illness or condition giving rise to a workers’ compensation claim. 
 “WPX Benefit
Plans” means any Benefit Plan sponsored or maintained by any member of the WPX Group or WPX. 

“WPX Employee” means each individual who, as of the earlier of the Distribution or the Benefits
Commencement Date, is employed by a member of the WPX Group (including, for the avoidance of doubt, (i) any Delayed Transfer Employee, (ii) any individual who is on a leave of absence, whether paid or unpaid, from which such employee is
entitled to return to active employment with a member of the WPX Group (in accordance with applicable personnel policies) and (iii) any individual who, at the time of the Distribution (or, if earlier, on the Benefits Commencement Date), is
receiving short-term disability benefits under a WMB Benefit Plan and who, if actively-employed at the time of the Distribution (or, if earlier, on the Benefits Commencement Date), would have been or become a WPX Employee on that date). 

“WPX Employee Liabilities” means all potential or actual employment and employee benefits-related or
other Liabilities, whether arising before, on or after the Benefits Commencement Date, with respect to: (a) WPX Employees and any other persons employed by the WPX Group (and their respective Plan Payees); (b) any other individuals
asserting rights or obligations stemming from their services to or in connection with the WPX Business; (c) WPX Employment Agreements; or (d) the WPX Benefit Plans, but excluding, in all cases, any such Liabilities (including, without
limitation, for any deferred vested benefits) arising under any WMB Benefit Plan, including the WMB DB Plans or the WMB DC Plan. WPX Employee Liabilities shall also include any obligations to issue WPX common stock under Equity Compensation Awards
as provided in Article VII below and any obligations specifically assumed by WPX in Article IV below, but shall exclude the WMB Employee Liabilities. 
 “WPX Employment Agreement” means any Employment Agreement to which any member of the WPX Group is a party and to which no member of the WMB Group is a party. WPX Employment Agreements
shall also include cash retention agreements between any WPX Employee and any member of the WMB Group, but shall not include any change in control agreements to which any member of the WMB Group is a party or any other WMB Employment Agreements. The
WPX Employment Agreements shall be the sole responsibility of one or more members of the WPX Group following the Benefits Commencement Date. 

  
 4 

 “WPX Exchange Ratio” means a ratio equal to the volume
weighted average price of a share of WMB on December 30, 2011 based on “regular way” trading divided by the volume weighted average price of a share of WPX on January 3, 2012 based on “regular way” trading. 

“WPX Group” means WPX and each direct or indirect Subsidiary of WPX. For the purposes of this Employee
Matters Agreement, WMB shall not be deemed to be a member of the WPX Group. 
 “WPX Welfare
Plan” means each WPX Benefit Plan that is a Welfare Plan. 
 Section 1.3 Other Capitalized Terms. Capitalized
terms not defined in this Employee Matters Agreement shall have the meanings ascribed to them in the Separation Agreement. 

ARTICLE II 

GENERAL PRINCIPLES; EMPLOYEE TRANSFERS 
 Section 2.1 Assumption of WPX Employee Liabilities. Effective as of the Benefits Commencement Date, except as otherwise specifically provided in this Employee Matters Agreement, (a) the WPX
Group shall be solely responsible for all WPX Employee Liabilities and the WMB Group shall not retain any WPX Employee Liabilities and (b) the WMB Group shall be solely responsible for all WMB Employee Liabilities and the WPX Group shall not
retain any WMB Employee Liabilities. 
 Section 2.2 Allocation of Liabilities With Respect to Benefit Plans, Employment
Agreements and Equity Compensation Awards. Except as otherwise specifically provided in this Employee Matters Agreement, effective immediately prior to the Benefits Commencement Date, each WPX Employee (and each such individual’s Plan
Payees) shall cease active participation in all WMB Benefit Plans, other than the WMB DB Plans, the WMB DC Plan and, as of such time, WPX shall or shall cause another member of the WPX Group to have in effect such WPX Benefit Plans as are necessary
to comply with its obligations pursuant to this Employee Matters Agreement. Effective immediately prior to the Benefits Commencement Date, each WPX Employee who participates in any of the WMB DB Plans and/or the WMB DC Plan shall cease active
participation in each such plan and, after the Distribution Date, shall be treated as a participant whose employment with the WMB Group has terminated (effective as of the Distribution) for all purposes thereunder to the extent consistent with
applicable Law (including Code Section 409A). 
 (a) Effective as of the Benefits Commencement Date, except
as otherwise specifically provided in this Employee Matters Agreement, WMB shall, or shall cause one or more members of the WMB Group to, retain, pay, perform, fulfill and discharge in due course all Liabilities arising out of or relating to all WMB
Employment Agreements and all other WMB Employee Liabilities. 

  
 5 

 (b) Effective as of the Benefits Commencement Date, except as otherwise
specifically provided in this Employee Matters Agreement, WPX shall, or shall cause one or more members of the WPX Group to, retain, pay, perform, fulfill and discharge in due course (i) all Liabilities arising out of or relating to all WPX
Benefit Plans, (ii) all Liabilities arising out of or relating to all WPX Employment Agreements, (iii) all Liabilities (other than the WMB Employee Liabilities) with respect to the employment or termination of employment of all WPX
Employees and their Plan Payees to the extent arising in connection with or as a result of employment with or the performance of services for any member of the WPX Group, and (iv) all other WPX Employee Liabilities. 

(c) Effective as of the Distribution, except as otherwise specifically provided in this Employee Matters Agreement, WPX
shall, or shall cause one or more members of the WPX Group to, retain, pay, perform, fulfill and discharge in due course all Liabilities arising out of or relating to the Converted WPX Equity Compensation Awards (including, without limitation, any
and all Liabilities with respect to any equity award of WMB that, through assumption and conversion, becomes a Converted WPX Equity Compensation Award, as well as any and all Liabilities with respect to the assumption and conversion of such an
award). 
 (d) All Liabilities arising out of any Equity Compensation Awards shall be allocated and handled in
accordance with the provisions of Article VII below. For the avoidance of doubt, from and after the Distribution, in no event will WPX be required to issue, grant or award any compensation relating to WPX Common Stock to any employee who is a member
of the WMB Group other than pursuant to any Pre-2006 Options as provided for in Section 7.1, and, subject to the treatment of the WMB Equity Compensation Awards that are outstanding as of the Distribution and held by any WPX Employee as
provided in Section 7.1, in no event will WMB be required to issue, grant or award any compensation relating to WMB Common Stock to any employee who is a member of the WPX Group other than pursuant to any Pre-2006 Options as provided for in
Section 7.1. 
 Section 2.3 WPX Benefit Plans and WPX Employment Agreements. Effective as of the Benefits
Commencement Date, WPX or another member of the WPX Group shall, in a manner not inconsistent with this Employee Matters Agreement, assume, adopt, continue or, to the extent necessary, assume sponsorship of each WPX Benefit Plan and WPX Employment
Agreement, and the WMB Group shall use reasonable efforts to transfer or cause to be transferred to WPX all plan documents, trust agreements, insurance policies, administrative agreements, and other agreements and instruments reasonably required for
the maintenance and administration of the WPX Benefit Plans and the WPX Employment Agreements. 
 Effective on the Benefits
Commencement Date, the WPX Group shall be exclusively responsible for administering each WPX Benefit Plan and each WPX Employment Agreement in accordance with its terms and for all obligations and liabilities with respect to the WPX Benefit Plans
and WPX Employment Agreements and all benefits or rights owed to participants in the WPX Benefit Plans and individuals who are parties to the WPX Employment Agreements, whether arising before, on or after the Distribution Date. WPX shall not assume
sponsorship, maintenance or administration of any Benefit 

  
 6 

 
Plan or Employment Agreement that is not a WPX Benefit Plan or a WPX Employment Agreement or receive any assets or assume any liabilities in connection with any such Benefit Plan or Employment
Agreement. For the avoidance of doubt, WPX shall not assume sponsorship, maintenance, administration of or any Liability under any WMB DB Plan or the WMB DC Plan. 
 Section 2.4 Plan-Related Litigation. Notwithstanding anything herein to the contrary, the management of the defense of all litigation related to the WMB Benefit Plans, the WMB Employment
Agreements, the WPX Benefit Plans and the WPX Employment Agreements shall be governed by the Separation Agreement, and this Employee Matters Agreement shall govern the allocation of Liabilities related to any such litigation. 

