Document:

exv10w7

Exhibit 10.7

EXECUTION VERSION

SIXTH AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

     THIS SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
is dated as of December 11, 2008, by and among RANGE RESOURCES CORPORATION, a Delaware corporation
(“Borrower”), certain Subsidiaries of Borrower, as Guarantors, JPMORGAN CHASE BANK, N.A., a
national banking association, as Administrative Agent for the Lenders (in such capacity,
“Administrative Agent”), and each of the Lenders which is a party to the Credit Agreement
(defined below).

WITNESSETH:

     WHEREAS, Borrower, Guarantors, Administrative Agent and the Lenders entered into that certain
Third Amended and Restated Credit Agreement dated as of October 25, 2006 (as amended by that
certain First Amendment to Third Amended and Restated Credit Agreement dated March 12, 2007, as
further amended by that certain Second Amendment to Third Amended and Restated Credit Agreement
dated as of March 26, 2007, as further amended by that certain Third Amendment to Third Amended and
Restated Credit Agreement dated as of October 22, 2007, as further amended by that certain Fourth
Amendment to Third Amended and Restated Credit Agreement dated as of March 31, 2008, as further
amended by that certain Fifth Amendment to Third Amended and Restated Credit Agreement dated as of
October 21, 2008, and as further amended, modified and restated from time to time, the “Credit
Agreement”), pursuant to which the Lenders made a revolving credit facility available to
Borrower; and

     WHEREAS, Borrower has requested that Administrative Agent and the Lenders amend the Credit
Agreement to increase the Aggregate Commitment to $1,250,000,000 and for certain other purposes as
provided herein, and Administrative Agent and the Lenders have agreed to do so on the terms and
conditions hereinafter set forth.

     NOW, THEREFORE, the parties agree to amend the Credit Agreement as follows:

     1. Definitions. Unless otherwise defined herein, all capitalized terms used herein
shall have the same meanings ascribed to such terms in the Credit Agreement.

     2. Amendments to Credit Agreement.

     2.1 Additional Definitions. Section 1.01 of the Credit Agreement shall
be and it hereby is amended by inserting the following definitions in appropriate
alphabetical order:

     “Cash Collateral Account” has the meaning assigned to such term
in Section 2.07(j).

     “Fee Letter” means that certain Fee Letter, dated December 11, 2008, among Administrative Agent, Arranger and Borrower.

     “Sixth Amendment Effective Date” means December 11, 2008.

SIXTH AMENDMENT TO THIRD AMENDED

AND RESTATED CREDIT AGREEMENT

65232006.5

 

 

     2.2 Amended Definitions. The following definitions set forth in Section
1.01 of the Credit Agreement shall be and they hereby are amended in their respective
entireties to read as follows:

     “ABR”, when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate. For
the avoidance of doubt, any Loan or Borrowing that accrues interest at a rate
determined by reference to clause (c) of the definition of Alternate Base
Rate shall constitute an ABR Loan or an ABR Borrowing, as the case may be,
notwithstanding the fact that the interest rate is based on the Adjusted LIBO
Rate.

     “Adjusted LIBO Rate” means, (a) with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to (i) the LIBO Rate for
such Interest Period multiplied by (ii) the Statutory Reserve Rate and (b)
with respect to any ABR Borrowing for any day, an interest rate per annum
equal to (i) the LIBO Rate for a one month Interest Period on such day (or if
such day is not a Business Day, the immediately preceding Business Day)
multiplied by (ii) the Statutory Reserve Rate.

     “Alternate Base Rate” means, for any day, a rate per annum equal
to the greatest of (a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (c) the
Adjusted LIBO Rate plus 1%; provided that, for the avoidance of doubt, the
Adjusted LIBO Rate for any day shall be based on the rate appearing on the
Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of
such page) at approximately 11:00 a.m. London time on such day. Any change
in the Alternate Base Rate due to a change in the Prime Rate, the Federal
Funds Effective Rate or the Adjusted LIBO Rate shall be effective from and
including the effective date of such change in the Prime Rate, the Federal
Funds Effective Rate or the Adjusted LIBO Rate, respectively.

     “Applicable Rate” means, for any day, with respect to any ABR
Loan or Eurodollar Loan, or with respect to the Unused Commitment Fees
payable hereunder, as the case may be, the applicable rate per annum set
forth below under the caption “ABR Spread”, “Eurodollar Spread” or “Unused
Commitment Fee Rate”, as the case may be, based upon the Borrowing Base Usage
applicable on such date:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Unused
	Borrowing	 	 	 	 	 	Commitment
	Base Usage	 	Eurodollar Spread	 	ABR Spread	 	Fee Rate
	≥ 90%
	 	250 b.p.
	 	162.5 b.p.
	 	50 b.p.

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	 	 	 	 	 	 	Unused
	Borrowing	 	 	 	 	 	Commitment
	Base Usage	 	Eurodollar Spread	 	ABR Spread	 	Fee Rate
	≥ 75% and < 90%

	 	225 b.p.
	 	137.5 b.p.
	 	37.5 b.p.
	≥ 50% and < 75%

	 	200 b.p.
	 	112.5 b.p.
	 	37.5 b.p.
	< 50%

	 	175 b.p.
	 	87.5 b.p.
	 	37.5 b.p.

     Each change in the Applicable Rate shall apply during the period
commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next change. Unless an Event
of Default has occurred and is continuing, for purposes of determining the
Applicable Rate hereunder, the calculation of the Borrowing Base Usage shall
be made after subtracting from the Aggregate Credit Exposure the aggregate
amount of cash on deposit in the Cash Collateral Account as a result of the
existence of any Defaulting Lender.

     “Defaulting Lender” means any Lender, as reasonably determined
by the Administrative Agent (and in the case such Lender is also the
Administrative Agent or an Affiliate of the Administrative Agent, the
Required Lenders), that has (a) failed to fund any portion of the Loans or
participations in LC Disbursements required to be funded by it hereunder
within three Business Days of the date required to be funded by it hereunder,
(b) notified the Borrower, the Administrative Agent, the Issuing Bank or any
Lender in writing that it does not intend to comply with any of its funding
obligations under this Agreement or has made a public statement to the effect
that it does not intend to comply with its funding obligations under this
Agreement, (c) otherwise failed to pay over to the Administrative Agent or
any other Lender any other amount required to be paid by it hereunder within
three Business Days of the date when due, unless the subject of a good faith
dispute, or (d) (i) become or is insolvent or has a parent company that has
become or is insolvent or (ii) become the subject of a bankruptcy or
insolvency proceeding, or has had a receiver, conservator, trustee or
custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding
or appointment or has a parent company that has become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance
of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for
any Interest Period, the rate appearing on Reuters BBA Libor Rates Page

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3750
(or on any successor or substitute page of such service, or any successor to
or substitute for such service, providing rate quotations comparable to those
currently provided on such page of such service, as determined by the
Administrative Agent from time to time for purposes of providing quotations
of interest rates applicable to dollar deposits in the London interbank
market) at approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period, as the rate for dollar deposits
with a maturity comparable to such Interest Period. In the event that such
rate is not available at such time for any reason, then the “LIBO
Rate” with respect to such Eurodollar Borrowing for such Interest Period
shall be the rate at which dollar deposits of $5,000,000 and for a maturity
comparable to such Interest Period are offered by the principal London office
of the Administrative Agent in immediately available funds in the London
interbank market at approximately 11:00 a.m., London time, two Business Days
prior to the commencement of such Interest Period.

     “Secured Parties” means the holders from time to time of the
Obligations and “Secured Party” means any of them.

     2.3 Letters of Credit. Section 2.07(b) of the Credit Agreement shall
be and it hereby is amended in its entirety to read as follows:

     (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit), the
Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the Issuing
Bank) to the Issuing Bank and the Administrative Agent (reasonably in advance
of the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day),
the date on which such Letter of Credit is to expire (which shall comply with
paragraph (c) of this Section), the amount of such Letter of Credit, the name
and address of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit. If
requested by the Issuing Bank, the Borrower also shall submit a letter of
credit application on the Issuing Bank’s standard form in connection with any
request for a Letter of Credit. A Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or
extension of each Letter of Credit the Borrower shall be deemed to represent
and warrant that), after giving effect to such issuance, amendment, renewal
or extension (i) the LC Exposure shall not exceed $50,000,000 and (ii) the
Aggregate Credit Exposure shall not exceed the Aggregate Commitment.

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Notwithstanding the foregoing, the Issuing Bank shall not at any time be
obligated to issue, amend, renew or extend any Letter of Credit if any Lender
is at such time a Defaulting Lender hereunder, unless (x) the Borrower cash
collateralizes such Defaulting Lender’s portion of the total LC Exposure
(calculated after giving effect to the issuance, amendment, renewal or
extension of such Letter of Credit) in accordance with the procedures set
forth in Section 2.07(j) or (y) the Issuing Bank has entered into
arrangements satisfactory to the Issuing Bank in its sole discretion with the
Borrower or such Defaulting Lender to eliminate the Issuing Bank’s risk with
respect to such Defaulting Lender’s portion of the total LC Exposure.

     2.4 Letters of Credit. Section 2.07(j) of the Credit Agreement shall
be and it hereby is amended in its entirety to read as follows:

     (j) Cash Collateralization.

          (i) If at any time the Borrower elects to cash collateralize the LC
Exposure of any Defaulting Lender pursuant to Section 2.07(b), the Borrower
shall deposit in an account with the Administrative Agent, in the name of
the Administrative Agent and for the benefit of the Lenders (the “Cash
Collateral Account”), an amount in cash equal to such Defaulting Lender’s
portion of the total LC Exposure at such time as calculated pursuant to
clause (x) of Section 2.07(b) (less any amounts already on deposit in such
Cash Collateral Account representing cash collateral for any portion of such
Defaulting Lender’s portion of the total LC Exposure).

