Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

EXECUTIVE TRANSITION

AGREEMENT

     THIS EXECUTIVE TRANSITION AGREEMENT (the “Agreement”), entered into as of November 20, 2011
(“Signing Date”), is between TRANSATLANTIC HOLDINGS, INC., a Delaware corporation (the “Company”)
and ROBERT F. ORLICH (the “Executive”).

     The Board of Directors of the Company (the “Board”), has determined that it is in the best
interests of the Company and its stockholders to enter into a Transition Agreement with Executive
on the terms set forth herein to assure that the Company will have the continued dedication of
Executive for a period of time following the Signing Date. The Board believes it is an important
corporate goal and in the interests of the Company’s stockholders to foster a smooth transition of
leadership and management of the Company. Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

     NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Term. The term of this Agreement shall commence on the Signing Date and shall
continue until the earlier of the following: (a) December 31, 2011 (the applicable date hereinafter
referred to as the “Resignation Date”) or (b) the mutually agreed upon termination of the Agreement
by Executive and the Company. Notwithstanding the termination of the Term, Executive shall
continue to be entitled to the benefits as provided in Sections 2(b)(i), 2(c)(i)-(iv), 3(a)-(d) and
14(g).

2. Continued Services; Resignation.

     (a) Subject to the terms of this Agreement, Executive will remain employed as an employee
of the Company and provide such services as requested by the Board, from time to time, until the
Resignation Date, as of which date Executive’s employment will terminate for all purposes. Prior
to the Resignation Date, Executive shall devote commercially reasonable business time and efforts
to the matters on which his advice and consultation are requested.

     (b) As consideration for entering into and complying with the terms of this Agreement and
for his continued services, Executive shall be entitled to all of the following for the duration of
his employment with the Company:

     (i) Executive’s compensation arrangements, including but not limited to: base
salary, cash incentive bonuses, the terms of all outstanding equity award agreements (for
purposes of this Agreement, references to equity award agreements, or equity awards, unless
otherwise provided herein, shall include references to stock options, Restricted Stock Units
and Performance Restricted Stock Units) and Executive’s severance benefits, all as in effect
immediately prior to the Signing Date, shall remain in effect without change, except in
accordance with the terms of such compensation arrangements or as provided in this
Agreement or otherwise agreed to by Executive. Executive’s benefits, including but not
limited to retirement, welfare and fringe benefits, indemnification protection and coverage
under directors’ and officers’ liability insurance policies, all as in effect immediately
prior to the Signing Date, shall remain in effect without change, except as provided in this
Agreement

 

 

or in accordance with the terms of such benefit plans, programs, policies and/or
arrangements (provided that any such change may not be adopted for the purpose of
disproportionately reducing Executive’s benefits compared to those of other executive
officers of the Company participating in such benefit plan, program, policy or arrangement)
or as otherwise agreed to by Executive.

     (ii) The Company shall continue to pay for Executive’s automobile lease and related
expenses in accordance with the terms of the Company’s standard policy, as in effect
immediately prior to the Signing Date.

     (iii) Executive shall be provided with an office at the Company’s Stamford,
Connecticut facilities upon which the parties mutually agree, and the administrative and
office support and communications capabilities that are usual and customary for an officer
of the Company.

     (iv) Executive will be entitled to retain his Company-issued computer.

     (c) As consideration for entering into and complying with the terms of this Agreement and
for his continued services, if Executive continues to serve the Company through the Resignation
Date or his employment is terminated without Cause prior to such date (subject to Executive’s
execution and non-revocation of and compliance with the Release and Restrictive Covenant Agreement
attached hereto as Exhibit A (the “RRCA”)), Executive shall be entitled to the following after the
Resignation Date (or the earlier date of Executive’s termination without Cause, if any):

     (i) until December 31, 2013, the Company shall continue to pay for Executive’s
automobile lease and related expenses in accordance with the terms of the Company’s standard
policy, as in effect immediately prior to the Signing Date;

     (ii) until December 31, 2013, Executive shall be provided with an office at the
Company’s Stamford, Connecticut facilities upon which the parties mutually agree, and the
administrative and office support and communications capabilities that are usual and
customary for an officer of the Company;

     (iii) Executive will be entitled to keep his Company-issued computer. Prior to
Executive’s termination of employment with the Company, Executive and the Company’s
Information Technology department shall make arrangements for the IT department to inspect
Executive’s computer to ensure that after Executive is no longer providing services to the
Company, Executive no longer has access to the Company’s Confidential Information (as
defined below) and has not retained any Confidential Information. “Confidential
Information” shall mean information concerning the financial data, strategic business plans,
product development (or other proprietary product data), customer lists, marketing plans and
other, proprietary and confidential information relating to the business of the Company
(including any subsidiaries or affiliates of the Company) or customers, that, in any
case, is not otherwise available to the public (other than by Executive’s breach of the
terms hereof). Notwithstanding the foregoing or otherwise, Executive shall be entitled to
retain his personal papers, contact lists and material, any documents or information
relating to his compensation or rights as a shareholder of the Company, any information
relating to reimbursement of his

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expenses and any information reasonably necessary for
preparation of his tax returns. Notwithstanding the foregoing, to the extent Executive
continues to serve on the Board after the Resignation Date, Executive shall be entitled to
retain whatever information is reasonably necessary for him to provide such service until
the date that such service ends; and

     (iv) Executive will continue to be entitled to an annual physical through the end of
Executive’s Severance Period, which shall be performed in accordance with the terms and
conditions of the Company’s standard policy.

     (d) Executive will execute such documents as are requested by the Company to evidence his
resignation from all offices, directorships and positions on committees he holds with the Company,
effective as of the Resignation Date, or, if earlier, the date upon which his employment with the
Company terminates; provided, however, that Executive shall not be required to resign as a director
of the Company and may continue to serve on the Board after the Resignation Date. Any such
continued service as a director of the Company shall not have any impact on Executive’s rights and
obligations under this Agreement. Executive shall be entitled to the same cash compensation as
that paid to other directors of the Company who are not employees of the Company (“Non-Employee
Directors”) for periods of service following the Resignation Date and shall also be entitled to
receive any equity compensation awards granted to Non-Employee Directors of the Company after the
Resignation Date.

3. Separation Benefits. (a) The parties hereto agree that Executive shall resign his
employment with the Company on the Resignation Date for Good Reason, if he is then employed by the
Company, and shall receive the benefits to which he is entitled to receive upon such resignation
under the terms of the Company’s severance pay arrangements in which Executive is a party or in
which he participates, including, but not limited to the Transatlantic Holdings, Inc. Executive
Severance Plan (the “Severance Plan”) and the severance provisions of any outstanding equity award
agreements, all as modified by this Agreement. For avoidance of doubt, upon the Resignation Date,
Executive shall be deemed to have resigned for Good Reason under the Severance Plan and Executive
shall be entitled to the benefits payable under the Severance Plan upon a termination with Good
Reason, including, but not limited to, the following benefits under the Severance Plan (subject to
the terms and conditions set forth in the Severance Plan, as modified by this Agreement, including
the restrictive covenants and provisions regarding duplication of benefits described therein and
releases provided by the RRCA) and the RRCA shall supersede any other such agreement, or
agreements, between the Company and Executive with respect to the subject matter addressed by the
RRCA: (i) accrued wages and expense reimbursements; (ii) severance pay installments in the
aggregate amount of $6,131,250, taking into consideration Executive’s 30-month Severance Period (as
defined in the Severance Plan); (iii) additional vesting during the Severance Period and other
enhanced terms under the Company’s equity compensation plans and programs, including the Partners
Plan and Senior Partners Plan; (iv) continued health coverage and participation in the Company’s
retiree health benefits; (v) additional non-qualified pension credits; and (vi) continued life
insurance and participation in the Company’s retiree life benefits. Executive shall also be
entitled
to the benefits set forth in Section 2(c), subject to compliance with his obligations under
Sections 2(c) and 2(d). The parties further agree that the provisions of this Section 3(a) shall
apply upon the closing of any transaction that constitutes a “Change in Control” as defined in the
Company’s 2009 Long-Term Equity Incentive Plan that occurs on or before the Resignation Date
(“Change in

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Control”) and that for purposes of any such transaction, the closing date of such
transaction shall be treated as Executive’s Resignation Date.

     (b) The parties hereto further agree that, notwithstanding any terms of the Severance Plan or
any other severance arrangement of the Company to the contrary, upon the Resignation Date Executive
shall be deemed to have resigned for Good Reason in accordance with the Severance Plan, in either
case without any affirmative action on his part. In particular, to the extent that the Severance
Plan or other severance arrangement requires the Executive to notify the Company in writing within
thirty (30) days (or other specific time period) after the initial occurrence of the event or
events giving rise to a resignation for Good Reason, requires the Executive to provide the Company
with specific details of the events that Executive believes constitute Good Reason, and permits the
Company to have a 30-day period to cure after receipt of Executive’s written notice of resignation
for Good Reason; the Company hereby waives any and all rights that it may have to such notice or to
cure such event or to challenge Executive’s entitlement to receive any benefits provided under the
terms of the Severance Plan or other severance arrangement on account of any of the items
previously enumerated, so long as Executive’s resignation for Good Reason occurs no later than the
Resignation Date. The parties hereto further agree that upon the Resignation Date, Executive will
be deemed to have resigned for Good Reason pursuant to the terms of any terms of any outstanding
equity award agreement as of the Resignation Date. The parties further agree that the provisions
of this Section 3(b) shall apply upon the closing of any transaction that constitutes a Change in
Control that occurs on or before the Resignation Date, so long as Executive continues to serve the
Company through such closing date.

     (c) If Executive continues to serve the Company through the Resignation Date or his
employment is terminated without Cause prior to such date, Executive shall be entitled to exercise
any of his vested stock options until the expiration of their maximum terms as specified in
Executive’s stock option agreements, not taking into consideration any prior termination of
employment with the Company and his Restricted Stock Units, Performance Restricted Stock Units and
stock options will be treated no less favorably than the most favorable basis applicable in the
case of a resignation with Good Reason or a Retirement under the Severance Plan and/or the
applicable equity award agreements or plans. For the sake of clarity, (a) Retirement for this
purpose means a Retirement at or after age 65 for which purpose Executive’s age shall be deemed to
be his age after taking into account any age and service credits provided under the terms of the
Severance Plan and (b) the term “vested stock options” shall include options that vest in
accordance with Section IV(C) of the Severance Plan. The parties further agree that the provisions
of this Section 3(c) shall apply upon the closing of any transaction that constitutes a Change in
Control that occurs on or before the Resignation Date, so long as Executive continues to serve the
Company through such closing date.

     (d) If Executive’s employment is terminated without Cause prior to the Resignation Date,
Executive will receive the same entitlements and be subject to the same conditions and restrictions
under this Agreement as if he had worked through the Resignation Date and his employment then
terminated with Good Reason on such date (including, without limitation, treatment of his equity
awards).

4. Non-Exclusivity of Rights. Nothing in this Agreement (a) shall prevent or limit
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which Executive may qualify or (b) shall
limit or otherwise

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affect such rights as Executive may have under any contract or agreement with
the Company or any of its affiliated companies, except to the extent this Agreement explicitly
provides for such limitation. Amounts which are vested benefits or which Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any contract or agreement
with the Company or any of its affiliated companies at or subsequent to the date Executive
terminates his employment with the Company shall be payable in accordance with such plan, policy,
practice or program or contract or agreement except as explicitly modified by this Agreement.

5. Full Settlement. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the Company may have
against Executive or others.

6. Parachute Limitation.

     Notwithstanding anything to the contrary in this Agreement, any other agreement between
Executive and the Company or any other plan maintained by the Company, if there is a 280G Change in
Control (as defined in Section 6(g)(i)), the following rules shall apply:

     (a) Except as otherwise provided in Section 6(b), if it is determined in accordance with
Section 6(d) that any portion of the Payments (as defined in Section 6(g)(ii)) that otherwise would
be paid or provided to Executive or for his benefit in connection with the 280G Change in Control
would be subject to the excise tax imposed under section 4999 of the Internal Revenue Code of 1986,
as amended (the “Code”) (which excise tax is referred to herein as the “Excise Tax”), then such
Payments shall be reduced by the smallest total amount necessary in order for the aggregate present
value of all such Payments after such reduction, as determined in accordance with the applicable
provisions of section 280G of the Code and the regulations issued thereunder (“Section 280G”), not
to exceed the Excise Tax Threshold Amount (as defined in Section 6(g)(iii).

     (b) No reduction in any of Executive’s Payments shall be made pursuant to Section 6(a) if
it is determined in accordance with Section 6(d) that the After Tax Amount of the Payments payable
to the Executive without such reduction would exceed the After Tax Amount of the reduced Payments
payable to him in accordance with Section 6(a). For purposes of the foregoing, (i) the “After Tax
Amount” of the Payments, as computed with, and as computed without, the reduction provided for
under Section 6(a), shall mean the amount of the Payments, as so computed, that Executive would
retain after payment of all taxes (including without limitation any federal, state or local income
taxes, the Excise Tax or any other excise taxes, any Medicare or other employment taxes, and any
other taxes) imposed on such Payments in the year or years in which payable; and (ii) the amount of
such taxes shall be computed at the rates in effect under the applicable tax laws in the year in
which the 280G Change in Control occurs, or if then ascertainable, the rates in effect in any later
year in which any Payment is expected to be paid following the 280G Change in Control, and in the
case of any income taxes, by using the maximum combined federal, state and (if applicable) local
income tax rates then in effect under such laws.

     (c) Any reduction of Executive’s Payments required to be made pursuant to Section 6(a)
(the “Required Reduction”) shall be made as follows: first, any Payments that became fully vested
prior to the 280G Change in Control and that pursuant to paragraph (b) of Treas. Reg. §1.280G-1,

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Q/A 24 are treated as Payments solely by reason of acceleration of their originally scheduled dates
of payment shall be reduced, by cancellation of the acceleration of their dates of payment, second,
any severance payments or benefits, performance-based cash or equity incentive awards, or other
Payments the full amounts of which are treated as contingent on the 280G Change in Control pursuant
to paragraph (a) of Treas. Reg. §1.280G-1, Q/A 24, shall be reduced; and third, any cash or equity
incentive awards, or nonqualified deferred compensation amounts, that vest solely based on
Executive’s continued service with the Company, and that pursuant to paragraph (c) of Treas. Reg.
§1.280G-1, Q/A 24 are treated as contingent on the Change in Control because they become vested as
a result of the Change in Control, shall be reduced, first by cancellation of any acceleration of
their originally scheduled dates of payment (if payment with respect to such items is not treated
as automatically occurring upon the vesting of such items for purposes of Section 280G) and then,
if necessary, by cancelling the acceleration of their vesting. In each case, the amounts of the
Payments shall be reduced in the inverse order of their originally scheduled dates of payment or
vesting, as applicable, and shall be so reduced only to the extent necessary to achieve the
Required Reduction.

     (d) A determination as to whether any Excise Tax is payable with respect to Executive’s
Payments, and if so, as to the amount thereof, and a determination as to whether any reduction in
Executive’s Payments is required pursuant to the provisions of Sections 6(a) and (b), and if so, as
to the amount of the reduction so required, shall be made by no later than the date of the 280G
Change in Control, or as soon thereafter as administratively practicable. Such determinations, and
the assumptions to be utilized in arriving at such determinations, shall be made by an independent
tax professional (the “Auditor”) selected by the Company, all of whose fees and expenses shall be
borne and directly paid solely by the Company.

     (e) If, notwithstanding any reduction in the Executive’s Payments made pursuant to Section
6(a) or otherwise, the IRS subsequently asserts that Executive is liable for Excise Tax with
respect to such Payments, the Payments then remaining to be paid or provided to Executive shall be
further reduced as provided in Section 6(a), and (if still necessary after such further reduction)
any Payments already made to Executive shall be repaid to the Company, to the extent necessary to
eliminate the Excise Tax asserted by the IRS to be payable by Executive. Any such further
reduction or repayment (i) shall be made only if the IRS agrees that such further reduction or
repayment will be effective to avoid the imposition of any Excise Tax with respect to Executive’s
Payments as so reduced or repaid and agrees not to impose such Excise Tax against Executive if such
further reduction or repayment is made, and (ii) shall be made in the manner described in Section
6(c).

     (f) Notwithstanding anything to the contrary in the foregoing provisions of this Section
6, if (i) Executive’s Payments have been reduced pursuant to Section 6(a) and the IRS nevertheless
subsequently determines that Excise Tax is payable with respect to the Executive’s Payments, and
(ii) the After Tax Amount of the Payments payable to the Executive, determined without any such
further reduction or repayment, and without any initial reduction as provided in Section 6(a),
would exceed the After Tax Amount of the Payments payable to him as reduced in accordance with
Section 6(a), then (A) no such further reduction or repayment shall be made with respect to
Executive’s Payments pursuant to Section 6(e), and (B) the Company shall pay to Executive an amount
equal to the reduction in Executive’s Payments that was initially made pursuant to Section 6(a).
Such amount
shall be paid to Executive in a cash lump sum by no later than the 15th day of the third
month following the close of the calendar year in which the IRS makes its final determination that
Excise

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Tax is due with respect to Executive’s Payments, provided that by such day Executive has
paid the Excise Tax so determined to be due.

     (g) For purposes of the foregoing, the following terms shall have the following respective
meanings:

          (i) “280G Change in Control” shall mean a change in the ownership or effective control of
the Company or in the ownership of a substantial portion of the assets of the Company, as
determined in accordance with section 280G(b)(2) of the Code and the regulations issued thereunder.

          (ii) “Payments” shall mean any payment or benefit in the nature of compensation that is to
be paid or provided to Executive or for his benefit in connection with a 280G Change in Control, to
the extent that such payment or benefit is “contingent” on the 280G Change in Control within the
meaning of section 280G(b)(2)(A)(i) of the Code and the regulations issued thereunder.

          (iii) “Excise Tax Threshold Amount” shall mean an amount equal to (x) three times
Executive’s “base amount” within the meaning of section 280G(b)(3) of the Code and the regulations
issued thereunder, less (y) $1,000.

7. Restrictive Covenants. To the extent that Executive becomes entitled to benefits
under the Severance Plan under the circumstances addressed in this Agreement, Executive shall be
subject to all of the terms and conditions thereof, except that the RRCA shall replace Exhibit A to
the Severance Plan. The parties agree that, pursuant to the terms of the Severance Plan and the
RRCA, the “Restricted Period” for Executive shall begin on the date on which Executive’s employment
terminates and shall end on the one-year anniversary of such date.

8. Successors.

     (a) This Agreement is personal to Executive and without the prior written consent of the
Company shall not be assignable by Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal
representatives.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns and Executive and his heirs, beneficiaries and estate. If Executive should
die while any payment, benefit or entitlement is due to him hereunder (including pursuant to the
Severance Plan), if Executive has not provided alternate instructions (such as under the terms of a
beneficiary designation), such payment, benefit or entitlement shall be paid to his spouse (or if
he does not have a surviving spouse, to his estate.

     (c) The Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
the Company to assume expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place.
Any failure to obtain such an assumption shall immediately entitle Executive to resign for “Good
Reason” pursuant to the Severance Plan and any other severance arrangements of the Company in
which Executive is a party or in which Executive participates. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or
otherwise.

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9. Executive Acknowledgment. Executive acknowledges (a) that he has consulted with or
has had the opportunity to consult with independent counsel of his own choice concerning this
Agreement and has been advised to do so by the Company, and (b) that he has read and understands
the Agreement, is fully aware of its legal effect, and has entered into it freely based on his own
judgment.

10. Arbitration. Any controversy between Executive or Executive’s heirs or estate and
the Company or any employee of the Company, including but not limited to, those involving the
construction or application of any of the terms, provisions or conditions of this Agreement or
otherwise arising out of or related to this Agreement, shall be settled by arbitration before a
single arbitrator in accordance with the then current commercial arbitration rules of the American
Arbitration Association, and judgment on the award rendered by the arbitrator may be entered by any
court having jurisdiction thereof. The location of the arbitration shall be the Borough of
Manhattan, City and State of New York. Each party shall bear his or its own expenses, including
legal fees in connection with the arbitration, except that the arbitrator shall award attorney’s
fees to Executive to the extent that Executive prevails in the arbitration proceeding.

11. Section 409A. To the extent applicable, it is intended that this Agreement and any
payment made hereunder shall comply with the requirements of Section 409A of the Code, and any
related regulations or other guidance promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service (“Section 409A”). Any provision that
would cause the Agreement or any payment hereof to fail to satisfy Code Section 409A shall have no
force or effect until amended to the minimum extent required to comply with Section 409A, which
amendment may be retroactive to the extent permitted by Section 409A. If, at the time that
Executive incurs a “Separation from Service” (as defined under Section 409A), the Company is a
reporting company under the Exchange Act (as defined below), and the Employee is a “specified
employee for purposes of Section 409A(a)(2)(B)(i) of the Code, then any payments under this
Agreement made on account of such Separation from Service that are subject to Section 409A (after
taking into account any exemptions permitted under Section 409A of the Code) and otherwise would
have been paid during the period commencing on the date of termination and ending six months after
such termination date shall be paid as soon as administratively feasible following the end of such
six-month period. To the extent that the reimbursement of any expenses or the provision of any
in-kind benefits under this Agreement or any other plan, policy or agreement (including, without
limitation, the Severance Plan) is subject to Section 409A of the Code (after taking into account
all exclusions applicable to such payments or benefits under Section 409A of the Code), (i) the
amount of such expenses eligible for reimbursement or in-kind benefits to be provided during any
calendar year shall not affect the amount of such expenses eligible for reimbursement, or in-kind
benefits to be provided, in any other calendar year; provided, however, that an arrangement for
reimbursement of expenses referred to in section 105(b) of the Code shall not be deemed to fail the
foregoing requirements solely because the arrangement provides for a limit on the amount of
expenses that may be reimbursed thereunder over some or all of the period in which such
reimbursement arrangement remains in effect; (ii) reimbursement of any such expense shall be made
promptly but in no event later than December 31
of the year next following the calendar year in which such expense is incurred; and (iii)
Executive’s

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right to receive such reimbursements or in-kind benefits shall be not subject to
liquidation or exchange for another benefit.

12. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument. One or more counterparts of this Agreement may be delivered by facsimile, with the
intention that delivery by such means shall have the same effect as delivery of an original
counterpart thereof.

13. Severability. If any one or more of the provisions contained in this Agreement, or
any application thereof, shall be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and all other applications
thereof shall not in any way be affected or impaired thereby. This Agreement shall be construed
and enforced as if such invalid, illegal or unenforceable provision has never comprised a part
hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be
affected by the invalid, illegal or unenforceable provision or by its severance herefrom. In place
of such invalid, illegal or unenforceable provision, the parties will make a good faith effort to
substitute a provision that is valid, legal and enforceable and that is similar in terms and
economic effect to such invalid, illegal or unenforceable provision.

14. Miscellaneous.

     (a) This Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without reference to principles of conflict of laws. The captions of this
Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement
may not be amended or modified otherwise than by a written agreement executed by the parties hereto
or their respective successors and legal representatives.

     (b) All notices or other communications required or permitted hereunder shall be made in
writing. Notice shall be effective on the date of delivery if delivered by hand upon receipt, on
the first business day following the date of dispatch if delivered utilizing next day service by a
recognized next day courier to the applicable address set forth below, or if mailed, three (3)
business days after having been mailed, postage prepaid, by certified or registered mail, return
receipt requested, and addressed to the applicable address set forth below. Notice given by
facsimile shall be effective upon written confirmation of receipt of the facsimile.

If to Executive:

To the residence address for Executive last shown on the Company’s payroll
records.

If to the Company:

Transatlantic Holdings, Inc.

80 Pine Street

New York, NY 10005

Fax: 212-248-0965

Attn: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith.

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     (c) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (d) This Agreement may not be modified or amended in a manner adverse to the interests of
Executive except by an instrument in writing, signed by Executive and by a duly authorized
representative of the Company other than Executive. By an instrument in writing similarly
executed, either party may waive compliance by the other party with any provision of this Agreement
that such other party was or is obligated to comply with or perform, provided, however, that such
waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent
failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy,
or power hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, or power provided herein or by law or in equity.

     (e) This Agreement shall be binding on the parties as of the Signing Date in accordance
with its terms. Notwithstanding anything to the contrary in any other provision hereof, this
Agreement shall become effective as of the Signing Date with respect to this Section 14(e) and
Sections 2(a), 2(b)(i), 2(c)(i)-(iv), 3(a)-(d) and 14(g). This Agreement shall terminate only in
accordance with the terms of Section 1 above. Termination of this Agreement shall not relieve any
party of any obligations that it might have to the other party at the time of the termination of
this Agreement in accordance with its terms.

     (f) The terms of this Agreement are intended by the parties to be the final expression of
their agreement with respect to the benefits paid by the Company to the Executive in connection
with the transition of Executive, and may not be contradicted by evidence of any prior or
contemporaneous agreement. The parties further intend that this Agreement shall constitute the
complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be
introduced in any judicial, administrative, or other legal proceeding involving either Agreement.
The Agreement (and any other agreement, policy or other document either incorporated by reference
or referred to herein) supersede any prior agreements, written or oral, between the Company and
Executive concerning the subject matter hereof. The language used in this Agreement has been
chosen by the parties hereto to express their mutual intent, and no rule of construction shall be
applied against or in favor of either party, and no party shall be deemed the drafter of this
Agreement, and the parties all waive any statute, principle or rule of law to the contrary.

     (g) The Company will reimburse Executive, after receipt of documentation thereof, for the
fees and expenses of Executive’s legal counsel incurred by Executive in connection with the review
and negotiation of this Agreement, up to a maximum of $50,000.

     (h) In the event of any inconsistency between (i) this Agreement and (ii) the Severance
Plan or other severance arrangements, the terms of the Severance Plan or other severance
arrangements, as applicable, shall control, except to the extent provided in this Agreement. In
the event of any inconsistency between (i) this Agreement, including without limitation, the RRCA
as set

10

 

forth in Exhibit A hereto, and (ii) any other plan, program, practice or agreement in which
the Executive participates or is a party, this Agreement shall control, except to the extent
provided in this Agreement. For the avoidance of doubt, this Agreement shall not constitute an
“other agreement or arrangement” within the meaning of the proviso of Section III of the Severance
Plan and Executive shall be deemed to be an Eligible Employee for purposes of the Severance Plan.

[signature page follows]

11

 

The parties have duly executed this Agreement on the Signing Date.

TRANSATLANTIC HOLDINGS, INC.

The Company

	 	 	 	 	 	 	 

	By:

	 	/s/ Gary A. Schwartz
	 	 	 	/s/ Robert F. Orlich
	 

	 	 
	 	 	 	 
	 

	 	Name: Gary A. Schwartz
	 	 	 	Name: Robert F. Orlich
	 

	 	Title: Executive Vice President and
General Counsel	 	 	 	 

12

 

EXHIBIT A

TRANSATLANTIC HOLDINGS, INC.

RELEASE AND RESTRICTIVE COVENANT AGREEMENT

     This Release and Restrictive Covenant Agreement (the “Agreement”), dated as of November 20,
2011, is entered into by and between Robert F. Orlich (the “Employee”) and Transatlantic Holdings,
Inc., a Delaware Corporation (the “Company”).

     Unless the context otherwise requires, each term defined in the Transatlantic Holdings, Inc.
Executive Severance Plan (the “Plan”), as modified by the Transition Agreement between the Employee
and the Company to which this Exhibit is attached (the “Transition Agreement”), has the same
meaning when used in this Agreement.

I. Termination of Employment

     The Employee’s employment with the Company and each of its subsidiaries and controlled
affiliates (collectively “TRH”) terminated on the Resignation Date (as defined in the Transition
Agreement) or if his employment is terminated without Cause prior to the Resignation Date, then
such earlier date on which his employment was so terminated (the applicable date being hereinafter
referred to as the “Termination Date”) and, as of that date, the Employee ceased performing the
Employee’s employment duties and responsibilities for TRH. For purposes of this Agreement, the
term “controlled affiliates” means an entity of which the Company directly or indirectly owns or
controls a majority of the voting shares.

     Notwithstanding the foregoing, Employee shall not be required to resign as a director of the
Company and may continue to serve on the Board after the Resignation Date. Any such continued
service as a director of the Company shall not have any impact on the Employee’s rights and
obligations under the Transition Agreement or this Agreement.

II. Severance

     The Employee shall receive the payments, benefits and entitlements set forth in the Transition
Agreement.

III. Other Benefits

     Nothing in this Agreement modifies or affects any of the terms of any benefit plans or
programs (including, without limitation, the Company’s right to alter the terms of such plans or
programs). No further contributions or employer matching contributions shall be made on behalf of
the Employee to any Company 401(k) or other savings or thrift plan after the Termination Date and
Employee shall no longer be eligible for coverage under the short-term and long-term disability
programs or the Employee Stock Purchase Plan after the Termination Date. The Employee shall not
accrue vacation after the Termination Date. Except as set forth in this Agreement, the Transition
Agreement and the Plan, there are no other payments or benefits due to the Employee from the
Company. The Employee acknowledges and agrees that the Company has made no representations

13

 

to the Employee as to the applicability of Section 409A of the Internal Revenue Code to any of
the payments or benefits provided to the Employee pursuant to the Plan, the Transition Agreement or
this Agreement.

IV. Release of Claims

     In partial consideration of the payments and benefits described in Section IV of the Plan and
Sections 2(c) and 3 of the Transition Agreement, to which the Employee agrees the Employee is not
entitled until and unless he executes this Agreement, the Employee, for and on behalf of the
Employee and the Employee’s heirs and assigns, subject to the following two sentences hereof,
hereby waives and releases any common law, statutory or other complaints, claims, charges or causes
of action of any kind whatsoever, both known and unknown, in law or in equity, which the Employee
ever had, now has or may have against TRH and/or any or all of its shareholders (other than C.V.
Starr & Co., Inc. and Starr International Company, Inc.), successors, parents, assigns, directors,
officers, partners, members, employees or agents (collectively, the “Releasees”), including,
without limitation, any complaint, charge or cause of action arising under federal, state or local
laws pertaining to employment, including the Age Discrimination in Employment Act of 1967 (“ADEA”),
the National Labor Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities Act
of 1990, Title VII of the Civil Rights Act of 1964, all as amended; and all other federal, state
and local laws and regulations. By signing this Agreement, the Employee acknowledges that the
Employee intends to waive and release any rights known or unknown that the Employee may have
against the Releasees under these and any other laws; provided, that the Employee does not waive or
release claims with respect to the right to enforce the Employee’s rights (1) under this Agreement,
the Plan or the Transition Agreement, (2) as a shareholder of the Company , (3) to any vested
benefits or entitlements as of the Termination Date pursuant to any applicable plan, policy,
program, arrangement of, or other agreement with, the Company or its controlled affiliates, (4) to
be indemnified and/or advanced expenses as provided in the Company’s bylaws, articles of
incorporation or, if greater, applicable law and to be covered under directors’ and officers’
liability insurance policies and (5) to obtain contribution as permitted by law in the event of
entry of judgment against the Employee as a result of any act or failure to act for which the
Employee, on the one hand, and TRH, or any other Releasees, on the other hand, are jointly liable
(collectively, the “Unreleased Claims”). In addition, the Employee agrees the Employee waives any
claim to reinstatement or re-employment with TRH, the Employee shall not seek or accept employment
with TRH after the Termination Date and the Employee agrees not to bring any claim based upon the
failure or refusal of TRH to employ the Employee hereafter.

V. Proceedings

     The Employee acknowledges that the Employee has not filed any complaint, charge, claim or
proceeding, except with respect to an Unreleased Claim, if any, against any of the Releasees before
any local, state or federal agency, court or other body (each individually a “Proceeding”). The
Employee represents that the Employee is not aware of any basis on which such a Proceeding could
reasonably be instituted. By signing this Agreement the Employee:

14

 

     (a) Acknowledges that the Employee shall not initiate or cause to be initiated on his
behalf any Proceeding and shall not participate in any Proceeding, in each case, except as required
by law;

     (b) Waives any right he may have to benefit in any manner from any relief (whether
monetary or otherwise) arising out of any Proceeding, including any Proceeding conducted by the
Equal Employment Opportunity Commission (“EEOC”); and

     (c) Acknowledges that the Employee shall be limiting the availability of certain remedies
that the Employee may have against TRH and limiting also the Employee’s ability to pursue certain
claims against the Releasees.

     Notwithstanding the above, nothing in this Section V of the Agreement shall prevent the
Employee from:

     (x) Initiating or causing to be initiated on his or her behalf any complaint, charge,
claim or proceeding against the Company before any local, state or federal agency, court or other
body challenging the validity of the waiver of his or her claims under the ADEA contained in
Section IV of this Agreement (but no other portion of such waiver), or

     (y) Initiating or participating in an investigation or proceeding conducted by the EEOC.

VI. Time to Consider

     The payments and benefits payable to the Employee under this Agreement include consideration
provided to Employee over and above anything of value to which the Employee already is entitled.
The Employee acknowledges that the Employee has been advised that the Employee has 21 days
following the Termination Date to consider all the provisions of this Agreement.

     THE EMPLOYEE FURTHER ACKNOWLEDGES THAT THE EMPLOYEE HAS READ THIS AGREEMENT CAREFULLY, HAS
BEEN ADVISED BY THE COMPANY TO CONSULT AN ATTORNEY AND HAS BEEN REPRESENTED BY AN ATTORNEY, AND
FULLY UNDERSTANDS THAT BY SIGNING BELOW THE EMPLOYEE IS GIVING UP CERTAIN RIGHTS WHICH THE EMPLOYEE
MAY HAVE TO SUE OR ASSERT A CLAIM AGAINST ANY OF THE RELEASEES, AS DESCRIBED IN SECTION IV OF THIS
AGREEMENT AND THE OTHER PROVISIONS HEREOF. THE EMPLOYEE ACKNOWLEDGES THAT THE EMPLOYEE HAS NOT BEEN
FORCED OR PRESSURED IN ANY MANNER WHATSOEVER TO SIGN THIS AGREEMENT, AND THE EMPLOYEE AGREES TO ALL
OF ITS TERMS VOLUNTARILY.

VII. Revocation

     The Employee hereby acknowledges and understands that the Employee shall have seven days from
the date of the Employee’s execution of this Agreement to revoke this Agreement (including, without
limitation, any and all claims arising under the ADEA) by providing written

15

 

notice of revocation delivered to the General Counsel of the Company no later than 5:00 p.m.
on the seventh day after the Employee has signed the Agreement. Neither the Company nor any other
person is obligated to provide any benefits to the Employee pursuant to Section IV of the Plan or
Sections 2(c) or 3 of the Transition Agreement until eight days have passed since the Employee’s
signing of this Agreement without the Employee having revoked this Agreement. If the Employee
revokes this Agreement pursuant to this Section, the Employee shall be deemed not to have accepted
the terms of this Agreement, and no action shall be required of TRH under any section of this
Agreement or under any provision of the Plan or Transition Agreement for which the execution and
non-revocation of this Agreement is a prerequisite to the Company’s obligations.

VIII. No Admission

     This Agreement does not constitute an admission of liability or wrongdoing of any kind by the
Employee or TRH.

IX. Restrictive Covenants

A. Non-Competition/Non-Solicitation

     The Employee acknowledges and recognizes the highly competitive nature of the businesses of
TRH and accordingly agrees as follows:

          1. During the period commencing on the Employee’s Termination Date and ending on the earlier
of the (i) the one-year anniversary of such date and (ii) the expiration of the “Severance Period”
(as defined in the Plan) (the “Restricted Period”). The Employee shall not, directly or
indirectly:

               (a) Engage in any “Competitive Business” (defined below) for the Employee’s own account;

               (b) Enter the employ of, or render any services to, any person engaged in any Competitive
Business;

               (c) Acquire a financial interest in, or otherwise become actively involved with, any
person engaged in any Competitive Business, directly or indirectly, as an individual, partner,
shareholder, officer, director, principal, agent, trustee or consultant; or

               (d) Interfere with business relationships between TRH and customers or suppliers of, or
consultants to TRH.

          2. For purposes of this Section IX, a “Competitive Business” means, as of any date, including
during the Restricted Period, any person or entity (including any joint venture, partnership, firm,
corporation or limited liability company) that engages in or proposes to engage in the following
activities in any geographical area in which TRH does business:

16

 

               (a) The property and casualty insurance business, including commercial insurance, business
insurance, personal insurance and specialty insurance;

               (b) The life and accident and health insurance business;

               (c) The underwriting, reinsurance, marketing or sale of (y) any form of insurance of any
kind that TRH as of such date does, or proposes to, underwrite, reinsure, market or sell (any such
form of insurance, an “TRH Insurance Product”), or (z) any other form of insurance that is marketed
or sold in competition with any TRH Insurance Product;

               (d) The investment and financial services business, including retirement services and
mutual funds services; or

               (e) Any other business that as of such date is a direct and material competitor of one of
TRH’s businesses.

          3. Notwithstanding anything to the contrary in this Agreement, the Employee may directly
or indirectly, own, solely as an investment, securities of any person engaged in the business of
TRH which are publicly traded on a national or regional stock exchange or on the over-the-counter
market if the Employee (a) is not a controlling person of, or a member of a group which controls,
such person and (b) does not, directly or indirectly, own one percent or more of any class of
securities of such person.

          4. During the Restricted Period, the Employee shall not, directly or indirectly, without
TRH’s written consent, hire, solicit or encourage to cease to work with TRH, any employee of TRH.
Notwithstanding anything to the contrary herein, the following shall not be a violation of this
provision: (i) responding to a request from any employee for advice on employment or business
matters, so long as in providing such advice, Employee does not solicit the employee of TRH or
encourage the employee of TRH to cease to work with TRH, (ii) responding to a request for a
reference regarding an employee of TRH, or (iii) a solicitation of an employee of TRH by any
organization with which the Employee is affiliated, provided the Employee is not involved, directly
or indirectly, in such activity.

          5. The Employee understands that the provisions of this Section IX.A may limit the
Employee’s ability to earn a livelihood in a business similar to the business of TRH but the
Employee nevertheless agrees and hereby acknowledges that:

               (a) Such provisions do not impose a greater restraint than is necessary to protect the
goodwill or other business interests of TRH;

               (b) Such provisions contain reasonable limitations as to time and scope of activity to be
restrained;

               (c) Such provisions are not harmful to the general public; and

17

 

               (d) Such provisions are not unduly burdensome to the Employee. In consideration of the
foregoing and in light of the Employee’s education, skills and abilities, the Employee agrees that
he shall not assert that, and it should not be considered that, any provisions of Section IX.A
otherwise are void, voidable or unenforceable or should be voided or held unenforceable.

          6. It is expressly understood and agreed that, although the Employee and the Company
consider the restrictions contained in this Section IX.A to be reasonable, if a judicial
determination is made by a court of competent jurisdiction that the time or territory or any other
restriction contained in this Section IX.A or elsewhere in this Agreement is an unenforceable
restriction against the Employee, the provisions of the Agreement shall not be rendered void but
shall be deemed amended to apply as to such maximum time and territory and to such maximum extent
as such court may judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable,
and such restriction cannot be amended so as to make it enforceable, such finding shall not affect
the enforceability of any of the other restrictions contained herein.

B. Nondisparagement

     The Employee agrees following the Termination Date not to intentionally make any public
statements which are disparaging or derogatory about TRH or its senior officers and directors. TRH
agrees not to intentionally make any public statements which are disparaging and derogatory about
the Employee and to instruct its senior officers and directors not to make any such intentional
public statements regarding the Employee; provided however, this paragraph shall not apply to any
statement that is reasonably necessary in order to (a) assert a bona fide claim arising out of the
Employee’s employment with TRH, or (b) respond in a truthful and appropriate manner to any legal
process or give truthful and appropriate testimony in a legal or regulatory proceeding.

C. Code of Conduct

     The Employee agrees to abide by all of the terms of the Company’s Code of Conduct or the
Director, Executive Officer and Senior Financial Officer Code of Business Conduct and Ethics that
continue to apply after termination of employment.

D. Confidentiality/Company Property

     The Employee acknowledges that the disclosure of this Agreement or any of the terms hereof
could prejudice TRH and would be detrimental to TRH’s continuing relationship with its employees.
Accordingly, unless and until this Agreement (or the Transition Agreement) is publicly filed, the
Employee agrees not to discuss or divulge either the existence or contents of this Agreement or the
Transition Agreement to anyone other than the Employee’s immediate family, attorneys or tax
advisors or prospective employers (solely to verify the terms of the restrictive covenants), and
further agrees to use the Employee’s best efforts to ensure that none of those individuals will
reveal its existence or contents to anyone else. The Employee shall not, without the prior written
consent of TRH, use, divulge, disclose or make accessible to any other person, firm, partnership,
corporation or other entity, any “Confidential Information” (as defined below), or any “Personal
Information” (as

18

 

defined below); provided that the Employee may disclose such information when required to do
so by a court of competent jurisdiction, by any governmental agency having supervisory authority
over the business of TRH, as the case may be, or by any administrative body or legislative body
(including a committee thereof) with jurisdiction to order the Employee to divulge, disclose or
make accessible such information; provided, further, that in the event that the Employee is ordered
by a court or other government agency to disclose any Confidential Information or Personal
Information, the Employee shall:

          (a) Promptly notify TRH of such order;

          (b) At the written request of TRH, diligently contest such order at the sole expense of
TRH; and

          (c) At the written request of TRH, seek to obtain, at the sole expense of TRH, such
confidential treatment as may be available under applicable laws for any information disclosed
under such order.

     Upon the Termination Date the Employee shall return TRH property, including, without
limitation, files, records, disks and any media containing Confidential Information or Personal
Information; provided that the Employee shall be permitted to retain the information and materials
as permitted pursuant to the Transition Agreement. For purposes of this Section IX.D.

     “Confidential Information” shall mean information concerning the financial data, strategic
business plans, product development (or other proprietary product data), customer lists, marketing
plans and other, proprietary and confidential information relating to the business of TRH or
customers, that, in any case, is not otherwise available to the public (other than by the
Employee’s breach of the terms hereof).

     “Personal Information” shall mean any confidential information concerning the personal, social
or business activities of the officers or directors of the Company (other than the Employee).