Section 2.5 Paid Time Off. WPX shall assume responsibility for accrued paid time off attributable to WPX Employees upon the
earlier of the Distribution or the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, upon the Applicable Transfer Date). 
 Section 2.6 FMLA. Effective as of the earlier of the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, the Applicable Transfer Date), WPX shall assume responsibility for
and make available to the WPX Employees the existing eligibility and rights to leave under the Family and Medical Leave Act of 1993 that such WPX Employees were entitled to from WMB immediately prior to the Benefits Commencement Date (or, with
respect to Delayed Transfer Employees, the Applicable Transfer Date, but without giving effect to any leave taken between the Benefits Commencement Date and the Applicable Transfer Date). 

Section 2.7 Employee Transfers. 
 (a) Upon mutual agreement of WPX and WMB any employee whose employment transfers after the earlier of the Distribution or the Benefits Commencement Date, but on or before the first anniversary of the
Distribution, from the WMB Group to the WPX Group and who was continuously employed by a member of the WMB Group from the Benefits Commencement Date through the date such employee commences active employment with a member of the WPX Group (as
applicable) shall be a “Delayed Transfer Employee.” Except as otherwise specifically provided in this Employee Matters Agreement, such Delayed Transfer Employees transferring from the WMB Group to the WPX Group shall be treated in
the same manner as the individuals who were WPX Employees on the Benefits Commencement Date, to the extent practicable in compliance with applicable Law and the Benefit Plans and without duplicating benefits for the same period of service. For
purposes of this Employee Matters Agreement, the date on which a Delayed Transfer Employee actually commences employment with the WPX Group (as applicable) is referred to as such individual’s “Applicable Transfer Date”.
Notwithstanding anything herein to the contrary, the mutual agreement with respect to, and Applicable Transfer Date of, any Delayed Transfer Employee must occur on or before the first anniversary of the Distribution. 

  
 7 

 (b) In no event shall the transfer of employment from the WMB Group to the
WPX Group or the occurrence of the Distribution be considered a change in control for purposes of the Benefit Plans, Employment Agreements or Equity Compensation Awards. 
 Section 2.8 Annual Bonuses. At the time that annual bonuses are paid generally to WMB Employees for the 2011 fiscal year, WMB shall inform WPX in writing of the bonus (if any) payable to each WPX
Employee (other than Delayed Transfer Employees whose Applicable Transfer Date occurs after the date bonuses are paid for the 2011 fiscal year) under the applicable annual incentive plan or arrangement of a member of the WMB Group with respect to
the 2011 fiscal year (collectively, the “Fiscal 2011 Employee Bonuses”), determined as if the WPX Employee had remained employed by the WMB Group through the bonus payment date. WPX shall, or shall cause its Affiliates to, pay each
WPX Employee such bonus (if any) promptly following such notice and within the time period set forth in the applicable annual incentive plan or arrangement, and WMB shall promptly reimburse WPX for the gross amount of such bonus payments, plus the
employer portion of any employment or social insurance taxes paid by WPX in connection with such bonus payments, but in no event later than March 15, 2012. WPX shall be solely responsible for payment of all annual bonuses earned by WPX
Employees with respect to periods ending after the Benefits Commencement Date. 
 ARTICLE III 

SERVICE CREDIT 
 Section 3.1 Service Credit for Employee Transfers. The Benefit Plans shall provide the following service crediting rules effective as of the Benefits Commencement Date: if a Delayed Transfer
Employee becomes employed by a member of the WMB Group or WPX Group after the Benefits Commencement Date and on or before the first anniversary of the Distribution then such Delayed Transfer Employee’s service with the WPX Group or the WMB
Group (as applicable) following the Benefits Commencement Date shall be recognized for purposes of eligibility and vesting under the appropriate Benefit Plans, subject to the terms of those plans. 

Section 3.2 WMB Benefit Plans. Service from and after the Benefits Commencement Date of WPX Employees with any member of the WPX
Group or any other employer other than any member of the WMB Group shall not be taken into account for any purpose under the WMB Benefit Plans. 
 Section 3.3 WPX Benefit Plans. From and after the Benefits Commencement Date, WPX shall, and shall cause the other members of the WPX Group and their respective successors to, provide credit under
the WPX Benefit Plans to WPX Employees for their service with WPX and its predecessors and affiliates (including but not limited to the WPX Group, WMB, the WMB Group and, to the extent applicable, any business previously acquired by the WMB Group or
the WPX Group) to the same extent that such service was recognized prior to the Benefits Commencement Date under the relevant WMB Benefit Plans. For avoidance of doubt, service shall be credited for purposes of determining eligibility to participate
and vesting; provided, however, that service shall not be recognized to the extent that such recognition would result in the duplication of benefits or duplication of credit for the same period of service. 

  
 8 

 ARTICLE IV 
 CERTAIN WELFARE BENEFIT PLAN MATTERS 
 Section 4.1 WPX Welfare
Plans. Effective on the Benefits Commencement Date, WPX shall, or shall cause another member of the WPX Group to, have in effect the WPX Welfare Plans to provide welfare benefits to the WPX Employees participating in any WMB Welfare Plans
immediately prior to the Benefits Commencement Date. Each WPX Welfare Plan shall have terms and features (including benefit coverage options and employer contribution provisions) as determined by WPX in its sole discretion. From and after the
Benefits Commencement Date, WPX and the WPX Group shall be solely and exclusively responsible for all obligations and liabilities with respect to, or in any way related to, the WPX Welfare Plans. 

Section 4.2 Continuation of Elections. As of the Benefits Commencement Date, WPX shall, to the extent applicable, cause the WPX
Welfare Plans to recognize and maintain all elections and designations (including, without limitation, all coverage and contribution elections and beneficiary designations) in effect with respect to WPX Employees prior to the Benefits Commencement
Date under the comparable WMB Welfare Plan and apply such elections and designations under the WPX Welfare Plans for the remainder of the period or periods for which such elections or designations are by their original terms effective, unless
superseded by new elections made under the WPX Welfare Plans. 
 Section 4.3 Pre-Existing Conditions. As of the
Applicable Transfer Date with respect to Delayed Transfer Employees, the WPX Welfare Plans will not impose any limitations on coverage for preexisting conditions other than such limitations as were applicable under the comparable WMB Welfare Plans
prior to the Applicable Transfer Date. 
 Section 4.4 Long-Term Disability. Notwithstanding anything herein to the
contrary, any individual receiving long-term disability benefits under a WMB Welfare Plan as of immediately prior to the Benefits Commencement Date shall continue to receive such benefits under such WMB Welfare Plan (in accordance with and subject
to the terms and conditions thereof) regardless of whether such individual would become a WPX Employee if such individual returned to active employment after the Benefits Commencement Date. For the avoidance of doubt, any WPX Employee who first
becomes eligible for long-term disability benefits on or after the Benefits Commencement Date shall receive such benefits pursuant to the terms and conditions of the applicable WPX Welfare Plan and shall not be eligible for such benefits under a WMB
Welfare Plan. 