          (ii) If any Letter of Credit is outstanding at the time any Lender is a
Defaulting Lender, upon the written request of the Issuing Bank demanding
the deposit of cash collateral pursuant to this paragraph, the Borrower
shall promptly, and in any event within three (3) Business Days after
receipt of such written request, cash collateralize such Defaulting Lender’s
portion of the total LC Exposure at such time by depositing in the Cash
Collateral Account an amount in cash equal to such Defaulting Lender’s
portion of the total LC Exposure at such time (less any amounts already on
deposit in such Cash Collateral Account representing cash collateral for any
portion of such Defaulting Lender’s portion of the total LC Exposure).

          (iii) If any Event of Default shall occur and be continuing, on or
before the fifth (5th) Business Day after the Borrower receives
notice from the Administrative Agent or the Required Lenders (or, if the
maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 66-2/3% of the total LC Exposure) demanding
the deposit of cash collateral pursuant to this paragraph, the Borrower

5

 

shall deposit in the Cash Collateral Account an amount in cash equal to the
total LC Exposure as of such date plus any accrued and unpaid interest
thereon; provided that the obligation to deposit such cash collateral shall
become effective immediately, and such deposit shall become immediately due
and payable, without demand or other notice of any kind, upon the occurrence
of any Event of Default with respect to the Borrower described in clause (h)
or (i) of ARTICLE IX.

          (iv) Deposits in the Cash Collateral Account made pursuant to the
foregoing paragraphs (i), (ii) and (iii) shall be held by the Administrative
Agent as Collateral for the payment and performance of the obligations of
the Borrower under this Agreement. So long as such Defaulting Lender
remains a Defaulting Lender or such Event of Default is continuing, as
applicable, the Administrative Agent shall have exclusive dominion and
control, including the exclusive right of withdrawal, over the Cash
Collateral Account. Other than any interest earned on the investment of
such deposits and interest at the rate per annum in effect for accounts of
the same type maintained with the Administrative Agent at such time, which
investments shall be of the type described in clause (b) of the definition
of Permitted Investments and shall be made by the Administrative Agent in
consultation with the Borrower (unless an Event of Default shall have
occurred and be continuing, in which case, such investments shall be made at
the option and sole discretion of the Administrative Agent) and at the
Borrower’s risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such
account. Moneys in such account shall be applied by the Administrative
Agent to reimburse the Issuing Bank for LC Disbursements for which it has
not been reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for the LC
Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Lenders with LC Exposure representing
66-2/3% or more of the total LC Exposure), be applied to satisfy other
obligations of the Borrower under this Agreement.

          (v) If the Borrower is required to provide an amount of cash collateral
pursuant to paragraphs (i), (ii) or (iii) above, such amount (to the extent
not applied as aforesaid) shall be returned to the Borrower within three (3)
Business Days after (x) in the case of cash collateral provided pursuant to
paragraphs (i) or (ii) above, the applicable Defaulting Lender is no longer a
Defaulting Lender and (y) in the case of cash collateral provided pursuant to
paragraph (iii) above, all Events of Default have been cured or waived. The
Borrower may at any time request confirmation from the Administrative Agent
that a Defaulting
Lender is no longer a Defaulting Lender, and the Administrative Agent
shall promptly confirm such request or provide written confirmation to the

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Borrower that such Lender remains a Defaulting Lender and the basis for such
determination.

     2.5 Fees. Section 2.13(c) of the Credit Agreement shall be and it
hereby is amended in its entirety to read as follows:

     (c) Borrower agrees to pay to the Administrative Agent, for its own
account, (i) fees payable in the amounts and at the times separately agreed
upon among the Borrower, the Administrative Agent and the Arranger pursuant
to the Fee Letter and (ii) fees payable upon any increase in the Aggregate
Commitment pursuant to Section 2.03.

     2.6 Indebtedness. Section 7.01(e) of the Credit Agreement shall be and
it hereby is amended in its entirety to read as follows:

     (e) Indebtedness of the Borrower and the Restricted Subsidiaries
incurred to finance the acquisition, construction or improvement of any fixed
or capital assets, including Capital Lease Obligations and any Indebtedness
assumed in connection with the acquisition of any such assets or secured by a
Lien on any such assets prior to the acquisition thereof, and extensions,
renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof; provided that (i) in the case
of any acquisition, construction or improvement of any fixed or capital
asset, such Indebtedness (other than Capital Lease Obligations) is incurred
prior to or within 90 days after such acquisition or the completion of such
construction or improvement and (ii) the aggregate principal amount of
Indebtedness permitted by this clause (e) shall not exceed $100,000,000 at
any time outstanding;

     2.7 Financial Covenants. Section 7.11 of the Credit Agreement shall be
and it hereby is amended in its entirety to read as follows:

     (a) Consolidated Current Ratio. The Borrower will not permit
the Consolidated Current Ratio as of the end of any fiscal quarter to be less
than 1.00 to 1.00. Unless an Event of Default has occurred and is continuing,
for purposes of determining the Consolidated Current Ratio as of any date of
determination, the calculation of Consolidated Current Assets shall include
the aggregate amount of cash on deposit in the Cash Collateral Account as of
such date as a result of the existence of any Defaulting Lender.

     (b) Leverage Ratio. The Borrower will not permit the ratio (the
“Leverage Ratio”), determined as of the end of any fiscal quarter, of
(A) Consolidated Funded Indebtedness as of the end of such fiscal quarter,
to (B) Consolidated EBITDAX for the trailing four (4) fiscal quarter
period ending on such date to be greater than 4.0 to 1.0. Unless an Event

7

 

of Default has occurred and is continuing, for purposes of determining the
Leverage Ratio as of any date of determination, the calculation of
Consolidated Funded Indebtedness shall be made by subtracting therefrom the
aggregate amount of cash on deposit in the Cash Collateral Account as of such
date as a result of the existence of any Defaulting Lender.

     2.8 Notices. Clause (i) of Section 11.01(a) of the Credit Agreement
shall be and it hereby is amended in its entirety to read as follows:

          (i) if to the Borrower, to Range Resources Corporation, 100 Throckmorton
Street, Suite 1200, Fort Worth, Texas 76102, Attention: Roger Manny, Chief
Financial Officer, Telecopy No. (817) 810-1921. For purposes of delivering
the documents pursuant to Section 6.01(a), Section 6.01(b) and Section
6.01(d), the website address is www.rangeresources.com;

     2.9 Increase in the Aggregate Commitment. Notwithstanding anything to the
contrary contained in the Credit Agreement and any other Loan Document, effective as of the
Sixth Amendment Effective Date, the Aggregate Commitment shall be $1,250,000,000, and
Schedule 2.01 of the Credit Agreement shall be and it hereby is amended and replaced
in its entirety with Schedule 2.01 attached hereto.

     3. New Lenders and Reallocation of Commitments and Loans. The Lenders party to this
Amendment have agreed among themselves to reallocate their respective Commitments and to, among
other things, allow certain financial institutions identified by J.P. Morgan Securities, Inc., in
its capacity as Lead Arranger, in consultation with the Borrower, to become a party to the Credit
Agreement as a Lender (each, a “New Lender”) by acquiring an interest in the Aggregate
Commitment, and Administrative Agent and the Borrower hereby consents to such reallocation and each
New Lender’s acquisition of an interest in the Aggregate Commitment. As of the Sixth Amendment
Effective Date and after giving effect to such reallocation of the Aggregate Commitment, the
Commitment of each Lender shall be as set forth on Schedule 2.01 of this Amendment. With
respect to such reallocation, each New Lender shall be deemed to have acquired the Commitment
allocated to it from each of the other Lenders party to this Amendment pursuant to the terms of the
Assignment and Assumption attached as Exhibit A to the Credit Agreement as if such New
Lender and the other Lenders had executed an Assignment and Assumption with respect to such
allocation. The Borrower and Administrative Agent hereby consent to such assignment to the New
Lenders.

     4. Binding Effect. Except to the extent its provisions are specifically amended,
modified or superseded by this Amendment, the Credit Agreement, as amended, and all terms and
provisions thereof shall remain in full force and effect, and the same in all respects are
confirmed and approved by the Borrower, the Guarantors and the Lenders.

     5. Sixth Amendment Effective Date. This Amendment (including the amendments to the
Credit Agreement contained in Section 2 of this Amendment and the assignments and

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reallocations contained in Section 3 of this Amendment) shall be effective upon the
satisfaction of the conditions precedent set forth in Section 6 hereof.

     6. Conditions Precedent. The obligations of Administrative Agent and the Lenders
under this Amendment shall be subject to the following conditions precedent:

          (a) Execution and Delivery. Borrower, each Guarantor, each New Lender and the
other Lenders (or at least the required percentage thereof) shall have executed and
delivered this Amendment and each other required document to Administrative Agent, all in
form and substance satisfactory to the Administrative Agent.

          (b) No Default. No Default shall have occurred and be continuing or shall
result from the effectiveness of this Amendment.

          (c) Fees. Borrower, the Administrative Agent and Arranger shall have executed
and delivered the Fee Letter in connection with this Amendment, and the Administrative Agent
and Arranger shall have received all fees payable under such Fee Letter at the time this
Amendment becomes effective.

          (d) Notes. Borrower shall have executed and delivered a promissory note to
each New Lender that has requested a promissory note in accordance with Section
2.10(e) of the Credit Agreement.

          (e) Other Documents. The Administrative Agent shall have received such other
instruments and documents incidental and appropriate to the transaction provided for herein
as the Administrative Agent or its counsel may reasonably request, and all such documents
shall be in form and substance satisfactory to the Administrative Agent.

