8-KMaterial AgreementsExhibits & Filings

WILLIAMS COMPANIES, INC. 8-K Report, Material Agreement (Feb 11, 2005)

Filed February 11, 2005For Securities:WMB

Summary

This 8-K filing by The Williams Companies, Inc. (WMB) reports on a material definitive agreement entered into on February 7, 2005. The agreement is a Severance, Release, and Restrictive Covenants Agreement with John Douglas Whisenant, the former Senior Vice President of the Gas Pipeline segment. Under the terms of this agreement, Mr. Whisenant will receive a severance payment of $850,000. In exchange for this payment, he has agreed to release Williams from any employment-related claims, maintain confidentiality of company information, and adhere to a two-year non-compete clause within the same business activities he performed for the company. Additionally, he will consult with Williams during the transition of business matters and assist with any related litigation or disputes.

Key Highlights

  • 1Williams Companies, Inc. entered into a severance agreement with former Senior Vice President, John Douglas Whisenant.
  • 2The agreement, dated February 7, 2005, includes a severance payment of $850,000.
  • 3Mr. Whisenant released Williams from all claims related to his employment or termination.
  • 4The agreement mandates confidentiality of Williams' proprietary information by Mr. Whisenant.
  • 5A two-year restrictive covenant is in place, preventing Mr. Whisenant from competing with Williams in the same business activities.
  • 6Mr. Whisenant agreed to consult with Williams on business transitions and potential litigation.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a material definitive agreement, specifically a severance, release, and restrictive covenants agreement between Williams Companies, Inc. and its former Senior Vice President of the Gas Pipeline segment, John Douglas Whisenant.

The agreement involves a severance payment of $850,000 to Mr. Whisenant. This represents a one-time expense related to the separation of an executive.

Mr. Whisenant agreed to release the company from any claims, maintain confidentiality of proprietary information, refrain from competing with Williams in his former business activities for two years, and provide consultation services for business transitions and any related disputes.

Companies typically enter into these agreements to ensure a smooth transition, protect confidential information, and mitigate potential legal risks or competition from departing executives. The release of claims by the executive is a key component for the company.