  
 9 

 Section 4.5 Short-Term Disability. Notwithstanding anything herein to the contrary,
WPX shall have sole responsibility for providing short-term disability benefits to any individual who, on the Benefits Commencement Date, qualifies for short-term 
 disability benefits under a WMB Benefit Plan and who, if actively-employed at the time of the Distribution (or, if earlier, on the Benefits Commencement Date), would have been or become a WPX Employee on
that date. In addition, effective as of the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, the Applicable Transfer Date), WPX shall assume responsibility for and make available to the WPX Employees the existing
eligibility and rights to short-term disability benefits that such WPX Employees were entitled to from WMB immediately prior to the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, the Applicable Transfer Date, but without
giving effect to any short-term disability leave taken between the Benefits Commencement Date and the Applicable Transfer Date). 
 Section 4.6 Workers’ Compensation. Notwithstanding anything herein to the contrary, WPX shall have sole liability with respect to, any workers’ compensation claims of WPX Employees,
regardless of when the event leading to such claims occurred; provided, however, that with respect to any such claims arising from injuries covered by the applicable insurance policies occurring prior to the Benefits Commencement Date, WMB shall
have responsibility for processing and managing such claims and WPX shall reimburse WMB for any payments borne by WMB in respect of such claims. 
 Section 4.7 Other Welfare Benefits. Notwithstanding anything herein to the contrary, WPX shall, as of the Benefits Commencement Date, assume all liability for providing adoption benefits,
educational reimbursement and reimbursement for relocation expenses to WPX Employees, regardless of when the events leading to the entitlement of such benefits and/or reimbursements occurred. 

ARTICLE V 

DEFINED BENEFIT PLANS 
 Section 5.1 WMB DB Plans. Effective as of the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, the Applicable Transfer Date), each WPX Employee and Delayed Transfer
Employee who is a participant, as of the Benefits Commencement Date (or, if applicable the Applicable Transfer Date), in one or more of the WMB DB Plans shall cease active participation in such WMB DB Plans and service with any member of the WPX
Group or any other employer other than any member of the WMB Group from and after the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, the Applicable Transfer Date) shall not be taken into account for any purpose under
such WMB DB Plans, except for purposes of determining the timing of the payment of compensation or the provision of benefits under any WMB DB Plan, to the extent that such payment or provision is triggered under such WMB DB Plan by a WPX
Employee’s separation from service from the WPX Group. Notwithstanding any provision of this Agreement to the contrary, from and after the Benefits Commencement Date, the WMB Group shall remain and be exclusively responsible for all obligations
and Liabilities with respect to the WMB DB Plans, all assets of the WMB DB Plans, and all benefits owed to participants in the WMB DB Plans (including the WPX Employees, Former Employees and Delayed Transfer Employees), whether accrued before, on or
after the Benefits Commencement Date. In no event shall WMB transfer or cause to be transferred to WPX or any member of the WPX Group sponsored any of the WMB DB Plans or any Assets or Liabilities maintained or accrued thereunder. 

  
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 Section 5.2 Vesting of Benefits. Notwithstanding anything herein to the contrary, WMB
shall take all steps necessary, including amending any WMB DB Plan, so that, as of the Benefits Commencement Date, each WPX Employee and Delayed Transfer Employee who is a participant in a WMB DB Plan shall be fully vested in his or her benefits
under each WMB DB Plan in which such WPX Employee participated while an employee of a member of the WMB Group. 
 Section 5.3
Section 409A. WMB and WPX shall cooperate in good faith so that the Distribution and the transactions contemplated by this Employee Matters Agreement will not result in adverse tax consequences under Code Section 409A to any current
or former employee of any member of the WMB Group or any member of the WPX Group, or their respective Plan Payees, in respect of his or her benefits under any WMB DB Plan that is subject to Code Section 409A. 

ARTICLE VI 

TAX-QUALIFIED DEFINED CONTRIBUTION PLANS 
 Section 6.1 WMB DC Plan. Effective as of the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, the Applicable Transfer Date), each WPX Employee or Delayed Transfer
Employee who is a participant, as of the Benefits Commencement Date (or, if applicable the Applicable Transfer Date), in the WMB DC Plan shall cease active participation in the WMB DC Plan (and, for all purposes, be treated as a terminated
participant) and service with any member of the WPX Group or any other employer other than any member of the WMB Group from and after the Benefits Commencement Date (or, with respect to Delayed Transfer Employees, the Applicable Transfer Date) shall
not be taken into account for any purpose under the WMB DC Plan. Notwithstanding any provision of this Agreement to the contrary, from and after the Benefits Commencement Date, the WMB Group shall be exclusively responsible for all obligations and
Liabilities with respect to the WMB DC Plan, all assets of the WMB DC Plan, and all benefits owed to participants in the WMB DC Plan (including the WPX Employees, Former Employees and Delayed Transfer Employees), whether accrued before, on or after
the Benefits Commencement Date. In no event shall WMB transfer or cause to be transferred to WPX or any member of the WPX Group sponsorship of the WMB DC Plan or any Assets or Liabilities maintained or accrued thereunder (except pursuant to an
eligible rollover distribution). 
 Section 6.2 Vesting of Benefits. Notwithstanding anything herein to the contrary, WMB
shall take all steps necessary, including amending the WMB DC Plan, so that, as of the Benefits Commencement Date, each WPX Employee and Delayed Transfer Employee shall be fully vested in his or her benefits under the WMB DC Plan in which such WPX
Employee participated while an employee of a member of the WMB Group. 

  
 11 

 Section 6.3 WPX DC Plan. Effective as of the Benefits Commencement Date, WPX or
another member of the WPX Group shall establish a defined contribution plan that qualifies under Code Section 401(a), (such plan, the “WPX DC Plan”). The WPX DC Plan shall have terms and features (including employer
contribution provisions) that are determined by WPX in its sole discretion. WPX or a member of the WPX Group shall be solely responsible for taking all necessary, reasonable, and appropriate actions (including the submission of the WPX DC Plan to
the Internal Revenue Service for a determination of tax-qualified status) to establish, maintain and administer the WPX DC Plan so that it is qualified under Section 401(a) of the Code. 

Section 6.4 Contributions Due. All contributions payable to the WMB DC Plan with respect to employee deferrals, matching
contributions and employer contributions for WPX Employees up to the Benefits Commencement Date (and, with respect to the Delayed Transfer Employees, the Applicable Transfer Date), determined in accordance with the terms and provisions of the WMB DC
Plan, ERISA and the Code, shall be paid by (and be the sole liability of) WMB or a member of the WMB Group to the WMB DC Plan. 