     7. Representations and Warranties. Each Credit Party hereby represents and warrants
that (a) except to the extent that any such representations and warranties expressly relate to an
earlier date, all of the representations and warranties contained in the Credit Agreement and in
each Loan Document are true and correct as of the date hereof after giving effect to this
Amendment, (b) the execution, delivery and performance by such Credit Party of this Amendment have
been duly authorized by all necessary corporate, limited liability company or partnership action
required on its part, and this Amendment and the Credit Agreement are the legal, valid and binding
obligations of such Credit Party, enforceable against such Credit Party in accordance with their
terms, except as their enforceability may be affected by the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect relating to or
affecting the rights or remedies of creditors generally, (c) no Default or Event of Default has
occurred and is continuing or will exist after giving effect to this Amendment, and (d) after
giving effect to the increase in the Aggregate Commitment and the assignments and reallocations
contained in Section 3 of this Amendment, the Borrower and its Consolidated Subsidiaries
are in pro forma compliance with each of the financial covenants
set forth in Section 7.11 of the Credit Agreement as of the last day of the most
recently ended fiscal quarter of the Borrower.

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     8. Reaffirmation of Loan Documents. Any and all of the terms and provisions of the
Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in
full force and effect. Each Credit Party hereby agrees that the amendments and modifications
herein contained shall in no manner affect or impair the liabilities, duties and obligations of any
Credit Party under the Credit Agreement and the other Loan Documents or the Liens securing the
payment and performance thereof.

     9. Counterparts. This Amendment may be executed in one or more counterparts and by
different parties hereto in separate counterparts each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.
Delivery of photocopies of the signature pages to this Amendment by facsimile or electronic mail
shall be effective as delivery of manually executed counterparts of this Amendment.

     10. Legal Expenses. Each Credit Party hereby agrees to pay all reasonable fees and
expenses of special counsel to the Administrative Agent incurred by the Administrative Agent in
connection with the preparation, negotiation and execution of this Amendment and all related
documents.

     11. WRITTEN CREDIT AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THIS AMENDMENT AND
TOGETHER WITH THE OTHER LOAN DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN AND AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN AND AMONG THE PARTIES.

     12. Governing Law. This Amendment shall be construed in accordance with and governed
by the law of the State of Texas.

     13. Guarantors. The Guarantors hereby consent to the execution of this Amendment by
the Borrower and reaffirm their guaranties of all of the obligations of the Borrower to the
Lenders. Borrower and Guarantors acknowledge and agree that the renewal, extension and amendment
of the Credit Agreement shall not be considered a novation of account or new contract but that all
existing rights, titles, powers, and estates in favor of the Lenders constitute valid and existing
obligations in favor of the Lenders. Borrower and Guarantors each confirm and agree that (a)
neither the execution of this Amendment or any other Loan Document nor the consummation of the
transactions described herein and therein shall in any way effect, impair or limit the covenants,
liabilities, obligations and duties of the Borrower and the Guarantors under the Loan Documents,
and (b) the obligations evidenced and secured by the Loan Documents continue in full force and
effect. Each Guarantor hereby further confirms that it unconditionally guarantees to the extent
set forth in the Credit Agreement the due and punctual payment and
performance of any and all amounts and obligations owed to the Lenders under the Credit
Agreement or the other Loan Documents.

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[Remainder of page blank. Signature pages follow]

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     IN WITNESS WHEREOF, the parties have caused this Amendment to the Credit Agreement to be duly
executed as of the date first above written.

BORROWER:

	 	 	 	 	 
	 	RANGE RESOURCES CORPORATION

 	 
	 	By:  	/s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President 	 
	 	 	 	 
	 

GUARANTORS:

RANGE ENERGY I, INC.

RANGE HOLDCO, INC.

RANGE PRODUCTION COMPANY

GULFSTAR ENERGY, INC.

RANGE ENERGY FINANCE CORPORATION

PMOG HOLDINGS, INC.

PINE MOUNTAIN ACQUISITION, INC.

RANGE RESOURCES — PINE MOUNTAIN, INC.

RANGE OPERATING NEW MEXICO, INC.

RANGE OPERATING TEXAS, L.L.C.

STROUD ENERGY GP, LLC

STROUD ENERGY MANAGEMENT GP, LLC

	 	 	 	 	 
	 	 	 
	 	By:  	         /s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive
Vice President of  	 
	 	 	all of the foregoing Credit Parties 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	RANGE RESOURCES — APPALACHIA, LLC

(f/k/a Great Lakes Energy Partners, L.L.C.)

 	 
	 	By:  	RANGE HOLDCO, INC., Its
member RANGE ENERGY I, INC., Its member
 	 

	 	 	 	 	 
	 	By:  	                                          /s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President of 	 
	 	 	each of the foregoing members 	 
	 
	 	RANGE RESOURCES, L.L.C.

 	 
	 	By:  	RANGE PRODUCTION COMPANY,
 Its member
 	 
	 	 	 	 
	 	        RANGE HOLDCO, INC., Its member

 	 
	 	By:  	/s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive
Vice President of  	 
	 	 	each of the foregoing members 	 
	 
	 	STROUD ENERGY LP, LLC,

 	 
	 	By:  	Range Operating, Texas, LLC, Its Member
 	 
	 	 	 	 
	 	By:  	               /s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President 	 
	 	 	 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	STROUD ENERGY, LTD.,

 	 
	 	By:  	Stroud Energy Management GP, LLC, Its general partner
 	 
	 	 	 
	 	By:  	               /s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President 	 
	 
	 	STROUD OIL PROPERTIES, L.P.,

 	 
	 	By:  	Stroud Energy GP, LLC, Its general partner
 	 
	 	 	 
	 	By:  	         /s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President 	 
	 
	 	RANGE TEXAS PRODUCTION, L.L.C.

 	 
	 	By:  	Range Energy I, Inc., Its Member
 	 
	 	 	 
	 	By:  	        /s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President 	 
	 
	 	REVC HOLDCO, LLC

Range Resources Corporation, Its member

 	 
	 	By:  	/s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President  	 
	 	 	 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	AMERICAN ENERGY SYSTEMS, LLC

 	 
	 	By:  	/s/ Roger S. Manny
 	 
	 	 	Roger S. Manny, Executive Vice President and 	 
	 	 	Chief Financial Officer 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., (successor by
merger to Bank
One, N.A. (Illinois)), as Administrative
Agent and a
Lender
 	 
	 
	 	By:  	/s/ Elizabeth K. Johnson
 	 
	 	 	Elizabeth K. Johnson, Vice President 	 
	 	 	 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF SCOTLAND PLC, as a Lender

 	 
	 	By:  	/s/ Karen Weich
 	 
	 	 	Karen Weich, Vice President 	 
	 	 	 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH, as a Syndicated

Agent and a Lender

 	 
	 	By:  	/s/ Darrell Stanley
 	 
	 	 	Name:  	Darrell Stanley 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                      /s/ Sharada Manne
 	 
	 	 	Name:  	Sharada Manne 	 
	 	 	Title:  	Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	COMPASS BANK, as a Lender

 	 
	 	By:  	/s/ Dorothy Marchand
 	 
	 	 	Name:  	Dorothy Marchand 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Documentation

Agent and a Lender

 	 
	 	By:  	/s/ Jeffrey H. Rathkamp
 	 
	 	 	Name:  	Jeffrey H. Rathkamp 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP., as a
Documentation Agent
 and a
Lender

 	 
	 	By:  	/s/ Michele Jones
 	 
	 	 	Name:  	Michele Jones 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                        /s/ Ilene Fowler
 	 
	 	 	Name:  	Ilene Fowler 	 
	 	 	Title:  	Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	NATIXIS (formerly Natexis Banques Populaires), as a

Lender

 	 
	 	By:  	/s/ Donovan Broussard
 	 
	 	 	Name:  	Donovan C. Broussard 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                   /s/ Liana Tchernysheva
 	 
	 	 	Name:  	Liana Tchernysheva 	 
	 	 	Title:  	Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	/s/ Rebecca L. Wilson
 	 
	 	 	Name:  	Rebecca L. Wilson 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	CAPITAL ONE, N.A. (f/k/a Hibernia
National Bank), 
as a
Lender

 	 
	 	By:  	/s/ Matthew L. Molero
 	 
	 	 	Name:  	Matthew L. Molero 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	AMEGY BANK N.A. (f/k/a Southwest Bank of Texas N.A.), as a Lender

 	 
	 	By:  	/s/ W. Bryan Chapman
 	 
	 	 	Name:  	W. Bryan Chapman 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS FINANCING, INC.

