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EXHIBIT 99.1
TERMINATION AGREEMENT
THIS AGREEMENT, dated this 5th day of January, 2005, between
ONEOK, Inc.,
an Oklahoma corporation, or any division or subsidiary thereof,
having its
principal office in Tulsa, Oklahoma (the "Corporation"), and
___________(the
"Executive").
W I T N E S S E T H:
WHEREAS, the Executive, as an employee of the Corporation, has
rendered
valuable service to the Corporation, and the Corporation wishes
to retain the
Executive's services, assuring both itself and the Executive of
the continuity
of management in the event of any actual or threatened Change in
Control of the
Corporation; and
NOW, THEREFORE, it is hereby agreed by and between the parties
as follows:
1. Term of Agreement. This Agreement shall commence as of
January 5, 2005
and shall continue in effect until January 1, 2007 (the "Term");
provided,
however, that on January 1, 2007 and on each January 1
thereafter, the Term
shall automatically be extended and renewed for one (1) year
unless either the
Executive or the Corporation shall have given written notice to
the other of its
election not to renew this Agreement at least ninety (90) days
prior thereto
that the Term shall not be so extended; provided, further,
however, that
following the occurrence of a Change in Control, the Term shall
not expire
before the expiration of three (3) years after such
occurrence.
2. Termination Payments. In the event of a Termination (as
hereinafter
defined) during the Term and within three (3) years after a
Change in Control,
the Executive shall:
a. Be paid a lump sum termination payment by the Corporation in
an amount
equivalent to [TWO (2)] [THREE (3)] times the Executive's Annual
Compensation,
and
b. Be paid a lump sum payment by the Corporation equal to the
Executive's
short-term incentive compensation "target percentage" under the
Corporation's
incentive compensation plan times the Annual Base Salary,
prorated for the
length of employment during the current performance period,
and
c. Be paid by, or receive from the Corporation the employee
benefits
(including, but not limited to, car allowances and coverage
under any medical or
insurance arrangements or programs) to which the Executive would
have been
entitled under all employee welfare plans, programs, or
arrangements maintained
by the Corporation if the Executive had remained in the employ
of the
Corporation for the [TWO (2)] [THREE (3)]-year period following
Termination.
Such employee benefits shall be provided under plans sponsored
by the
Corporation on the Occurrence Date or the Termination Date,
whichever produces
the higher benefits, but if such benefits are not available
under Corporation
sponsored plans in effect during each of the [TWO (2)] [THREE
(3)] years, the
Corporation shall provide such benefits to the Executive under
plans
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covering the Executive individually, or otherwise provide or pay
such benefits
to the Executive.
d. The lump sum payments described above shall be calculated and
paid not
later than thirty (30) calendar days after the Termination Date.
Any payment not
made within the thirty (30) days shall thereafter bear interest
at two percent
(2%) over the "prime rate" as published in The Wall Street
Journal from time to
time, which is the base rate on corporate loans posted by at
least seventy-five
percent (75%) of the nation's thirty (30) largest banks.
3. Non-Disclosure. The Executive agrees that the Executive shall
not,
during the [TWO (2)] [THREE (3)] years after the date of any
such Termination,
directly or indirectly, divulge, disclose, or communicate to any
other person
any trade secrets that the Corporation may use in its business
operations.
4. Definitions. For purposes of this Agreement, the following
terms shall
have the meaning specified.
"Change in Control"
a. means the occurrence of any of the following during the term
of this
Agreement:
(1) An acquisition (other than directly from the Corporation) of
any
voting securities of the Corporation (the "Voting Securities")
by any
"Person" (as the term person is used for purposes of Section
13(d) or
14(d) of the Exchange Act), immediately after which such Person
has
"Beneficial Ownership" (within the meaning of Rule 13d-3
promulgated under
the Exchange Act) of twenty percent (20%) or more of the then
outstanding
Shares or the combined voting power of the Corporation's then
outstanding
Voting Securities; provided, however, in determining whether a
Change in
Control has occurred pursuant to this Section 4(a), Shares or
Voting
Securities which are acquired in a "Non-Control Acquisition"
(as
hereinafter defined) shall not constitute an acquisition which
would cause
a Change in Control. A "Non-Control Acquisition" shall mean an
acquisition
by (i) an employee benefit plan (or a trust forming a part
thereof)
maintained by (A) the Corporation or (B) any corporation or
other Person
of which a majority of its voting power or its voting equity
securities or
equity interest is owned or controlled, directly or indirectly,
by the
Corporation (for purposes of this definition, a "Related
Entity"), (ii)
the Corporation or any Related Entity, or (iii) any Person in
connection
with a "Non-Control Transaction" (as hereinafter defined);
(2) The individuals who, as of JANUARY 1, 2005, are members of
the
Board of Directors (the "Incumbent Board"), cease for any reason
to
constitute at least a majority of the members of the Board of
Directors;
or, following a Merger which results in a Parent Corporation,
the board of
directors of the ultimate Parent Corporation; provided, however,
that if
the election, or nomination for election by the Corporation's
common
stockholders, of any new director was approved by a vote of at
least
two-thirds of the Incumbent Board, such new director shall, for
purposes
of this Agreement, be considered as a member of the Incumbent
Board;
provided further, however, that no individual shall be
considered a member
of the Incumbent Board if such individual initially assumed
office as a
result of either an actual or threatened "Election Contest" (as
described
in Rule
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14a-11 promulgated under the Exchange Act) or other actual or
threatened
solicitation of proxies or consents by or on behalf of a Person
other than
the Board of Directors (a "Proxy Contest"), including by reason
of any
agreement intended to avoid or settle any Election Contest or
Proxy
Contest; or
(3) The consummation of:
(i) A merger, consolidation or reorganization with or into
the
Corporation or in which securities of the Corporation are issued
(a
"Merger"), unless such Merger is a "Non-Control Transaction."