ARTICLE VII 

EQUITY COMPENSATION 
 Section 7.1 General Treatment of Outstanding WMB Equity Compensation Awards. 
 (a) Notwithstanding any other provision of this Employee Matters Agreement or the Separation Agreement to the contrary, from and after the Distribution, each outstanding option to purchase WMB Common
Stock (“WMB Option”) or each outstanding restricted stock unit with respect to WMB Common Stock (whether or not subject to performance-based vesting criteria) (“WMB RSUs”), in each case that was granted under or
pursuant to any equity compensation plan or arrangement of WMB (each such WMB Option or WMB RSU, a “WMB Equity Compensation Award”), that, as of the Distribution, is held by any WPX Employee (which, for purposes of this Article VII,
shall not include any Delayed Transfer Employees whose Applicable Transfer Date occurs after the Distribution) or non-employee member of the WPX board of directors, other than the portion of each Pre-2006 Option allocated to WMB, shall be assumed by
WPX (each such assumed WMB Equity Compensation Award, a “Converted WPX Equity Compensation Award”). 
 (b) In connection with the assumption by WPX, each Converted WPX Equity Compensation Award, other than the Pre-2006 Options, shall be adjusted into an option or restricted stock unit award, as applicable,
with respect to shares of WPX Common Stock having the same intrinsic value as the applicable WMB Equity Compensation Award, with the number of shares of WPX Common Stock subject to each such award equal to the number of shares of WMB Common Stock
subject to each such award as in effect immediately prior to the Distribution multiplied by the WPX Exchange Ratio, rounded down to the nearest whole share and effective upon the Distribution. The per share exercise price of any Converted WPX Equity
Compensation Award, other than the Pre-2006 Options, that is a stock option shall also be adjusted effective upon the Distribution by dividing the applicable per share exercise price of the stock option as in effect immediately prior to the
Distribution by the WPX Exchange Ratio, with the result rounded up to the nearest whole cent. 

  
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 (c) The Converted WPX Equity Compensation Awards that relate to WMB Options
granted prior to January 1, 2006, along with each other WMB Option granted prior to January 1, 2006 that, as of the Distribution, is held by any WMB Employee, Former Employee or non-employee member of the WMB board of directors
(collectively, the “Pre-2006 Options”), shall be adjusted, in part, into an option to acquire WPX Common Stock (with the number of shares of WPX Common Stock subject to such portion of the option generally equal to the number of shares of
WMB Common Stock subject to the original WMB Option as in effect immediately prior to the Distribution multiplied by the Distribution Ratio) and shall remain, in part, an option to acquire WMB Common Stock (with the number of shares of WMB Common
Stock subject to such portion of the option generally equal to the number of shares of WMB Common Stock subject to the original WMB Option as in effect immediately prior to the Distribution), in each case, having an aggregate same intrinsic value as
the original WMB Option, rounded down to the nearest whole share and effective upon the Distribution. The per share exercise price of the Pre-2006 Options shall also be adjusted effective upon the Distribution by (i) with respect to the portion
of the Pre-2006 Option that is allocated to WPX, dividing the per share exercise price of the stock option as in effect immediately prior to the Distribution by the WPX Exchange Ratio and (ii) with respect to the portion of the Pre-2006 Option
that is allocated to WMB, dividing the per share exercise price of the stock option as in effect immediately prior to the Distribution by the WMB Exchange Ratio, in each case, with the results rounded up to the nearest whole cent. For the avoidance
of doubt, the portion of the Pre-2006 Options held by any WMB Employee, Former Employee or non-employee member of the WMB board of directors allocated to WPX shall be assumed by WPX upon the Distribution. Notwithstanding anything herein to the
contrary, in all events the adjustments to the WMB Options provided for herein shall be implemented in a manner that complies with Section 424 of the Code. 
 (d) The performance criteria applicable to any Converted WPX Equity Compensation Awards issued in 2010 or 2011 that are performance-based restricted stock units shall also be modified so that “total
stockholder return” for purposes of such performance-based restricted stock units shall be based on the sum of the 20-day average closing price of WMB Common Stock at the end of the performance period and the 20-day average closing price of WPX
Common Stock, multiplied by the Distribution Ratio, at the end of the performance period. 
 (e) Prior to the
Distribution, WPX shall establish equity compensation plans, so that upon the Distribution, WPX shall have in effect an equity compensation plan containing substantially the same terms as each original WMB equity compensation plan under which any
Converted WPX Equity Compensation Award was granted. From and after the Distribution, each Converted WPX Equity Compensation Award shall be subject to the terms of the applicable WPX equity compensation plan and the award agreement governing such
Converted WPX Equity Compensation Award. From and after the Distribution, WPX shall retain, pay, perform, fulfill and discharge all Liabilities arising out of or relating to the Converted WPX Equity Compensation Awards. Effective as of the
Distribution, each WPX Employee and non-employee member of the WPX board of directors shall cease participation in all WMB equity compensation plans other than with respect to the Pre-2006 Options. 

  
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 (f) In all events, the adjustments to the Converted WPX Equity Compensation
Awards provided for in this Section 7.1 shall be made in a manner that, as determined by WMB and WPX, avoids adverse tax consequences under Code Section 409A. 
 Section 7.2 Tax Withholding and Reporting. Effective from and after the Distribution, WPX shall be solely responsible for all Tax withholding obligations with respect to the equity compensation
awards applicable to WPX Employees, and WMB shall be solely responsible for all Tax withholding obligations with respect to equity compensation awards applicable to WMB Employees. 

Section 7.3 Employee Stock Purchase Plan. All WPX Employees shall cease active participation in The Williams Companies Employee
Stock Purchase Plan with respect to offering periods ending after the Benefits Commencement Date. For the avoidance of doubt, the WPX Employees who participated in The Williams Companies Employee Stock Purchase Plan prior to the Benefits
Commencement Date shall continue to participate in the offering period under The Williams Companies Employee Stock Purchase Plan ending prior to the Benefits Commencement Date. 
 ARTICLE VIII 
 BENEFIT PLAN REIMBURSEMENTS, BENEFIT PLAN THIRD-PARTY
CLAIMS 
 Section 8.1 General Principles. From and after the Distribution, any services that a member of the WMB
Group shall provide to the members of the WPX Group relating to any Benefit Plans shall be set forth in the Transition Services Agreement. 
 Section 8.2 Benefit Plan Third-Party Claims. In the event of any conflict or inconsistency between the following provision on the one hand, and the Separation Agreement or any of the other
Ancillary Agreements on the other hand, the following provision shall control over the inconsistent provisions to the extent of the inconsistency: 
 If a Third-Party Claim (as defined in Section 7.5(a) of the Separation Agreement) relates solely to the Benefit Plan of the Indemnifying Party, WPX and WMB shall take all actions necessary to
substitute the Indemnifying Party and/or the relevant Benefit Plan of the Indemnifying Party as the proper party for such Third-Party Claim. If the Third-Party Claim relates to both a WPX Benefit Plan and a WMB Benefit Plan, WPX and WMB shall take
all actions necessary to separate or otherwise partition the Third-Party Claim so as to allow each party to solely defend the claim relating to its own Benefit Plan (unless the parties mutually agree that such a separation or partition is
unnecessary or inadvisable). If the Third-Party Claim cannot be transferred to the Indemnifying Party or separated or partitioned so as to allow each party to solely defend the claim relating to its own Benefit Plan, then WMB shall defend the
Third-Party Claim and WPX may elect to participate in (but not control) the defense, compromise, or settlement of any such Third-Party Claim at its own expense (including allocated costs of WPX in-house counsel and other WPX personnel). 

  
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 ARTICLE IX 
 COOPERATION 
 Section 9.1 Cooperation. Following the date of this
Employee Matters Agreement, WMB and WPX shall, and shall cause their respective Subsidiaries and Affiliates to, use reasonable best efforts to cooperate with respect to any employee compensation or benefits matters that the WMB Group or the WPX
Group, as applicable, reasonably determines require the cooperation of both the WMB Group and the WPX Group in order to accomplish the objectives of this Employee Matters Agreement. Without limiting the generality of the preceding sentence,
(a) the WMB Group and the WPX Group shall cooperate in coordinating each of their respective payroll systems in connection with the transfers of WPX Employees and Delayed Transfer Employees to the WPX Group, (b) the WMB Group shall, to the
extent permitted by applicable Law, transfer all employment-related records relating to WPX Employees to the WPX Group, to the extent such records are in the WMB Group’s possession or control, and (c) the WMB Group and the WPX Group shall,
to the extent permitted by applicable Law, transfer records to each other as reasonably necessary for the proper administration of all Equity Compensation Awards (including the Pre-2006 Options), to the extent such records are in the other
party’s possession or control. The obligations of the WPX Group and the WMB Group to cooperate pursuant to this Section 9.1 shall remain in effect until all audits of all Benefit Plans (including, for this purpose, any equity compensation
plan) with respect to which the other party may have information have been completed and the applicable statute of limitations with respect to such audits has expired. 
 ARTICLE X 
 MISCELLANEOUS 

Section 10.1 Further Assurances. Prior to the Distribution Date, if either party identifies any commercial or other service that
is needed to ensure a smooth and orderly transition of its business in connection with the consummation of the transactions contemplated hereby, and that is not otherwise governed by the provisions of this Employee Matters Agreement, the parties
will cooperate in determining whether there is a mutually acceptable arm’s-length basis on which the other party will provide such service under the Transition Services Agreement. 