(f/k/a HARRIS NESBITT FINANCING, INC.),

as a Syndication Agent and a Lender

 	 
	 	By:  	/s/ James V. Ducote
 	 
	 	 	Name:  	James V. Ducote 	 
	 	 	Title:  	Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	KEY BANK, as a Lender

 	 
	 	By:  	
/s/ Todd Coker
 	 
	 	 	Name:  	Todd Coker 	 
	 	 	Title:  	AVP 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Shannan Townsend
 	 
	 	 	Name:  	Shannan Townsend 	 
	 	 	Title:  	Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.,

as a Lender

 	 
	 	By:  	/s/ Alison Fuqua
 	 
	 	 	Name:  	Alison Fuqua 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	 	 
	 	By:  	                                          /s/ Whitney Randolph
 	 
	 	 	Name:  	Whitney Randolph 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, as a Lender

 	 
	 	By:  	/s/ David G. Mills
 	 
	 	 	Name:  	David G. Mills 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	THE FROST NATIONAL BANK, as a Lender

 	 
	 	By:  	/s/ John S. Warren
 	 
	 	 	Name:  	John S. Warren 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	/s/ Jim Reilly
 	 
	 	 	Name:  	Jim Reilly 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	CREDIT SUISSE, Cayman Islands Branch,

as a Lender

 	 
	 	By:  	/s/ Vanessa Gomez
 	 
	 	 	Name:  	Vanessa Gomez 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                        /s/ Nupur Kumar
 	 
	 	 	Name:  	Nupur Kumar 	 
	 	 	Title:  	Associate 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	/s/ Yann Pirio
 	 
	 	 	Name:  	Yann Pirio 	 
	 	 	Title:  	Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE, as a Lender

 	 
	 	By:  	/s/ Stephen W. Warfel
 	 
	 	 	Name:  	Stephen W. Warfel 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Daria Mahoney
 	 
	 	 	Name:  	Daria Mahoney 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender

 	 
	 	By:  	/s/ Dusan Lazarov
 	 
	 	 	Name:  	Dusan Lazarov 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                      /s/ Erin Morrissey
 	 
	 	 	Name:  	Erin Morrissey 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	STERLING BANK, as a Lender

 	 
	 	By:  	/s/ Jeff Forbis
 	 
	 	 	Name:  	Jeff Forbis 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC,

as a Lender

 	 
	 	By:  	/s/ Douglas Bernegger
 	 
	 	 	Name:  	Douglas Bernegger 	 
	 	 	Title:  	Director 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA,

as a Lender

 	 
	 	By:  	/s/ Don J. McKinnerney
 	 
	 	 	Name:  	Don J. McKinnerney 	 
	 	 	Title:  	Authorized Signatory 	 

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF TEXAS, N.A.,

as a Lender

 	 
	 	By:  	/s/ Jeff Olmstead
 	 
	 	 	Name:  	Jeff Olmstead 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page

 

 

Schedule 2.01

APPLICABLE PERCENTAGES AND COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable	 	 	 	 
	Lender	 	Title	 	Percentage	 	 	      Commitment      	 
	JPMorgan Chase Bank , N.A.
	 	Administrative Agent	 	 	4.9821432	%	 	$	62,276,790.30	 
	BMO Capital Markets Financing,
Inc., (f/k/a Harris Nesbitt
Financing, Inc.)
	 	Syndication Agent	 	 	4.9778824	%	 	$	62,223,529.41	 
	Bank of America, N.A.
	 	Documentation Agent	 	 	4.9778824	%	 	$	62,223,529.41	 
	Calyon New York Branch
	 	Syndicated Agent	 	 	4.9778824	%	 	$	62,223,529.41	 
	Fortis Capital Corp.
	 	Documentation Agent	 	 	4.9778824	%	 	$	62,223,529.41	 
	Suntrust Bank
	 	 	 	 	 	 	4.9778824	%	 	$	62,223,529.41	 
	Union Bank of California, N.A.
	 	Co-Agent	 	 	4.9778824	%	 	$	62,223,529.41	 
	Wachovia Bank, National Association
	 	Co-Agent	 	 	4.9778824	%	 	$	62,223,529.41	 
	Comerica Bank
	 	Co-Agent	 	 	4.4230477	%	 	$	55,288,096.78	 
	Royal Bank of Canada
	 	 	 	 	 	 	4.4230477	%	 	$	55,288,096.78	 
	The Bank of Nova Scotia
	 	Co-Agent	 	 	4.4230477	%	 	$	55,288,096.78	 
	Bank of Scotland
	 	Agent	 	 	4.0500000	%	 	$	50,625,000.00	 
	Deutsche Bank Trust Company Americas
	 	Co-Agent	 	 	3.8682131	%	 	$	48,352,664.14	 
	Key Bank
	 	Co-Agent	 	 	3.8682131	%	 	$	48,352,664.14	 
	US Bank, National Association
	 	 	 	 	 	 	3.8682131	%	 	$	48,352,664.14	 
	Natixis (formerly Natexis Banques
Populaires)
	 	Co-Agent	 	 	3.3021739	%	 	$	41,277,173.91	 
	Société Générale
	 	 	 	 	 	 	3.3021739	%	 	$	41,277,173.91	 
	Compass Bank
	 	 	 	 	 	 	3.1258288	%	 	$	39,072,859.91	 
	Credit Suisse, Cayman Islands Branch
	 	 	 	 	 	 	3.1258288	%	 	$	39,072,859.91	 
	Amegy Bank N.A. (f/k/a Southwest
Bank of Texas N.A.)
	 	 	 	 	 	 	2.7351002	%	 	$	34,188,752.42	 
	Barclays Bank PLC
	 	 	 	 	 	 	2.7351002	%	 	$	34,188,752.42	 
	Capital One, N.A. (f/k/a Hibernia
National Bank)
	 	 	 	 	 	 	2.7351002	%	 	$	34,188,752.42	 
	Citibank, N.A.
	 	Co-Agent	 	 	2.7351002	%	 	$	34,188,752.42	 
	The Frost National Bank
	 	 	 	 	 	 	2.7351002	%	 	$	34,188,752.42	 
	Bank of Texas, N.A.
	 	 	 	 	 	 	2.3586957	%	 	$	29,483,695.65	 

Schedule 2.01

 

 

Schedule 2.01

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable	 	 	 	 
	Lender	 	            Title            	 	 	Percentage	 	 	Commitment	 
	Sterling Bank
	 	 	 	 	 	 	2.3586957	%	 	$	29,483,695.65	 
	TOTAL
	 	 	 	 	 	 	100.00	%	 	$	1,250,000,000.00	 

Schedule 2.01exv10w1

Exhibit 10.1

THE WILLIAMS COMPANIES

AMENDED AND RESTATED

RETIREMENT RESTORATION PLAN

Effective as of January 1, 2008

 

 

THE WILLIAMS COMPANIES

AMENDED AND RESTATED

RETIREMENT RESTORATION PLAN

ESTABLISHMENT OF PLAN

     WHEREAS, The Williams Companies, Inc. and certain of its subsidiaries (“Employers”) maintain
The Williams Pension Plan (“Pension Plan”) for the benefit of eligible employees of the Employers;

     WHEREAS, Sections 401(a)(17) and 415 of the Internal Revenue Code (“Code”) establish
limitations as to the amount of pension benefit which may be accrued under or payable from the
Pension Plan on behalf of any participant therein; and

     WHEREAS Code Section 409A imposes new requirements upon distributions from supplemental plans;
and

     WHEREAS, to reflect the requirements of Code Section 409A, The Williams Companies, Inc.
desires to amend and restate The Williams Companies Retirement Restoration Plan, as effective
January 1, 2005, a supplemental plan under which the portion of the pension benefit (and related
death benefit) of an eligible employee of an Employer which becomes subject to such limitations of
the Code shall be payable from general corporate assets.

     NOW, THEREFORE, The Williams Companies, Inc. hereby adopts, effective as of January 1, 2008,
The Williams Companies Retirement Restoration Plan as amended and restated and set forth
hereinafter.

 

 

ARTICLE I

Introduction

     This document is generally effective as of January 1, 2008 (the “Effective Date”) and amends
and restates The Williams Companies Retirement Restoration Plan, as effective January 1, 2005 (the
“2005 Document”), with respect to periods commencing on and after the Effective Date. It sets
forth the terms of the Plan applicable to deferrals which are subject to Section 409A, i.e.,
generally, deferred amounts earned or vested after December 31, 2004 (the “409A Program”). Certain
other deferrals under the Plan shall be governed by a separate set of documents which set forth the
pre-Section 409A terms of the Plan (the “Pre-409A Program”) to the extent such other deferrals and
the terms of Pre-409A Program are not incorporated into this document. Together, this document,
the 2005 Document and the documents for the Pre-409A Program describe the terms of a single plan.
However, amounts subject to the terms of this 409A Program and amounts subject to the terms of the
Pre-409A Program shall be tracked separately at all times. The preservation of the terms of the
Pre-409A Program, without material modification, and the separation between the 409A Program
amounts and the Pre-409A Program amounts are intended to be sufficient to permit the Pre-409A
Program to remain exempt from Section 409A. Subject to the applicable Plan termination provisions,
with respect to vested benefits under the Pre-409A Program: (i) in the case of vested Participants
on December 31, 2004 who were receiving vested benefits on such date, such benefits shall continue
to be paid under the Pre-409A Program at the same time and in the same amounts as specified under
the form of payment in effect on such date; and (ii) in the case of vested Participants who were
not receiving vested benefits on such date, such benefits shall be paid under the Pre-409A Program

2

 

in a lump sum at the time specified in Article IV of The Williams Companies Supplemental Retirement
Plan as in effect on December 31, 2004.

3

 

ARTICLE II

Definitions

     In this Plan, unless the context clearly implies otherwise, the singular includes the plural,
the masculine includes the feminine, and initially capitalized words have the following meaning:

     2.1 Actuarial Equivalent. An amount or benefit of equivalent current value to the
amount or benefit which would otherwise have been provided to or on account of a Participant or
Beneficiary determined on the basis of the actuarial assumptions then in effect under the Pension
Plan and such other assumptions permitted by Code Section 409A and final regulations promulgated
thereunder as may be deemed necessary by an actuary selected by the Company or the Committee.

     2.2 Base Pay. The regular wages and salary of a Participant, which is in excess of
Code limitations and which does not include any short term disability paid by an Employer,
overriding royalties, amounts paid under a phantom override plan, bonuses (including, but not
limited to bonuses under The Williams Companies, Inc. Executive Incentive Compensation Plan),
salary reduction amounts contributed to The Williams Investment Plus Plan, salary reduction amounts
contributed to any qualified transportation plan established by an Employer in accordance with Code
Section 132(f)(7) or to any cafeteria plan or flexible benefits plan established by an Employer in
accordance Section 125 and related sections of the Code, severance pay, cost of living pay, housing
pay, relocation pay (including mortgage interest differential) or any such other taxable and
non-taxable fringe benefits and extraordinary compensation of any kind.