A
"Non-Control Transaction" shall mean a Merger where:
(A) the stockholders of the Corporation, immediately before
such Merger, own directly or indirectly immediately
following
such Merger at least fifty percent (50%) of the combined
voting
power of the outstanding voting securities of (x) the
corporation
resulting from such Merger (the "Surviving Corporation") if
fifty
percent (50%) or more of the combined voting power of the
then
outstanding voting securities of the Surviving Corporation is
not
Beneficially Owned, directly or indirectly by another Person
(a
"Parent Corporation"), or (y) if there is one or more Parent
Corporations, the ultimate Parent Corporation;
(B) the individuals who were members of the Incumbent Board
immediately prior to the execution of the agreement providing
for
such Merger constitute at least a majority of the members of
the
board of directors of (x) the Surviving Corporation, if there
is
no Parent Corporation, or (y) if there is one or more Parent
Corporations, the ultimate Parent Corporation; and
(C) no Person other than (1) the Corporation, (2) any
Related
Entity, (3) any employee benefit plan (or any trust forming
a
part thereof) that, immediately prior to such Merger was
maintained by the Corporation or any Related Entity, or (4)
any
Person who, immediately prior to such Merger had Beneficial
Ownership of thirty percent (30%) or more of the then
outstanding
Voting Securities or Shares, has Beneficial Ownership of
thirty
percent (30%) or more of the combined voting power of the
outstanding voting securities or common stock of (x) the
Surviving Corporation if there is no Parent Corporation, or
(y)
if there is one or more Parent Corporations, the ultimate
Parent
Corporation.
(ii) A complete liquidation or dissolution of the Corporation;
or
(iii) The sale or other disposition of all or substantially
all
of the assets of the Corporation to any Person (other than a
transfer to a Related Entity or under conditions that would
constitute a Non-Control Transaction with the disposition of
assets
being regarded as a Merger for this purpose or the distribution
to
the Corporation's stockholders of the stock of a Related Entity
or
any other assets).
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b. Notwithstanding the foregoing, Change in Control shall not be
deemed to
occur,
(1) solely because any Person (the "Subject Person")
acquired
Beneficial Ownership of more than the permitted amount of the
then
outstanding Shares or Voting Securities if:
(i) such acquisition occurs as a result of the acquisition of
Shares
or Voting Securities by the Corporation which, by reducing the
number
of Shares or Voting Securities then outstanding, increases
the
proportional number of shares Beneficially Owned by the Subject
Person,
provided that if a Change in Control would occur (but for the
operation
of this subparagraph) as a result of the acquisition of Shares
or
Voting Securities by the Corporation, and after such share
acquisition
by the Corporation, the Subject Person becomes the Beneficial
Owner of
any additional Shares or Voting Securities which increases
the
percentage of the then outstanding Shares or Voting
Securities
Beneficially Owned by the Subject Person, then a Change in
Control
shall occur, or
(ii) (A) within five business days after a Change in Control
would
have occurred (but for the operation of this subparagraph), or
if the
Subject Person acquired Beneficial Ownership of twenty percent
(20%) or
more of the then outstanding Shares or the combined voting power
of the
Corporation's then outstanding Voting Securities inadvertently,
then
after the Subject Person discovers or is notified by the
Corporation
that such acquisition would have triggered a Change in Control
(but for
the operation of this subparagraph), the Subject Person notifies
the
Board of Directors that it did so inadvertently, and (B) within
two
business days after such notification, the Subject Person
divests
itself of a sufficient number of Shares or Voting Securities so
that
the Subject Person is the Beneficial Owner of less than twenty
percent
(20%) of the then outstanding Shares or the combined voting
power of
the Corporation's then outstanding Voting Securities.
(2) if (i) the Shareholder Group (as defined in the
Shareholder
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