E. Developments

     Developments shall be the sole and exclusive property of TRH. The Employee agrees to, and
hereby does, assign to TRH, without any further consideration, all of the Employee’s right, title
and interest throughout the world in and to all Developments. The Employee agrees that all such
Developments that are copyrightable may constitute works made for hire under the copyright laws of
the United States and, as such, acknowledges that TRH is the author of such Developments and owns
all of the rights comprised in the copyright of such Developments. The Employee hereby assigns to
TRH without any further consideration, and at TRH’s sole expense, all of the rights comprised in
the copyright and other proprietary rights the Employee may have in any such Development to the
extent that it might not be considered a work made for hire. The Employee shall make and maintain
adequate and current records of all Developments and shall disclose all Developments promptly,
fully and in writing to the Company promptly after development of the same, and at any time upon
request.

19

 

     “Developments” shall mean all discoveries, inventions, ideas, technology, formulas, designs,
software, programs, algorithms, products, systems, applications, processes, procedures, methods and
improvements and enhancements conceived, developed or otherwise made or created or produced by the
Employee alone or with others, and in any way relating to the business or any proposed business of
TRH of which the Employee has been made aware, or the products or services of TRH of which the
Employee has been made aware, whether or not subject to patent, copyright or other protection and
whether or not reduced to tangible form, at any time during the Employee’s employment with TRH.

F. Cooperation

     The Employee agrees following the Termination Date to act in a reasonable fashion in order to
cooperate:

          (a) With TRH in connection with any litigation or regulatory matters in which the Employee may
have relevant knowledge or information, and

          (b) With all government authorities on matters pertaining to any investigation, litigation or
administrative proceeding pertaining to TRH of which the Employee may have relevant knowledge or
information.

     Except to the extent any cooperation would prejudice or be adverse to the Employee’s legal
interests, this cooperation shall include, without limitation, the following:

          (x) To meet and confer, at a time mutually convenient to the Employee and TRH, with TRH’s
designated in-house or outside attorneys for trial preparation purposes, including answering
questions, explaining factual situations, preparing to testify, or appearing for deposition;

          (y) To appear for trial and give truthful trial testimony without the need to serve a subpoena
for such appearance and testimony; and

          (z) To give truthful sworn statements to TRH’s attorneys upon their request and, for purposes
of any deposition or trial testimony, to adopt TRH’s attorneys as Employee’s own (provided that
there is no conflict of interest that would disqualify the attorneys from representing Employee),
and to accept their record instructions at deposition.

     The Company agrees to reimburse Employee for reasonable out-of-pocket expenses necessarily
incurred by Employee in connection with the cooperation set forth in this paragraph.

X. Enforcement

     If at any time the Employee materially breaches any of the provisions of this Agreement
(including but not limited to Section IX), then (y) no further payments or benefits shall be due to
the Employee under this Agreement, the Transition Agreement and/or the Plan and (z) the Employee
shall be obligated to repay to TRH, as promptly as possible and in a cash lump sum, the amount of
any payments or benefits received under the Transition Agreement or the Plan (other than any

20

 

amounts received by the Employee under Sections IV.D, E or F of the Plan or Sections 2(b) or
2(c) of the Transition Agreement); provided that the Employee shall in all events be entitled to
receive accrued wages and expense reimbursement and accrued but unused vacation pay as set forth in
Section IV.A of the Plan.

     The Employee acknowledges and agrees that TRH’s remedies at law for a breach or threatened
breach of any of the provisions of Sections IX.A, B, D and E of this Agreement would be inadequate,
and, in recognition of this fact, the Employee agrees that, in the event of such a breach or
threatened breach, in addition to any remedies at law or under this Agreement, the Transition
Agreement or the Plan, TRH, without posting any bond, shall be entitled to obtain equitable relief
in the form of specific performance, temporary restraining order, temporary or permanent injunction
or any other equitable remedy which may then be available.

XI. General Provisions

A. No Waiver; Severability

     A failure of the Company or any of the Releasees to insist on strict compliance with any
provision of this Agreement shall not be deemed a waiver of such provision or any other provision
hereof. If any provision of this Agreement is determined to be so broad as to be unenforceable,
such provision shall be interpreted to be only so broad as is enforceable, and in the event that
any provision is determined to be entirely unenforceable, such provision shall be deemed severable,
such that all other provisions of this Agreement shall remain valid and binding upon the Employee
and the Releasees.

B. Governing Law

     THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE WHOLLY PERFORMED WITHIN THAT STATE, WITHOUT REGARD
TO ITS CONFLICT OF LAWS PROVISIONS OR THE CONFLICT OF LAWS PROVISIONS OF ANY OTHER JURISDICTION
WHICH WOULD CAUSE THE APPLICATION OF ANY LAW OTHER THAN THAT OF THE STATE OF NEW YORK. THE EMPLOYEE
CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS IN NEW YORK.

C. Entire Agreement/Counterparts

     This Agreement and the Transition Agreement (including the agreements and other documents
referred to in either the Agreement or the Transition Agreement) constitute the entire
understanding and agreement between the Company and the Employee with regard to all matters herein.
There are no other agreements, conditions, or representations, oral or written, express or implied,
with regard thereto. This Agreement may be amended only in writing, signed by the parties hereto.
This Agreement may be signed in counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. The language used in
this Agreement has been chosen by the parties hereto to express their mutual intent, and no rule of

21

 

construction shall be applied against or in favor of either party, and no party shall be
deemed the drafter of this Agreement, and the parties all waive any statute, principle or rule of
law to the contrary.

D. Notice

     For the purpose of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given if delivered: (a)
personally; (b) by overnight courier service; (c) by facsimile transmission; or (d) by United
States registered mail, return receipt requested, postage prepaid, addressed to the respective
addresses, as set forth below, or to such other address as either party may have furnished to the
other in writing in accordance herewith; provided that notice of change of address shall be
effective only upon receipt. Notices shall be deemed given as follows: (x) notices sent by
personal delivery or overnight courier shall be deemed given when delivered; (y) notices sent by
facsimile transmission shall be deemed given upon the sender’s receipt of confirmation of complete
transmission; and (z) notices sent by United States registered mail shall be deemed given two days
after the date of deposit in the United States mail.

     If to Executive, to the address as shall most currently appear on the records of the Company.

If to the Company, to:

Transatlantic Holdings, Inc.

80 Pine Street

New York, NY 10005

Fax: 212-248-0965

Attn: General Counsel

22

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	EMPLOYEE

 	 
	By:  	/s/ Robert F. Orlich
 	 
	 	Name:  	Robert F. Orlich 	 
	 
	TRANSATLANTIC HOLDINGS, INC.

 	 
	By:  	/s/ Gary A. Schwartz
 	 
	 	Name:  	Gary A. Schwartz 	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

23exv10w1

Exhibit 10.1

 

FORM OF SEPARATION AND DISTRIBUTION AGREEMENT

by and between

THE WILLIAMS COMPANIES, INC.,

and

WPX ENERGY, INC.

Dated as of            , 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.1	 	Table of Definitions	 	 	2	 
	 
	 	Section 1.2	 	Certain Defined Terms	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II THE CONTRIBUTION	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.1	 	Contribution of WPX Assets	 	 	9	 
	 
	 	Section 2.2	 	Assumption of Liabilities	 	 	9	 
	 
	 	Section 2.3	 	Effective Date; Deliveries	 	 	10	 
	 
	 	Section 2.4	 	Transfers Not Effected on or before the Effective Date	 	 	10	 
	 
	 	Section 2.5	 	Shared Contracts	 	 	11	 
	 
	 	Section 2.6	 	Termination of Agreements	 	 	11	 
	 
	 	Section 2.7	 	Governmental Approvals and Consents	 	 	12	 
	 
	 	Section 2.8	 	Disclaimer of Representations and Warranties	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III THE IPO AND THE WPX NOTES	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 3.1	 	Actions Prior to the IPO	 	 	13	 
	 
	 	Section 3.2	 	Use of IPO Proceeds	 	 	13	 
	 
	 	Section 3.3	 	Conditions to the IPO	 	 	13	 
	 
	 	Section 3.4	 	WPX Notes Proceeds	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV THE DISTRIBUTION	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 4.1	 	The Distribution	 	 	15	 
	 
	 	Section 4.2	 	Actions Prior to the Distribution	 	 	15	 
	 
	 	Section 4.3	 	Conditions to the Distribution	 	 	16	 
	 
	 	Section 4.4	 	Certain Stockholder Matters	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V FINANCIAL AND OTHER COVENANTS	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 5.1	 	Financial and Other Information	 	 	18	 
	 
	 	Section 5.2	 	Other Covenants	 	 	20	 
	 
	 	Section 5.3	 	Covenants Regarding the Incurrence of Indebtedness	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI EXCHANGE OF INFORMATION; CONFIDENTIALITY	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.1	 	Agreement for Exchange of Information	 	 	22	 
	 
	 	Section 6.2	 	Ownership of Information	 	 	22	 
	 
	 	Section 6.3	 	Compensation for Providing Information	 	 	23	 
	 
	 	Section 6.4	 	Record Retention	 	 	23	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.5	 	Limitation of Liability	 	 	23	 
	 
	 	Section 6.6	 	Other Agreements Providing for Exchange of Information	 	 	23	 
	 
	 	Section 6.7	 	Cooperation	 	 	23	 
	 
	 	Section 6.8	 	Confidentiality	 	 	24	 
	 
	 	Section 6.9	 	Protective Arrangements	 	 	24	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII ADDITIONAL COVENANTS AND OTHER MATTERS	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.1	 	Further Assurances	 	 	25	 
	 
	 	Section 7.2	 	Use of Names, Logos and Information	 	 	25	 
	 
	 	Section 7.3	 	Non-Solicitation	 	 	26	 
	 
	 	Section 7.4	 	Conduct of WPX Business between Effective Date and Distribution Date	 	 	27	 
	 
	 	Section 7.5	 	WMB Guarantees	 	 	27	 
	 
	 	Section 7.6	 	Directors’ and Officers’ Insurance	 	 	27	 
	 
	 	Section 7.7	 	Information Technology Transition
Costs	 	 	27	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII MUTUAL RELEASES; INDEMNIFICATION	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.1	 	Mutual Releases	 	 	28	 
	 
	 	Section 8.2	 	Indemnification by WPX	 	 	29	 
	 
	 	Section 8.3	 	Indemnification by WMB	 	 	30	 
	 
	 	Section 8.4	 	Indemnification Obligations Net of Insurance Proceeds and Other Amounts	 	 	31	 
	 
	 	Section 8.5	 	Third-Party Claims	 	 	32	 
	 
	 	Section 8.6	 	Additional Matters	 	 	33	 
	 
	 	Section 8.7	 	Remedies Cumulative	 	 	33	 
	 
	 	Section 8.8	 	Survival of Indemnities	 	 	34	 
	 
	 	Section 8.9	 	Limitation on Liability	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX TERMINATION	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 9.1	 	Termination	 	 	34	 
	 
	 	Section 9.2	 	Effect of Termination	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X DISPUTE RESOLUTION	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 10.1	 	Disputes	 	 	34	 
	 
	 	Section 10.2	 	Escalation; Mediation	 	 	34	 
	 
	 	Section 10.3	 	Court Actions	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI MISCELLANEOUS	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 11.1	 	Corporate Power	 	 	37	 
	 
	 	Section 11.2	 	Coordination with Certain Ancillary Agreements; Conflicts	 	 	37	 
	 
	 	Section 11.3	 	Expenses	 	 	37	 
	 
	 	Section 11.4	 	Amendment and Modification	 	 	37	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 11.5	 	Waiver	 	 	37	 
	 
	 	Section 11.6	 	Notices	 	 	38	 
	 
	 	Section 11.7	 	Interpretation	 	 	38	 
	 
	 	Section 11.8	 	Entire Agreement	 	 	38	 
	 
	 	Section 11.9	 	No Third Party Beneficiaries	 	 	39	 
	 
	 	Section 11.10	 	Governing Law	 	 	39	 
	 
	 	Section 11.11	 	Submission to Jurisdiction	 	 	39	 
	 
	 	Section 11.12	 	Assignment	 	 	39	 
	 
	 	Section 11.13	 	Severability	 	 	40	 
	 
	 	Section 11.14	 	Waiver of Jury Trial	 	 	40	 
	 
	 	Section 11.15	 	Counterparts	 	 	40	 
	 
	 	Section 11.16	 	Facsimile Signature	 	 	40	 

	 	 	 

	Exhibit A

	 	Contributed Entities
	Schedule 2.6(b)(v)

	 	Surviving Agreements
	Schedule 8.3

	 	Contracts Excluded From Indemnification
	Schedule 8.3(d)

	 	California Gas Marketing Proceedings
	Schedule 8.3(e)

	 	Gas Price Indices Proceedings

iii

 

SEPARATION AND DISTRIBUTION AGREEMENT

     SEPARATION AND DISTRIBUTION AGREEMENT, dated as of            , 2011
(this “Agreement”), by and between The Williams Companies, Inc., a Delaware
corporation (“WMB”), and WPX Energy, Inc., a Delaware corporation (“WPX”).

RECITALS

     A. The WMB Board has determined that it would be appropriate, desirable and in the best
interests of WMB and WMB’s stockholders to separate the WPX Business from WMB.

     B. In connection with the separation of the WPX Business from WMB, WMB desires to contribute
or otherwise transfer, and to cause certain of its Subsidiaries to contribute or otherwise
transfer, certain Assets and Liabilities associated with the WPX Business, including the stock or
other equity interests of certain of WMB’s Subsidiaries dedicated to the WPX Business, to WPX and
certain of WPX’s Subsidiaries (collectively, the “Contribution”).

     C. WPX intends to offer and sell for its own account a limited number of shares of WPX Common
Stock pursuant to an initial public offering of such shares (the “IPO”), and in furtherance
thereof, WPX has previously filed the IPO Registration Statement with the SEC.

     D. WPX
(i) has split the 1,000 shares of WPX common stock held by WMB into            
shares of WPX Common Stock such that WMB will own        % of the outstanding WPX Common Stock (or
     % if the Underwriters exercise their over-allotment option in full) immediately following the
consummation of the IPO, (ii) has distributed or intends to distribute to WMB a portion of the IPO proceeds and WPX Borrowing
proceeds, and (iii) intends to assume the WPX Liabilities.

     E. WMB intends (i) to distribute to WMB creditors the proceeds received from WPX referred to
in clause (ii) in Recital D above and (ii) after the IPO, to distribute to holders of shares of WMB
Common Stock the outstanding shares of WPX Common Stock then owned by WMB (the “Distribution”).

     F. WMB and WPX intend that the Contribution pursuant to Section 2.1 of this Agreement, the
Distribution and the distribution by WMB to its creditors of the proceeds received from WPX
referred to in clause (ii) in Recital D above, taken together, will qualify as a reorganization for
U.S. federal income tax purposes pursuant to which no gain or loss will be recognized by WMB or its
stockholders under Section 355, 361(b)(3), 368(a)(1)(D) and related provisions of the Code, and
that this Agreement is intended to be, and is hereby adopted as, a plan of reorganization under
Section 368 of the Code.

     G. The parties intend this Agreement and the Ancillary Agreements to set forth the principal
arrangements between them regarding the Contribution, the IPO and the Distribution.

 

 

AGREEMENT

     In consideration of the foregoing and the mutual covenants and agreements herein contained,
and intending to be legally bound hereby, the parties agree as follows:

ARTICLE I

DEFINITIONS

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

	 	 	 	 	 
	Definition	 	Page	 
	Action
	 	 	3	 
	Administrative Services Agreement
	 	 	3	 
	Affiliate
	 	 	3	 
	Agreement
	 	 	1	 
	Ancillary Agreements
	 	 	3	 
	Assets
	 	 	3	 
	Bad Act
	 	 	9	 
	Business Day
	 	 	4	 
	Code
	 	 	4	 
	Consents
	 	 	4	 
	Contract
	 	 	4	 
	Contribution
	 	 	1	 
	CPR
	 	 	35	 
	Distribution
	 	 	1	 
	Distribution Agent
	 	 	17	 
	Distribution Date
	 	 	4	 
	Effective Date
	 	 	4	 
	Employee
Matters Agreement
	 	 	4	 
	Environmental Laws
	 	 	36	 
	Environmental Liabilities
	 	 	36	 
	Exchange Act
	 	 	4	 
	Financial Statements
	 	 	4	 
	GAAP
	 	 	4	 
	Governmental Approvals
	 	 	4	 
	Governmental Authority
	 	 	4	 
	Group
	 	 	4	 
	Hazardous Substances
	 	 	36	 
	Indemnifying Party
	 	 	31	 
	Indemnitee
	 	 	31	 
	Indemnity Payment
	 	 	31	 
	Information
	 	 	4	 
	Insurance Proceeds
	 	 	5	 
	Intended Transferee
	 	 	10	 
	Intended Transferor
	 	 	10	 
	IPO
	 	 	1	 

	 	 	 	 	 
	Definition	 	Page	 
	IPO Closing Date
	 	 	5	 
	IPO Prospectus
	 	 	5	 
	IPO Registration Statement
	 	 	5	 
	IRS
	 	 	5	 
	Law
	 	 	5	 
	Liabilities
	 	 	5	 
	Next Step Up Representatives
	 	 	35	 
	Ordinary Course of Business
	 	 	6	 
	Person
	 	 	6	 
	Proceeding
	 	 	39	 
	Record Date
	 	 	6	 
	Registration Rights Agreement
	 	 	6	 
	Regulation S-K
	 	 	6	 
	Regulation S-X
	 	 	6	 
	SEC
	 	 	6	 
	Securities Act
	 	 	6	 
	Subsidiary
	 	 	6	 
	Tax Control
	 	 	6	 
	Tax or Taxes
	 	 	6	 
	Tax Sharing Agreement
	 	 	7	 
	Third-Party Claim
	 	 	32	 
	Transition Services Agreement
	 	 	7	 
	Underwriters
	 	 	7	 
	Underwriting Agreement
	 	 	7	 
	WMB
	 	 	1	 
	WMB Annual Statements
	 	 	19	 
	WMB Board
	 	 	7	 
	WMB Business
	 	 	7	 
	WMB Common Stock
	 	 	7	 
	WMB Entities
	 	 	7	 
	WMB Group
	 	 	7	 
	WMB Indemnitees
	 	 	29	 
	WMB Liabilities
	 	 	7	 
	WMB Shared Contract
	 	 	7	 

2

 

Table of Definitions (cont.)

	 	 	 	 	 
	Definition	 	Page	 
	WMB’s Auditors
	 	 	18	 
	WPX
	 	 	1	 
	WPX Assets
	 	 	7	 
	WPX Borrowing
	 	 	8	 
	WPX Business
	 	 	8	 
	WPX Common Stock
	 	 	8	 
	WPX Credit Facility
	 	 	8	 
	WPX Entities
	 	 	8	 
	WPX Group
	 	 	8	 

	 	 	 	 	 
	Definition	 	Page	 
	WPX Indebtedness
	 	 	8	 
	WPX Indemnitees
	 	 	30	 
	WPX Liabilities
	 	 	8	 
	WPX Notes
	 	 	9	 
	WPX Shared Contract
	 	 	9	 
	WPX Transfer Agent
	 	 	9	 
	WPX Voting Stock
	 	 	20	 
	WPX’s Auditors
	 	 	18	 

     Section 1.2 Certain Defined Terms. For the purposes of this Agreement:

          “Action” means any claim, demand, action, suit, countersuit, audit, arbitration,
inquiry, proceeding or investigation by or before any Governmental Authority or any United States
or non-United States federal, state, local or international arbitration or mediation tribunal.

          “Administrative Services Agreement” means the Administrative Services Agreement, dated
as of the date hereof, between WMB and WPX, as may be amended or modified from time to time, which
provides for WMB’s provision of certain services to WPX between the IPO Closing Date and the
Distribution Date.

          “Affiliate” of any Person means a Person that controls, is controlled by, or is under
common control with such Person; provided, however, that for purposes of this
Agreement and the Ancillary Agreements, none of the WMB Entities shall be deemed to be an Affiliate
of any WPX Entity and none of the WPX Entities shall be deemed to be an Affiliate of any WMB
Entity. As used herein, “control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such entity, whether through
ownership of voting securities or other interests, by contract or otherwise.

          “Ancillary Agreements” means the Transition Services Agreement, the Administrative
Services Agreement, the Tax Sharing Agreement, the Registration Rights Agreement, the Employee Matters Agreement and any other
instruments, assignments, documents and agreements executed in connection with the implementation
of the transactions contemplated by this Agreement.

          “Assets” means assets, properties and rights (including goodwill and rights arising
under Contracts), wherever located (including in the possession of vendors, other Persons or
elsewhere), whether real, personal or mixed, tangible, intangible or contingent, in each case
whether or not recorded or reflected or required to be recorded or reflected on the books and
records or financial statements of any Person.

3

 

          “Business Day” means a day other than a Saturday, Sunday or other day on which
commercial banks in the State of Oklahoma are authorized or required by law to close.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Consents” means any consents, waivers or approvals from, or notification requirements
to, any Person other than a member of either Group.

          “Contract” means any contract, agreement, lease, license, sales order, purchase order,
instrument or other commitment that is binding on any Person or any part of its property under
applicable law.

          “Distribution Date” means the date on which the Distribution occurs.

          “Effective Date” means 11:59 p.m., Tulsa, Oklahoma time, on the date that is
immediately prior to the IPO Closing Date, or such other date as may be fixed by WMB.