Section 10.2 Employment Tax Reporting Responsibility. WPX and WMB hereby agree to follow the standard procedure for United States
employment tax withholding as provided in Section 4 of Rev. Proc. 2004-53, I.R.B. 2004-35. 
 Section 10.3 Data
Privacy. The parties agree that any applicable data privacy Laws and any other obligations of the WPX Group and the WMB Group to maintain the confidentiality of any employee information or information held by any Benefit Plans in accordance with
applicable Law shall govern the disclosure of employee information among the parties under this Employee Matters Agreement. WPX and WMB shall ensure that they each have in place appropriate technical and organizational security measures to protect
the personal data of the WPX Employees and WMB Employees. 

  
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 Section 10.4 Third Party Beneficiaries. Nothing contained in this Employee Matters
Agreement shall be construed to create any third-party beneficiary rights in any individual, including without limitation any WPX Employee, WMB Employee or Former Employee (including any dependent or beneficiary thereof) nor shall this Employee
Matters Agreement be deemed to amend any Benefit Plan or to prohibit WMB, WPX or their respective Affiliates from amending or terminating any Benefit Plan (including for this purpose, any equity compensation plan). 

Section 10.5 Effect if Distribution Does Not Occur. If the Distribution does not occur, then all actions and events that are,
under this Employee Matters Agreement, to be taken or occur effective as of the Distribution shall not be taken or occur except to the extent specifically agreed by the parties. 

Section 10.6 Incorporation of Separation Agreement Provisions. The following provisions of the Separation Agreement are hereby
incorporated herein by reference, and unless otherwise expressly specified herein, such provisions shall apply as if fully set forth herein (references in this Section 10.6 to an “Article” or “Section” shall mean Articles or
Sections of the Separation Agreement, and references in the material incorporated herein by reference shall be references to the Separation Agreement): Article V (relating to Exchange of Information; Confidentiality); Article VI (relating to
Additional Covenants and Other Matters); Article VII (relating to Mutual Releases; Indemnification); Article VIII (relating to Termination); Article IX (relating to Dispute Resolution); and Article X (relating to Miscellaneous). 

Section 10.7 No Representation or Warranty. WMB makes no representation or warranty with respect to any matter in this Employee
Matters Agreement, including, without limitation, any representation or warranty with respect to the legal or tax status or compliance of any Benefit Plan, compensation arrangement or Employment Agreement, and WMB disclaims any and all liability
with respect thereto. 
 [The remainder of this page is intentionally left blank.] 

  
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 IN WITNESS WHEREOF, the parties have caused this Employee Matters Agreement to be executed
by their duly authorized representatives. 
  

			
	THE WILLIAMS COMPANIES, INC.
		
	By:	 	/s/ Alan S. Armstrong
		 	Name: Alan S. Armstrong
		 	Title: Chief Executive Officer

  

			
	WPX ENERGY, INC.
		
	By:	 	/s/ Ralph A. Hill
		 	Name: Ralph A. Hill
		 	Title: Chief Executive Officer

 [Signature Page to Employee Matters Agreement]Tax Sharing Agreement, dated as of December 30, 2011

 Exhibit 10.3 
 TAX SHARING AGREEMENT 
 This Tax Sharing Agreement (the
“Agreement”) is entered into as of December 30, 2011, by and between The Williams Companies, Inc., a Delaware corporation (“Williams”), and WPX Energy, Inc., a Delaware corporation (“WPX”) (collectively, the
“parties”). 
 RECITALS 
 WPX is currently an includible corporation in the Williams Group under Section 1504 of the Internal Revenue Code of 1986, as amended (the “Code”). 

Williams currently owns 100% of the outstanding common stock of WPX. Pursuant to a plan of reorganization adopted by the Williams board
of directors on April 26, 2011, and amended on October 19, 2011, Williams intends to effect the Spin (as defined below). 
 The parties are entering into this Tax Sharing Agreement to allocate, indemnify, pay and settle amongst them the Taxes of the parties. 

AGREEMENT 

Accordingly, the parties agree as follows: 
 ARTICLE I 
 CERTAIN DEFINITIONS 

The defined terms used in this Agreement shall, except as otherwise expressly provided or unless the context otherwise requires, have the
meanings specified in this Article I. The singular shall include the plural and masculine gender shall include the feminine, the neuter and vice versa, as the context requires. 

“AMT” means the federal alternative minimum tax, as described in Sections 55 through 59 of the Code. 

“Combined Return” means any state, local or foreign income Tax Return of the Williams Group that is filed on a unitary,
combined, consolidated or similar basis with one or more members of the WPX Group. 
 “Consolidated Return” means any
consolidated federal income Tax Return of the Williams Group that includes one or more members of the WPX Group. 
 “Final
Determination” means (i) an IRS Form 870 or 870AD (or any similar state, local, or foreign form) that reflects an adjustment to any Tax item shown on a Tax Return, (ii) a closing agreement or an accepted offer in compromise with any
Tax Authority, (iii) any other adjustment to any Tax item (including, but not limited to, the filing of an amended return on which the taxpayer adjusts an item) as to which the period of limitations has expired, (iv) a claim for refund

 
that has been allowed, (v) a deficiency notice with respect to which the period for filing a petition with the Tax Court has expired, or (vi) a decision of any court of competent
jurisdiction relating to a Tax item that is not subject to appeal or the time for appeal of which has expired. 

“IRS” means the Internal Revenue Service. 
 “Payment Date” means the date on which a payment of Tax is due to the relevant Taxing Authority with respect to a Tax Return. 

“Private Ruling” means the private letter ruling issued by the IRS dated September 30, 2011. 

“Private Ruling Application” means the written materials submitted to the IRS by Williams in connection with the Private
Ruling. 
 “Proceeding” means any examination, audit, administrative appeal, court action, court proceedings,
protests, claims or suits for refund, petitions, briefs, arguments, settlement discussions, or any other dealings with a Tax Authority or judicial authority relating to Taxes. 
 “Regulations” means the United States Treasury Regulations promulgated under the Code. 
 “Required Payment” means any payment required under this Agreement. 

“Required Payment Date” means the date a Required Payment is required to be paid under this Agreement. 

“Section 355(e) Agreements” has the meaning set forth in Section 4.1(c) of this Agreement. 

“Section 355(e) Plan” has the meaning set forth in Section 4.1(c) of this Agreement. 

“Separation Agreement” means the Separation and Distribution Agreement by and between Williams and WPX, dated concurrently
herewith. 
 “Spin” means the spin-off of Apco Oil & Gas International, Inc. (“Apco”) to Williams
(the “Internal Spin”) and the spin-off of WPX to Williams’ shareholders (the “External Spin”) and any related restructuring transactions. 
 “Spin Date” means the date on which the External Spin occurs. 