4

 

     2.3 Basic Supplemental Benefit. The amount payable to a Vested Participant in the form
of a lump sum distribution based upon the amount credited to his Supplemental Pension Account
pursuant to the applicable provisions of this Plan.

     2.4 Beneficiary. The Surviving Spouse or other person who is entitled to receive
benefits pursuant to Article V of this Plan.

     2.5 Benefit Starting Date. With respect to a Supplemental Retirement Benefit, the
date shall be the later of the first day of the month following the date the Participant attains
age fifty-five (55) or the first day of the month following the expiration of the six (6) month
period commencing with the date the Participant incurs a Separation from Service. With respect to a
Death Benefit, the date shall be the first day of the month following the expiration of the three
(3) month period commencing with the Participant’s date of death. With respect to a Supplemental
Disability Benefit, the date shall be the date specified under the provisions of Section 3.5. A
benefit payable under the Pre-409A Program, shall be payable as of the date a corresponding benefit
is payable under the Pension Plan.

     2.6 Board. The Board of Directors of the Company as constituted from time to time.

     2.7 Change in Control. The occurrence of (i) a Change in the Ownership of the
Company, as defined below, (ii) a Change in Effective Control of the Company, as defined below, or
(iii) a Change in the Ownership of a Substantial Portion of the Assets of the Company, as defined
below. To qualify as a Change in Control event, the occurrence of the event shall be objectively
determinable, strictly ministerial, and shall not involve any discretionary authority by the plan
administrator. Code Section 318(a) shall be applied to determine stock ownership for purposes of
this section. Substantially vested stock underlying a vested option is considered owned by the
person who holds the vested option (and the stock underlying an unvested option is

5

 

not considered owned by the person who holds an unvested option). To qualify as a Change in
Control with respect to a Participant, the Change in Control must relate to (x) the corporation for
whom the Participant is performing services at the time of the Change in Control event; (y) the
corporation that is liable for the payment of benefits under this Plan (or all corporations which
are liable for payment if more than one corporation is liable) but only if either the benefits are
attributable to the performance of service by the Participant for such corporation (or
corporations) or there is a bona fide business purpose for such corporation (or corporations) to be
liable for such payment and, in either case, no significant purpose of making such corporation or
corporations liable for such payment is the avoidance of Federal income tax; or (z) a corporation
that is a majority shareholder of a corporation identified in subsections (x) or (y) above, or any
corporation in a chain of corporations in which each corporation is a majority shareholder of
another corporation in the chain, ending in a corporation identified in subsections (x) or (y)
above. The provisions of Treas. Reg. § 1.409A-3, as amended, shall govern with respect to the
definition of terms used therein and in the interpretation of whether a Change in Control has
occurred.

     (a) A “Change in the Ownership of the Company” occurs on the date that any one person
or more than one person Acting as a Group, as defined below, acquires ownership of Stock of
the Company (“Stock”) that, together with Stock held by such person or group, constitutes
more than fifty percent (50%) of the total fair market value or total voting power of the
Stock. However, if any one person or more than one person Acting as a Group, is considered
to own more than fifty percent (50%) of the total fair market value or total voting power of
the Stock, the acquisition of additional Stock by the same person or persons is not
considered to cause a Change in the Ownership of the

6

 

Company. An increase in the percentage of Stock owned by any one person, or persons Acting
as a Group, as a result of a transaction in which the Company acquires its Stock in exchange
for property will be treated as an acquisition of Stock for purposes of this subsection.
This subsection applies only when there is a transfer of Stock (or issuance of Stock) and
Stock remains outstanding after the transaction.

     (b) “Acting as a Group.” persons will not be considered to be Acting as a Group solely
because they purchase or own Stock at the same time or as a result of the same public
offering. However, persons will be considered to be Acting as a Group if they are owners of
a corporation that enters into a merger, consolidation, purchase or acquisition of Stock, or
similar business transaction with the Company. If a person owns stock in both corporations
that enter into a merger, consolidation, purchase or acquisition of Stock or similar
transaction involving another corporation, such shareholder is considered to be Acting as a
Group with other shareholders only in such corporation prior to the transaction giving rise
to the change and not with respect to the ownership interest in the other corporation.

     (c) A “Change in the Effective Control of the Company” occurs only on either of the
following dates: (1) The date that any one person, or more than one person Acting as a
Group, acquires (or has acquired during the twelve (12)-month period ending on the date of
the most recent acquisition by such person or persons) ownership of the Stock possessing
thirty percent (30%) or more of the total voting power of the Stock of the Company; or (2)
The date a majority of members of the Board is replaced during any 12-month period by
directors whose appointment or election is not endorsed by a majority of the members of the
Board before the date of the appointment or election.

7

 

     If any one person, or more than one person Acting as a Group, is considered to be in
effective control of the Company, the acquisition of additional control of the Company by
the same person or persons is not considered to cause a Change in the Effective Control of
the Company.

     (d) A “Change in the Ownership of a Substantial Portion of the Assets of the Company”
occurs on the date that any one person, or more than one person Acting as a Group, acquires
(or has acquired during the twelve (12)-month period ending on the date of the most recent
acquisition by such person or persons) assets from the Company that have a total gross fair
market value equal to or more than forty percent (40%) of the total gross fair market value
of all assets of the Company immediately prior to such acquisition or acquisitions. For
this purpose, the gross fair market value means the value of the assets of the Company or
the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets. Notwithstanding the foregoing, there is no Change in the
Ownership of a Substantial Portion of the Assets of the Company when there is a transfer of
assets to an entity that is controlled by the shareholders of the Company immediately after
the transfer. A transfer of assets by the Company is not treated as a Change in the
Ownership of a Substantial Portion of the Assets of the Company if the assets are
transferred to (1) a shareholder of the Company (immediately before the asset transfer) in
exchange for or with respect to its Stock; (2) an entity, fifty percent (50%) or more of the
total value or voting power of which is owned, directly or indirectly, by the Company; (3) a
person, or more than one person Acting as a Group, that owns, directly or indirectly, fifty
percent (50%) or more of the total value or voting power of all the outstanding Stock; or
(4) an entity, at least fifty percent (50%) of the

8

 

total value or voting power of which is owned, directly or indirectly, by a person, or
more than one person Acting as a Group, that owns, directly or indirectly, fifty percent
(50%) or more of the total value or voting power of all the outstanding Stock. For purposes
of this subsection (d), and except as otherwise provided, a person’s status is determined
immediately after the transfer of assets.

     2.8 Code. The Internal Revenue Code of 1986, as amended.

     2.9 Code Limitations. The limitations on compensation which may be taken into account
in determining benefits under and on benefits payable from the Pension Plan imposed by
Sections 401(a)(17) and 415 of the Code.

     2.10 Committee. The Compensation Committee of the Board.

     2.11 Company. The Williams Companies, Inc., a Delaware corporation or any successor
thereto.

     2.12 Credit Date. (a) With respect to Supplemental Compensation Credits, the last day
of the applicable Plan Year referenced in the context in which such term is used, and (b) with
respect to Supplemental Interest Credits, the last day of each quarter of each Plan Year.

     2.13 Death Benefit. The benefit provided under Article V of this Plan to the
Surviving Spouse or other Beneficiary of a Participant.

     2.14 Disability. A physical or mental condition which satisfies the requirements for
disability payments under The Williams Companies, Inc. Long-Term Disability Plan as in effect on
January 1, 2008.

     2.15 Eligible Employee. Any Employee of an Employer who (a) is a participant in the
Pension Plan and (b) holds a position that has been classified as an executive position by the
Company’s executive compensation department.

9

 

     2.16 Employee. An “eligible Employee” as such term is defined under the Pension Plan.

     2.17 Employer. An “Employer” as such term is defined under the Pension Plan.

     2.18 Former Participant. A Participant who has a benefit which becomes payable after
December 31, 2007 under either the Pre-409A Program portion or the 409A Program portion of this
Plan but who is no longer an Eligible Employee.

     2.19 Key Employee. An employee designated on an annual basis by the Company as of
December 31 (the “Key Employee Designation Date”) as an employee meeting the requirements of
Section 416(i) of Code without regard to paragraph (5) thereof utilizing the definition of
compensation under Treasury Regulation § 1.415(c)-2(d)(2). A Participant designated as a “key
employee” shall be a “key employee” for the entire twelve (12) month period beginning on April 1
following the Key Employee Designation Date.

     2.20 Nonservice Participant. A Vested Participant who is a “Nonservice Participant”
as such term is defined under the Pension Plan.

     2.21 Normalized Pension Benefit. The pension benefit which would have been paid during
a Plan Year to the Participant or his Beneficiary (including a spouse or other contingent
annuitant) pursuant to the benefit formula set forth in Section 2.1 of the Pension Plan which is
applicable to such Participant and the method of payment selected by the Participant under the
Pension Plan, without taking into account the Code Limitations; but (for any Plan Year beginning on
or after January 1, 2002) taking into account only the Supplemental Retirement Compensation of the
Participant in lieu of “Compensation” under Section 2.19 of the Pension Plan.

10

 

     2.22 Participant. An Eligible Employee who agrees to be bound by the terms of this
Plan by filing such form or forms, if any, as the Committee may require. Such term includes a
Former Participant, a Rule of 55 Participant, a Transitional Participant and a Vested Participant
as appropriate in the circumstances in which the term is used in the Plan.

     2.23 Pension Plan. The Williams Pension Plan, as in effect on January 1, 2005 and as
amended and/or restated from time to time. With respect to a Participant who has a benefit payable
under the Williams Inactive Employees Pension Plan, as in effect January 1, 2005 and as amended
and/or restated from time to time, such plan is also included within such term.