          “Employee
Matters Agreement” means the Employee Matters Agreement,
dated as of the date hereof, between WMB and WPX, as may be amended
or modified from time to time.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, together with
the rules and regulations promulgated thereunder.

          “Financial Statements” means the Annual Financial Statements and Quarterly Financial
Statements collectively.

          “GAAP” means U.S. generally accepted accounting principles.

          “Governmental Approvals” means any notices, reports or other filings to be given to or
made with, or any releases, Consents, substitutions, approvals, amendments, registrations, permits
or authorizations to be obtained from, any Governmental Authority.

          “Governmental Authority” means any United States or non-United States federal, state,
local, territorial, tribal or international court, government, department, commission, board,
bureau, agency, official or other legislative, judicial, regulatory, administrative or governmental
authority.

          “Group” means the WMB Group or the WPX Group, as the context requires.

          “Information” means information, including books and records, whether or not
patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms,
stored in any medium, including studies, reports, records, books, contracts, instruments, surveys,
discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints,
diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software,
marketing plans, customer names, communications by or to attorneys (including attorney-client
privileged communications), memos and other materials prepared by attorneys or under their
direction (including attorney work product), and other technical, financial, employee or business
information or data.

4

 

          “Insurance Proceeds” means, with respect to any Liability to be reimbursed by an
Indemnifying Party that may be covered, in whole or in part, by insurance policies written by
third-party providers, the amount of insurance proceeds actually received in cash under such
insurance policy with respect to such Liability, net of any costs in seeking such collection.

          “IPO Closing Date” means the first date on which the proceeds of any sale of WPX
Common Stock to the Underwriters are received.

          “IPO Prospectus” means the prospectus included in the IPO Registration Statement,
including any prospectus subject to completion, final prospectus, or any supplement to or amendment
of any of the foregoing.

          “IPO Registration Statement” means the Registration Statement on Form S-1 of WPX filed
with the SEC pursuant to the Securities Act, registering the shares of WPX Common Stock to be
issued in the IPO, together with all amendments thereto.

          “IRS” means the U.S. Internal Revenue Service.

          “Law” means any statute, law, regulation, ordinance, rule, judgment, rule of common
law, order, decree, government approval, concession, grant, franchise, license, agreement,
directive, guideline, policy, requirement or other governmental restriction or any similar form of
decision of, or determination by, or any interpretation or administration of any of the foregoing
by, any Governmental Authority, whether now or hereinafter in effect and, in each case, as amended.

          “Liabilities” means any and all losses, claims, charges, debts, demands, Actions,
damages, obligations, payments, costs and expenses, sums of money, bonds, indemnities and similar
obligations, penalties, covenants, Contracts, controversies, agreements, promises, omissions,
guarantees, make whole agreements and similar obligations, and other liabilities, including all
contractual obligations, whether absolute or contingent, inchoate or otherwise, matured or
unmatured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whenever arising,
and including those arising under any Law, Action, threatened or contemplated Action (including the
costs and expenses of demands, assessments, judgments, settlements and compromises relating thereto
and attorneys’ fees and any and all costs and expenses (including allocated costs of in-house
counsel and other personnel), whatsoever incurred in investigating, preparing or defending against
any such Actions or threatened or contemplated Actions), order or consent decree of any
Governmental Authority or any award of any arbitrator of any kind, and those arising under any
contract, commitment or undertaking, including those arising under this Agreement or any Ancillary Agreement or incurred by a party hereto or
thereto in connection with enforcing its rights to indemnification hereunder or thereunder, in each
case, whether or not recorded or reflected or required to be recorded or reflected on the books and
records or financial statements of any Person.

     “Ordinary Course of Business” means the ordinary course of the WPX Business as
conducted by WMB and its Subsidiaries prior to the Effective Date consistent

5

 

with historical custom and practice during normal day-to-day operations and not requiring any special authorization of any
nature.

          “Person” means an individual, corporation, partnership, limited liability company,
limited liability partnership, syndicate, person, trust, association, organization or other entity,
including any Governmental Authority, and including any successor, by merger or otherwise, of any
of the foregoing.

          “Record Date” means the close of business on the date to be determined by WMB’s Board
of Directors as the record date for determining the stockholders of WMB entitled to receive shares
of WPX Common Stock pursuant to the Distribution.

          “Registration Rights Agreement” means the Registration Rights Agreement, dated as of
the date hereof, between WMB and WPX, as may be amended or modified from time to time.

          “Regulation S-K” means Regulation S-K of the General Rules and Regulations promulgated
by the SEC pursuant to the Securities Act.

          “Regulation S-X” means Regulation S-X of the General Rules and Regulations
promulgated by the SEC pursuant to the Securities Act.

          “SEC” means the U.S. Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended, together with the rules
and regulations promulgated thereunder.

          “Subsidiary” of any Person means any corporation or other organization, whether
incorporated or unincorporated, of which at least a majority of the securities or interests having
by the terms thereof ordinary voting power to elect at least a majority of the board of directors
or others performing similar functions with respect to such corporation or other organization is
directly or indirectly owned or controlled by such Person or by any one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries; provided,
however, that no Person that is not directly or indirectly wholly owned by any other Person
shall be a Subsidiary of such other Person unless such other Person controls, or has the right,
power or ability to control, that Person.

          “Tax Control” means the definition of “control” set forth in Section 368(c) of the
Code.

          “Tax” or “Taxes” shall have the same meaning as ascribed to such term in the
Tax Sharing Agreement.

          “Tax Sharing Agreement” means the Tax Sharing Agreement, dated as of the date hereof,
between WMB and WPX, as may be amended or modified from time to time.

6

 

          “Transition Services Agreement” means the Transition Services Agreement, dated as of
the date hereof, between WMB and WPX, as may be amended or modified from time to time, which
provides for WMB’s provision of certain services to WPX on and after the Distribution Date.

          “Underwriters” means the managing underwriters for the IPO as described in the IPO
Registration Statement.

          “Underwriting Agreement” means the Underwriting Agreement between WMB, WPX and the
Underwriters relating to the IPO, as amended from time to time.

          “WMB Board” means the Board of Directors of WMB or an authorized committee thereof.

          “WMB Business” means the business and operations other than the WPX Business conducted
by WMB and the WMB Entities (whether conducted independently or in association with one or more
third parties through a partnership, joint venture or other mutual enterprise) at any time prior
to, on or after the Effective Date.

          “WMB Common Stock” means the common stock, par value $1.00 per share, of WMB.

          “WMB Entities” means the members of the WMB Group.

          “WMB Group” means WMB and each direct or indirect Subsidiary of WMB, other than
Persons in the WPX Group.

          “WMB Liabilities” means (without duplication): (a) any and all Liabilities that are
expressly contemplated by this Agreement or any Ancillary Agreement to be retained or assumed by
WMB or any WMB Entity, and all agreements, obligations and Liabilities of any WMB Entity under this
Agreement or any of the Ancillary Agreements; (b) all Liabilities to the extent relating to,
arising out of or resulting from the operation of the WMB Business, as conducted at any time prior
to, on or after the Effective Date; and (c) all other Liabilities of any member of the WMB Group
that are not WPX Liabilities.

          “WMB Shared Contract” means any Contract relating in part to the WPX Business not
included in the WPX Assets.

          “WPX Assets” means all of WMB’s and its Subsidiaries’ right, title and interest in and
to:

          (a) any and all Assets of WMB and its Subsidiaries that are used exclusively or held for use
exclusively in the WPX Business (other than WMB’s direct or
indirect equity interests in Williams Production Services, LLC and
Williams Gas Marketing Services, LLC), including without limitation (i) all of WMB’s direct or indirect
stock or other equity interests in the entities set forth on Exhibit A which have been or
are hereby contributed as part of the Contribution, and (ii) certain Assets of WMB that may have
been previously contributed to WPX; and

7

 

          (b) any and all Assets that are expressly listed, scheduled or otherwise clearly described in
any Ancillary Agreement as Assets to be transferred to any WPX Entity.

          “WPX Borrowing” means
the indebtedness of WPX  incurred pursuant to the
issuance of the WPX Notes and the  WPX Credit Facility.

          “WPX Business” means the exploration and production business and any other business
and operations conducted by WPX and the WPX Entities (whether conducted independently or in
association with one or more third parties through a partnership, joint venture or other mutual
enterprise) at any time prior to, on or after the Effective Date.

          “WPX
Common Stock” means, collectively, the Common Stock, par
value $0.01 per share,
of WPX and any other class or series of common stock of WPX currently existing or hereinafter
created.

          “WPX Credit Facility” means
Credit Agreement, dated as of June 3, 2011, by and among WPX, the lenders named therein, and Citibank, N.A., as administrative agent and swingline lender.

          “WPX Entities” means the members of the WPX Group.

          “WPX Group” means WPX and each direct or indirect Subsidiary of WPX.

          “WPX Indebtedness” means the aggregate principal amount of total Liabilities (whether
long-term or short-term) for borrowed money (including capitalized leases) of the WPX Group
collectively, as determined for purposes of its Financial Statements prepared in accordance with
GAAP.

          “WPX Liabilities” means (without duplication):

          (a) any and all Liabilities to the extent arising out of or relating to the WPX Business or
the WPX Assets, in each case whether such Liabilities arise or accrue prior to, on or after the Effective Date (other than Tax-related Liabilities, which are
exclusively governed by the Tax Sharing Agreement);

          (b) any and all Liabilities to the extent arising out of or relating to the operation of any
business conducted by any WPX Entity at any time after the Effective Date;

          (c) any and all Liabilities that are expressly listed, scheduled or otherwise clearly
described in any Ancillary Agreement as Liabilities to be assumed by WPX or any WPX Entity; and

8

 

          (d) all obligations of the WPX Group under or pursuant to this Agreement, any Ancillary
Agreement or any other instrument entered into in connection herewith or therewith.

          “WPX Notes” means up to $1.5 billion aggregate principal amount of senior
unsecured notes  issued by WPX
prior to  the IPO on such terms and conditions as agreed to by WMB, WPX and the
underwriters for the WPX Notes.

          “WPX Shared Contract” means any Contract included in the WPX Assets relating in part
to the WMB Business.

          “WPX Transfer Agent” means the transfer agent and registrar for the WPX Common Stock.

ARTICLE II

THE CONTRIBUTION

     Section 2.1 Contribution of WPX Assets. Unless otherwise provided in this Agreement
or in any Ancillary Agreement, on or before the Effective Date, WMB will (and WMB will cause its
applicable Subsidiaries to) assign, transfer and convey to WPX and its applicable Subsidiaries, and
WPX will receive and accept from WMB and its applicable Subsidiaries, all of WMB’s and its
applicable Subsidiaries’ right, title and interest in and to the WPX Assets. Such assignments,
transfers and conveyances will be effective at such times as provided in each respective Ancillary
Agreement and will be subject to the terms and conditions of this Agreement and any applicable
Ancillary Agreement.

     Section 2.2 Assumption of Liabilities. Unless otherwise provided in this Agreement or
in any Ancillary Agreement, on or before the Effective Date, WPX will (and WPX will cause its
applicable Subsidiaries to) assume, and on a timely basis pay, perform, satisfy and discharge the
WPX Liabilities in accordance with their respective terms. WPX and its applicable Subsidiaries
will be responsible for all WPX Liabilities, regardless of (a) when or where such Liabilities arose
or arise, (b) whether the facts on which they are based occurred on, prior to or subsequent to the
Effective Date, (c) where or against whom such Liabilities are asserted or determined, (d) whether
asserted or determined on, prior to or subsequent to the Effective Date, or (e) whether arising
from or alleged to arise from negligence, recklessness, violation of law, fraud or
misrepresentation (each, a “Bad Act”) by any member of the WMB Group, the WPX Group or any
of their respective past or present representatives; provided, however, that this
Section 2.2 will not limit WPX’s right to make a claim against a WMB Group member for Losses
suffered by it to the extent that such Losses are a direct result of a Bad Act committed by a WMB
Group member subsequent to the Effective Date. Such assumptions of WPX Liabilities will be
effective at such times as provided in each respective Ancillary Agreement and will be subject to
the terms and conditions of this Agreement and any applicable Ancillary Agreement.

     Section 2.3 Effective Date; Deliveries. In furtherance of the assignment, transfer
and conveyance of the WPX Assets and the assumption of the WPX Liabilities as

9

 

set forth in this
Agreement and the Ancillary Agreements, unless otherwise provided in this Agreement or in any
Ancillary Agreement, on or before the Effective Date, the parties will execute and deliver, and
they will cause their respective Subsidiaries and representatives, as applicable, to execute and
deliver: (a) each of the Ancillary Agreements; (b) such bills of sale, stock powers, certificates
of title, assignments of Contracts, subleases and other instruments of transfer, conveyance and
assignment as, and to the extent, necessary or convenient to evidence the transfer, conveyance and
assignment to WPX (or, as applicable, its Subsidiaries) of all of WMB’s (or, as applicable, its
Subsidiaries’) right, title and interest in and to the WPX Assets; and (c) such assumptions of
Contracts and other instruments of assumption as, and to the extent, necessary or convenient to
evidence the valid and effective assumption of the WPX Liabilities by WPX (or, as applicable, its
Subsidiaries).

     Section 2.4 Transfers Not Effected on or before the Effective Date.

          (a) The parties acknowledge and agree that some of the transfers contemplated by this Article
II may not be effected on or before the Effective Date due to the inability of the parties to
obtain necessary Consents or approvals or the inability of the parties to take certain other
actions necessary to effect such transfers on or before the Effective Date. To the extent any
transfers contemplated by this Article II have not been fully effected on or before the Effective
Date, WMB and WPX will cooperate and use commercially reasonable efforts (and will cause the
applicable members of its respective Group to use such efforts) to obtain any necessary Consents or
approvals or take any other actions necessary to effect such transfers as promptly as practicable
following the Effective Date.

          (b) Nothing in this Agreement will be deemed to require the transfer or assignment of any
Contract or other Asset by any WMB Entity (an “Intended Transferor”) to any WPX Entity (an
“Intended Transferee”) to the extent that such transfer or assignment would constitute a
material breach of such Contract or cause forfeiture or loss of such Asset; provided,
however, that even if such Contract or other Asset cannot be so transferred or assigned,
such Contract or other Asset will be deemed a WPX Asset solely for purposes of determining whether
any Liability is a WPX Liability.

          (c) If an attempted assignment would be ineffective or would impair an Intended Transferee’s
rights under any such WPX Asset so that the Intended Transferee would not receive all such rights,
then the parties will use commercially reasonable efforts to provide to, or cause to be provided
to, the Intended Transferee, to the extent permitted by law, the rights of any such WPX Asset and
take such other actions as may reasonably be requested by the other party in order to place the
Intended Transferee, insofar as reasonably possible, in the same position as if such WPX Asset had
been transferred as contemplated hereby. In connection therewith, (i) the Intended Transferor will
promptly pass along to the Intended Transferee when received all benefits derived by the Intended
Transferor with respect to any such WPX Asset, and (ii) the Intended Transferee will pay, perform
and discharge on behalf of the Intended Transferor all of the Intended Transferor’s obligations
with respect to any such WPX Asset in a timely manner and in accordance with the terms thereof
which it may do without breach. If and when such Consents or approvals

10

 

are obtained or such other
required actions have been taken, the transfer of the applicable WPX Asset will be effected in
accordance with the terms of this Agreement and any applicable Ancillary Agreement.

     Section 2.5 Shared Contracts. The parties agree as follows:

          (a) At the written request of WPX, WMB will, and will cause other members of the WMB Group to,
to the extent permitted by the applicable WMB Shared Contract and applicable law, make available to
WPX or applicable members of the WPX Group the benefits and rights under the WMB Shared Contracts
(except where the benefits or rights under such WMB Shared Contracts are specifically provided
pursuant to an Ancillary Agreement) which are substantially equivalent to the benefits and rights
enjoyed by the WMB Group under each WMB Shared Contract for which such request is made by WPX, to
the extent such benefits relate to the WPX Business; provided, however, that the
applicable members of the WPX Group will assume and discharge (or promptly reimburse WMB for) the
obligations and liabilities under the relevant WMB Shared Contracts associated with the benefits
and rights so made available to them.

          (b) At the written request of WMB, WPX will, and will cause other members of the WPX Group to,
to the extent permitted by the applicable WPX Shared Contract and applicable law, make available to
WMB or applicable members of the WMB Group the benefits and rights under the WPX Shared Contracts
(except where the benefits or rights under such WPX Shared Contracts are specifically provided
pursuant to an Ancillary Agreement) which are substantially equivalent to the benefits and rights
enjoyed by the WPX Group under each WPX Shared Contract for which such request is made by WMB, to
the extent such benefits relate to the WMB Business; provided, however, that the
applicable members of the WMB Group will assume and discharge (or promptly reimburse WPX for) the
obligations and liabilities under the relevant WPX Shared Contracts associated with the benefits
and rights so made available to them.

          (c) The parties’ rights and obligations pursuant to this Section 2.5 will terminate upon the
earliest to occur of (i) the Distribution Date, (ii) the termination of WMB’s obligation to effect
the Distribution pursuant to Section 9.1, and (iii) with respect to any WMB Shared Contract or WPX
Shared Contract in particular, such time that the arrangement pursuant to this Section 2.5 is no
longer permitted thereunder.

     Section 2.6 Termination of Agreements.

          (a) Except as set forth in Section 2.6(b), the WMB Entities, on the one hand, and the WPX
Entities, on the other hand, hereby terminate any and all agreements, arrangements, commitments or
understandings (including intercompany work orders), whether or not in writing, between or among
any WMB Entity, on the one hand, and any WPX Entity, on the other hand, effective as of the
Effective Date. No such terminated agreement, arrangement, commitment or understanding (including
any provision thereof that purports to survive termination) shall be of any further force or effect
from and after the Effective Date. Each party shall, at the reasonable request of the other party,
take, or cause to be taken, such other actions as may be necessary to effect the foregoing.

11

 

          (b) The provisions of Section 2.6(a) shall not apply to any of the following agreements,
arrangements, commitments or understandings (or to any of the provisions thereof):

               (i) this Agreement and the Ancillary Agreements (and each other agreement or instrument
expressly contemplated by this Agreement or any Ancillary Agreement to be entered into by any WMB
Entity or WPX Entity);

               (ii) any agreements, arrangements, commitments or understandings to which any non-wholly owned
Subsidiary or non-wholly owned Affiliate of WMB or WPX, as the case may be, is a party;

               (iii) any other agreements, arrangements, commitments or understandings that this Agreement or
any Ancillary Agreement expressly contemplates will survive the Effective Date;

               (iv) any confidentiality or non-disclosure agreements among any members of either Group or
employees of any member of either Group, including any obligation not to disclose proprietary or
privileged information; and

               (v) any agreements, arrangements, commitments or understandings listed or described on
Schedule 2.6(b)(v).

          (c) Except as otherwise expressly and specifically provided in this Agreement or any Ancillary
Agreement, all intercompany receivables, payables, loans and other accounts between any WMB Entity,
on the one hand, and any WPX Entity, on the other hand, in existence as of immediately prior to the
Effective Date shall be satisfied and/or settled by the relevant members of the WMB Group and the
WPX Group no later than the Effective Date by (i) forgiveness by the relevant obligor or (ii) one
or a related series of repayments, distributions of and/or contributions to capital, in each case
as determined by WMB.

     Section 2.7 Governmental Approvals and Consents. To the extent that any of the
transactions contemplated by this Agreement or any Ancillary Agreement requires any Governmental
Approval or Consent, the parties will use their reasonable best efforts to obtain such Governmental
Approval or Consent.

     Section 2.8 Disclaimer of Representations and Warranties. Each of WMB (on behalf of
itself and each other WMB Entity) and WPX (on behalf of itself and each other WPX Entity)
understands and agrees that, except as expressly set forth herein or in any Ancillary Agreement, no
party (including its Affiliates) to this Agreement, any Ancillary Agreement or any other agreement
or document contemplated by this Agreement, any Ancillary Agreement or otherwise, is making any
representations or warranties relating in any way to the Contribution, Distribution or WPX Assets.

12

 

ARTICLE III

THE IPO AND THE WPX NOTES

     Section 3.1 Actions Prior to the IPO. Subject to the conditions hereof, WMB and WPX
will use their commercially reasonable efforts to consummate the IPO, including, without
limitation, by taking the actions specified in this Section 3.1.

          (a) WPX will file such amendments or supplements to the IPO Registration Statement as may be
necessary in order to cause the IPO Registration Statement to become and remain effective as
required by applicable law or by the Underwriters, including, without limitation, filing such
amendments and supplements thereto as may be required by the Underwriting Agreement, the SEC or
applicable securities laws.

          (b) WPX will enter into the Underwriting Agreement, in form and substance reasonably
satisfactory to each party, and each party will comply with its respective obligations thereunder.

          (c) WPX will use its commercially reasonable efforts to take all such action as may be
necessary or appropriate under applicable state securities and blue sky laws of the United States
(and any comparable laws under any foreign jurisdictions) in connection with the IPO.

          (d) WPX will prepare, file and use commercially reasonable efforts to seek to make effective,
an application for listing of the WPX Common Stock to be issued in the IPO on the New York Stock
Exchange, subject to official notice of issuance.

          (e) WPX will participate in the preparation of materials and presentations that WMB and the
Underwriters will deem necessary or desirable.