“Spin Taxes” mean the sum of (i) any increase in a Tax liability (or reduction in a Tax refund, credit, or other Tax
Attribute) of any member of the Williams Group determined in a Final Determination as a result of any corporate-level gain or income recognized with respect to the failure of the Internal Spin or External Spin to qualify for tax-free treatment under
Section 355 or Section 368(a)(1)(D) of the Code (or their state, local or foreign counterparts), (ii) interest on such amounts calculated pursuant to the Tax Law in any applicable jurisdiction at the highest

  
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underpayment rate in such jurisdiction from the date such additional gain or income was recognized until full payment with respect thereto is made (or, in the case of a reduction in a refund, the
amount of interest that would have been received from the applicable Tax Authority on the foregone portion of the refund but for such failure), and (iii) any penalties actually paid to any Taxing Authority that would not have been paid but for
such failure. 
 “Stock” means common or preferred stock, securities, and any warrants, stock options, forward
contracts, puts and calls, other equity instruments or derivative equity instruments or any instrument that might reasonably be treated as stock for federal income tax purposes. 

“Tax Authority” means any governmental authority, agency or court of competent jurisdiction that is responsible for the
administration, adjudication or collection of Taxes. 
 “Tax” means all taxes, assessments, charges, duties, fees,
levies or other similar governmental charges, including, without limitation, all federal, state, local, foreign and other income, franchise, profits, capital gains, capital stock, transfer, sales, use, occupation, property, excise, severance,
windfall profits, stamp, license, payroll, withholding and other taxes, assessments, charges, duties, fees, levies or other governmental charges of any kind whatsoever (whether payable directly or by withholding and whether or not requiring the
filing of a return), all estimated taxes, deficiency assessments, additions to tax, penalties and interest and shall include any liability for such amounts as a result either of being a member of a combined, consolidated, unitary or affiliated
group. 
 “Tax Information” means all books, records, accounting data and other information in the possession of the
Williams Group or the WPX Group necessary for the preparation and filing of all Tax Returns relevant to this Agreement. 

“Tax Attribute” means any net operating loss, net capital loss, investment tax credit, foreign tax credit, deduction or any
loss, credit or tax attribute that could be carried forward or back to reduce taxes (including without limitation deductions and credits related to alternative minimum taxes). 
 “Tax Opinion” means the opinion of counsel obtained by Williams with respect to the qualification of the Spin under Section 355 and Section 368(a)(1)(D) of the Code dated
October 25, 2011. 
 “Tax Law” means laws, cases, statutes, rules and regulations with respect to Taxes.

 “Tax Return” means any return, report, declaration, claim for refund, election, disclosure, estimate, or statement
required to be supplied to a Taxing Authority in connection with Taxes, including any schedule or attachment thereto or amendment thereof. 
 “Williams Group” means the affiliated group of which Williams is the common parent. 
 “WPX Group” means WPX and all its direct and indirect subsidiaries that are or have been members of the Williams Group at any time on or prior to the External Spin. 

  
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 “WPX Pro Forma Combined Return” has the meaning set forth in Section 2.3(a)
of this Agreement. 
 “WPX Pro Forma Consolidated Return” has the meaning set forth in Section 2.3(a) of this
Agreement. 
 “WPX Pro Forma Return” means a WPX Pro Forma Combined Return or a WPX Pro Forma Consolidated Return.

 ARTICLE II 
 TAX RETURNS AND TAXES 
 Section 2.1 Tax Returns and Payment

 (a) Consolidated Returns and Combined Returns. 
 Williams shall prepare and file all Consolidated Returns and Combined Returns that are required to be filed by or with respect to any member of the WPX Group, and shall pay any Taxes payable with respect
to such Tax Returns. Williams shall prepare all such Tax Returns in good faith and in accordance with the Tax Law. At the discretion of WPX, WPX may assist in the preparation of such Tax Returns as may be requested by Williams. Williams shall, in
its discretion, make all determinations regarding the preparation of such Tax Returns, including without limitation, determinations regarding the entities to be included in any Tax Return, the making, modification or revocation of any election, the
adoption or change of any Tax accounting methods, and any other position to be taken on or in respect of such Tax Returns, including the carryback of losses. 
 (b) Other Tax Returns. 
 WPX shall prepare and file all Tax Returns that are
required to be filed by or with respect to WPX or any of its direct or indirect subsidiaries, other than those Tax Returns described in Section 2.1(a) above, and shall pay any Taxes payable with respect to such Tax Returns. At the discretion of
Williams, Williams may assist in the preparation of such Tax Returns as may be requested by WPX, but shall have no obligation to pay any related Taxes. 
 Section 2.2 Consents, Elections, Information. 
 At the request of Williams,
each member of the WPX Group shall (i) file any and all Tax consents, Tax elections or other documents, (ii) take all actions necessary to effect or allow the preparation and filing of all Tax Returns by Williams, and (iii) prepare
and submit all information in such form that Williams reasonably requests to enable Williams to prepare any Tax Returns required by this Agreement. Each member of the WPX Group shall be bound by all of the determinations made by Williams in
preparing any such Tax Returns and no member of the WPX Group shall take any position on a Tax Return with respect to an item of income, deduction, gain, loss, or credit that is inconsistent with the reporting of such item on the Tax Returns
prepared by Williams. 

  
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 Section 2.3 WPX Pro Forma Returns. 

(a) For each Tax period with respect to which a Consolidated Return has not been filed and until the WPX Group ceases to be part of a
Consolidated Return, Williams shall prepare a pro forma federal income Tax Return for the WPX Group (a “WPX Pro Forma Consolidated Return”), based on the assumption that WPX is the common parent of the WPX Group. For each Tax period for
which a Combined Return has not been filed and until the WPX Group ceases to be a part of such Combined Return, Williams shall prepare a pro forma combined Tax Return for the WPX Group for the jurisdiction in which such Combined Return is filed (a
“WPX Pro Forma Combined Return”) based on the assumption that WPX is not a subsidiary of Williams. At the discretion of WPX, WPX may assist in the preparation of the WPX Pro Forma Returns as may be requested by Williams. The methods and
processes described in Sections 2.3(b), 2.3(c), and 2.3(d) below shall be followed in the preparation of the WPX Pro Forma Returns. In addition, Williams may from time to time establish any other special procedures that Williams may in its sole
discretion deem necessary or appropriate to carry out the purposes of this Agreement. 
 (b) Each WPX Pro Forma Return shall
take into account solely the current income, deduction, gain, loss, and credit items of the WPX Group, without regard to any carryovers or carrybacks from prior or subsequent periods, and without regard to the AMT. Notwithstanding the foregoing, the
WPX Pro Forma Returns shall not reflect any deduction under Section 199 of the Code computed on a separate company basis, but shall reflect the amount that the WPX Group has contributed to the Williams Group consolidated deduction under
Section 199 of the Code, as determined by Williams in its sole discretion. 
 (c) Each WPX Pro Forma Return shall reflect
all elections and methods of accounting reflected on the related Consolidated Return or Combined Return. 
 (d) The relevant WPX
Pro Forma Returns for a short Tax period shall be prepared based on an actual or hypothetical closing of the books method. 

Section 2.4 Payments for WPX Pro Forma Returns. 
 (a) For each WPX Pro Forma Consolidated Return, WPX shall pay to Williams the amount of the Tax, if any, shown thereon. If the WPX Pro Forma Consolidated Return shows a credit or loss, Williams shall pay
to WPX an amount equal to (i) any such credits plus (ii) any such losses multiplied by the highest marginal federal income tax rate applicable to corporations for the relevant Tax year. 