     2.24 Pension Plan Benefit. The pension benefit actually paid during a Plan Year to the
Participant or his Beneficiary (including a spouse or other contingent annuitant) pursuant to the
benefit formula (set forth in Section 2.1 of the Pension Plan) which is applicable to such
Participant and the method of payment selected by the Participant under such plan.

     2.25 Plan. The Williams Companies Retirement Restoration Plan, effective as of
January 1, 2008 as set forth in this and related documents which comprise the 409A Program and the
Pre-409A Program and as amended and/or restated from time to time. The provisions of this document
are generally effective for periods commencing on and after January 1, 2008 with respect to
deferred amounts earned or vested after December 31, 2004 under the 409A Program as described in
Article I. As described in Article I, vested benefits of Participants who were not receiving
payment of vested benefits on December 31, 2004 are payable under the Pre-409A Program in a lump
sum at the time specified in Article IV of The Williams Companies Supplemental Retirement Plan as
in effect on December 31, 2004.

     2.26 Plan Interest Rate. The rate of interest applicable under the terms of the Plan
for determining Supplemental Interest Credits as of any Credit Date determined as the rate for the

11

 

month of September immediately preceding the respective Plan Year in which the rate is applicable
under the Plan, which rate is based upon the annual rate for 30-year Treasury securities as
specified by the Commissioner of Internal Revenue in revenue rulings, notices and other guidance
published in the Internal Revenue Bulletin.

     2.27 Plan Year. Each twelve (12) consecutive month fiscal year beginning January 1 and
ending December 31.

     2.28 Rule of 55 Participant. A Vested Participant: (a) whose attained age in years
and number of Years of Service credited as Benefit Service aggregated pursuant to the terms of the
Pension Plan as of March 31, 1998 equaled at least fifty-five (55); (b) who is not a Transitional
Participant; and (c) who incurs a Separation from Service after attaining age fifty-five (55) and
is then eligible for an Early Pension pursuant to Section 5.2 of the Pension Plan.

     2.29 Separation from Service. The Participant’s termination or deemed termination from
employment with the Company and its Affiliates. For purposes of determining whether a separation
from service has occurred, the employment relationship is treated as continuing intact while the
Participant is on military leave, sick leave or other bona fide leave of absence if the period of
such leave does not exceed six (6) months, or if longer, so long as the Participant retains a right
to reemployment with his or her employer under an applicable statute or by contract. For this
purpose, a leave of absence constitutes a bona fide leave of absence only if there is a reasonable
expectation that the Participant will return to perform services for his or her employer. If the
period of leave exceeds six (6) months and the Participant does not retain a right to reemployment
under an applicable statute or by contract, the employment relationship will be deemed to terminate
on the first date immediately following such six (6) month period. Notwithstanding the foregoing,
if a leave of absence is due to any medically determinable

12

 

physical or mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than six (6) months, and such impairment causes the
Participant to be unable to perform the duties of the Participant’s position of employment or any
substantially similar position of employment, a twenty-nine (29) month period of absence shall be
substituted for such six (6) month period. For purposes of this Section 2.29, a separation from
service occurs at the date as of which the facts and circumstances indicate either that, after such
date: (A) the Participant and the Company reasonably anticipate the Participant will perform no
further services for the Company and its Affiliates (whether as an employee or an independent
contractor), or (B) that the level of bona fide services the Participant will perform for the
Company and its Affiliates (whether as an employee or independent contractor) will permanently
decrease to no more than twenty (20%) of the average level of bona fide services performed over the
immediately preceding thirty-six (36) month period or, if the Participant has been providing
services to the Company and its Affiliates for less than thirty-six (36) months, the full period
over which the Participant has rendered services, whether as an employee or independent contractor.
The determination of whether a separation from service has occurred shall be governed by the
provisions of Treasury Regulation § 1.409A-1, as amended, taking into account the objective facts
and circumstances with respect to the level of bona fide services performed by the Participant
after a certain date.

     2.30 Service Participant. A Vested Participant who is a “Service Participant” as such
term is defined under the Pension Plan.

     2.31 Supplemental Compensation Credit. The amount deemed credited to a Participant’s
Supplemental Pension Account based upon his Supplemental Retirement Compensation for a Plan Year
(or any part of a Plan Year and for a disabled Participant accruing

13

 

Benefit Service credit or Compensation Credit pursuant to Section 5.3 of the Pension Plan, based
upon his rate of Supplemental Retirement Compensation as of the date his Disability commenced),
with such amount deemed to be credited as of the Credit Date for such Plan Year and determined in
accordance with the following:

     (a) Service Participant.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Credit Rate For
	 	 	 	 	 	 	 	 	Credit Rate On	 	 	 	Past Service***
	 	 	Credit Rate On	 	 	 	Supplemental	 	 	 	On All
	 	 	Supplemental	 	 	 	Retirement	 	 	 	Supplemental
	Age* on	 	Retirement	 	 	 	Compensation	 	 	 	Retirement
	Credit Date	 	Compensation	 	 	 	Above Wage Base**	 	 	 	Compensation
	Prior to 29

	 	 	4.50	%	 	+
	 	 	1.00	%	 	+
	 	0.30% x Past Service
	      29

	 	 	4.50	%	 	+
	 	See **** below
	 	+
	 	0.30% x Past Service
	30 through 39

	 	 	6.00	%	 	+
	 	 	2.00	%	 	+
	 	0.30% x Past Service
	40 through 49

	 	 	8.00	%	 	+
	 	 	3.00	%	 	+
	 	0.30% x Past Service
	50 and older

	 	 	10.00	%	 	+
	 	 	5.00	%	 	+
	 	0.30% x Past Service

     (b) Nonservice Participant.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Credit Rate On	 	 	 	Credit Rate
	 	 	Supplemental	 	 	 	On Supplemental
	 	 	Retirement	 	 	 	Retirement Compensation
	Age* on Credit Date	 	Compensation	 	 	 	Above Wage Base**
	Prior to 29

	 	 	4.50	%	 	+
	 	 	1.00	%
	     29

	 	 	4.50	%	 	+
	 	See **** below

	30 through 39

	 	 	6.00	%	 	+
	 	 	2.00	%
	40 through 49

	 	 	8.00	%	 	+
	 	 	3.00	%
	50 and older

	 	 	10.00	%	 	+
	 	 	5.00	%

 

			
	*	 	Age means actual age measured in years attained as of the applicable Credit Date.

	 
	**	 	Wage Base means the taxable wage base under the Federal Insurance Contributions Act
applicable for the Plan Year of the applicable Credit Date (Plan Year of Disability for a
disabled Participant accruing Compensation Credit pursuant to Section 5.3 of the Pension
Plan).
	 
	***	 	Past Service means Benefit Service credited as of March 31, 1998.

14

 

			
	****	 	For Plan Years beginning on or after January 1, 2002, and before January 1, 2008, the
rate is 1.00% on Compensation up to 170 percent of the Wage base and the rate is 1.13% on
Compensation greater than 170 percent of the Wage Base. For Plan Years beginning on or
after January 1, 2008, the rate is 1.20% on Compensation above the Wage Base.

     2.32 Supplemental Interest Credit. The amount deemed credited to a Participant’s
Supplemental Pension Account based upon the balance in his Supplemental Pension Account on the
Credit Date in a Plan Year (prior to the inclusion of the Supplemental Compensation Credit, if any,
for such Plan Year) multiplied by the Plan Interest Rate applicable for such Plan Year.

     2.33 Supplemental Pension Account. A hypothetical account maintained for
recordkeeping purposes only on behalf of a Participant to record the amount which would have
accumulated if contributions had been made for each Plan Year of such Participant’s active
participation equal to his Supplemental Compensation Credit and if such contributions and
Supplemental Interest Credits had accumulated with interest at the applicable Plan Interest Rate
until his Benefit Starting Date.

     2.34 Supplemental Retirement Benefit. The portion of a Participant’s pension benefit
under the 409A Program portion of this Plan determined in accordance with Article III for periods
commencing on and after December 31, 2004, as described in Article I.

     2.35 Supplemental Retirement Compensation. The portion of the total wages or salary,
if any, which is in excess of Code Limitations paid to a Participant each Plan Year by an Employer
or an affiliate, including Base Pay, short term disability (“STD”) paid by an Employer, overriding
royalties, amounts paid under a phantom override plan, bonuses (unless specifically excluded under
a written bonus arrangement such as The Williams Companies, Inc. Executive Incentive Compensation
Plan), if any, when paid, salary reduction amounts contributed to The Williams Investment Plus
Plan, salary reduction amounts contributed to any qualified

15

 

transportation plan established by the Company in accordance with Code Section 132(f)(4) or to
any cafeteria plan or flexible benefits plan established by the Company in accordance with Code
Section 125 and related sections of the Code, but excluding severance pay, cost of living pay,
housing pay, relocation pay (including mortgage interest differential) and all such other taxable
and non-taxable fringe benefits and extraordinary compensation, all as determined by the Committee,
in its sole and absolute discretion. For purposes of determining “Average Monthly Compensation” and
“Compensation Credits” under the Pension Plan, the Supplemental Retirement Compensation taken into
account with respect to any Plan Year beginning on or after January 1, 2002, shall not exceed three
(3) times such Participant’s rate of Base Pay as of the last day of such Plan Year. For purposes of
determining an “Accrued Benefit” under the Pension Plan, if a Participant is credited with less
than two thousand eighty (2,080) “Hours of Service” under the Pension Plan for determining “Benefit
Service” under the Pension Plan during a Plan Year, his Supplemental Retirement Compensation for
that Plan Year shall be the product of his actual Supplemental Retirement Compensation for such
Plan Year as described above multiplied by a fraction the numerator of which is two thousand eighty
(2,080) and the denominator of which is the number of “Hours of Service” under the Pension Plan
with which he is credited for such Plan Year.