          (f) WPX will cooperate in all respects with WMB in connection with the pricing and timing of
the WPX Common Stock to be issued in the IPO and will, at WMB’s direction, promptly take any and
all actions necessary or desirable to consummate the IPO as contemplated by the IPO Registration
Statement and the Underwriting Agreement.

     Section 3.2 Use of IPO Proceeds. The IPO will be a primary offering of WPX Common
Stock, and WPX shall use the net proceeds from the IPO as set forth in the IPO Prospectus.

     Section 3.3 Conditions to the IPO. The obligations of the parties to consummate the
IPO will be subject to such conditions as WMB will determine in its sole and absolute discretion,
which conditions will be for the sole benefit of WMB, may be waived by WMB in its sole and absolute
discretion, and any determination by WMB regarding the satisfaction or waiver of any of such
conditions will be conclusive. Such conditions will include, without limitation, the conditions
specified in this Section 3.3.

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          (a) The IPO Registration Statement will have been declared effective by the SEC, and there
will be no stop order in effect with respect thereto and no proceeding for that purpose will have
been instituted by the SEC.

          (b) The actions and filings with regard to state securities and blue sky laws of the United
States (and any comparable laws under any foreign jurisdictions) referred to in Section 3.1 will
have been taken and, where applicable, have become effective or been accepted.

          (c) The WPX Common Stock to be issued in the IPO will have been accepted for listing on the
New York Stock Exchange, subject to official notice of issuance.

          (d) WPX will have entered into the Underwriting Agreement and all conditions to the
obligations of WPX and the Underwriters thereunder will have been satisfied or waived.

          (e) WMB will be satisfied in its sole and absolute discretion that (i) it will possess Tax
Control of WPX immediately following the consummation of the IPO, (ii) all other matters regarding
the Tax consequences of the Distribution will, to the extent applicable as of the time the IPO is
consummated, be satisfied or can reasonably be anticipated to be satisfied, and (iii) there will be
no event or condition that may cause any of such conditions not to be satisfied as of the time of
the Distribution or thereafter.

          (f) No order, injunction or decree issued by any court or agency of competent jurisdiction or
other legal restraint or prohibition preventing the consummation of the IPO or any of the other
transactions contemplated by this Agreement or any Ancillary Agreement will be in effect.

          (g) WMB will have determined that the terms of the IPO, including the timing and pricing
thereof, and other material matters in connection therewith, are acceptable to WMB.

          (h) This Agreement will not have been terminated.

14

 

     Section 3.4 WPX Notes Proceeds. WPX will distribute to WMB a portion of the
proceeds from the issuance of the WPX Notes, as more fully set forth in the IPO Prospectus or the
offering memorandum for the WPX Notes.

ARTICLE IV

THE DISTRIBUTION

     Section 4.1 The Distribution. WMB intends, following the consummation of the IPO, to
complete the Distribution in 2012. WMB will, in its sole and absolute discretion, determine the
date of the consummation of the Distribution and all terms of the Distribution, including without
limitation, the form, structure and terms of any transaction(s) and/or offering(s) to effect the
Distribution and the timing of and conditions to the consummation of the Distribution. In
addition, WMB may, at any time and from time to time until the completion of the Distribution,
modify or change the terms of the Distribution, including, without limitation, by accelerating or
delaying the timing of the consummation of all or part of the Distribution. WPX will cooperate
with WMB in all respects to accomplish the Distribution and will, at WMB’s direction, promptly take
any and all actions necessary or desirable to effect the Distribution, including, without
limitation, to the extent necessary, the registration under the Securities Act and the Exchange Act
of the WPX Common Stock on an appropriate registration form or forms to be designated by WMB. WMB
will select any investment banker(s) and manager(s) in connection with the Distribution, as well as
any financial printer, solicitation and/or exchange agent and financial, legal, accounting and
other advisors for WMB, provided, however, that nothing in this Agreement will
prohibit WPX from engaging (at its own expense) its own financial, legal, accounting and other
advisors in connection with the Distribution.

     Section 4.2 Actions Prior to the Distribution. In connection with the Distribution,
the parties will take the actions set forth in this Section 4.2.

          (a) WMB and WPX will prepare and mail, prior to any Distribution Date, to the holders of WMB
Common Stock, such information concerning WPX and the Distribution and such other matters as WMB
reasonably determines and as may be required by law. WMB and WPX will prepare, and WPX will, to
the extent required by applicable law, file with the SEC any such documentation that WMB determines
is necessary or desirable to effect the Distribution, and WMB and WPX will each use its
commercially reasonable efforts to obtain all necessary approvals from the SEC with respect thereto
as soon as practicable.

          (b) WPX will use its commercially reasonable efforts to take all such action as may be
necessary or desirable under applicable state securities and blue sky laws of the United States
(and any comparable laws under any foreign jurisdictions) in connection with the Distribution.

          (c) WPX will prepare, file and use commercially reasonable efforts to seek to make effective,
an application for listing of the WPX Common Stock to be

15

 

distributed in the Distribution on the New York Stock Exchange, subject to official notice of issuance.

          (d) WPX will take all reasonable steps necessary or desirable to cause the conditions set
forth in Section 4.3 to be satisfied and to effect the Distribution.

     Section 4.3 Conditions to the Distribution. The consummation of the Distribution will
be subject to the satisfaction, or waiver by WMB in its sole and absolute discretion, of the
conditions set forth in this Section 4.3. Any determination by WMB regarding the satisfaction or
waiver of any of such conditions will be conclusive. For the avoidance of doubt, in the event that
WMB determines not to consummate the Distribution because one or more of such conditions is not
satisfied or for any other reason, such determination by WMB will not impact the effectiveness of
the Contribution or the IPO.

          (a) The receipt by WMB, in form and substance satisfactory to it, of a ruling by the IRS and
an opinion from its legal advisors regarding the tax consequences of the Distribution and such
other matters, as it will determine to be necessary or advisable in its sole and absolute
discretion.

          (b) The receipt of any Governmental Approvals and material Consents necessary to consummate
the Distribution, which Governmental Approvals and Consents will be in full force and effect.

          (c) No order, injunction, decree or regulation issued by any court or agency of competent
jurisdiction or other legal restraint or prohibition preventing the consummation of the
Distribution will be in effect and no other event outside the control of WMB will have occurred or
failed to occur that prevents the consummation of the Distribution.

          (d) The actions and filings necessary or appropriate under applicable securities laws in
connection with the Distribution will have been taken or made, and, where applicable, have become
effective or been accepted.

          (e) The WPX Common Stock to be distributed in the Distribution will have been accepted for
listing on the New York Stock Exchange, subject to official notice of issuance.

          (f) The receipt by WMB, in form and substance satisfactory to it, of (i) an opinion from
Delaware counsel, selected by WMB in its sole and absolute discretion, regarding the
appropriateness of the determination by the WMB Board that WMB has sufficient surplus under
Delaware law to permit the Distribution, (ii) an opinion from its financial advisor with respect to
(A) the fairness, as of the date of such opinion, to holders of WMB Common Stock, from a financial
point of view, of the Distribution, and (B) the ability of WMB and WPX, given their respective
capital structures following the Distribution, to finance their respective operating and capital
requirements through a specified date based on conditions in the capital markets as of the date of
such opinion, and (iii) appropriate certificates from WPX and/or WPX’s senior management with
respect to factual matters required by the advisors to render the opinions referenced in (i) and
(ii).

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     Section 4.4 Certain Stockholder Matters.

          (a) Subject to Section 4.3 hereof, on or prior to the Distribution Date, WMB will deliver to a
distribution agent to be appointed by WMB (the “Distribution Agent”) for the benefit of
holders of record of WMB Common Stock on the Record Date, a single stock certificate, endorsed by
WMB in blank, representing all of the outstanding shares of WPX Common Stock then owned by WMB, and
WMB will instruct the Distribution Agent to deliver to the WPX Transfer Agent true, correct and
complete copies of the stock and transfer records reflecting the holders of WMB Common Stock
entitled to receive shares of WPX Common Stock in connection with the Distribution. WMB will cause
its transfer agent to instruct the Distribution Agent to distribute on the Distribution Date or as
soon as reasonably practicable thereafter the appropriate number of shares of WPX Common Stock to
each such holder or designated transferee(s) of such holder. WMB will cooperate, and will instruct
the Distribution Agent to cooperate, with WPX and the WPX Transfer Agent, and WPX will cooperate,
and will instruct the WPX Transfer Agent to cooperate, with WMB and the Distribution Agent, in
connection with all aspects of the Distribution and all other matters relating to the issuance and
delivery of certificates representing, or other evidence of ownership of, the shares of WPX Common
Stock to be distributed to the holders of WMB Common Stock in connection with the Distribution.

          (b) Subject to Section 4.4(d), each holder of WMB Common Stock on the Record Date (or such
holder’s designated transferee(s)) will be entitled to receive in the Distribution a number of
shares of WPX Common Stock equal to the number of shares of WMB Common Stock held by such holder on
the Record Date, multiplied by a fraction, (i) the numerator of which is the number of shares of
WPX Common Stock beneficially owned by WMB or any other member of the WMB Group on the Record Date,
and (ii) the denominator of which is the number of Shares of WMB Common Stock outstanding on the
Record Date. In the event that the Distribution consists of more than one class of WPX Common
Stock, each holder of WMB Common Stock will receive shares of WPX Common Stock, calculated as
provided above, except that the calculation will be performed separately for each such class of
stock. WMB, in its sole discretion, may distribute cash in lieu of any fractional shares received
by a holder of WMB Common Stock.

          (c) Until such WPX Common Stock is duly transferred in accordance with applicable law, WPX
will regard the Persons entitled to receive such WPX Common Stock as record holders of WPX Common
Stock in accordance with the terms of the Distribution without requiring any action on the part of
such Persons. WPX agrees that, subject to any transfers of such stock, (i) each such holder will
be entitled to receive all dividends payable on, and exercise voting rights and all other rights
and privileges with respect to, the shares of WPX Common Stock then held by such holder, and (ii)
each such holder will be entitled, without any action on the part of such holder, to receive one or
more certificates representing, or other evidence of ownership of, the shares of WPX Common Stock
then held by such holder.

          (d) Notwithstanding anything to the contrary in this Section 4.4, in the event that the
Distribution is not made in the form of a pro rata distribution of WPX

17

 

Common Stock to holders of WMB Common Stock, the above provisions of this Section 4.4 will not apply to the Distribution.

          (e) If WMB determines (in its sole discretion) to effect the separation of WPX from WMB
through a transaction other than the Distribution (whether by means of a split off, a share
exchange or otherwise), WPX shall use commercially reasonable efforts to take all actions (or
refrain from any actions) reasonably requested by WMB in connection therewith.

ARTICLE V

FINANCIAL AND OTHER COVENANTS

     Section 5.1 Financial and Other Information.

          (a) Financial Information. WPX agrees that, for so long as WMB is required to
consolidate the results of operations and financial position of WPX and any other members of the
WPX Group or to account for its investment in WPX under the equity method of accounting (determined
in accordance with GAAP consistently applied and consistent with SEC reporting requirements), WPX
will: (i) comply with all requirements under applicable law regarding disclosure controls and
procedures and internal control over financial reporting; (ii) maintain internal systems and
procedures that will provide WMB with reasonable assurance that WPX’s financial statements and
other publicly reported information is reliable and timely prepared in accordance with GAAP and any
other applicable law; and (iii) provide WMB with financial reports, including consolidated
financial statements (and notes thereto) and discussion and analysis by management of WPX’s
financial condition and liquidity, in the form, and in accordance with the dates, specified by WMB.

          (b) Auditors and Audits; Annual Statements and Accounting. WPX agrees that, for so
long as WMB is required to consolidate WPX’s results of operations and financial position or to
account for its investment in WPX under the equity method of accounting (in accordance with GAAP):

               (i) Selection of WPX Auditors. Unless required by law, WPX will not select a
different accounting firm than Ernst & Young LLP (or its affiliate accounting firms) (unless so
directed by WMB in accordance with a change by WMB in its accounting firm) to serve as its (and the
WPX Affiliates’) independent certified public accountants (“WPX’s Auditors”) without WMB’s
prior written consent (which will not be unreasonably withheld); provided, however, that, to the
extent any such WPX Affiliates are currently using a different accounting firm to serve as their
independent certified public accountants, such WPX Affiliates may continue to use such accounting
firm provided such accounting firm is reasonably satisfactory to WMB.

               (ii) Audit Timing. WPX will use its commercially reasonable efforts to enable WPX’s
Auditors to complete their audit such that they will date their opinion on the Annual Financial
Statements on the same date that WMB’s independent certified public accountants (“WMB’s
Auditors” ) date their opinion on WMB’s audited

18

 

annual
financial statements (the “WMB Annual
Statements”), and to enable WMB to meet its timetable for the printing, filing and public
dissemination of the WMB Annual Statements, all in accordance with Section 5.1(a) hereof and as
required by applicable law.

               (iii) Information Needed by WMB. WPX will provide to WMB on a timely basis all
information that WMB reasonably requires to meet its schedule for the preparation, printing,
filing, and public dissemination of the WMB Annual Statements in accordance with Section 5.1(a)
hereof and as required by applicable law. Without limiting the generality of the foregoing, WPX
will provide all required financial information with respect to the WPX Group to WPX’s Auditors in
a sufficient and reasonable time and in sufficient detail to permit WPX’s Auditors to take all
steps and perform all reviews necessary to provide sufficient assistance to WMB’s Auditors with
respect to information to be included or contained in the WMB Annual Statements.

               (iv) Access to WPX Auditors. WPX will authorize WPX’s Auditors to make available to
WMB’s Auditors both the personnel who performed, or are performing, the annual audit of WPX and
work papers related to the annual audit of WPX, in all cases within a reasonable time prior to
WPX’s Auditors’ opinion date, so that WMB’s Auditors are able to perform the procedures they
consider necessary to take responsibility for the work of WPX’s Auditors as it relates to WMB’s
Auditors’ report on WMB’s statements, all within sufficient time to enable WMB to meet its
timetable for the printing, filing and public dissemination of the WMB Annual Statements.

               (v) Access to Records. If WMB determines in good faith that there may be some
inaccuracy in a WPX Group member’s financial statements or deficiency in a WPX Group member’s
internal accounting controls or operations that could materially impact WMB’s financial statements,
at WMB’s request, WPX will provide WMB’s internal auditors with access to the WPX Group’s books and
records so that WMB may conduct reasonable audits relating to the financial statements provided by
WPX under this Agreement as well as to the internal accounting controls and operations of the WPX
Group.

               (vi) Notice of Changes. Subject to Section 5.1(a)(vii), WPX will give WMB as much
prior notice as reasonably practicable of any proposed determination of, or any significant changes
in, WPX’s accounting estimates or accounting principles from those in effect on the Effective Date.
WPX will consult with WMB and, if requested by WMB, WPX will consult with WMB’s Auditors with
respect thereto. WPX will not make any such determination or changes without WMB’s prior written
consent if such a determination or a change would be sufficiently material to be required to be
disclosed in WPX’s or WMB’s financial statements as filed with the SEC or otherwise publicly
disclosed therein.

               (vii) Accounting Changes Requested by WMB. Notwithstanding clause (vi) above, WPX
will make any changes in its accounting estimates or accounting principles that are requested by
WMB in order for WPX’s accounting practices and principles to be consistent with those of WMB.

19

 

               (viii) Special Reports of Deficiencies or Violations. WPX will report in reasonable
detail to WMB the following events or circumstances promptly after any executive officer of WPX or
any member of the WPX Board of Directors becomes aware of such matter: (A) all significant
deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect WPX’s ability to record, process,
summarize and report financial information; (B) any fraud, whether or not material, that involves
management or other employees who have a significant role in WPX’s internal control over financial
reporting; (C) any illegal act within the meaning of Section 10A(b) and (f) of the Exchange Act;
and (D) any report of a material violation of law that an attorney representing any WPX Group
member has formally made to any officers or directors of WPX pursuant to the SEC’s attorney conduct
rules (17 C.F.R. Part 205).

     Section 5.2 Other Covenants. In addition to the other covenants contained in this
Agreement and the Ancillary Agreements, WPX hereby covenants and agrees that, for so long as WMB
beneficially owns at least 50% of the total voting power of all classes of then outstanding capital
stock of WPX entitled to vote generally in the election of directors (“WPX Voting Stock”):

          (a) WPX will not, without the prior written consent of WMB (which WMB may withhold in its sole
and absolute discretion), take, or cause to be taken, directly or indirectly, any action, including
making or failing to make any election under the law of any state, which has the effect, directly
or indirectly, of restricting or limiting the ability of WMB to freely sell, transfer, assign,
pledge or otherwise dispose of shares of WPX Common Stock or would restrict or limit the rights of
any transferee of WMB as a holder of WPX Common Stock. Without limiting the generality of the
foregoing, WPX will not, without the prior written consent of WMB (which WMB may withhold in its
sole and absolute discretion), take any action, or take any action to recommend to its stockholders
any action, which would among other things, limit the legal rights of, or deny any benefit to, WMB
as a WPX stockholder either (i) solely as a result of the amount of Common Stock owned by WMB or
(ii) in a manner not applicable to WPX stockholders generally.

          (b) WPX will not, without the prior written consent of WMB (which it may withhold in its sole
and absolute discretion), issue any shares of WPX Common Stock or any rights, warrants or options
to acquire WPX Common Stock (including, without limitation, securities convertible into or
exchangeable for WPX Common Stock), if after giving effect to such issuances and considering all of
the shares of WPX Common Stock acquirable pursuant to such rights, warrants and options to be
outstanding on the date of such issuance (whether or not then exercisable), WMB would own (i) less
than 50% of the total value of all classes of stock of WPX, (ii) less than 80% of the WPX Voting
Stock, (iii) less than 80% of any class of stock other than WPX Voting Stock or (iv) less than 80%
of the total value of all classes of stock of WPX.

          (c) To the extent that WMB is a party to any Contracts that provide that certain actions or
inactions of WMB Affiliates (which for purposes of such Contract includes any member of the WPX
Group) may result in WMB being in breach of or in default under such Contracts and WMB has advised
WPX of the existence, and has

20

 

furnished WPX with copies, of such Contracts (or the relevant
portions thereof), WPX will not take or fail to take, as applicable, and WPX will cause the other
members of the WPX Group not to take or fail to take, as applicable, any actions that reasonably
could result in WMB being in breach of or in default under any such Contract. The parties
acknowledge and agree that from time to time WMB may in good faith (and not solely with the
intention of imposing restrictions on WPX pursuant to this covenant) enter into additional
Contracts or amendments to existing Contracts that provide that certain actions or inactions of WMB
Subsidiaries or Affiliates (including, for purposes of this Section 5.2(c), members of the WPX
Group) may result in WMB being in breach of or in default under such Contracts. In such event,
provided WMB has notified WPX of such additional Contracts or amendments to existing Contracts, WPX
will not thereafter take or fail to take, as applicable, and WPX will cause the other members of
the WPX Group not to take or fail to take, as applicable, any actions that reasonably could result
in WMB being in breach of or in default under any such additional Contracts or amendments to
existing Contracts. WMB acknowledges and agrees that WPX will not be deemed in breach of this
Section 5.2(c) to the extent that, prior to being notified by WMB of an additional Contract or an
amendment to an existing Contract pursuant to this Section 5.2(c), a WPX Group member already has
taken or failed to take one or more actions that would otherwise constitute a breach of this
Section 5.2(c) had such action(s) or inaction(s) occurred after such notification, provided that
WPX does not, after notification by WMB, take any further action or fail to take any action that
contributes further to such breach or default. WPX agrees that any Information provided to it
pursuant to this Section 5.2(c) will constitute Information that is subject to WPX’s obligations
under Article VI.

     Section 5.3 Covenants Regarding the Incurrence of Indebtedness.

          (a) WPX hereby covenants and agrees that, for so long as WMB is required to consolidate the
results of operations and financial position of WPX and any other members of the WPX Group or to
account for its investment in WPX under the equity method of accounting (determined in accordance
with GAAP consistently applied and consistent with SEC reporting requirements), WPX will not, and
WPX will not permit any other member of the WPX Group to, without WMB’s prior written consent
(which WMB may withhold in its sole and absolute discretion), create, incur, assume or suffer to
exist any WPX Indebtedness (other than the WPX Borrowing).

          (b) In order to implement this Section 5.3, WPX will notify WMB in writing at least 45
Business Days prior to the time it or any other member of the WPX Group contemplates incurring any
WPX Indebtedness of its intention to do so and will obtain WMB’s prior written consent to the
incurrence of such proposed additional WPX Indebtedness. Any such written notification from WPX to
WMB will include documentation of any existing WPX Indebtedness and estimated WPX Indebtedness
after giving effect to such proposed incurrence of additional WPX Indebtedness. WMB will have the
right to verify the accuracy of such information and WPX will cooperate fully with WMB in such
effort (including, without limitation, by providing WMB with access to the working papers and
underlying documentation related to any calculations used in determining such information).

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ARTICLE VI

EXCHANGE OF INFORMATION; CONFIDENTIALITY

     Section 6.1 Agreement for Exchange of Information.