(b) For each WPX Combined Pro Forma Return, WPX shall pay to Williams the amount of the Tax, if any, shown thereon. If the WPX Pro Forma
Combined Return shows a credit or loss, Williams shall pay to WPX an amount equal to (i) any such credits plus (ii) any such losses multiplied by the highest marginal Tax rate applicable thereto. 

(c) All payments made pursuant to this Section 2.4 shall take into account all prior related or estimated payments or credits made
by one party to another in connection with the Taxes covered in this Section 2.4. All payments required under this Section 2.4 shall be due no later than thirty days before the Payment Date of the related Tax Return, and shall include any
interest, penalties and additions to Tax that would be due if such payments were made directly to the applicable Tax Authorities. 

  
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 Section 2.5 Carrybacks. 

If any member of the WPX Group realizes any losses, credits or other Tax Attributes that may be carried back to a Consolidated Return or
Combined Return, neither such member nor the WPX Group shall be entitled to any payment or reimbursement from Williams or any member of the Williams Group by reason of such carrybacks. 

Section 2.6 Carryovers. 
 If Williams is required under the Code to allocate to the WPX Group or any of its members any carryovers of any losses, credits or other Tax Attributes to periods following the Spin Date, Williams shall
not be entitled to reimbursement from WPX by reason of such carryover. 
 ARTICLE III 

REDETERMINATIONS AND ADJUSTMENTS 
 Section 3.1 Redeterminations of Consolidated Returns. 
 In the event of any
adjustments in a Final Determination for a Consolidated Return, Williams shall make corresponding adjustments to the related WPX Pro Forma Consolidated Return and WPX Pro Forma Combined Returns consistent with the procedures described in Article II
of this Agreement. Within thirty days after such adjustment, Williams or WPX, as appropriate, shall make additional payments to the other party reflecting such adjustment. 
 Section 3.2 Redeterminations of Other Returns. 
 In the event of any
adjustments in a Final Determination other than those described in Section 3.1 above, WPX Pro Forma Returns shall not be adjusted and no additional payments shall be required between Williams and WPX. 

ARTICLE IV 

SPIN 

Section 4.1 
 Spin Representations and Warranties. 
 (a) Each of WPX and Williams represents and
warrants that it has examined the Private Ruling, the Private Ruling Application and the Tax Opinion and that the facts presented and the representations made therein are true, correct and complete. 

  
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 (b) Each of WPX and Williams represents and warrants that it has not taken and has no plan
or intention of taking any action or failing to take any action nor knows of any circumstance that could reasonably be expected to cause any representation or factual statement made in this Agreement, the Separation Agreement, the Private Ruling,
the Private Ruling Application or the Tax Opinion to be untrue. 
 (c) Each of Williams and WPX represents and warrants that,
during the two-year period ending on the date hereof, there was no “agreement, understanding, arrangement, or substantial negotiations” (as such terms are defined in Regulation Section 1.355-7(h)(1), and hereinafter referred to as the
“Section 355(e) Agreements”) that related to a plan pursuant to which one or more persons would acquire directly or indirectly stock representing a 50% or greater interest (within the meaning of Section 355(e) and the Regulations
thereunder) in Williams, WPX or Apco (any such plan hereinafter referred to as a “Section 355(e) Plan”). 
 (d) Each
of Williams and WPX represents and warrants that it has no current plan or intention to enter into any Section 355(e) Agreements that relate to a Section 355(e) Plan. 

Section 4.2 Spin Covenants. 
 (a) Each of WPX and Williams covenants that it will not, and will not allow any officers or directors of any of its respective subsidiaries to, take any action or fail to take any action that
(i) would create a risk that either the Internal Spin or the External Spin will fail to qualify as a tax-free distribution pursuant to Section 355 and/or Section 368(a)(1)(D) of the Code, (ii) would be inconsistent with any
factual statement or any representation made hereunder or in the Separation Agreement or in connection with the Private Ruling, the Private Ruling Application, or the Tax Opinion, or any condition or restriction imposed thereby, or (iii) would
create a risk for either the Internal Spin or the External Spin to trigger gain under Section 355(d) or Section 355(e) of the Code. 
 (b) Except as otherwise required by the Tax Law or as a result of a Final Determination, each of WPX and Williams covenants that it will not take, and will not allow any officers or directors of any of
its respective subsidiaries to take, any position with respect to an item of income, deduction, gain, loss, or credit on a Tax Return that is inconsistent with the treatment of either the Internal Spin or the External Spin under Section 355
and/or Section 368(a)(1)(D) of the Code (or analogous status under state, local or foreign law). 
 (c) If during the
period commencing on the date hereof and ending two (2) years after the Spin Date any officers and directors of Williams or WPX or any of their respective subsidiaries becomes aware of a matter or transaction that could affect the status of
either the Internal Spin or the External Spin under Section 355 or Section 368(a)(1)(D) of the Code, Williams and WPX covenant to inform each other of such matter or transaction. The parties shall attempt in good faith to take reasonable
action or reasonably refrain from taking action to ensure the continued qualification of the Internal Spin and the External Spin under the foregoing sections of the Code. If the parties are unable to agree on a course of action, WPX shall be
required to take any course of action consistent with Tax Law that Williams reasonably determines, in good faith and taking into account the interests of WPX and Williams, in order to 

  
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implement the provisions of Section 4.2(a). This Section 4.2(c) shall not apply as to any matters or transactions with respect to which the IRS has issued (i) a private letter
ruling to Williams or WPX or (ii) other guidance that can be relied upon conclusively to the effect that the transaction or event at issue does not adversely affect the Internal Spin or the External Spin under Section 355 or
Section 368(a)(1)(D) of the Code. 
 (d) WPX covenants that its officers and directors will not discuss any acquisitions of
the Stock of WPX or any WPX Group member during the two-year period beginning on the Spin Date without permission from Williams, such permission not to be unreasonably withheld. 

ARTICLE V 

INDEMNITIES 
 Section 5.1 Spin Indemnities. 
 (a) Williams shall be responsible for and
shall indemnify and hold harmless each member of the WPX Group from and against all Spin Taxes, except for those Spin Taxes for which the WPX Group is responsible under Section 5.1(b) of this Agreement. 

(b) WPX shall be responsible for and shall indemnify, defend and hold harmless Williams from and against all Spin Taxes that are incurred
by any member of the Williams Group by reason of the breach by any member of the WPX Group of any of its representations or covenants hereunder or in the Separation Agreement, or made in connection with the Private Ruling, the Private Ruling
Application or the Tax Opinion. 
 Section 5.2 Transfer Tax Indemnities. 

Williams shall indemnify and hold harmless each member of the WPX Group for any transfer Taxes arising solely as a result of transferring
any assets to any member of the WPX Group on or prior to the Spin Date. 
 Section 5.3 No Other Liability. 

Except as specifically provided in this Agreement, WPX and Williams shall have no liability to each other with respect to Taxes.

 Section 5.4 Tax Characterization of Payments. 
 For all Tax purposes, and notwithstanding any other provision of this Agreement, to the extent permitted by applicable law, the parties hereto shall treat any payment made pursuant to this Agreement
(other than interest thereon) as a capital contribution or dividend distribution, as the case may be (except to the extent that the parties treat such payment as the settlement of an intercompany liability), made immediately before WPX ceased to be
an includible corporation in the Williams Group under Section 1504 of the Code and, accordingly, as not includible in the taxable income of the recipient. If any payment under this Agreement is not permitted to be so treated (because, for
example, the payment relates to an event occurring after such date) or as a 

  
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result of a Final Determination it is determined that the receipt or accrual of any payment made under this Agreement is taxable to the recipient of such payment, the party making the payment
shall pay to the recipient an amount equal to any increase in the income Taxes of the recipient as a result of receiving the payment (grossed up to take into account such payment, if applicable). 