     2.36 Supplemental Survivor Pension. An amount payable in accordance with Section 5.1
to the Surviving Spouse or Beneficiary of a Vested Participant who died prior to the Benefit
Starting Date of his Supplemental Retirement Benefit in a lump sum distribution determined by the
balance of such Participant’s Supplemental Pension Account at the date the amount of such
distribution is determined.

16

 

     2.37 Surviving Spouse. The person to whom a Participant is married on the date of his
death and/or any former spouse to the extent provided in a qualified domestic relations order
within the meaning of Code Section 414(p) and determined by the Committee to be effective with
respect to the Participant’s interest in the Plan; provided, however, a spouse shall not be a
Surviving Spouse for purposes of eligibility for a Survivor Pension or other death benefit payable
under Article V, unless such spouse was continuously married to the vested Participant on whose
behalf such Survivor Pension or other death benefit is payable for the thirty (30) day period
immediately prior to such vested Participant’s death.

     2.38 Termination of Employment. The date on which a Participant incurs a “Termination
of Employment” as defined in Section 2.71 of the Pension Plan.

     2.39 Transitional Participant. A Participant who (a) was a Participant and an
Eligible Employee or a disabled Participant accruing Benefit Service pursuant to Section 5.3 of the
Pension Plan on March 31, 1998 and April 1, 1998; (b) had attained at least age fifty (50) as of
April 1, 1998; or (c) was a “Transitional Participant” under the terms of the Transco Energy
Company Retirement Plan or the Texas Gas Retirement Plan, as defined under either such plan on the
date his employment was directly transferred to an Employer.

     2.40 Vested Participant. A Participant who is not a Transitional Participant and who
is vested in his Basic Supplemental Benefit under the provisions of Article IV of this Plan.

ARTICLE III

Supplemental Retirement Benefits

     3.1 Restoration of Credited Service for a Transitional Participant Following the
recommencement of employment with an Employer by a Transitional Participant whose employment with
an Employer was terminated at a time when such Transitional Participant had a

17

 

Supplemental Retirement Benefit and whose benefit had commenced to be paid, such Transitional
Participant’s subsequent Supplemental Retirement Benefit shall be reduced, but not below zero, by
an amount which is the Actuarial Equivalent of the amount of Supplemental Retirement Benefit
previously paid. If the Transitional Participant does not have a subsequent Supplemental
Retirement Benefit, then the Transitional Participant shall not be required to reimburse this Plan
with respect to any portion of the Supplemental Retirement Benefit previously paid to such
Transitional Participant.

     3.2 Cash Balance Supplemental Retirement Benefit for a Vested Participant. A Vested
Participant’s cash balance Supplemental Retirement Benefit shall be the amount credited to the
Vested Participant’s Supplemental Pension Account upon his Benefit Starting Date.

     3.3 Cash Balance Supplemental Early Retirement Benefit. Solely with respect to a Rule
of 55 Participant who incurs a Separation from Service with an Employer on or after age fifty-five
(55), the amount credited to the Participant’s Supplemental Pension Account shall be multiplied by
the applicable percentage in the following schedule and any amount in excess of 100% of the
Supplemental Pension Account shall be paid on the Benefit Starting Date.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aggregate of Attained	 	 
	Age and Credited	 	 
	Benefit Service as of	 	Multiplier Percentage for Attained
	March 31, 1998	 	Age at Benefit Starting Date
	 	 	55 – 62	 	63	 	64	 	65
	55 – 64

	 	 	115	%	 	 	115	%	 	 	108	%	 	 	100	%
	65 – 69

	 	 	120	%	 	 	120	%	 	 	108	%	 	 	100	%
	70 and over

	 	 	125	%	 	 	122	%	 	 	108	%	 	 	100	%

     3.4 Supplemental Disability Benefit. If the Disability of a Participant continues
past age fifty-five (55), the amounts credited to such Participant’s Supplemental Pension Account
until age fifty-five (55) shall be distributed pursuant to the first or last sentences of Section
2.5,

18

 

as applicable. Such Participant shall also be entitled to additional Supplemental
Compensation Credits and Supplemental Interest Credits after age fifty-five (55) until the earlier
of age sixty-five (65), or the cessation of the Disability for any reason including death. Any
such additional supplemental disability credits shall be distributed upon the earlier of the first
day of the month following the expiration of the three (3) month period commencing with the
Participant’s date of death (to the Participant’s Beneficiary), or the first day of the month
following the date the Participant attains age sixty-five (65).

ARTICLE IV

Vesting and Forfeitures

     4.1 Vesting. A Participant shall become vested in his or her Supplemental Retirement
Benefit in accordance with the same schedule and rules as are applicable in determining when he or
she becomes vested in his or her Pension Plan Benefit.

     4.2 Forfeitures. Any amount forfeited by a Participant who does not become vested in a
benefit under this Plan shall constitute a reduction of the Employers’ liability under this Plan
and shall not be allocated to the remaining Participants.

ARTICLE V

Death Benefit

     5.1 Cash Balance Supplemental Survivor Pension. The Surviving Spouse or other
designated Beneficiary or Beneficiaries of a deceased, Vested Participant shall receive a
Supplemental Survivor Pension with payments commencing on the Benefit Starting Date. Payment shall
be made in accordance with a properly completed Beneficiary designation form provided by the
Committee, signed and dated by such Participant and timely filed with the Committee (or its
delegate). In the event a properly completed and timely filed Beneficiary

19

 

designation form is not so filed or all designated Beneficiaries predeceased such Participant,
payment shall be made to his Surviving Spouse, or, in the absence of a Surviving Spouse, to his
estate which shall be deemed to be his Beneficiary.

     5.2 Payment of Death Benefit. Any death benefit payable under this Article V shall be
paid on the Benefit Starting Date in the form of a lump sum distribution.

     5.3 Non-duplication of Benefits. If any payments are made pursuant to this Article V,
no payments shall be made pursuant to any other provision of this Plan.

ARTICLE VI

Administration of the Plan

     6.1 Administration by Committee. The Plan shall be administered by the Committee.

     6.2 Operation of the Committee.

     (a) The Committee shall act by a majority of its members constituting a quorum and such
action may be taken either by a vote in a meeting or in writing without a meeting. A quorum
shall consist of a majority of the members of the Committee. No Committee member shall act
upon any question pertaining solely to himself, and with respect to any such question only
the other Committee members shall act.

     (b) The Committee may allocate responsibility for the performance of any of its duties
or powers to one or more Committee members or employees of the Employers.

     (c) The Committee or its designee shall keep such books of account, records and other
data as may be necessary for the proper administration of the Plan.

     6.3 Powers and Duties of the Committee. The Committee shall be generally responsible
for the operation and administration of the Plan. To the extent that powers are not delegated to
others pursuant to provisions of this Plan, the Committee shall have such powers as

20

 

may be necessary to carry out the provisions of the Plan and to perform its duties hereunder,
including, without limiting the generality of the foregoing, the power:

     (a) To appoint, retain and terminate such persons as it deems necessary or advisable to
assist in the administration of the Plan or to render advice with respect to the
responsibilities of the Committee under the Plan, including accountants, actuaries,
administrators, attorneys and physicians.

     (b) To make use of the services of the employees of the Employers in administrative
matters.

     (c) To obtain and act on the basis of all tables, valuations, certificates, opinions,
and reports furnished by the persons described in paragraph (a) or (b) above. Any
determination of Actuarial Equivalent benefits by the actuary selected by the Company or the
Committee shall be conclusive and binding on the Employers, the Committee and all
Participants, Former Participants and Beneficiaries.

     (d) To review the manner in which benefit claims and other aspects of the Plan
administration have been handled by the employees of the Employers.

     (e) To determine all benefits and resolve all questions pertaining to the
administration and interpretation of the Plan provisions, either by rules of general
applicability or by particular decisions. To the maximum extent permitted by law, all
interpretations of the Plan and other decisions of the Committee shall be conclusive and
binding on all parties.

     (f) To adopt such forms, rules and regulations as it shall deem necessary or
appropriate for the administration of the Plan and the conduct of its affairs, provided that

21

 

any such forms, rules and regulations shall not be inconsistent with the provisions of
the Plan.

     (g) To remedy any inequity resulting from incorrect information received or
communicated or from administrative error.

     (h) To commence or defend any litigation arising from the operation of the Plan in any
legal or administrative proceeding.

     6.4 Required Information. Any Participant or Former Participant and any Beneficiary
eligible to receive benefits under the Plan shall furnish to the Committee any information or proof
requested by the Committee and reasonably required for the proper administration of the Plan.
Failure on the part of the Participant, Former Participant or Beneficiary to comply with any such
request within a reasonable period of time shall be sufficient grounds for delay in the payment of
benefits under the Plan until such information or proof is received by the Committee.

     6.5 Compensation and Expenses. All expenses incident to the operation and
administration of the Plan reasonably incurred, including, without limitation by way of
specification, the fees and expenses of attorneys and advisors, and for such other professional,
technical and clerical assistance as may be required, shall be paid by the Employers. Members of
the Committee shall not be entitled to any compensation by virtue of their services as such nor be
required to give any bond or other security; provided, however, that they shall be entitled to
reimbursement by the Employers for all reasonable expenses which they may incur in the performance
of their duties hereunder and in taking such action as they deem advisable hereunder within the
limits of the authority given them by the Plan and by law.