          (a) Except in the case of an adversarial Action or threatened adversarial Action related to a
request hereunder by any member of either the WMB Group or the WPX Group against any member of the
other Group (which shall be governed by such discovery rules as may be applicable thereto), and
subject to Section 6.1(b), each of WMB and WPX, on behalf of the members of its respective Group,
shall use reasonable best efforts to provide (except as otherwise provided in this Agreement or any
Ancillary Agreement, at the sole cost and expense of the requesting party), or cause to be
provided, to the other Group, at any time before or after the Effective Date, as soon as reasonably
practicable after written request therefor, any Information in the possession or under the control
of the members of such respective Group that the requesting party reasonably requests (i) in
connection with reporting, disclosure, filing or other requirements imposed on the requesting party
(including under applicable securities, defense contracting or tax Laws) by a Governmental
Authority having jurisdiction over the requesting party, (ii) for use in any other judicial,
regulatory, administrative, tax, insurance or other proceeding or in order to satisfy audit,
accounting, claims, regulatory, investigation, litigation, tax or other similar requirements, or
(iii) to comply with its obligations under this Agreement, any Ancillary Agreement or the WPX
Borrowing. The receiving party shall use any Information received pursuant to this Section 6.1(a)
solely to the extent reasonably necessary to satisfy the applicable obligations or requirements
described in the immediately preceding sentence and shall otherwise take reasonable steps to
protect such Information. Nothing in this Section 6.1 shall be construed as obligating a party to
create Information not already in its possession or control.

          (b) In the event that any party determines that the exchange of any Information pursuant to
Section 6.1(a) is reasonably likely to violate any Law or binding agreement, or waive or jeopardize
any attorney-client privilege, or attorney work product protection, such party shall not be
required to provide access to or furnish such Information to the other party; provided,
however, that the parties shall take all reasonable measures to permit compliance with
Section 6.1(a) in a manner that avoids any such harm or consequence. WMB and WPX intend that any
provision of access to or the furnishing of Information that would otherwise be within the ambit of
any legal privilege shall not operate as a waiver of such privilege.

          (c) After the Effective Date, each of WMB and WPX shall maintain in effect systems and
controls reasonably intended to enable the members of the other Group to satisfy their respective
known reporting, accounting, disclosure, audit and other obligations.

     Section 6.2 Ownership of Information. Any Information owned by a member of one Group
that is provided to a requesting party pursuant to Section 6.1 shall be deemed to remain the
property of the providing party. Except as specifically set forth herein, nothing

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contained in
this Agreement shall be construed as granting or conferring rights of license or otherwise in any
such Information.

     Section 6.3 Compensation for Providing Information. The party requesting Information
pursuant to Section 6.1 agrees to reimburse the party providing such Information for the reasonable
costs, if any, of creating, gathering and copying such Information, to the extent that such costs
are incurred for the benefit of the requesting party. Except as may be otherwise specifically
provided elsewhere in this Agreement or in any other agreement between the parties, such costs
shall be computed in accordance with the providing party’s standard methodology and procedures.

     Section 6.4 Record Retention. To facilitate the possible exchange of Information
pursuant to this Article VI and other provisions of this Agreement from and after the Effective
Date, each of the parties agrees to use reasonable best efforts to retain all Information in
accordance with WMB’s “Records and Information Management Policy” as in effect immediately prior to
the Effective Date or as modified in good faith thereafter.

     Section 6.5 Limitation of Liability. No party shall have any liability to any other
party in the event that any Information exchanged or provided pursuant to this Agreement that is an
opinion, estimate or forecast, or that is based on an opinion, estimate or forecast, is found to be
inaccurate, in the absence of willful misconduct by the party providing such Information. No party
shall have any liability to any other party if any Information is destroyed after reasonable best
efforts by such party to comply with the provisions of Section 6.4.

     Section 6.6 Other Agreements Providing for Exchange of Information. The rights and
obligations granted under this Article VI shall be subject to any specific limitations,
qualifications or additional provisions on the sharing, exchange or confidential treatment of
Information set forth in any Ancillary Agreement.

     Section 6.7 Cooperation.

          (a) From and after the Effective Date, except in the case of an adversarial Action or
threatened adversarial Action by any member of either the WMB Group or the WPX Group against any
member of the other Group (which shall be governed by such discovery rules as may be applicable
thereto), each party, upon reasonable written request of the other party, shall use reasonable
efforts to cooperate and consult in good faith with the other party to the extent such cooperation
and consultation is reasonably necessary with respect to (i) any Action, (ii) this Agreement or any
of the Ancillary Agreements or any of the transactions contemplated hereby or thereby or (iii) any
audit, investigation or any other legal requirement, and, upon reasonable written request of the
other party, shall use reasonable efforts to make available to such other party the former, current
and future directors, officers, employees, other personnel and agents of the members of its
respective Group (whether as witnesses or otherwise). The requesting party shall bear all costs
and expenses in connection therewith.

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          (b) Notwithstanding the foregoing, Section 6.7(a) shall not require a party to take any step
that would significantly interfere, or that such party reasonably determines could significantly
interfere, with its business.

     Section 6.8 Confidentiality.

          (a) Subject to Section 6.9, each of WMB and WPX, on behalf of itself and each member of its
Group, shall hold, and shall cause its respective directors, officers, employees, agents,
accountants, counsel and other advisors and representatives to hold, in strict confidence and not
release or disclose, with at least the same degree of care, but no less than a reasonable degree of
care, that it applies to its own business sensitive and proprietary information, all Information
concerning the other Group or its business that is either in its possession (including Information
in its possession prior to the Distribution) or furnished by any member of such other Group or its
respective directors, officers, employees, agents, accountants, counsel and other advisors and
representatives at any time pursuant to this Agreement, any Ancillary Agreement or otherwise, and
shall not use any such Information other than for such purposes as shall be expressly permitted
hereunder or thereunder, except, in each case, to the extent that such Information is (i) in the
public domain through no fault of such party or any member of such Group or any of their respective
directors, officers, employees, agents, accountants, counsel and other advisors and
representatives, (ii) later lawfully acquired from other sources by such party (or any member of
such party’s Group), which sources are not themselves bound by a confidentiality obligation, or
(iii) independently generated without reference to any proprietary or confidential Information of
the disclosing party or its Group.

          (b) No receiving party shall release or disclose, or permit to be released or disclosed, any
such Information concerning the other Group to any other Person, except its directors, officers,
employees, agents, accountants, counsel and other advisors and representatives who need to know
such Information (who shall be advised of their obligations hereunder with respect to such
Information), except in compliance with Section 6.9. Without limiting the foregoing, when any
Information concerning the other Group or its business is no longer needed for the purposes
contemplated by this Agreement or any Ancillary Agreement, each disclosing party will, promptly
after the request of the receiving party, either return to the disclosing party all Information in
a tangible form (including all copies thereof and all notes, extracts or summaries based thereon)
or certify to the disclosing party that it has destroyed such Information (and such copies thereof
and such notes, extracts or summaries based thereon).

     Section 6.9 Protective Arrangements. In the event that any party or any member of its
Group either determines on the advice of its counsel that it should disclose any Information
pursuant to applicable Law or receives any demand under lawful process or from any Governmental
Authority or properly constituted arbitral authority to disclose or provide Information of any
other party (or any member of any other party’s Group) that is subject to the confidentiality
provisions hereof, the Person required to disclose the Information shall give the applicable Person
prompt, and to the extent reasonably practicable, prior written notice of such disclosure and an
opportunity to contest such disclosure, and shall use reasonable best efforts to cooperate, at the
expense of the

24

 

requesting Person, in seeking any reasonable protective arrangements requested by
such Person. In the event that such appropriate protective arrangement or order or other remedy is
not obtained, the Person that is required to disclose such Information shall furnish, or cause to
be furnished, only that portion of such Information that is legally required to be disclosed and
shall use reasonable best efforts to ensure that confidential treatment is accorded such
Information. This Section 6.9 shall not apply to the disclosure of any Information to any
Governmental Authority that is reasonably necessary to respond to any inquiry by any Governmental
Authority.

ARTICLE VII

ADDITIONAL COVENANTS AND OTHER MATTERS

     Section 7.1 Further Assurances.

          (a) In addition to the actions specifically provided for elsewhere in this Agreement, each of
the parties shall use its reasonable best efforts, prior to, on and after the Effective Date, to
take, or cause to be taken, all actions, and to do, or cause to be done, all things, reasonably
necessary, proper or advisable under applicable Law, regulations and agreements to consummate and
make effective the transactions contemplated by this Agreement and the Ancillary Agreements.

          (b) On or prior to the Effective Date, WMB and WPX in their respective capacities as direct
and indirect stockholders of their respective Subsidiaries, shall each ratify any actions that are
reasonably necessary or desirable to be taken by WMB and WPX or any other Subsidiary of WMB or WPX,
as the case may be, to effectuate the transactions contemplated by this Agreement.

     Section 7.2 Use of Names, Logos and Information.

          (a) No later than the Distribution Date, WPX shall cause to be filed with the Secretary of
State (or other appropriate Governmental Authority) of the states in which its Subsidiaries are
located or are doing business, an amendment to their certificates of incorporation or similar
governing documents or qualification to do business to change the name of any Subsidiary with
“Williams” in its name to a new name not confusingly similar to WMB’s name.

          (b) No
later than the Distribution Date (or, with respect to any WPX
Entity’s wells, tanks, pipelines, and other field facilities, no
later than the date that is six months after the Distribution Date), WPX shall use reasonable best efforts to remove, and
WPX shall cause each member of the WPX Group to remove, from their websites, and any other publicly
distributed material (other than material required to be submitted for the purpose of regulatory
filings and other similar documentation), any reference to WMB, and its business lines and plans
and any names, logos, or trademarks associated therewith. WPX and each other member of the WPX
Group shall cease all use of the WMB name (and any name confusingly similar thereto) and all
trademarks and service marks associated therewith no later than the
Distribution Date (or, with respect to any WPX
Entity’s wells, tanks, pipelines, and other field facilities, no
later than the date that is six months after the Distribution Date);
provided that, if any member of the WPX Group is unable to comply with the foregoing
requirements of this Section 6.2(b) for reasons outside of its reasonable control, WPX may request
WMB to grant an extension of time beyond the Distribution Date, and WMB agrees not to

25

 

unreasonably
withhold or delay the granting of any such requested extension. Nothing in this Section 6.2(b)
shall preclude WPX or its Subsidiaries from using the WMB name to indicate that WPX and members of
the WPX Group were formerly associated with WMB, or from referring to WMB by its name for
non-trademark and non-branding purposes as is permitted by applicable Law.

          (c) WPX shall not, and shall cause each member of the WPX Group not to, take any action,
purport to take any action or otherwise hold itself out as having any authority to act on behalf of
or represent in any way any member of the WMB Group. WPX shall indemnify, defend and hold harmless
each of the WMB Indemnitees from and against any and all Liabilities of the WMB Indemnitees
relating to, arising out of or resulting from a breach of this Section 7.2(c).

     Section 7.3 Non-Solicitation.

          (a) Without the prior consent of WMB, during the terms of the Administrative Services
Agreement and the Transition Services Agreement and for a period of one year thereafter, WPX will
not (and will cause each other WPX Entity not to) solicit for employment, directly or indirectly,
any employee or contractor (including any contractor employed by a third party) of the WMB Entities
that (i) is providing services to any WMB Entity or WPX Entity in connection with this Agreement or
any Ancillary Agreement, or (ii) with whom any WPX Entity has, or will have, more than incidental
contact pursuant to this Agreement or any Ancillary Agreement.

          (b) Without the prior consent of WPX, during the terms of the Administrative Services
Agreement and the Transition Services Agreement and for a period of one year thereafter, WMB will
not (and will cause each other WMB Entity not to) solicit for employment, directly or indirectly,
any employee of WPX involved in the performance of WPX obligations under this Agreement or any
Ancillary Agreement.

          (c) With respect to each of Sections 7.3(a) and 7.3(b) above, the prohibition on solicitation
shall extend 90 days after the termination of any employee’s employment or, in the case of WMB
employees, 90 days after the cessation of such employee’s involvement in the performance of all
“Services” (as defined under the Administrative Services Agreement or the Transition Services
Agreement). This provision shall not operate or be construed to prevent or limit any employee’s
right to practice his or her profession or to utilize his or her skills for another employer or to
restrict any employee’s freedom of movement or association.

          (d) Neither the publication of classified advertisements in newspapers, periodicals, Internet
bulletin boards, or other publications of general availability or circulation, nor the
consideration and hiring of persons responding to such advertisements, shall be deemed a breach of
this Section 7.3, unless the advertisement and solicitation is undertaken as a means to circumvent
or conceal a violation of this provision and/or the hiring party acts with knowledge of this hiring
prohibition.

26

 

          (e) Each of the parties (i) acknowledges and agrees that money damages would not be a
sufficient remedy for any breach of this Section 7.3 by such party (or any other member of such
party’s Group), (ii) consents to a court of competent jurisdiction entering an order finding that
the non-breaching party has been irreparably harmed as a result of any such breach and (iii)
consents to the granting of injunctive relief without proof of actual damages as a remedy for any
such breach. Such remedies shall not be deemed to be the exclusive remedies for a breach of this
Section 7.3 but shall be in addition to all other remedies available at law or equity to the
non-breaching party.

     Section 7.4 Conduct of WPX Business between Effective Date and Distribution Date.
Subject to any additional restrictions in the Ancillary Agreements, during the period from the
Effective Date through the Distribution Date, WPX covenants and agrees that the WPX Group as a
whole will not, without WMB’s prior written consent (which WMB may withhold in its sole and
absolute discretion): (a) acquire any businesses or other Assets, by means of merger,
consolidation or otherwise, of any other Person, with an aggregate value of more than $50 million
for all such acquisitions, (b) dispose of Assets held by the WPX Group, by sale or otherwise, with
an aggregate value of more than $50 million for all such dispositions, or (c) acquire any equity or
debt securities of any other Person, with an aggregate value of more than $50 million for all such
acquisitions.

     Section 7.5 WMB Guarantees. During the period from the Effective Date through the
Distribution Date, each of the parties shall use its reasonable best efforts to remove WMB as a
guarantor under any guarantee relating exclusively to the WPX Business.

     Section 7.6 Directors’ and Officers’ Insurance. During the period from the Effective
Date through the Distribution Date, WMB shall maintain in effect directors’ and officers’ liability
insurance policies providing coverage for WPX’s directors and officers on terms and at limits no
less favorable than those then in effect for WMB’s directors and officers. In addition, during the
six-year period commencing on the Distribution Date, WMB shall maintain in effect directors’ and
officers’ liability insurance policies providing coverage with respect to acts or omissions
occurring or commencing prior to the Distribution Date for those WPX directors and officers who are
covered by WMB’s directors’ and officers’ liability insurance policies as of or prior to the
Distribution Date, at limits no less than those in effect for such WPX directors and officers as of
the Distribution Date and on terms no less favorable than those in effect for WMB’s directors and
officers. Other than as expressly provided in this Section 7.6, no WMB Entity shall have any
obligation to maintain directors’ and officers’ liability insurance policies providing coverage for
WPX’s directors and officers.

     Section 7.7 Information Technology Transition Costs. Notwithstanding anything to the contrary in this Agreement, upon completion of the  Distribution WMB shall promptly contribute to WPX
$20.1 million for certain information technology transition costs expected to be incurred by the WPX Entities in connection with
the Distribution, less any amounts funded by WMB for such costs prior to the completion of the Distribution.

ARTICLE VIII

MUTUAL RELEASES; INDEMNIFICATION

     Section 8.1 Mutual Releases.

          (a) Except (i) as provided in Section 8.1(c), (ii) as may be otherwise provided in this
Agreement or any Ancillary Agreement and (iii) for any matter for which

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any WPX Indemnitee is
entitled to indemnification pursuant to this Article VIII, effective as of the Effective Date, WPX
does hereby, for itself and each other WPX Entity and their respective Affiliates, predecessors,
successors and assigns, and, to the extent WPX legally may, all Persons that at any time prior or
subsequent to the Effective Date have been stockholders, directors, officers, members, agents or
employees of WPX or any other WPX Entity (in each case, in their respective capacities as such),
remise, release and forever discharge each WMB Entity, their respective Affiliates, successors and
assigns, and all Persons that at any time prior to the Effective Date have been stockholders,
directors, officers, members, agents or employees of WMB or any other WMB Entity (in each case, in
their respective capacities as such), and their respective heirs, executors, administrators,
successors and assigns, from any and all Liabilities whatsoever, whether at law or in equity,
whether arising under any contract or agreement, by operation of law or otherwise, existing or
arising from or relating to any acts or events occurring or failing to occur or alleged to have
occurred or to have failed to occur or any conditions existing or alleged to have existed on or
before the Effective Date, whether or not known as of the Effective Date.

          (b) Except (i) as provided in Section 8.1(c), (ii) as may be otherwise provided in this
Agreement or any Ancillary Agreement and (iii) for any matter for which any WMB Indemnitee is
entitled to indemnification pursuant to this Article VIII, WMB does hereby, for itself and each
other WMB Entity and their respective Affiliates, successors and assigns, and, to the extent WMB
legally may, all Persons that at any time prior to the Effective Date have been stockholders,
directors, officers, members, agents or employees of WMB or any other WMB Entity (in each case, in
their respective capacities as such), remise, release and forever discharge each WPX Entity, their
respective Affiliates, successors and assigns, and all Persons that at any time prior to the
Effective Date have been stockholders, directors, officers, members, agents or employees of WPX or
any other WPX Entity (in each case, in their respective capacities as such), and their respective
heirs, executors, administrators, successors and assigns, from any and all Liabilities whatsoever,
whether at law or in equity, whether arising under any contract or agreement, by operation of law
or otherwise, existing or arising from any acts or events occurring or failing to occur or alleged
to have occurred or to have failed to occur or any conditions existing or alleged to have existed
on or before the Effective Date, whether or not known as of the Effective Date.

          (c) Nothing contained in Section 8.1(a) or 8.1(b) shall impair any right of any Person to
enforce this Agreement, any Ancillary Agreement, including the applicable Schedules hereto and
thereto, or any arrangement that is not to terminate as of the Effective Date, as specified in
Section 2.6(b). Nothing contained in Section 8.1(a) or 8.1(b) shall release any Person from:

               (i) any Liability provided in or resulting from any agreement among any WMB Entities and any
WPX Entities that is not to terminate as of the Effective Date, as specified in Section 2.6(b), or
any other Liability that is not to terminate as of the Effective Date, as specified in Section
2.6(b);

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               (ii) any Liability, contingent or otherwise, assumed, transferred, assigned or allocated to
the Group of which such Person is a member in accordance with, or any other Liability of any member
of any Group under, this Agreement or any Ancillary Agreement; or

               (iii) any Liability the release of which would result in the release of any Person other than
a Person released pursuant to this Section 8.1; provided that the parties agree not to bring suit
or permit any of their Subsidiaries to bring suit against any Person with respect to any Liability
to the extent that such Person would be released with respect to such Liability by this Section 8.1
but for the provisions of this clause (iii).

          (d) WPX shall not make, and shall not permit any other WPX Entity to make, any claim or
demand, or commence any Action asserting any claim or demand, including any claim for
indemnification, against any WMB Entity, or any other Person released pursuant to Section 8.1(a),
with respect to any Liabilities released pursuant to Section 8.1(a). WMB shall not, and shall not
permit any other WMB Entity, to make any claim or demand, or commence any Action asserting any
claim or demand, including any claim for indemnification, against any WPX Entity, or any other
Person released pursuant to Section 8.1(b), with respect to any Liabilities released pursuant to
Section 8.1(b).

          (e) At any time, at the request of any other party, each party shall cause each member of its
respective Group to execute and deliver releases in form reasonably satisfactory to the other party
reflecting the provisions of this Section 8.1.

     Section 8.2 Indemnification by WPX. Subject to Section 8.4, WPX shall, and shall
cause each of its Subsidiaries that is in the WPX Group as of the Effective Date to, jointly and
severally indemnify, defend and hold harmless WMB, each WMB Entity and each of their respective
current, former and future directors, officers and employees, and each of the heirs, executors,
successors and assigns of any of the foregoing (collectively, the “WMB Indemnitees”), from
and against any and all Liabilities of the WMB Indemnitees relating to, arising out of or resulting
from any of the following items (without duplication):

          (a) any WPX Liability, including the failure of WPX or any other member of the WPX Group or
any other Person to pay, perform or otherwise promptly discharge any WPX Liabilities in accordance
with their respective terms, whether prior to, on or after the Effective Date;

          (b) the WPX Business;

          (c) any breach by any WPX Entity of this Agreement or any of the Ancillary Agreements; and

          (d) any untrue statement or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, with respect to all information (i) contained in the IPO Registration
Statement or any IPO Prospectus, (ii) contained in any public filings made by WPX with the SEC
following the Effective Date, and

29

 

(iii) provided by WPX to WMB specifically for inclusion in WMB’s
annual or quarterly reports following the Effective Date; provided, however, that
the indemnity provided in clauses (i) and (ii) of this Section 8.2(d) shall not apply to any WMB
Indemnitee with respect to any Liability to the extent arising out of any untrue statement or
omission or alleged untrue statement or omission contained in any information furnished in writing
to WPX by WMB expressly for use in such filing.

Notwithstanding the foregoing, no WMB Indemnitee shall be entitled to indemnification under this
Section 8.2 for any Liability for which any WPX Indemnitee is entitled to be indemnified pursuant
to Sections 8.3(d) and 8.3(e) below.