ARTICLE VI 

PROCEEDINGS, COOPERATION, AND RECORD RETENTION 
 Section 6.1 Control of Proceedings. 
 (a) Williams shall have sole and
absolute authority to administer and control any Proceeding relating to (i) any Consolidated Returns, (ii) any Combined Returns, and (iii) any other Proceeding that may result in Tax liability to Williams. Each member of the WPX Group
shall execute and deliver to Williams any power of attorney or other document requested by Williams in connection with any such Proceeding. With respect to Proceedings subject to the first sentence of this Section 6.1(a), no agent or employee
of any member of the WPX Group shall provide any information (whether written or oral) to any Tax Authority except at the direction of Williams. 
 (b) In the event of any Proceeding as a result of which WPX could reasonably be expected to become liable for any Spin Taxes pursuant to Section 5.1(b) and which Williams has the right to administer
and control pursuant to Section 6.1(a) above (i) Williams shall consult with WPX reasonably in advance of taking any significant action in connection with such Proceeding, (ii) Williams shall offer WPX a reasonable opportunity to
comment before submitting any written materials prepared or furnished in connection with such Proceeding, (iii) WPX shall have the right to participate in such Proceeding, (iv) Williams shall defend such Proceeding diligently and in good
faith as if it were the only party in interest in connection with such Proceeding, and (iv) Williams shall provide WPX with copies of any written materials relating to such Proceeding received from the relevant Tax Authority. Notwithstanding
anything in the preceding sentence to the contrary, the final determination of the positions taken (including with respect to settlement or other disposition) in any such Proceeding shall be made in the sole discretion of Williams, except that any
settlement that will result in liability to WPX shall be subject to the consent of WPX, which consent shall not be unreasonably delayed, denied or withheld. 
 Section 6.2 Cooperation. 
 The WPX Group and the Williams Group shall
cooperate with each other in the highest standard of good faith regarding all provisions of this Agreement. Such cooperation shall include (i) providing to each other information relevant to this Agreement as may be reasonably requested,
(ii) executing documents necessary for each party to effect the provisions of this Agreement, (iii) making any officers, directors, employees and agents available to each other as each party may reasonably request to comply with the
provisions of this Agreement, and (iv) securing the covenant of any acquirer of any member of WPX Group or Williams Group, or any newly-formed or acquired subsidiary of WPX Group or Williams Group, to comply with this Agreement. 

  
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 Section 6.3 Books and Records. 

The parties shall maintain Tax Information for 10 years after the filing date of the Tax Return to which the Tax Information relates.
After such period, the members of the WPX Group or the Williams Group, as the case may be, shall not dispose of or destroy any Tax Information without first providing the other group the opportunity to obtain such Tax Information. 

ARTICLE VII 
 MISCELLANEOUS 
 Section 7.1 Method of Payment; Interest. 

Any Required Payment shall be made by wire transfer of immediately available funds. There shall be added to any Required Payment interest
at the underpayment rate set forth in Section 6621(a)(2) of the Code (compounded daily) for the period beginning on the Required Payment Date and ending on the date of receipt of the Required Payment; provided, however, that the interest rate
to be used in this Section 7.1 shall be the large corporate underpayment rate set forth in Section 6621(c) of the Code (instead of the underpayment rate set forth in Section 6621(a)(2) of the Code) to the extent that the Required
Payment relates to an adjustment for which the IRS has imposed interest at the large corporate underpayment rate set forth in Section 6621(c). 
 Section 7.2 Successors and Assigns. 
 This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by either party without the prior written
consent of the other party, such consent not to be unreasonably withheld, denied or delayed. 
 Section 7.3 Effect of
Agreement. 
 This Agreement shall determine the rights and liabilities of the parties as to the matters provided for in this
Agreement, whether or not such determination is effective for financial reporting or other purposes. 
 Section 7.4 Term of
Agreement. 
 This Agreement shall become effective as of the date of its execution and remain in effect until the parties agree
in writing to its termination. 

  
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 Section 7.5 Entire Agreement. 

This Agreement sets forth the entire agreement and understanding of the parties in respect of the subject matter contained in this
Agreement and supersedes all prior or contemporaneous agreements, promises, covenants, arrangements, representations or warranties, whether oral or written, by any party or by any officer, employee or representative of any party. 

Section 7.6 Amendments and Waivers. 
 This Agreement shall not be modified, supplemented or terminated except by a writing duly signed by each of the parties hereto, and no waiver of any provision of this Agreement shall be effective unless
in a writing duly signed by the party sought to be bound. 
 Section 7.7 Notices. 

Any payment, notice, communication or approval required or permitted to be given under this Agreement shall be deemed to have been duly
given if delivered by hand or deposited in the United States mail, postage prepaid and sent by certified or registered mail, if addressed to Williams, at 
 The Williams Companies, Inc. 
 One Williams Center 

Tulsa, Oklahoma 74172-0172 
 Attention: General Counsel 
 Facsimile: 918-573-1807 

E-mail: craig.rainey@williams.com 
 if addressed to WPX, at 
 WPX Energy, Inc 

One Williams Center 
 Tulsa, Oklahoma 74172-0172 
 Attention: General Counsel 

Facsimile: 918-573-5942 
 E-mail: james.bender@williams.com 
 Section 7.8 Code References.

 Any references to sections of the Code or the Regulations shall be deemed to refer to any corresponding provisions of
succeeding law as in effect from time to time. 
 Section 7.9 Third Parties. 

Nothing expressed or implied in this Agreement is intended or shall be construed to confer upon or give to any person other than the
parties hereto and each of their successors and assigns any rights or remedies under or by reason of this Agreement. 

  
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 Section 7.10 Governing Law. 

This Agreement shall be governed by and construed in accordance with the laws of the State of Oklahoma without regard to principles of
conflicts of law. 
 Section 7.11 Severability. 
 If any provision of this Agreement or the application of this Agreement in any circumstance is held invalid or unenforceable, the remainder of this Agreement and the application of this Agreement in any
other circumstance shall not be affected thereby, the provisions of this Agreement being severable in any such instance. 

Section 7.12 Counterparts. 
 This Agreement may be executed 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. 

Section 7.13 Dispute Resolution. 
 The parties agree that any dispute arising under this Agreement shall be resolved in accordance with the Dispute Resolution procedures set forth in Article X of the Separation Agreement. 

Section 7.14 Information and Expenses. 
 Williams will bear preparation and filing costs for all Tax Returns or WPX Pro Forma Returns that it is responsible for preparing and filing pursuant to this Agreement including any assistance provided to
WPX pursuant to Section 2.1(b) above. WPX will bear preparation and filing costs for all Tax Returns that it is responsible for preparing and filing pursuant to this Agreement including any assistance provided to Williams pursuant to Sections
2.1(a) and 2.3(a) above. Each of Williams and WPX will bear its own costs incurred in furnishing records, documents, or information requested by the other party in connection with the preparation of any Tax Returns or WPX Pro Forma Returns or in
connection with any Proceeding for any Tax Returns. 

  
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 The parties hereto have caused this Agreement to be duly executed as of the date first
written above. 
  

			
	THE WILLIAMS COMPANIES, INC.
		
	By:	 	/s/ Alan S. Armstrong
		 	Name: Alan S. Armstrong
		 	Title: Chief Executive Officer

  

			
	WPX ENERGY, INC.
		
	By:	 	/s/ Ralph A. Hill
		 	Name: Ralph A. Hill
		 	Title: Chief Executive Officer

  
 -13-

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