     6.6 Indemnification. To the extent provided for in the Company by-laws, each Employer
shall indemnify and hold harmless each member of the Board, each member of the

22

 

Committee, and each officer and employee of an Employer to whom are delegated duties,
responsibilities, and authority with respect to this Plan against all claims, liabilities, fines
and penalties, and all expenses reasonably incurred by or imposed upon him (including but not
limited to reasonable attorney fees) which arise as a result of his actions or failure to act in
connection with the operation and administration of this Plan to the extent lawfully allowable and
to the extent that such claim, liability, fine, penalty, or expense is not paid for by liability
insurance purchased or paid for by an Employer. Notwithstanding the foregoing, an Employer shall
not indemnify any person for any such amount incurred through any settlement or compromise of any
action unless the Employer consents in writing to such settlement or compromise.

     6.7 Claims Procedure. The Committee as constituted and serving from time to time
shall adopt, and may change from time to time, claims procedures, provided that such claims
procedures and changes thereof shall conform with Section 503 of the Employee Retirement Income
Security Act of 1974, as amended, and regulations promulgated thereunder. Such claims procedures,
as in effect from time to time shall be deemed to be incorporated herein and made a part hereof.

ARTICLE VII

Miscellaneous

     7.1 Benefits Payable by the Employers. All benefits payable under this Plan shall
constitute an unfunded obligation of the Employers. Payments shall be made, as due, from the
general funds of the Employers. The Employers, at their option, may maintain one or more
bookkeeping reserve accounts to reflect their obligations under the Plan and may make such
investments as they, or any of them, may deem desirable to assist in meeting such obligations.

23

 

Any such investments shall be assets of the Employers subject to claims of general creditors.
No person eligible for a benefit under this Plan shall have any right, title or interest in any
such investments.

     7.2 Amendment or Termination. The Committee is authorized to amend the Plan, if such
amendment does not increase the costs of the Plan and the Board is authorized to amend, modify,
restate or terminate the Plan; provided, however, that (i) no such action by the Committee or the
Board shall reduce a Participant’s Supplemental Retirement Benefit accrued as of the time thereof,
and (ii) any such amendments, modifications, restatement or termination shall be effectuated in a
manner which will not result in the imposition of Code Section 409A penalties. Generally, the
amendment or termination of the Pre-409A Program shall be effectuated in a manner which either (A)
avoids causing the “Grandfathered Benefits” to be materially modified within the meaning of Treas.
Reg. 1.409A-6(a)(4); or (B) causes the Pre-409A Program to meet the requirements of Code Section
409A without the imposition of Code Section 409A penalties. In this regard, upon termination of
the 409A Program due to a Change in Control, the Pre-409A Program shall be terminated either
pursuant to Treas. Reg. 1.409A-6(a)(4)(iii), or pursuant to a plan termination amendment which
causes the Pre-409A Program to comply with Code Section 409A. The date of such termination shall
be the first business day. Payments under the 409A Program may be accelerated only to the extent
permitted by Treas. Reg. 1.409A-3(j)(4). In this regard, if a Change in Control occurs, the
service recipient entity that will be primarily liable immediately after the Change in Control
transaction for the payment of benefits under the 409A Program shall terminate the 409A Program and
all other nonaccount plans which are aggregated with the 409A Program under Treas. Reg.
1-409A-3(j)(4)(ix). The date of such termination shall be the first business day following such
Change in Control and all

24

 

amounts held in the Plan for any Participant shall be distributed in a lump sum within ten
(10) business days after such termination.

     7.3 Status of Employment. Nothing herein contained shall be deemed: (a) to give to any
Participant the right to be retained in the employ of any Employer, subsidiary or affiliate; (b) to
affect the right of any Employer to discipline or discharge any Participant at any time; (c) to
give any Employer, subsidiary or affiliate the right to require any Participant to remain in its
employ; or (d) to affect any Participant’s right to terminate his or her employment at any time.

     7.4 Payments to Minors and Incompetents. If a Participant, Former Participant or
Beneficiary entitled to receive any benefits hereunder is a minor or is deemed by the Committee or
is adjudged to be legally incapable of giving a valid receipt and discharge for such benefits, they
will be paid to the duly appointed guardian of such minor or incompetent or to such other person or
entity as the Committee may designate. Such payment shall, to the extent made, be deemed a complete
discharge of any liability for such payment under the Plan.

     7.5 Inalienability of Benefits. The right of any person to any benefit or payment
under the Plan shall not be subject to voluntary or involuntary transfer, alienation or assignment,
and, to the fullest extent permitted by law, shall not be subject to attachment, execution,
garnishment, sequestration or other legal or equitable process. In the event a person who is
receiving or is entitled to receive benefits under the Plan attempts to assign, transfer or dispose
of such right, or if an attempt is made to subject said right to such process, such assignment,
transfer or disposition shall be null and void.

     7.6 Qualified Domestic Relations Orders. If a qualified domestic relations order is
applicable to a Participant’s Pension Plan Benefit, such Participant’s Pension Plan Benefit shall

25

 

be deemed to be the amount which would have otherwise been payable to the Participant from the
Pension Plan if such qualified domestic relations order never existed.

     7.7 Governing Law. Except to the extent preempted by federal law, the Plan shall be
governed by and construed in accordance with the laws of the State of Oklahoma.

     7.8 Procedure for Adoption. Any corporation which is a contributing employer under the
Pension Plan may, by resolution of such corporation’s board of directors, adopt the Plan subject to
such terms and conditions as may be required by the Committee consistent with the provisions of the
Plan.

     Executed in 0 counterpart originals this 1st day of
December, 2008, effective as hereinbefore provided.

	 	 	 	 	 	 	 
	 	 	THE WILLIAMS COMPANIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Title:
	 	/s/ Stephanie Cipolla
 

Vice President Human Resources
	 	 

26

 

TABLE OF CONTENTS

	 	 	 	 	 
	ESTABLISHMENT OF PLAN
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I
	 	 	2	 
	Introduction
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II
	 	 	4	 
	Definitions
	 	 	4	 
	2.1 Actuarial Equivalent
	 	 	4	 
	2.2 Base Pay
	 	 	4	 
	2.3 Basic Supplemental Benefit
	 	 	5	 
	2.4 Beneficiary
	 	 	5	 
	2.5 Benefit Starting Date
	 	 	5	 
	2.6 Board
	 	 	5	 
	2.7 Change in Control
	 	 	5	 
	2.8 Code
	 	 	9	 
	2.9 Code Limitations
	 	 	9	 
	2.10 Committee
	 	 	9	 
	2.11 Company
	 	 	9	 
	2.12 Credit Date
	 	 	9	 
	2.13 Death Benefit
	 	 	9	 
	2.14 Disability
	 	 	9	 
	2.15 Eligible Employee
	 	 	9	 
	2.16 Employee
	 	 	10	 
	2.17 Employer
	 	 	10	 
	2.18 Former Participant
	 	 	10	 
	2.19 Key Employee
	 	 	10	 
	2.20 Nonservice Participant
	 	 	10	 
	2.21 Normalized Pension Benefit
	 	 	10	 
	2.22 Participant
	 	 	11	 
	2.23 Pension Plan
	 	 	11	 
	2.24 Pension Plan Benefit
	 	 	11	 
	2.25 Plan
	 	 	11	 
	2.26 Plan Interest Rate
	 	 	11	 
	2.27 Plan Year
	 	 	12	 
	2.28 Rule of 55 Participant
	 	 	12	 
	2.29 Separation from Service
	 	 	12	 
	2.30 Service Participant
	 	 	13	 
	2.31 Supplemental Compensation Credit
	 	 	13	 
	2.32 Supplemental Interest Credit
	 	 	15	 
	2.33 Supplemental Pension Account
	 	 	15	 
	2.34 Supplemental Retirement Benefit
	 	 	15	 
	2.35 Supplemental Retirement Compensation
	 	 	15	 
	2.36 Supplemental Survivor Pension
	 	 	16	 
	2.37 Surviving Spouse
	 	 	17	 
	2.38 Termination of Employment
	 	 	17	 

27

 

	 	 	 	 	 
	2.39 Transitional Participant
	 	 	17	 
	2.40 Vested Participant
	 	 	17	 
	 
	 	 	 	 
	ARTICLE III
	 	 	17	 
	Supplemental Retirement Benefits
	 	 	17	 
	3.1 Restoration of Credited Service for a Transitional Participant
	 	 	17	 
	3.2 Cash Balance Supplemental Retirement Benefit for a Vested Participant
	 	 	18	 
	3.3 Cash Balance Supplemental Early Retirement Benefit
	 	 	18	 
	3.4 Supplemental Disability Benefit
	 	 	18	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	19	 
	Vesting and Forfeitures
	 	 	19	 
	4.1 Vesting
	 	 	19	 
	4.2 Forfeitures
	 	 	19	 
	 
	 	 	 	 
	ARTICLE V
	 	 	19	 
	Death Benefit
	 	 	19	 
	5.1 Cash Balance Supplemental Survivor Pension
	 	 	19	 
	5.2 Payment of Death Benefit
	 	 	20	 
	5.3 Non-duplication of Benefits
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	20	 
	Administration of the Plan
	 	 	20	 
	6.1 Administration by Committee
	 	 	20	 
	6.2 Operation of the Committee
	 	 	20	 
	6.3 Powers and Duties of the Committee
	 	 	20	 
	6.4 Required Information
	 	 	22	 
	6.5 Compensation and Expenses
	 	 	22	 
	6.6 Indemnification
	 	 	22	 
	6.7 Claims Procedure
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	23	 
	Miscellaneous
	 	 	23	 
	7.1 Benefits Payable by the Employers
	 	 	23	 
	7.2 Amendment or Termination
	 	 	24	 
	7.3 Status of Employment
	 	 	25	 
	7.4 Payments to Minors and Incompetents
	 	 	25	 
	7.5 Inalienability of Benefits
	 	 	25	 
	7.6 Qualified Domestic Relations Orders
	 	 	25	 
	7.7 Governing Law
	 	 	26	 

28

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