     Section 8.3 Indemnification by WMB. Subject to Section 8.4, WMB shall, and shall
cause each of its Subsidiaries that is in the WMB Group as of the Effective Date to, jointly and
severally indemnify, defend and hold harmless WPX, each WPX Entity and each of their respective
current, former and future directors, officers and employees, and each of the heirs, executors,
successors and assigns of any of the foregoing (collectively, the “WPX Indemnitees”), from
and against any and all Liabilities of the WPX Indemnitees relating to, arising out of or resulting
from any of the following items (without duplication):

          (a) any WMB Liability, including the failure of WMB or any other member of the WMB Group or
any other Person to pay, perform or otherwise promptly discharge any WMB Liabilities in accordance
with their respective terms, whether prior to, on or after the Effective Date;

          (b) the WMB Business;

          (c) any breach by any WMB Entity of this Agreement or any of the Ancillary Agreements; and

          (d) any cash payment determined to be owed by any WPX Entity in any of the pending proceedings
set forth on Schedule 8.3(d) related to power marketing in California; provided,
that WPX shall pay, or cause to be paid, to WMB any cash that a WPX Entity receives, or is entitled
to receive, in connection with such proceedings, regardless of whether such amount exceeds any
amount due from WMB to WPX pursuant to this clause; and

          (e) the pending proceedings set forth on Schedule 8.3(e) related to published gas
price indices, including, solely for purposes of this Section 8.3(e), any Liability for indirect,
punitive or consequential damages relating to such proceeding; provided, that if all or any
portion of the indemnification obligation set forth in this Section 8.3(e) is held to be invalid,
illegal or unenforceable in any respect under any applicable Law or rule in any jurisdiction, then
the parties will, to the extent permitted by law, take such actions as may reasonably be necessary
in order to place the WPX Entities in the same position as if such obligation were fully valid,
legal and enforceable.

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Notwithstanding the foregoing, no WPX Indemnitee shall be entitled to indemnification under this
Section 8.3 for any Liability to the extent arising out of any of the Contracts set forth on
Schedule 8.3.

     Section 8.4 Indemnification Obligations Net of Insurance Proceeds and Other Amounts.

          (a) The parties intend that any Liability subject to indemnification or reimbursement pursuant
to this Agreement will be net of Insurance Proceeds and other amounts received that actually reduce
the amount of the Liability for which indemnification is sought. Accordingly, the amount which any
party (an “Indemnifying Party”) is required to pay to any Person entitled to
indemnification or reimbursement under this Agreement (an “Indemnitee”) will be reduced by
any Insurance Proceeds and other amounts theretofore actually recovered by or on behalf of the
Indemnitee in reduction of the related Liability. If an Indemnitee receives a payment (an
“Indemnity Payment”) required by this Agreement from an Indemnifying Party in respect of
any Liability and subsequently receives Insurance Proceeds or other amounts therefor, then the
Indemnitee will promptly pay to the Indemnifying Party an amount equal to the excess of the
Indemnity Payment received over the amount of the Indemnity Payment that would have been due if the
Insurance Proceeds or other amounts had been received, realized or recovered before the Indemnity
Payment was made.

          (b) An insurer that would otherwise be obligated to defend or make payment in response to any
claim shall not be relieved of the responsibility with respect thereto or, solely by virtue of the
indemnification provisions hereof, have any subrogation rights with respect thereto, it being
expressly understood and agreed that no insurer or any other third party shall be entitled to a
“windfall” (i.e., a benefit it would not be entitled to receive in the absence of the
indemnification provisions of this Agreement) by virtue of the indemnification provisions hereof.
For the avoidance of doubt, in no event shall any party be obligated to seek recovery from any
insurer as a condition to obtaining the benefit of the indemnification provisions of this Agreement
or any Ancillary Agreement.

          (c) If an indemnification claim is covered by the indemnification provisions of an Ancillary
Agreement, the claim shall be made under the Ancillary Agreement to the extent applicable and the
provisions thereof shall govern such claim. In no event shall any party be entitled to double
recovery from the indemnification provisions of this Agreement and any Ancillary Agreement.

          (d) Payments and reimbursements with respect to Tax-related Liabilities and Tax-related
indemnities are governed exclusively by the Tax Sharing Agreement. To the extent of any
inconsistency or conflict between this Agreement and the Tax Sharing Agreement with respect to any
matter relating to WMB’s and WPX’s respective rights, responsibilities and obligations after the
Distribution with respect to Taxes, the provisions of the Tax Sharing Agreement shall apply.

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     Section 8.5 Third-Party Claims.

          (a) If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person
(including any Governmental Authority) that is not a WMB Entity or a WPX Entity of any claim
(including environmental claims and demands or requests for investigation or remediation of
contamination) or of the commencement by any such Person of any Action with respect to which an
Indemnifying Party may be obligated to provide indemnification to such Indemnitee pursuant to this
Agreement or any Ancillary Agreement (collectively, a “Third-Party Claim”), such Indemnitee
shall give such Indemnifying Party written notice thereof as soon as promptly practicable, but no
later than 30 days after becoming aware of such Third-Party Claim. Any such notice shall describe
the Third-Party Claim in reasonable detail and contain written correspondence received from the
third party that relates to the Third-Party Claim. Notwithstanding the foregoing, the failure of
any Indemnitee to give notice as provided in this Section 8.5(a) shall not relieve the related
Indemnifying Party of its obligations under this Article VIII, except to the extent that such
Indemnifying Party is prejudiced by such failure to give notice.

          (b) With respect to any Third-Party Claim:

               (i) Unless the parties otherwise agree, within 30 days after the receipt of notice from an
Indemnitee in accordance with Section 8.5(a), an Indemnifying Party shall defend (and, unless the
Indemnifying Party has specified any reservations or exceptions, seek to settle or compromise), at
such Indemnifying Party’s own cost and expense and by such Indemnifying Party’s own counsel, any
Third-Party Claim. The applicable Indemnitee shall have the right to employ separate counsel and
to participate in (but not control) the defense, compromise, or settlement thereof, but the fees
and expenses of such counsel shall be the expense of such Indemnitee. Notwithstanding the
foregoing, the Indemnifying Party shall be liable for the fees and expenses of counsel employed by
the Indemnitee (A) for any period during which the Indemnifying Party has not assumed the defense
of such Third-Party Claim (other than during any period in which the Indemnitee shall have failed
to give notice of the Third-Party Claim in accordance with Section 8.5(a)) or (B) to the extent
that such engagement of counsel is as a result of a conflict of interest, as reasonably determined
by the Indemnitee acting in good faith.

               (ii) No Indemnifying Party shall consent to entry of any judgment or enter into any settlement
of any Third-Party Claim without the consent of the applicable Indemnitee; provided,
however, that such Indemnitee shall be required to consent to such entry of judgment or to
such settlement that the Indemnifying Party may recommend if the judgment or settlement (A)
contains no finding or admission of any violation of Law or any violation of the rights of any
Person, (B) involves only monetary relief which the Indemnifying Party has agreed to pay and could
not reasonably be expected to have a significant adverse impact (financial or non-financial) on the
Indemnitee, including a significant adverse impact on the rights, obligations, operations, standing
or reputation of the Indemnitee (or any of its Subsidiaries or Affiliates), and (C) includes a full
and unconditional release of the Indemnitee. Notwithstanding the foregoing, in no event shall an
Indemnitee be required to consent to any entry of judgment or settlement if the effect thereof is
to permit any injunction, declaratory judgment, other

32

 

order or other nonmonetary relief to be
entered, directly or indirectly, against any Indemnitee.

          (c) Whether or not the Indemnifying Party assumes the defense of a Third-Party Claim, no
Indemnitee shall admit any liability with respect to, or settle, compromise or discharge, such
Third-Party Claim without the Indemnifying Party’s prior written consent, which consent shall not
be unreasonably withheld or delayed.

     Section 8.6 Additional Matters.

          (a) Any claim on account of a Liability that does not result from a Third-Party Claim shall be
timely asserted by written notice given by the Indemnitee to the related Indemnifying Party. Such
Indemnifying Party shall have a period of 30 days after the receipt of such notice within which to
respond thereto. If such Indemnifying Party does not respond within such 30-day period, such
Indemnifying Party shall be deemed to have refused to accept responsibility to make payment. If
such Indemnifying Party does not respond within such 30-day period or rejects such claim in whole
or in part, such Indemnitee shall be free to pursue remedies as specified by this Agreement and the
Ancillary Agreements.

          (b) In the event of payment by or on behalf of any Indemnifying Party to any Indemnitee in
connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall
stand in the place of such Indemnitee as to any events or circumstances in respect of which such
Indemnitee may have any right, defense or claim relating to such Third-Party Claim against any
claimant or plaintiff asserting such Third-Party Claim or against any other Person. Such
Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and
expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim.

          (c) In the event of an Action in which the Indemnifying Party is not a named defendant, if
either the Indemnitee or the Indemnifying Party shall so request, the parties shall endeavor to
substitute the Indemnifying Party for the named defendant, if reasonably practicable. If such
substitution or addition cannot be achieved or is not requested, the named defendant shall allow
the Indemnifying Party to manage the Action as set forth in this Agreement and the Indemnifying
Party shall fully indemnify the named defendant against all costs of defending the Action
(including court costs, sanctions imposed by a court, attorneys’ fees, experts’ fees and all other
external expenses, and the allocated costs of in-house counsel and other personnel), the costs of
any judgment or settlement, and the cost of any interest or penalties relating to any judgment or
settlement.

     Section 8.7 Remedies Cumulative. The remedies provided in this Article VIII shall be
cumulative and shall not preclude assertion by any Indemnitee of any other rights or the seeking of
any and all other remedies against any Indemnifying Party.

     Section 8.8 Survival of Indemnities. The rights and obligations of each of WMB and
WPX and their respective Indemnitees under this Article VIII shall survive the

33

 

sale or other
transfer by any party of any assets or businesses or the assignment by it of any Liabilities.

     Section 8.9 Limitation on Liability. Except as may expressly be set forth in this
Agreement, none of WMB, WPX, or any other member of either Group shall in any event have any
Liability to the other or to any other member of the other’s Group, or to any other WMB Indemnitee
or WPX Indemnitee, as applicable, under this Agreement (a) to the extent that any such Liability
resulted from any willful violation of Law or fraud by the party seeking indemnification or (b)
subject to Section 8.3(e), for any indirect, punitive or consequential damages. Notwithstanding
the foregoing, the provisions of this Section 8.9 shall not limit an Indemnifying Party’s
indemnification obligations with respect to any Liability that any Indemnitee may have to any third
party not affiliated with any member of the WMB Group or the WPX Group.

ARTICLE IX

TERMINATION

     Section 9.1 Termination. This Agreement and any Ancillary Agreement may be terminated
at any time prior to the IPO Closing Date in the sole discretion of WMB without the approval of
WPX. The obligations of the parties under Article IV (including the obligation to pursue or effect
the Distribution) may be terminated by WMB if any time after the IPO Closing Date it determines, in
its sole and absolute discretion, that the Distribution would not be in the best interests of WMB
or its stockholders.

     Section 9.2 Effect of Termination. In the event of any termination of this Agreement
prior to the IPO Closing Date, no party (or any of its directors or officers) shall have any
Liability or further obligation to any other party with respect to this Agreement.

ARTICLE X

DISPUTE RESOLUTION

     Section 10.1 Disputes. Except as otherwise specifically provided in any Ancillary
Agreement, the procedures for discussion, negotiation and mediation set forth in this Article X
shall apply to all disputes, controversies or claims (whether arising in contract, tort or
otherwise) that may arise out of or relate to, or arise under or in connection with this Agreement
or any Ancillary Agreement, or the transactions contemplated hereby or thereby (including all
actions taken in furtherance of the transactions contemplated hereby or thereby on or prior to the
Effective Date), or the commercial or economic relationship of the parties relating hereto or
thereto, between or among any Person in the WMB Group and the WPX Group.

     Section 10.2 Escalation; Mediation.

     (a) It is the intent of the parties to use their respective commercially reasonable efforts to
resolve expeditiously any dispute, controversy or claim between or among them with respect to the
matters covered hereby that may arise from time to time on a mutually acceptable negotiated basis.
In furtherance of the foregoing, upon the written notice of either party, each party shall appoint
a representative at an authority level above

34

 

the level of the individuals who have been unable to
resolve the dispute (the “Next Step Up Representatives”). The Next Step Up Representatives
shall be appointed as determined in the discretion of each party considering the importance of the
relationship, the complexity of the issues, and the size of the amounts in dispute. The parties
shall allow for a period of 15 Business Days after the last representative is appointed and contact
information provided to the other party for the Next Step Up Representatives to negotiate a
resolution of the dispute before the parties are required to move to the mediation stage. This 15
Business Day period may be waived jointly in writing.

     (b) If the parties are not able to resolve the dispute, controversy or claim (except those
relating to Environmental Liabilities, which are addressed in Section 10.2(c) below) through the
escalation process referred to above, then either party may submit the dispute to mediation by
written notice to the other party. The parties shall jointly retain a mediator to aid the parties
in their discussions and negotiations by informally providing advice to the parties. The mediator
shall be selected by the parties. If the parties cannot agree on a mediator within 30 days after
the notice to mediate, the International Institute for Conflict Prevention and Resolution
(“CPR”) shall designate a mediator at the request of either party. Any mediator proposed
by CPR must be reasonably acceptable to both parties. Any opinion expressed by the mediator shall
be strictly advisory and shall not be binding on the parties, nor shall any opinion expressed by
the mediator be admissible in any other proceeding. Costs of the mediation shall be borne equally
by the parties involved in the matter, except that each party shall be responsible for its own
expenses. Mediation shall be a prerequisite to the commencement of any Proceeding (except those
relating to Environmental Liabilities, which are addressed in Section 10.2(c) below) by either
party.

     (c) If the parties are not able to resolve any technical or factual dispute, controversy or
claim relating to Environmental Liabilities through the escalation process referred to above, then
either party may submit the dispute to mediation by written notice to the other party. The parties
shall jointly retain a technical mediator, such as a third-party environmental consultant or other
person with specific technical expertise in the matter involved in the dispute, controversy or
claim to aid the parties in their discussions and negotiations. The technical mediator shall be
selected by the parties. If the parties cannot agree on a technical mediator within 30 days after
the notice to mediate, CPR shall designate a technical mediator at the request of either party.
Any technical mediator proposed by CPR must be reasonably acceptable to both parties. The
technical mediator shall provide informal advice to the parties and, if requested by both parties,
shall also provide a written opinion letter or report summarizing the matter in dispute,
identifying any significant assumptions or informational gaps underlying that summary, and setting
forth the conclusions and recommendations of the technical mediator. Unless mutually agreed by the
parties in writing, any opinion expressed by the technical mediator shall be strictly advisory and
shall not be binding on the parties, nor shall any opinion expressed or delivered by the technical
mediator be admissible in any other proceeding. Costs related to the technical mediator’s work,
including any investigation, data-gathering or sampling recommended by the technical mediator,
shall be borne equally by the parties involved in the matter, except that each party shall be
responsible for its own expenses. Technical

35

 

mediation shall be a prerequisite to the commencement
of any Proceeding relating to Environmental Liabilities by either party.

          (d) For purposes of this Section 10.2:

               (i) “Environmental Laws” means all federal, state, local and foreign Laws, including
all judicial and administrative orders, determinations, and consent agreements or decrees, that
relate, in whole or in part, to Hazardous Substances, pollution, contaminants, harmful substances,
protection of the environment or human health, including those that regulate the use, manufacture,
generation, handling, labeling, testing, transport, treatment, storage, processing, discharge,
disposal, release, threatened release, control, or cleanup of harmful substances, pollutants,
contaminants, Hazardous Substances or materials containing such substances, regardless of when
enacted or effective;

               (ii) “Environmental Liabilities” means any Liabilities arising out of or relating to
the environment, human health, any Environmental Law, Hazardous Substances or exposure to Hazardous
Substances, pollutants, contaminants or other harmful substances, including (A) fines, penalties,
judgments, awards, settlements, losses, damages (including consequential damages), costs, fees
(including attorneys’ and consultants’ fees), expenses and disbursements, (B) costs of defense and
other responses to any administrative or judicial action (including notices, claims, complaints,
suits and other assertions of liability), (C) responsibility for any investigation, remediation,
monitoring or cleanup costs, injunctive relief, tort claims, natural resource damages, and any
other environmental compliance or remedial measures, in each case known or unknown, foreseen or
unforeseen, and (D) any claims, suits or actions (whether third-party or otherwise) for any
Liability, including personal injury or property damage; and

               (iii) “Hazardous Substances” means all materials, wastes or substances defined by, or
regulated under, any Environmental Laws now or in the future and any substance that can give rise
to any claim, suit or action (whether third-party or otherwise) for any Liabilities, including
personal injury or property damage.

     Section 10.3 Court Actions.

          (a) In the event that any party, after complying with the provisions set forth in Section 10.2
above, desires to commence an Action, such party, subject to Section 11.11, may submit the dispute,
controversy or claim (or such series of related disputes, controversies or claims) to any court of
competent jurisdiction.

          (b) Unless otherwise agreed in writing, the parties will continue to provide service and honor
all other commitments under this Agreement and the Ancillary Agreements during the course of
dispute resolution pursuant to the provisions of this Article X, except to the extent such
commitments are the subject of such dispute, controversy or claim.

36

 

ARTICLE XI

MISCELLANEOUS

     Section 11.1 Corporate Power. WMB represents on behalf of itself and each other WMB
Entity, and WPX represents on behalf of itself and each other WPX Entity, that:

          (a) each such Person is a corporation or other entity duly incorporated or formed, validly
existing and in good standing under the Laws of the state or other jurisdiction of its
incorporation or formation, and has all material corporate or other similar powers required to
carry on its business as currently conducted;

          (b) each such Person has the requisite corporate or other power and authority and has taken
all corporate or other action necessary in order to execute, deliver and perform this Agreement and
each other Ancillary Agreement to which it is a party and to consummate the transactions
contemplated hereby and thereby; and

          (c) this Agreement and each Ancillary Agreement to which it is a party has been duly executed
and delivered by it and constitutes a valid and binding agreement of such Person enforceable in
accordance with the terms hereof and thereof.

     Section 11.2 Coordination with Certain Ancillary Agreements; Conflicts. In the event
of any conflict or inconsistency between any provision of any of the Ancillary Agreements and any
provision of this Agreement, the applicable Ancillary Agreement shall control over the inconsistent
provisions of this Agreement as to the matters specifically addressed in such Ancillary Agreement.

     Section 11.3 Expenses. Except as expressly set forth in this Agreement or in any
Ancillary Agreement, all fees, costs and expenses paid or incurred in connection with the
Separation and the performance of this Agreement and any Ancillary Agreement, whether performed by
a third-party or internally, will be paid by the party incurring such fees or expenses, whether or
not the Separation is consummated, or as otherwise agreed by the parties.

     Section 11.4 Amendment and Modification. This Agreement and the Ancillary Agreements
may not be amended, modified or supplemented in any manner, whether by course of conduct or
otherwise, except by an instrument in writing specifically designated as an amendment hereto,
signed on behalf of each party.

     Section 11.5 Waiver. No failure or delay of any party in exercising any right or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such right or power,
or any course of conduct, preclude any other or further exercise thereof or the exercise of any
other right or power. The rights and remedies of the parties hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have hereunder. Any agreement on the
part of any party to any such waiver shall be valid only if set forth in a written instrument
executed and delivered by a duly authorized officer on behalf of such party.

37

 

     Section 11.6 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if
by facsimile, upon written confirmation of receipt by facsimile, e-mail or otherwise, (b) on the
first Business Day following the date of dispatch if delivered utilizing a next-day service by a
recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth Business Day
following the date of mailing if delivered by registered or certified mail, return receipt
requested, postage prepaid. All notices hereunder shall be delivered to the addresses set forth
below, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice:

	 	(i)	 	if to WMB or any other WMB Entity, to:
	 
	 	 	 	The Williams Companies, Inc.

One Williams Center

Tulsa, Oklahoma 74172-0172

Attention: General Counsel

Facsimile: 918-573-5942

E-mail: james.bender@williams.com

	 	(ii)	 	if to WPX or any other WPX Entity, to:
	 
	 	 	 	WPX Energy, Inc.

One Williams Center

Tulsa, Oklahoma 74172-0172

Attention: General Counsel

Facsimile: 918-573-5942

E-mail: james.bender@williams.com

     Section 11.7 Interpretation. When a reference is made in this Agreement to a Section,
Article, or Exhibit such reference shall be to a Section, Article, or Exhibit of this Agreement
unless otherwise indicated. The table of contents and headings contained in this Agreement or in
any Exhibit are for convenience of reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. All words used in this Agreement will be construed to
be of such gender or number as the circumstances require. Any capitalized terms used in any
Schedule or Exhibit but not otherwise defined therein shall have the meaning as defined in this
Agreement. All Schedules and Exhibits annexed hereto or referred to herein are hereby incorporated
in and made a part of this Agreement as if set forth herein. The word “including” and words of
similar import when used in this Agreement shall mean “including, without limitation,” unless
otherwise specified. The word “day” when used in this Agreement shall mean “calendar day,” unless
otherwise specified.

     Section 11.8 Entire Agreement. This Agreement and the Ancillary Agreements and the
Exhibits, Schedules and Appendices hereto and thereto constitute the entire agreement, and
supersede all prior written agreements, arrangements, communications and understandings and all
prior and contemporaneous oral agreements, arrangements, communications and understandings among
the parties with respect to the subject matter

38

 

hereof. None of this Agreement or any of the
Ancillary Agreements shall be deemed to contain or imply any restriction, covenant, representation,
warranty, agreement or undertaking of any party with respect to the transactions contemplated
hereby and thereby other than those expressly set forth herein or therein or in any document
required to be delivered hereunder or thereunder. Notwithstanding any oral agreement or course of
action of the parties or their representatives to the contrary, no party to this Agreement shall be
under any legal obligation to enter into or complete the transactions contemplated hereby unless
and until this Agreement shall have been executed and delivered by each of the parties.

     Section 11.9 No Third Party Beneficiaries. Except for the indemnification rights
under this Agreement of any WMB Indemnitee or WPX Indemnitee in their respective capacities as
such, nothing in this Agreement or the Ancillary Agreements, express or implied, is intended to or
shall confer upon any Person other than the parties and their respective successors and permitted
assigns any legal or equitable right, benefit or remedy of any nature under or by reason of this
Agreement or the Ancillary Agreements.

     Section 11.10 Governing Law. This Agreement and all disputes or controversies arising
out of or relating to this Agreement or the transactions contemplated hereby shall be governed by,
and construed in accordance with, the internal Laws of the State of Oklahoma, without regard to the
Laws of any other jurisdiction that might be applied because of the conflicts of laws principles of
the State of Oklahoma.

     Section 11.11 Submission to Jurisdiction. Except as otherwise specifically provided
in any Ancillary Agreement, with respect to any suit, action or proceeding relating to this
Agreement or any Ancillary Agreement (a “Proceeding”), each party to this Agreement
irrevocably (a) consents and submits to the exclusive jurisdiction of the state and federal courts
located in Tulsa County, Oklahoma; (b) waives any objection which such party may have at any time
to the laying of venue of any Proceeding brought in any such court, waives any claim that such
Proceeding has been brought in an inconvenient forum and further waives the right to object, with
respect to such Proceeding, that such court does not have jurisdiction over such party; and (c)
consents to the service of process at the address set forth for notices in Section 11.6;
provided, however, that such manner of service of process shall not preclude the
service of process in any other manner permitted under applicable law.

     Section 11.12 Assignment. Except as specifically provided in any Ancillary Agreement,
none of this Agreement, any of the Ancillary Agreements, or any of the rights, interests or
obligations hereunder or thereunder may be assigned or delegated, in whole or in part, by operation
of law or otherwise, by any party without the prior written consent of the other parties, and any
such assignment without such prior written consent shall be null and void. If any party (or any of
its successors or permitted assigns) (a) shall consolidate with or merge into any other Person and
shall not be the continuing or surviving corporation or entity of such consolidation or merger or
(b) shall transfer all or substantially all of its properties and/or assets to any Person, then,
and in each such case, the party (or its successors or permitted assigns, as applicable) shall
ensure that such

39

 

Person assumes all of the obligations of such party (or its successors or
permitted assigns, as applicable) under this Agreement and all applicable Ancillary Agreements.

     Section 11.13 Severability. Whenever possible, each provision or portion of any
provision of this Agreement and the Ancillary Agreements shall be interpreted in such manner as to
be effective and valid under applicable Law, but if any provision or portion of any provision of
this Agreement or the Ancillary Agreements is held to be invalid, illegal or unenforceable in any
respect under any applicable Law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or portion of any provision in such
jurisdiction, and this Agreement or the Ancillary Agreements shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of
any provision had never been contained herein.

     Section 11.14 Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS AGREEMENT, ANY OF THE ANCILLARY AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

     Section 11.15 Counterparts. This Agreement and each Ancillary Agreement may be
executed in one or more counterparts, all of which shall be considered one and the same instrument
and shall become effective when one or more counterparts have been signed by each of the parties
and delivered to the other parties.

     Section 11.16 Facsimile Signature. This Agreement may be executed by facsimile
signature and a facsimile signature shall constitute an original for all purposes.

[The remainder of this page is intentionally left blank.]

40

 

     IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed by their duly authorized representatives as of
the date first set forth above.

	 	 	 	 	 

	 	 	THE WILLIAMS COMPANIES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	WPX ENERGY, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

[Signature Page to Separation and Distribution Agreement]

 

 

Exhibit A

Contributed Entities

(such entities are held 100% by WPX Energy, Inc.

or its subsidiaries unless otherwise noted)

WPX Energy, Inc.

Williams Production Holdings LLC

Williams Production Ryan Gulch LLC

Williams Production RMT Company LLC

Fort Union Gas Gathering, L.L.C. (11.11%)

Bison Royalty LLC

Barrett Resources International Corporation

Dakota-3 E&P Company, LLC

D-3 Van Hook Gathering Services, LLC

Williams Production Company, LLC

Williams Production Rocky Mountain Company

Williams Production Mid-Continent Company

Williams Arkoma Gathering Company, LLC

Williams Production Keystone LLC

WPX Gas Resources Company

Williams Production Appalachia LLC

Williams Marcellus Gathering LLC

Diamond Elk, LLC

RW Gathering, LLC (50%)

Mockingbird Pipeline, L.P.

Williams Production — Gulf Coast Company, L.P.

WPX Enterprises, Inc.

WPX Energy Marketing, LLC

Northwest Argentina Corporation

Williams International Oil & Gas (Venezuela) Limited

[Exhibit A to Separation and Distribution Agreement]

 

 

Schedule 2.6(b)(v)

Surviving Agreements

	1.	 	Gas Supply Fee Agreement by and between WPX Energy Marketing, LLC and Williams Energy
(Canada), Inc. dated November 18, 2009.

	2.	 	ISDA 2002 Master Agreement by and between WPX Energy Marketing, LLC and Williams Energy
(Canada), Inc. dated January 1, 2009, along with each transaction thereunder.

	3.	 	ISDA 2002 Master Agreement by and between WPX Energy Marketing, LLC and Williams Olefins,
L.L.C. dated August 1, 2006, along with each transaction thereunder.

	4.	 	Side Letter Regarding Assignment, Assumption and Amendment of Aircraft Lease (S/N 750-0266) and Guarantee (S/N 750-0266), by and
between WMB and WPX dated as of November      , 2011.

[Schedule 2.6(b)(v) to Separation and Distribution Agreement]

 

 

Schedule 8.3

Contracts Excluded From Indemnification

WGM Legacy Agreements with Current Deal Ending Date

	 	 	 	 	 	 	 	 	 	 	 
	Max of Maturity Date	 	 	 	 	 	 	 	 	 
	Contract Type	 	Ext Legal	 	Deal #	 	 	Expiration	 
	Broker Agreement
(Exchange Cleared)
	 	BNPPARIBCOMMOFUTURINC - LE	 	 	21358	 	 	 	12/31/2011	 
	 
	 	 	 	 	21359	 	 	 	12/31/2011	 
	 
	 	 	 	 	21363	 	 	 	6/30/2011	 
	 
	 	 	 	 	21364	 	 	 	12/31/2011	 
	 
	 	 	 	 	21365	 	 	 	12/31/2011	 
	 
	 	 	 	 	21366	 	 	 	12/31/2011	 
	 
	 	 	 	 	21367	 	 	 	12/31/2011	 
	 
	 	 	 	 	21368	 	 	 	12/31/2011	 
	 
	 	 	 	 	21369	 	 	 	12/31/2011	 
	 
	 	 	 	 	21383	 	 	 	6/30/2011	 
	 
	 	 	 	 	21384	 	 	 	3/31/2011	 
	 
	 	 	 	 	21386	 	 	 	6/30/2011	 
	 
	 	 	 	 	21434	 	 	 	3/31/2011	 
	 
	 	 	 	 	21436	 	 	 	3/31/2011	 
	 
	 	 	 	 	21445	 	 	 	6/30/2011	 
	 
	 	 	 	 	21446	 	 	 	9/30/2011	 
	 
	 	 	 	 	21906	 	 	 	12/31/2011	 
	 
	 	 	 	 	21909	 	 	 	12/31/2011	 
	 
	 	 	 	 	21911	 	 	 	12/31/2011	 
	 
	 	 	 	 	21912	 	 	 	12/31/2011	 
	 
	 	 	 	 	21920	 	 	 	12/31/2011	 
	 
	 	 	 	 	21923	 	 	 	12/31/2011	 
	 
	 	 	 	 	21930	 	 	 	12/31/2011	 
	 
	 	 	 	 	21945	 	 	 	12/31/2013	 
	 
	 	 	 	 	21956	 	 	 	12/31/2013	 
	 
	 	 	 	 	21958	 	 	 	10/31/2011	 
	 
	 	 	 	 	21964	 	 	 	10/31/2011	 
	 
	 	 	 	 	21965	 	 	 	10/31/2011	 
	 
	 	 	 	 	21976	 	 	 	3/31/2011	 
	 
	 	 	 	 	21977	 	 	 	3/31/2011	 
	 
	 	 	 	 	21981	 	 	 	10/31/2011	 
	 
	 	 	 	 	21982	 	 	 	10/31/2011	 
	 
	 	 	 	 	21983	 	 	 	3/31/2011	 
	 
	 	 	 	 	21984	 	 	 	3/31/2011	 
	 
	 	 	 	 	21985	 	 	 	3/31/2011	 
	 
	 	 	 	 	24008	 	 	 	12/31/2012	 
	 
	 	 	 	 	24009	 	 	 	12/31/2012	 
	 
	 	 	 	 	24010	 	 	 	12/31/2012	 
	 
	 	 	 	 	24011	 	 	 	12/31/2012	 
	 
	 	 	 	 	24014	 	 	 	12/31/2012	 
	 
	 	 	 	 	24015	 	 	 	12/31/2012	 
	 
	 	 	 	 	24016	 	 	 	12/31/2012	 

[Schedule 8.3 to Separation and Distribution Agreement]

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Max of Maturity Date	 	 	 	 	 	 	 	 	 
	Contract Type	 	Ext Legal	 	Deal #	 	 	Expiration	 
	 
	 	 	 	 	24017	 	 	 	12/31/2012	 
	 
	 	 	 	 	24053	 	 	 	12/31/2012	 
	 
	 	 	 	 	24054	 	 	 	12/31/2012	 
	 
	 	 	 	 	24055	 	 	 	12/31/2012	 
	 
	 	 	 	 	24056	 	 	 	12/31/2012	 
	 
	 	 	 	 	24057	 	 	 	12/31/2012	 
	 
	 	 	 	 	25677	 	 	 	12/31/2012	 
	 
	 	 	 	 	25683	 	 	 	12/31/2012	 
	 
	 	 	 	 	25696	 	 	 	12/31/2012	 
	 
	 	 	 	 	25697	 	 	 	12/31/2012	 
	 
	 	 	 	 	25698	 	 	 	12/31/2012	 
	 
	 	 	 	 	27181	 	 	 	12/31/2012	 
	 
	 	 	 	 	27182	 	 	 	12/31/2012	 
	 
	 	 	 	 	27185	 	 	 	12/31/2012	 
	 
	 	 	 	 	27186	 	 	 	12/31/2012	 
	 
	 	 	 	 	27330	 	 	 	12/31/2011	 
	 
	 	 	 	 	27606	 	 	 	12/31/2012	 
	 
	 	 	 	 	27681	 	 	 	12/31/2012	 
	 
	 	 	 	 	28950	 	 	 	12/31/2012	 
	 
	 	 	 	 	29177	 	 	 	12/31/2012	 
	 
	 	 	 	 	36432	 	 	 	3/31/2012	 
	 
	 	 	 	 	36433	 	 	 	3/31/2012	 
	 
	 	 	 	 	37318	 	 	 	3/31/2013	 
	 
	 	 	 	 	37319	 	 	 	3/31/2013	 
	 
	 	 	 	 	37320	 	 	 	3/31/2013	 
	 
	 	 	 	 	37381	 	 	 	10/31/2012	 
	 
	 	 	 	 	37382	 	 	 	10/31/2012	 
	 
	 	 	 	 	37469	 	 	 	3/31/2012	 
	 
	 	 	 	 	37651	 	 	 	3/31/2013	 
	 
	 	 	 	 	37652	 	 	 	10/31/2013	 
	 
	 	 	 	 	38606	 	 	 	3/31/2012	 
	 
	 	BNPPARIBCOMMOFUTURINC - LE Total	 	 	 	 	 	 	12/31/2013	 
	Broker Agreement
(Exchange Cleared)
Total
	 	 	 	 	 	 	 	 	12/31/2013	 
	ISDA (OTC Financial)
	 	BARCLAYSBANKPLC - LE	 	 	20961	 	 	 	12/31/2012	 
	 
	 	 	 	 	20962	 	 	 	12/31/2011	 
	 
	 	 	 	 	20963	 	 	 	12/31/2012	 
	 
	 	 	 	 	21015	 	 	 	12/31/2011	 
	 
	 	 	 	 	21016	 	 	 	12/31/2011	 
	 
	 	 	 	 	21042	 	 	 	10/31/2011	 
	 
	 	BARCLAYSBANKPLC - LE Total	 	 	 	 	 	 	12/31/2012	 
	 
	 	CITIGROUPENERGYINC - LE	 	 	20954	 	 	 	12/31/2012	 
	 
	 	 	 	 	21043	 	 	 	3/31/2011	 
	 
	 	CITIGROUPENERGYINC - LE Total	 	 	 	 	 	 	12/31/2012	 
	 
	 	ELPASOMARKECOMPALLC - LE	 	 	20930	 	 	 	12/31/2015	 
	 
	 	 	 	 	20931	 	 	 	12/31/2015	 
	 
	 	 	 	 	20932	 	 	 	12/31/2013	 
	 
	 	 	 	 	20933	 	 	 	12/31/2013	 
	 
	 	 	 	 	20942	 	 	 	12/31/2012	 
	 
	 	 	 	 	20949	 	 	 	12/31/2012	 

[Schedule 8.3 to Separation and Distribution Agreement]

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Max of Maturity Date	 	 	 	 	 	 	 	 
	Contract Type	 	Ext Legal	 	Deal #	 	 	Expiration	 
	 
	 	ELPASOMARKECOMPALLC - LE Total	 	 	 	 	 	 	12/31/2015	 
	 
	 	JPMORGAVENTUENERGCORPO - LE	 	 	20969	 	 	 	6/30/2011	 
	 
	 	 	 	 	20972	 	 	 	6/30/2011	 
	 
	 	 	 	 	20998	 	 	 	12/31/2011	 
	 
	 	 	 	 	21031	 	 	 	6/30/2011	 
	 
	 	JPMORGAVENTUENERGCORPO - LE Total	 	 	 	 	 	 	12/31/2011	 
	 
	 	LOUISDREYFENERGSERVILP - LE	 	 	21003	 	 	 	12/31/2011	 
	 
	 	 	 	 	21004	 	 	 	12/31/2011	 
	 
	 	 	 	 	21025	 	 	 	12/31/2013	 
	 
	 	LOUISDREYFENERGSERVILP - LE Total	 	 	 	 	 	 	12/31/2013	 
	 
	 	MERRILYNCHCOMMOINC - LE	 	 	20970	 	 	 	3/31/2011	 
	 
	 	MERRILYNCHCOMMOINC - LE Total	 	 	 	 	 	 	3/31/2011	 
	 
	 	MORGASTANLCAPITGROUPINC - LE	 	 	20943	 	 	 	12/31/2011	 
	 
	 	 	 	 	20944	 	 	 	12/31/2012	 
	 
	 	 	 	 	21001	 	 	 	12/31/2011	 
	 
	 	 	 	 	21002	 	 	 	12/31/2011	 
	 
	 	 	 	 	33489	 	 	 	3/31/2011	 
	 
	 	MORGASTANLCAPITGROUPINC - LE Total	 	 	 	 	 	 	12/31/2012	 
	ISDA (OTC Financial)
Total
	 	 	 	 	 	 	 	 	12/31/2015	 
	Master Buy/Sell
	 	EQUILONENTERPRISESLLC - LE	 	 	20559	 	 	 	6/30/2011	 
	 
	 	EQUILONENTERPRISESLLC - LE Total	 	 	 	 	 	 	6/30/2011	 
	Master Buy/Sell Total
	 	 	 	 	 	 	 	 	6/30/2011	 
	Grand Total
	 	 	 	 	 	 	 	 	12/31/2015	 

[Schedule 8.3 to Separation and Distribution Agreement]

 

 

Schedule 8.3(d)

California Gas Marketing Proceedings

	 	 	 	 	 
	Case	 	Jurisdiction	 	Williams Entities Named
	San Diego Gas &
Electric Company v.
Sellers of Energy
and Ancillary
Services

	 	FERC
Docket No.
EL00-95-000 et al
	 	The Williams Companies,
Inc; Williams Energy
Marketing & Trading
Company; Williams Power
Company, Inc.
	 
	 	 	 	 
	Investigation of
Practices of the
California
Independent System
Operator and the
California Power
Exchange

	 	FERC
Docket No.
EL00-98-000 et al
	 	The Williams Companies,
Inc; Williams Energy
Marketing & Trading
Company; Williams Power
Company, Inc.
	 
	 	 	 	 
	Puget Sound Energy
v. Sellers of Energy
and Ancillary
Services

	 	FERC
Docket No.
EL01-10-000 et al
	 	The Williams Companies,
Inc; Williams Energy
Marketing & Trading
Company; Williams Power
Company, nc.
	 
	 	 	 	 
	California Independent System Operator

	 	FERC
Docket No.
ER03-746-000
	 	The Williams Companies,
Inc.; Williams Power
Company, Inc.
	 
	 	 	 	 
	Investigation of
Anomalous Bidding
Behavior
and Practices in
Western Markets

	 	FERC
Docket No.
IN03-10-000 et al
	 	The Williams Companies,
Inc; Williams Energy
Marketing & Trading
Company; Williams Power
Company, Inc.
	 
	 	 	 	 
	Fact-Finding
Investigation Into
Possible
Manipulation of
Electric and Natural
Gas Prices

	 	FERC
Docket No.
PA02-2-000 et al
	 	The Williams Companies,
Inc; Williams Energy
Marketing & Trading
Company; Williams Power
Company, Inc.
	 
	 	 	 	 
	State of California,
ex rel. Bill
Lockyer,
Attorney General,

v.

British Columbia
Power Exchange Corp.

	 	FERC
Docket No.
EL02-71-000 et al
	 	The Williams Companies,
Inc; Williams Energy
Marketing & Trading
Company; Williams Power
Company, Inc.

[Schedule 8.3(d) to Separation and Distribution Agreement]

 

Schedule 8.3(e)

Gas Price Indices Proceedings

	 	 	 	 	 
	Case	 	Jurisdiction	 	Williams Entities Named
	In re: Western States Wholesale Natural Gas Antitrust Litigation, MDL 1566

	 	District of Nevada
(Judge Pro), Base Case
File No.
CV-S-03-1431-PMP (PAL)
	 	The Williams Companies,
Inc.; Williams Merchant
Services Company, Inc.;
Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)
	 
	 	 	 	 
	Arandell
Corporation, et al.
v. Xcel Energy, Inc.
et al.

	 	Wisconsin
(Consolidated in to
the above MDL 1566
matter) Case No.
02:07-CV-1019-PMP -PAL
	 	The Williams Companies,
Inc.; Williams Merchant
Services Company, Inc.;
Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)
	 
	 	 	 	 
	New Page Wisconsin
System, Inc. v. CMS
Resource Management
Company et al.

	 	Wisconsin
(Consolidated in to
the above MDL 1566
matter) Case No.:
CV-S-09-0915-PMP (PAL)
	 	The Williams Companies,
Inc.; Williams Merchant
Services Company, Inc.;
Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)
	 
	 	 	 	 
	Breckenridge Brewery
of Colorado, LLC, et
al. v. ONEOK, Inc.,
et al.

	 	Colorado (Consolidated
in to the above MDL
1566 matter) Case No.
2:06-CV-01351-PMP-PAL
	 	The Williams Companies,
Inc.; Williams Merchant
Services Company, Inc.;
Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)
	 
	 	 	 	 
	Heartland Regional
Medical Center, et
al. v. ONEOK, Inc.,
et al.

	 	Missouri (Consolidated
in to the above MDL
1566 matter) Case No.
02:07-CV-00987-PMP-PAL
	 	The Williams Companies,
Inc.; Williams Merchant
Services Company, Inc.;
Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)
	 
	 	 	 	 
	J.P. Morgan Trust
Company v. ONEOK,
In., et al.

	 	Kansas (Consolidated
in to the above MDL
1566 matter) Case No.
02:05-CV-01331-PMP-PAL
	 	The Williams Companies,
Inc.; Williams Merchant
Services Company, Inc.;
Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)
	 
	 	 	 	 
	Learjet, Inc., et
al. v. ONEOK, Inc.,
et al.

	 	Kansas (Consolidated
in to the above MDL
1566 matter) Case No.
02:06-CV
	 	The Williams Companies,
Inc.; Williams Merchant
Services Company, Inc.;
Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)
	 
	 	 	 	 
	Scott Thompson Indemnification Claim

	 	Not yet filed. Demand
letter dated 12/28/10
	 	The Williams Companies,
Inc.; Williams Energy
Marketing & Trading
(now known as Williams
Gas Marketing, Inc)

[Schedule 8.3(e) to Separation and Distribution Agreement]

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